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SB 3536

INS-MOTOR VEHICLE REPAIR

104th Regular Session Introduced by Chapin Rose

Illinois bill requires insurers to obtain insureds’ written consent on exterior car parts (new OEM, new non-OEM, or used) before repairs, with a 5-year window.

Rule 3-9(a) / Re-referred to Assignments
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Bill Summary · SB 3536

Summary of SB 3536 (104th General Assembly, Illinois)

Title: INS-MOTOR VEHICLE REPAIR

Jurisdiction: Illinois

Introduced: February 5, 2026
Sponsor: Senator Chapin Rose (co-sponsor)

Purpose and intent
- Establish new protections and procedures for insured individuals when repairs to the exterior of a motor vehicle are contracted through an insurer’s arrangements with a body shop.
- Create branding and disclosure requirements related to the use of body parts in the repair process.
- Extend a specific set of requirements for 5 years following the model year of the vehicle, with potential delegation of compliance to the tasked body shop.

Key provisions and changes

1) Definition of terms (Section 155.29a, new)
- Body part: Replacement parts for exterior nonmechanical sheet metal or plastic parts, including inner and outer panels.
- Body shop: Business that repairs exterior damage to motor vehicles.
- Insured: Person entitled to coverage under the insurance policy.
- Insurer: Entity obligated to pay at least part of the exterior repair costs; includes Lloyd’s or similar associations and underwriters.
- Motor vehicle: Self-propelled vehicle, excluding farm tractors, certain farm implements, and some electric mobility devices (e-bikes/e-scooters/assistive devices).
- New body part vs. used body part: Distinguishes between parts never attached to a vehicle vs. those previously attached.

2) Insurer’s direction of repairs (Section 155.29a(b)-(d))
- An insurer may not direct a body shop to repair an insured’s vehicle until the insurer or its agent provides written notice meeting certain requirements.
- The insured must be given an opportunity to approve the type of body parts used in the repair.
- The insured must be allowed to indicate in writing the preferred type of body parts, with options including:
- (A) New parts manufactured by/for the vehicle manufacturer.
- (B) New parts not manufactured by/for the vehicle manufacturer.
- (C) Used body parts.

3) Improper claims practices (Section 154.6, amended)
- The bill adds subsection (q-5) referencing the new Section 155.29a, and otherwise maintains existing enumerated improper practices (e.g., misrepresentation, delays, insufficient investigations, etc.).
- The added provisions tie into the new notice/part-type requirements, reinforcing that failure to comply with the notice/approval process constitutes an improper claims practice.

4) Time-limited application (Section 155.29a(f))
- The requirements in this new section apply for 5 years after the model year of the applicable motor vehicle.
- This 5-year window is the duration during which the notice/approval requirements must be followed.

5) Compliance via the directing body shop (Section 155.29a(g))
- The requirements may be fulfilled on behalf of the insurer by the body shop the insurer directs to repair the vehicle.

Who/what is affected

  • Insurers (and their agents) offering motor vehicle insurance policies that cover exterior repairs.
  • Insured individuals receiving exterior motor vehicle repairs.
  • Body shops engaged by insurers to perform exterior repairs.
  • The Illinois Insurance Code, with amendments and new provisions to govern notice, consent, and part usage.
  • Vehicle repair processes, specifically the selection between new (OEM or non-OEM) and used body parts.

Procedural and timeline aspects

  • Effective applicability: The new requirements apply for 5 years after the model year of the applicable motor vehicle (a temporary regime, not permanent).
  • Implementation can be fulfilled by the repairing body shop on behalf of the insurer, enabling a streamlined compliance mechanism.

Notes

  • The bill introduces a consumer-friendly choice framework for body parts, empowering insureds to approve the type of body parts used.
  • It requires insurers to provide written notice and an opportunity for insureds to approve part types before directing repairs.
  • The measure adds to existing “improper claims practices” protections, tying non-compliance to potential regulatory findings or enforcement actions.

Compiled from official sources — confirm details with the bill’s official record.

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