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Public Act 102-0069


 

Public Act 0069 102ND GENERAL ASSEMBLY

  
  
  

 


 
Public Act 102-0069
 
SB0061 EnrolledLRB102 05100 BMS 15120 b

    AN ACT concerning regulation.
 
    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 Section 154.6 and by adding Section 154.9 as follows:
 
    (215 ILCS 5/154.6)  (from Ch. 73, par. 766.6)
    Sec. 154.6. Acts constituting improper claims practice.
Any of the following acts by a company, if committed without
just cause and in violation of Section 154.5, constitutes an
improper claims practice:
    (a) Knowingly misrepresenting to claimants and insureds
relevant facts or policy provisions relating to coverages at
issue;
    (b) Failing to acknowledge with reasonable promptness
pertinent communications with respect to claims arising under
its policies;
    (c) Failing to adopt and implement reasonable standards
for the prompt investigations and settlement of claims arising
under its policies;
    (d) Not attempting in good faith to effectuate prompt,
fair and equitable settlement of claims submitted in which
liability has become reasonably clear;
    (e) Compelling policyholders to institute suits to recover
amounts due under its policies by offering substantially less
than the amounts ultimately recovered in suits brought by
them;
    (f) Engaging in activity which results in a
disproportionate number of meritorious complaints against the
insurer received by the Insurance Department;
    (g) Engaging in activity which results in a
disproportionate number of lawsuits to be filed against the
insurer or its insureds by claimants;
    (h) Refusing to pay claims without conducting a reasonable
investigation based on all available information;
    (i) Failing to affirm or deny coverage of claims within a
reasonable time after proof of loss statements have been
completed;
    (j) Attempting to settle a claim for less than the amount
to which a reasonable person would believe the claimant was
entitled, by reference to written or printed advertising
material accompanying or made part of an application or
establishing unreasonable caps or limits on paint or materials
when estimating vehicle repairs;
    (k) Attempting to settle claims on the basis of an
application which was altered without notice to, or knowledge
or consent of, the insured;
    (l) Making a claims payment to a policyholder or
beneficiary omitting the coverage under which each payment is
being made;
    (m) Delaying the investigation or payment of claims by
requiring an insured, a claimant, or the physicians of either
to submit a preliminary claim report and then requiring
subsequent submission of formal proof of loss forms, resulting
in the duplication of verification;
    (n) Failing in the case of the denial of a claim or the
offer of a compromise settlement to promptly provide a
reasonable and accurate explanation of the basis in the
insurance policy or applicable law for such denial or
compromise settlement;
    (o) Failing to provide forms necessary to present claims
within 15 working days of a request with such explanations as
are necessary to use them effectively;
    (p) Failing to adopt and implement reasonable standards to
verify that a repairer designated by the insurance company to
provide an estimate, perform repairs, or engage in any other
service in connection with an insured loss on a vehicle is duly
licensed under Section 5-301 of the Illinois Vehicle Code;
    (q) Failing to provide as a persistent tendency a
notification on any written estimate prepared by an insurance
company in connection with an insured loss that Illinois law
requires that vehicle repairers must be licensed in accordance
with Section 5-301 of the Illinois Vehicle Code;
    (r) Failing to pay the replacement vehicle use or
occupation tax, title, and transfer fees required by Section
154.9 of this Code;
    (s) (r) Engaging in any other acts which are in substance
equivalent to any of the foregoing.
(Source: P.A. 90-340, eff. 8-8-97.)
 
    (215 ILCS 5/154.9 new)
    Sec. 154.9. Payment of applicable use or occupation tax,
title, and transfer fees on a private passenger total loss
claim.
    (a) When an insurer determines that an insured's or
third-party claimant's private passenger automobile is a total
loss that is covered under the terms of a personal automobile
policy issued or renewed on or after July 1, 2022 by the
insurer, the insurer shall pay any use or occupation tax
imposed by the State or a unit of local government and title
and transfer fees as provided for in this Section. As used in
this Section, "private passenger vehicle" means a private
passenger motor vehicle, station wagon, or any other 4-wheeled
motor vehicle with a load capacity of 1,500 pounds or less that
is not used in the occupation, profession, or business of the
insured or third-party claimant, not used as a public or
livery conveyance for passengers, nor rented to others.
    (b) If the insurer elects to replace the insured vehicle,
the insurer shall pay any use or occupation tax imposed by the
State or a unit of local government tax and title and transfer
fees on the replacement vehicle.
    (c) If a cash settlement is provided for the total loss
private passenger vehicle, the insurer shall reimburse the
insured or third-party claimant for any use or occupation tax
imposed by the State or a unit of local government and title
and transfer fees if the replacement vehicle is purchased or
leased within 30 days after the receipt of the cash settlement
by the insured or third-party claimant and the insured or
third-party claimant substantiates such purchase and the
payment of such taxes and fees by submission of appropriate
documentation to the insurer within 33 days after the receipt
of the settlement or receipt of the required reimbursement
form from the insurer, whichever is later.
        (1) With respect to leased vehicles, use or occupation
    taxes and title and transfer fees shall be deemed to be
    incurred by the insured or the third-party claimant at the
    time the lease is entered into, but only if such use or
    occupation taxes and title and transfer fees are included
    in the cost of the lease or are paid directly by the
    insured or third-party claimant.
        (2) The insurer is not required to reimburse the
    insured or third-party claimant for any use or occupation
    taxes and title or transfer fees in excess of the amount
    payable based on the value of the total loss vehicle at the
    time of the loss or for taxes and title or transfer fees
    not actually paid by the insured or third-party claimant.
        (3) In lieu of this reimbursement procedure, the
    insurer may directly pay the required amount of any use or
    occupation taxes and title and transfer fees to the
    claimant at the time of settlement.
        (4) If an insurer requires a particular form be used
    to apply for reimbursement of any use or occupation taxes
    and title or transfer fees, the form must be delivered to
    the insured or third-party claimant at or before the time
    of settlement.
    (d) The Department may adopt rules establishing uniform
standards for implementation of this Section, including, but
not limited to, prescribing the method of determining the
market value of the insured's or third-party claimant's
vehicle.
 
    Section 99. Effective date. This Act takes effect July 1,
2022.

Effective Date: 7/1/2022