Public Act 93-0485
SB1207 Enrolled LRB093 03430 JLS 11035 b
AN ACT concerning insurance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Sections 143a and 155 as follows:
(215 ILCS 5/143a) (from Ch. 73, par. 755a)
Sec. 143a. Uninsured and hit and run motor vehicle
coverage.
(1) No policy insuring against loss resulting from
liability imposed by law for bodily injury or death suffered
by any person arising out of the ownership, maintenance or
use of a motor vehicle that is designed for use on public
highways and that is either required to be registered in this
State or is principally garaged in this State shall be
renewed, delivered, or issued for delivery in this State
unless coverage is provided therein or supplemental thereto,
in limits for bodily injury or death set forth in Section
7-203 of the Illinois Vehicle Code for the protection of
persons insured thereunder who are legally entitled to
recover damages from owners or operators of uninsured motor
vehicles and hit-and-run motor vehicles because of bodily
injury, sickness or disease, including death, resulting
therefrom. Uninsured motor vehicle coverage does not apply to
bodily injury, sickness, disease, or death resulting
therefrom, of an insured while occupying a motor vehicle
owned by, or furnished or available for the regular use of
the insured, a resident spouse or resident relative, if that
motor vehicle is not described in the policy under which a
claim is made or is not a newly acquired or replacement motor
vehicle covered under the terms of the policy. The limits
for any coverage for any vehicle under the policy may not be
aggregated with the limits for any similar coverage, whether
provided by the same insurer or another insurer, applying to
other motor vehicles, for purposes of determining the total
limit of insurance coverage available for bodily injury or
death suffered by a person in any one accident. No policy
shall be renewed, delivered, or issued for delivery in this
State unless it is provided therein that any dispute with
respect to the coverage and the amount of damages shall be
submitted for arbitration to the American Arbitration
Association and be subject to its rules for the conduct of
arbitration hearings as to all matters except medical
opinions. As to medical opinions, if the amount of damages
being sought is equal to or less than the amount provided for
in Section 7-203 of the Illinois Vehicle Code, then the
current American Arbitration Association Rules shall apply.
If the amount being sought in an American Arbitration
Association case exceeds that amount as set forth in Section
7-203 of the Illinois Vehicle Code, then the Rules of
Evidence that apply in the circuit court for placing medical
opinions into evidence shall govern. Alternatively, disputes
with respect to damages and the coverage shall be determined
in the following manner: Upon the insured requesting
arbitration, each party to the dispute shall select an
arbitrator and the 2 arbitrators so named shall select a
third arbitrator. If such arbitrators are not selected
within 45 days from such request, either party may request
that the arbitration be submitted to the American Arbitration
Association. Any decision made by the arbitrators shall be
binding for the amount of damages not exceeding $50,000 the
limits for bodily injury to or death of any one person,
$100,000 for bodily injury to or death of 2 or more persons
in any one motor vehicle accident, or the corresponding
policy limits for bodily injury or death, whichever is less
set forth in Section 7-203 of the Illinois Vehicle Code. All
3-person arbitration cases proceeding in accordance with any
uninsured motorist coverage conducted in this State in which
the claimant is only seeking monetary damages up to the
limits set forth in Section 7-203 of the Illinois Vehicle
Code shall be subject to the following rules:
(A) If at least 60 days' written notice of the
intention to offer the following documents in evidence is
given to every other party, accompanied by a copy of the
document, a party may offer in evidence, without
foundation or other proof:
(1) bills, records, and reports of hospitals,
doctors, dentists, registered nurses, licensed
practical nurses, physical therapists, and other
healthcare providers;
(2) bills for drugs, medical appliances, and
prostheses;
(3) property repair bills or estimates, when
identified and itemized setting forth the charges
for labor and material used or proposed for use in
the repair of the property;
(4) a report of the rate of earnings and time
lost from work or lost compensation prepared by an
employer;
(5) the written opinion of an opinion witness,
the deposition of a witness, and the statement of a
witness that the witness would be allowed to express
if testifying in person, if the opinion or statement
is made by affidavit or by certification as provided
in Section 1-109 of the Code of Civil Procedure;
(6) any other document not specifically
covered by any of the foregoing provisions that is
otherwise admissible under the rules of evidence.
Any party receiving a notice under this paragraph
(A) may apply to the arbitrator or panel of arbitrators,
as the case may be, for the issuance of a subpoena
directed to the author or maker or custodian of the
document that is the subject of the notice, requiring the
person subpoenaed to produce copies of any additional
documents as may be related to the subject matter of the
document that is the subject of the notice. Any such
subpoena shall be issued in substantially similar form
and served by notice as provided by Illinois Supreme
Court Rule 204(a)(4). Any such subpoena shall be
returnable not less than 5 days before the arbitration
hearing.
(B) Notwithstanding the provisions of Supreme Court
Rule 213(g), a party who proposes to use a written
opinion of an expert or opinion witness or the testimony
of an expert or opinion witness at the hearing may do so
provided a written notice of that intention is given to
every other party not less than 60 days prior to the date
of hearing, accompanied by a statement containing the
identity of the witness, his or her qualifications, the
subject matter, the basis of the witness's conclusions,
and his or her opinion.
(C) Any other party may subpoena the author or
maker of a document admissible under this subsection, at
that party's expense, and examine the author or maker as
if under cross-examination. The provisions of Section
2-1101 of the Code of Civil Procedure shall be applicable
to arbitration hearings, and it shall be the duty of a
party requesting the subpoena to modify the form to show
that the appearance is set before an arbitration panel
and to give the time and place set for the hearing.
(D) The provisions of Section 2-1102 of the Code of
Civil Procedure shall be applicable to arbitration
hearings under this subsection.
(2) No policy insuring against loss resulting from
liability imposed by law for property damage arising out of
the ownership, maintenance, or use of a motor vehicle shall
be renewed, delivered, or issued for delivery in this State
with respect to any private passenger or recreational motor
vehicle that is designed for use on public highways and that
is either required to be registered in this State or is
principally garaged in this State and is not covered by
collision insurance under the provisions of such policy,
unless coverage is made available in the amount of the actual
cash value of the motor vehicle described in the policy or
$15,000 whichever is less, subject to a $250 deductible, for
the protection of persons insured thereunder who are legally
entitled to recover damages from owners or operators of
uninsured motor vehicles and hit-and-run motor vehicles
because of property damage to the motor vehicle described in
the policy.
There shall be no liability imposed under the uninsured
motorist property damage coverage required by this subsection
if the owner or operator of the at-fault uninsured motor
vehicle or hit-and-run motor vehicle cannot be identified.
This subsection shall not apply to any policy which does not
provide primary motor vehicle liability insurance for
liabilities arising from the maintenance, operation, or use
of a specifically insured motor vehicle.
Each insurance company providing motor vehicle property
damage liability insurance shall advise applicants of the
availability of uninsured motor vehicle property damage
coverage, the premium therefor, and provide a brief
description of the coverage. Each insurer, with respect to
the initial renewal, reinstatement, or reissuance of a policy
of motor vehicle property damage liability insurance shall
provide present policyholders with the same information in
writing. That information need be given only once and shall
not be required in any subsequent renewal, reinstatement or
reissuance, substitute, amended, replacement or supplementary
policy. No written rejection shall be required, and the
absence of a premium payment for uninsured motor vehicle
property damage shall constitute conclusive proof that the
applicant or policyholder has elected not to accept uninsured
motorist property damage coverage.
An insurance company issuing uninsured motor vehicle
property damage coverage may provide that:
(i) Property damage losses recoverable thereunder
shall be limited to damages caused by the actual physical
contact of an uninsured motor vehicle with the insured
motor vehicle.
(ii) There shall be no coverage for loss of use of
the insured motor vehicle and no coverage for loss or
damage to personal property located in the insured motor
vehicle.
(iii) Any claim submitted shall include the name
and address of the owner of the at-fault uninsured motor
vehicle, or a registration number and description of the
vehicle, or any other available information to establish
that there is no applicable motor vehicle property damage
liability insurance.
Any dispute with respect to the coverage and the amount
of damages shall be submitted for arbitration to the American
Arbitration Association and be subject to its rules for the
conduct of arbitration hearings or for determination in the
following manner: Upon the insured requesting arbitration,
each party to the dispute shall select an arbitrator and the
2 arbitrators so named shall select a third arbitrator. If
such arbitrators are not selected within 45 days from such
request, either party may request that the arbitration be
submitted to the American Arbitration Association. Any
arbitration proceeding under this subsection seeking recovery
for property damages shall be subject to the following rules:
(A) If at least 60 days' written notice of the
intention to offer the following documents in evidence is
given to every other party, accompanied by a copy of the
document, a party may offer in evidence, without
foundation or other proof:
(1) property repair bills or estimates, when
identified and itemized setting forth the charges
for labor and material used or proposed for use in
the repair of the property;
(2) the written opinion of an opinion witness,
the deposition of a witness, and the statement of a
witness that the witness would be allowed to express
if testifying in person, if the opinion or statement
is made by affidavit or by certification as provided
in Section 1-109 of the Code of Civil Procedure;
(3) any other document not specifically
covered by any of the foregoing provisions that is
otherwise admissible under the rules of evidence.
Any party receiving a notice under this paragraph
(A) may apply to the arbitrator or panel of arbitrators,
as the case may be, for the issuance of a subpoena
directed to the author or maker or custodian of the
document that is the subject of the notice, requiring the
person subpoenaed to produce copies of any additional
documents as may be related to the subject matter of the
document that is the subject of the notice. Any such
subpoena shall be issued in substantially similar form
and served by notice as provided by Illinois Supreme
Court Rule 204(a)(4). Any such subpoena shall be
returnable not less than 5 days before the arbitration
hearing.
(B) Notwithstanding the provisions of Supreme Court
Rule 213(g), a party who proposes to use a written
opinion of an expert or opinion witness or the testimony
of an expert or opinion witness at the hearing may do so
provided a written notice of that intention is given to
every other party not less than 60 days prior to the date
of hearing, accompanied by a statement containing the
identity of the witness, his or her qualifications, the
subject matter, the basis of the witness's conclusions,
and his or her opinion.
(C) Any other party may subpoena the author or
maker of a document admissible under this subsection, at
that party's expense, and examine the author or maker as
if under cross-examination. The provisions of Section
2-1101 of the Code of Civil Procedure shall be applicable
to arbitration hearings, and it shall be the duty of a
party requesting the subpoena to modify the form to show
that the appearance is set before an arbitration panel
and to give the time and place set for the hearing.
(D) The provisions of Section 2-1102 of the Code of
Civil Procedure shall be applicable to arbitration
hearings under this subsection.
(3) For the purpose of the coverage the term "uninsured
motor vehicle" includes, subject to the terms and conditions
of the coverage, a motor vehicle where on, before or after
the accident date the liability insurer thereof is unable to
make payment with respect to the legal liability of its
insured within the limits specified in the policy because of
the entry by a court of competent jurisdiction of an order of
rehabilitation or liquidation by reason of insolvency on or
after the accident date. An insurer's extension of coverage,
as provided in this subsection, shall be applicable to all
accidents occurring after July 1, 1967 during a policy period
in which its insured's uninsured motor vehicle coverage is in
effect. Nothing in this Section may be construed to prevent
any insurer from extending coverage under terms and
conditions more favorable to its insureds than is required by
this Section.
(4) In the event of payment to any person under the
coverage required by this Section and subject to the terms
and conditions of the coverage, the insurer making the
payment shall, to the extent thereof, be entitled to the
proceeds of any settlement or judgment resulting from the
exercise of any rights of recovery of the person against any
person or organization legally responsible for the property
damage, bodily injury or death for which the payment is made,
including the proceeds recoverable from the assets of the
insolvent insurer. With respect to payments made by reason of
the coverage described in subsection (3), the insurer making
such payment shall not be entitled to any right of recovery
against the tort-feasor in excess of the proceeds recovered
from the assets of the insolvent insurer of the tort-feasor.
(5) This amendatory Act of 1967 shall not be construed
to terminate or reduce any insurance coverage or any right of
any party under this Code in effect before July 1, 1967. This
amendatory Act of 1990 shall not be construed to terminate or
reduce any insurance coverage or any right of any party under
this Code in effect before its effective date.
(6) Failure of the motorist from whom the claimant is
legally entitled to recover damages to file the appropriate
forms with the Safety Responsibility Section of the
Department of Transportation within 120 days of the accident
date shall create a rebuttable presumption that the motorist
was uninsured at the time of the injurious occurrence.
(7) An insurance carrier may upon good cause require the
insured to commence a legal action against the owner or
operator of an uninsured motor vehicle before good faith
negotiation with the carrier. If the action is commenced at
the request of the insurance carrier, the carrier shall pay
to the insured, before the action is commenced, all court
costs, jury fees and sheriff's fees arising from the action.
The changes made by this amendatory Act of 1997 apply to
all policies of insurance amended, delivered, issued, or
renewed on and after the effective date of this amendatory
Act of 1997.
(Source: P.A. 89-206, eff. 7-21-95; 90-451, eff. 1-1-98.)
(215 ILCS 5/155) (from Ch. 73, par. 767)
Sec. 155. Attorney fees.)
(1) In any action by or against a company wherein there
is in issue the liability of a company on a policy or
policies of insurance or the amount of the loss payable
thereunder, or for an unreasonable delay in settling a claim,
and it appears to the court that such action or delay is
vexatious and unreasonable, the court may allow as part of
the taxable costs in the action reasonable attorney fees,
other costs, plus an amount not to exceed any one of the
following amounts:
(a) 60% 25% of the amount which the court or jury finds
such party is entitled to recover against the company,
exclusive of all costs;
(b) $60,000 $25,000;
(c) the excess of the amount which the court or jury
finds such party is entitled to recover, exclusive of costs,
over the amount, if any, which the company offered to pay in
settlement of the claim prior to the action.
(2) Where there are several policies insuring the same
insured against the same loss whether issued by the same or
by different companies, the court may fix the amount of the
allowance so that the total attorney fees on account of one
loss shall not be increased by reason of the fact that the
insured brings separate suits on such policies.
(Source: P.A. 84-678.)