Bill Text: IL HB3951 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. In provisions concerning private passenger total loss claims, provides that a 30-day period within which a replacement vehicle must be purchased or leased in order for an insurer to 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 shall be extended for the duration of a medical condition that results in the incapacitation of the insured.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2023-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB3951 Detail]

Download: Illinois-2023-HB3951-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3951 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
215 ILCS 5/154.9
Amends the Illinois Insurance Code. In provisions concerning private passenger total loss claims, provides that a 30-day period within which a replacement vehicle must be purchased or leased in order for an insurer to 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 shall be extended for the duration of a medical condition that results in the incapacitation of the insured.
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A BILL FOR
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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 154.9 as follows:
(215 ILCS 5/154.9)
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,

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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

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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 30-day period within which a replacement vehicle
must be purchased or leased under subsection (c) shall be
extended for the duration of a medical condition that results
in the incapacitation of the insured.
(e) (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.
(Source: P.A. 102-69, eff. 7-1-22.)