SB 61

Abstract

Amends the Illinois Insurance Code. Provides that it is an improper claims practice for a domestic, foreign, or alien company transacting business in this State to fail to pay the replacement vehicle use or occupation tax, title, and transfer fees on a private passenger total loss claim if that act is committed knowingly in violation of the Code, has been committed with such frequency to indicate a persistent tendency to engage in that type of conduct, and is committed without just cause. Provides that an insurer shall pay use or occupation tax, title, and transfer fees when the insurer determines that an insured's or third-party claimant's private passenger automobile is a total loss covered under the terms of a personal automobile policy issued by the insurer. Provides that if an insurer elects to replace the insured vehicle, the insurer shall pay the use or occupation tax, title, and transfer fees on the replacement vehicle. Provides that if a cash settlement is provided for the total loss private passenger vehicle, an insurer shall reimburse or directly pay the insured or third-party claimant for replacement vehicle use or occupation tax, title, and transfer fees under specified conditions. Grants the Department of Insurance rulemaking authority. Effective January 1, 2022. Senate Committee Amendment No. 1 Replaces everything after the enacting clause with the provisions of the introduced bill with the following changes. Provides that for personal automobile policies issued or renewed on or after July 1, 2022 (rather than policies issued by an insurer) it is an improper claims practice for a domestic, foreign, or alien company transacting business in this State to fail to pay the replacement vehicle use or occupation tax, title, and transfer fees on a private passenger total loss claim if that act is committed knowingly in violation of the Code, has been committed with such frequency to indicate a persistent tendency to engage in that type of conduct, and is committed without just cause. Changes the effective date from January 1, 2022 to July 1, 2022.