Public Act 0767 104TH GENERAL ASSEMBLY
 

 
Public Act 104-0767
 
HB4160 EnrolledLRB104 15794 BAB 28989 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois, 
represented in the General Assembly:
 
    Section 5. The Illinois Insurance Code is amended by 
adding Section 398 as follows:
 
    (215 ILCS 5/398 new)
    Sec. 398. Right to appraisal. 
    (a) Definitions. As used in this Section:
    "Actual cash value" means the market value of the subject 
property of the personal automobile insurance policy 
immediately before it was damaged.
    "Amount of loss" means:
        (1) with regard to the repair of the vehicle, the cost 
    to repair the damage to the subject property expressed 
    monetarily in the context of the repair of a vehicle; and
        (2) with regard to the value of the vehicle, the 
    actual cash value of the vehicle.
    "Appraiser" means an individual selected to determine the 
value of the disputed loss.
    "Competent" means an individual with appropriate subject 
matter expertise, training, and experience in automobile 
damage valuation and claims practices.
    "Disinterested" means an individual having no direct or 
indirect financial interest in the outcome of the appraisal.
    "Umpire" means a neutral, competent, and disinterested 
individual with relevant experience in vehicle damage 
assessment.
    (b) Right to appraisal for first-party claims.
        (1) Every policy of automobile insurance, as defined 
    in subsection (a) of Section 143.13, 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.
        (2) If a dispute arises regarding the amount of a 
    loss, either party may submit a written demand for 
    appraisal. Within 7 business days after receiving the 
    demand, each party shall:
            (A) select a competent and disinterested 
        appraiser; and 
            (B) notify the opposing party in writing of the 
        selection. 
        (3) The 2 appraisers shall independently determine the 
    amount of loss. If the appraisers fail to agree on the 
    amount of a loss within 5 business days after the date of 
    their appointment, they shall jointly select an umpire. If 
    the appraisers fail to agree on an umpire within 15 
    business days after they failed to agree on the amount of 
    the loss, either party may petition a court to appoint a 
    suitable umpire.
        (4) The 2 appraisers or, if there is a disagreement 
    under paragraph (3), one appraiser and the umpire shall 
    issue an award determining the amount of the loss. A final 
    award shall be determined within 5 business days after the 
    umpire was selected.
        (5) An agreement by any 2 of the 3, either both 
    appraisers or one appraiser and the umpire, shall be 
    binding upon all parties.
    (c) Cost allocation.
        (1) Each party shall bear the cost of its own 
    appraiser.
        (2) The cost of the umpire shall be shared equally 
    between the parties.
 
    Section 99. Effective date. This Act takes effect July 1, 
2027.