Sen. John G. Mulroe
Filed: 3/10/2017
 
 

 

 

 
10000SB1545sam001LRB100 08730 AXK 23399 a



1
AMENDMENT TO SENATE BILL 1545




2    AMENDMENT NO. ______. Amend Senate Bill 1545 by replacing 
3everything after the enacting clause with the following:

 
4    "Section 5. The Illinois Vehicle Code is amended  by adding 
5Section 3-202.5 as follows:
 
6    (625 ILCS 5/3-202.5  new)
7    Sec. 3-202.5. Lienholder interest; insurance payments.
8    (a) An owner of a vehicle shall maintain comprehensive, 
9collision, or other insurance coverage for the damage or loss 
10of a vehicle if the coverage is required under the terms of a 
11loan agreement between the owner and a lienholder identified on 
12the vehicle's certificate of title. The owner, lienholder, or 
13agent or representative of the lienholder shall provide the 
14lienholder's name and address to the insurance company issuing 
15the insurance coverage and shall request that an endorsement to 
16the policy be issued naming the lienholder as an additional 
 
 
10000SB1545sam001- 2 -LRB100 08730 AXK 23399 a

1insured entity, which shall be immediately issued by the 
2insurer.
3    (b) An insurer paying a claim under this Section for the 
4damage or loss of a vehicle shall issue the payment to both the 
5owner of the vehicle and the lienholder. An insurer's 
6obligation to issue payments to both the owner of the vehicle 
7and the lienholder shall not apply to a claim paid under a 
8lienholder's collateral protection insurance policy on a 
9vehicle securing the lienholder's loan when the vehicle owner 
10has failed to satisfy a loan condition to provide insurance 
11coverage for the damage or loss of the vehicle.".