Sen. Julie A. Morrison
Filed: 4/29/2026
 
 

 
 

 
10400HB4160sam001LRB104 15794 BAB 37100 a

1
AMENDMENT TO HOUSE BILL 4160

2    AMENDMENT NO. ______. Amend House Bill 4160 by replacing 
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Insurance Code is amended by 
5adding Section 143.13b as follows:
 
6    (215 ILCS 5/143.13b new)
7    Sec. 143.13b. Right to appraisal.
8    (a) Definitions. As used in this Section:
9    "Actual cash value" means the fair market value of the 
10subject property of the personal automobile insurance policy 
11immediately before it was damaged.
12    "Amount of loss" means:
13        (1) with regard to the repair of the vehicle, the cost 
14    to repair the damage to the subject property expressed 
15    monetarily in the context of the repair of a vehicle; and
16        (2) with regard to the value of the vehicle, the 
 
 
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1    actual cash value of the vehicle.
2    "Appraiser" means an individual selected to determine the 
3value of the disputed loss.
4    "Business day" means Monday through Friday, excluding 
5federal and State holidays. 
6    "Competent" means an individual with appropriate subject 
7matter expertise, training, and experience in automobile 
8damage valuation and claims practices.
9    "Disinterested" means an individual having no direct or 
10indirect financial interest in the outcome of the appraisal.
11    "Umpire" means a neutral, competent, and disinterested 
12individual with relevant experience in vehicle damage 
13assessment, selected under paragraph (3) of subsection (b).
14    (b) Right to appraisal for first-party claims.
15        (1) Every automobile insurance policy issued, renewed, 
16    or delivered in Illinois that includes first-party 
17    coverage for physical damage shall contain a provision 
18    granting either the insured or the insurer the right to 
19    invoke appraisal if there is a dispute over the amount of a 
20    loss.
21        (2) If a dispute arises regarding the amount of a 
22    loss, either party may submit a written demand for 
23    appraisal. Within 7 business days after receiving the 
24    demand, each party shall:
25            (A) select a competent and disinterested 
26        appraiser; and 
 
 
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1            (B) notify the opposing party in writing of the 
2        selection. 
3        (3) The 2 appraisers shall independently determine the 
4    amount of loss. If the appraisers fail to agree on the 
5    amount of a loss within 5 business days after the date of 
6    their appointment, they shall jointly select a competent 
7    and disinterested umpire. If the appraisers fail to agree 
8    on an umpire within 15 business days after they failed to 
9    agree on the amount of the loss, either party may petition 
10    a court to appoint a suitable umpire. The Department shall 
11    maintain a list of competent and disinterested umpires and 
12    shall furnish that list to any party that requests the 
13    list. If an umpire is selected pursuant to this Section, a 
14    final award shall be determined within 5 business days 
15    after the umpire was selected.
16        (4) The 2 appraisers or, if there is a disagreement 
17    under paragraph (3), one appraiser and the umpire shall 
18    issue an award determining the amount of the loss.
19        (5) An agreement by any 2 of the 3, either both 
20    appraisers or one appraiser and the umpire, shall be 
21    binding upon all parties.
22    (c) Cost allocation and consumer protections.
23        (1) Each party shall bear the cost of its own 
24    appraiser.
25        (2) The cost of the umpire shall be shared equally 
26    between the parties.
 
 
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1    (d) Enforcement and penalties.
2        (1) Any insurer in Illinois that fails to comply with 
3    the appraisal provisions of this Section, including any 
4    refusal to participate in the process in good faith, shall 
5    be subject to administrative penalties imposed by the 
6    Department.
7        (2) Repeated violations of this Section may result in 
8    further disciplinary measures, including suspension or 
9    revocation of the insurer's authority to write automobile 
10    insurance policies in Illinois.
11    (e) This Section shall only apply to policies of 
12automobile insurance as defined in subsection (a) of Section 
13143.13 of this Code. The provisions of this Section do not 
14apply to either policies for any commercial automobile, 
15liability, and property insurance under Section 4 of this Code 
16or policies for nonowner's automobile insurance.
 
17    Section 99. Effective date. This Act takes effect July 1, 
182027.".