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. LRB103 26198 BMS 52557 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3951 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED: 215 ILCS 5/154.9 215 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. LRB103 26198 BMS 52557 b LRB103 26198 BMS 52557 b A BILL FOR
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3951 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
215 ILCS 5/154.9 215 ILCS 5/154.9
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.
LRB103 26198 BMS 52557 b LRB103 26198 BMS 52557 b
LRB103 26198 BMS 52557 b
A BILL FOR
HB3951LRB103 26198 BMS 52557 b HB3951 LRB103 26198 BMS 52557 b
HB3951 LRB103 26198 BMS 52557 b
1 AN ACT concerning regulation.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5 changing Section 154.9 as follows:
6 (215 ILCS 5/154.9)
7 Sec. 154.9. Payment of applicable use or occupation tax,
8 title, and transfer fees on a private passenger total loss
9 claim.
10 (a) When an insurer determines that an insured's or
11 third-party claimant's private passenger automobile is a total
12 loss that is covered under the terms of a personal automobile
13 policy issued or renewed on or after July 1, 2022 by the
14 insurer, the insurer shall pay any use or occupation tax
15 imposed by the State or a unit of local government and title
16 and transfer fees as provided for in this Section. As used in
17 this Section, "private passenger vehicle" means a private
18 passenger motor vehicle, station wagon, or any other 4-wheeled
19 motor vehicle with a load capacity of 1,500 pounds or less that
20 is not used in the occupation, profession, or business of the
21 insured or third-party claimant, not used as a public or
22 livery conveyance for passengers, nor rented to others.
23 (b) If the insurer elects to replace the insured vehicle,
103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB3951 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
215 ILCS 5/154.9 215 ILCS 5/154.9
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.
LRB103 26198 BMS 52557 b LRB103 26198 BMS 52557 b
LRB103 26198 BMS 52557 b
A BILL FOR
215 ILCS 5/154.9
LRB103 26198 BMS 52557 b
HB3951 LRB103 26198 BMS 52557 b
HB3951- 2 -LRB103 26198 BMS 52557 b HB3951 - 2 - LRB103 26198 BMS 52557 b
HB3951 - 2 - LRB103 26198 BMS 52557 b
1 the insurer shall pay any use or occupation tax imposed by the
2 State or a unit of local government tax and title and transfer
3 fees on the replacement vehicle.
4 (c) If a cash settlement is provided for the total loss
5 private passenger vehicle, the insurer shall reimburse the
6 insured or third-party claimant for any use or occupation tax
7 imposed by the State or a unit of local government and title
8 and transfer fees if the replacement vehicle is purchased or
9 leased within 30 days after the receipt of the cash settlement
10 by the insured or third-party claimant and the insured or
11 third-party claimant substantiates such purchase and the
12 payment of such taxes and fees by submission of appropriate
13 documentation to the insurer within 33 days after the receipt
14 of the settlement or receipt of the required reimbursement
15 form from the insurer, whichever is later.
16 (1) With respect to leased vehicles, use or occupation
17 taxes and title and transfer fees shall be deemed to be
18 incurred by the insured or the third-party claimant at the
19 time the lease is entered into, but only if such use or
20 occupation taxes and title and transfer fees are included
21 in the cost of the lease or are paid directly by the
22 insured or third-party claimant.
23 (2) The insurer is not required to reimburse the
24 insured or third-party claimant for any use or occupation
25 taxes and title or transfer fees in excess of the amount
26 payable based on the value of the total loss vehicle at the
HB3951 - 2 - LRB103 26198 BMS 52557 b
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HB3951 - 3 - LRB103 26198 BMS 52557 b
1 time of the loss or for taxes and title or transfer fees
2 not actually paid by the insured or third-party claimant.
3 (3) In lieu of this reimbursement procedure, the
4 insurer may directly pay the required amount of any use or
5 occupation taxes and title and transfer fees to the
6 claimant at the time of settlement.
7 (4) If an insurer requires a particular form be used
8 to apply for reimbursement of any use or occupation taxes
9 and title or transfer fees, the form must be delivered to
10 the insured or third-party claimant at or before the time
11 of settlement.
12 (d) The 30-day period within which a replacement vehicle
13 must be purchased or leased under subsection (c) shall be
14 extended for the duration of a medical condition that results
15 in the incapacitation of the insured.
16 (e) (d) The Department may adopt rules establishing
17 uniform standards for implementation of this Section,
18 including, but not limited to, prescribing the method of
19 determining the market value of the insured's or third-party
20 claimant's vehicle.
21 (Source: P.A. 102-69, eff. 7-1-22.)
HB3951 - 3 - LRB103 26198 BMS 52557 b