Bill Text: IL HB1092 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. In a definition of "uninsured motor vehicle", includes a motor vehicle to which a bodily injury liability bond or policy applies at the time of the accident but the limit of the policy has been reduced by payments to other persons, resulting from the same accident, to an amount less than the limits for bodily injury or death set forth in the Illinois Vehicle Code.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2011-03-17 - Tabled By Sponsor Rep. Jim Watson [HB1092 Detail]

Download: Illinois-2011-HB1092-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB1092 Introduced 2/4/2011, by Rep. Jim Watson SYNOPSIS AS INTRODUCED:
215 ILCS 5/143a from Ch. 73, par. 755a
Amends the Illinois Insurance Code. In a definition of "uninsured motor vehicle", includes a motor vehicle to which a bodily injury liability bond or policy applies at the time of the accident but the limit of the policy has been reduced by payments to other persons, resulting from the same accident, to an amount less than the limits for bodily injury or death set forth in the Illinois Vehicle Code.
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A BILL FOR
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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 Section 143a 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

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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.

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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 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. 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

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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

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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

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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

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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

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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

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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

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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. "Uninsured motor vehicle" includes a motor vehicle to

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which a bodily injury liability bond or policy applies at the
time of the accident but the limit of the policy has been
reduced by payments to other persons, resulting from the same
accident, to an amount less than the limits for bodily injury
or death set forth in Section 7-203 of the Illinois Vehicle
Code. 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

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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. 93-485, eff. 1-1-04.)