Amends the Illinois Insurance Code. Provides that every automobile insurance policy issued, renewed, or delivered in Illinois that includes first-party coverage for physical damage shall contain a provision granting either the insured or the insurer the right to invoke appraisal in the event of a dispute over (i) the actual cash value or amount of a loss, including repairable or total loss amounts; or (ii) the value of a settlement offer made to a third-party claimant. Sets forth provisions concerning the selection of appraisers; appointment of an umpire in the event of a disagreement between appraisers; issuance of the award following the appraisal; the binding effect of an agreement between appraisers or one appraiser and the umpire; cost allocation and consumer protections; the right of appraisal for third-party claimants; and enforcement and penalties. Creates the Automotive Appraisal Standards Advisory Board to provide guidance on rulemaking, enforcement priorities, and best practices. Sets forth membership provisions and provides that the Board shall meet no less than quarterly and may issue nonbinding recommendations to the Department of Insurance regarding updates to rules and emerging trends impacting fair claim resolution. Requires the Department to publish meeting summaries and any formal recommendations on its public website. Provides that the Department may adopt rules necessary to implement and enforce provisions concerning the right to appraisal. Effective 90 days after becoming law.
House Floor Amendment No. 1: Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Removes provisions concerning the Automotive Appraisal Standards Advisory Board. Removes provisions concerning third-party claims. Provides that, if the appraisers fail to agree on an umpire within 15 calendar days after they failed to agree on the amount of the loss or the settlement offer, either party may petition a court (instead of a court of competent jurisdiction or request assistance from the Department of Insurance) to appoint a suitable umpire. Provides that the Department shall maintain a list of competent and disinterested umpires and shall furnish that list to any party that requests the list. Provides that, if an umpire is selected pursuant to the provisions, a final award shall be determined within 5 calendar days after the umpire was selected. Removes a provision requiring the insurer to pay all appraisal and umpire fees if the final appraisal award is 10% or more favorable to the policyholder compared to the insurer's last written offer prior to appraisal. Provides that any insurer in Illinois that fails to comply with the appraisal provisions of the amendatory Act, including any refusal to participate in the process in good faith, shall be subject to administrative penalties imposed by the Department (instead of being subject to a specified civil penalty, additional administrative penalties, and liability for reasonable attorney's fees and appraisal costs). Removes provisions concerning rulemaking. Effective 90 days after becoming law.
Senate Committee Amendment No. 2: Replaces everything after the enacting clause. Amends the Illinois Insurance Code. Provides that every policy of automobile insurance issued, renewed, or delivered on or after July 1, 2027 in Illinois that includes first-party coverage for physical damage shall contain a provision granting the insured, in the insured's sole discretion, without the company's consent or agreement required, and the insurer the right to invoke appraisal if there is a dispute over the amount of a loss. Provides that, if a dispute arises regarding the amount of a loss, either party may submit a written demand for appraisal. Sets forth provisions concerning required actions for the selected appraisers and provides for the selection of an umpire if an agreement is not reached. Sets forth provisions concerning issuance of the award determining the amount of loss and cost allocation. Effective July 1, 2027.

Statutes affected:
Introduced: 215 ILCS 5/143
Engrossed: 215 ILCS 5/143
Enrolled: 215 ILCS 5/398