Bill Text: IL HB4890 | 2019-2020 | 101st General Assembly | Introduced
Bill Title: Amends the Illinois Insurance Code. Makes a technical change in a Section concerning collision insurance coverage.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-02-18 - Referred to Rules Committee [HB4890 Detail]
Download: Illinois-2019-HB4890-Introduced.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | |||||||||||||||||||
5 | changing Section 143b as follows:
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6 | (215 ILCS 5/143b) (from Ch. 73, par. 755b)
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7 | Sec. 143b.
Any insurance carrier whose payment to its | |||||||||||||||||||
8 | insured is reduced by a
deductible amount under a policy | |||||||||||||||||||
9 | providing collision coverage is
subrogated to its insured's | |||||||||||||||||||
10 | entire collision loss claim including the the
deductible amount | |||||||||||||||||||
11 | unless the deductible amount has been otherwise
recovered by | |||||||||||||||||||
12 | the insured, but if the deductible amount has been
otherwise | |||||||||||||||||||
13 | recovered by the insured it shall not be included in the
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14 | subrogated loss claim and shall be excluded from the amount of | |||||||||||||||||||
15 | loss
pleaded. If the deductible amount is included
in the | |||||||||||||||||||
16 | subrogated loss
claim the insurance carrier shall pay the full | |||||||||||||||||||
17 | pro rata deductible share to its
insured out of the net
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18 | recovery on the subrogated claim. Administrative
expenses of | |||||||||||||||||||
19 | the insurance carrier
cannot be deducted from the gross | |||||||||||||||||||
20 | recovery, and only incurred expenses of
the carrier, such as | |||||||||||||||||||
21 | attorney's fees, collection fees and adjuster's fees,
may be | |||||||||||||||||||
22 | deducted therefrom to determine the net recovery. When the | |||||||||||||||||||
23 | insurance
carrier is recovering directly from a third party a |
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1 | claim by means of installments,
the insured shall receive his | ||||||
2 | full
pro rata deductible share as soon as such amount is | ||||||
3 | collected and before
any part of such recovery is applied to | ||||||
4 | any other use.
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5 | (Source: P.A. 83-588.)
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