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| Public Act 102-0069 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Section 154.6 and by adding Section 154.9 as follows:
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(215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
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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:
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(a) Knowingly misrepresenting to claimants and insureds | ||||
relevant
facts or policy provisions relating to coverages at | ||||
issue;
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(b) Failing to acknowledge with reasonable promptness | ||||
pertinent
communications with respect to claims arising under | ||||
its policies;
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(c) Failing to adopt and implement reasonable standards | ||||
for the
prompt investigations and settlement of claims arising | ||||
under its policies;
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(d) Not attempting in good faith to effectuate prompt, | ||||
fair and
equitable settlement of claims submitted in which | ||||
liability has become
reasonably clear;
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(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;
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(f) Engaging in activity which results in a | ||
disproportionate number
of meritorious complaints against the | ||
insurer received by the Insurance
Department;
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(g) Engaging in activity which results in a | ||
disproportionate number
of lawsuits to be filed against the | ||
insurer or its insureds by
claimants;
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(h) Refusing to pay claims without conducting a reasonable
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investigation based on all available information;
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(i) Failing to affirm or deny coverage of claims within a | ||
reasonable
time after proof of loss statements have been | ||
completed;
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(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
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when estimating vehicle repairs;
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(k) Attempting to settle claims on the basis of an | ||
application which
was altered without notice to, or knowledge | ||
or consent of, the insured;
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(l) Making a claims payment to a policyholder or | ||
beneficiary
omitting the coverage under which each payment is | ||
being made;
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(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;
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(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;
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(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;
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(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;
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(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;
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(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.
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(Source: P.A. 90-340, eff. 8-8-97.)
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(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.
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Section 99. Effective date. This Act takes effect July 1, | ||
2022.
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