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SB 2708

Personal care homes; require licensure and regulations of those providing living arrangements for one or more persons.

2025 Regular Session Introduced by Sollie Norwood

Establishes a mandatory, time‑bound appraisal process for automobile physical‑damage disputes (including third‑party claims) with penalties and an advisory board.

Died In Committee
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Bill Summary · SB 2708

Summary — SB 2708 (Personal care homes; require licensure and regulations of those providing living arrangements for one or more persons)

Note: Status — Died in Committee. Introduced March 13, 2025.

(This summary describes the text of the introduced bill as provided.)

Purpose

SB 2708 would add Section 143.13b to the Illinois Insurance Code to create a statutory right to appraisal in automobile physical‑damage claims and to establish an Automotive Appraisal Standards Advisory Board. The goal is to provide a structured, time‑limited appraisal process for disputes over loss valuation and settlement offers (including third‑party claimant disputes), set procedures for appraiser/umpire selection, allocate costs, and provide enforcement mechanisms and consumer protections.

Key provisions

  • Adds a mandatory appraisal provision to every Illinois automobile insurance policy that includes first‑party physical‑damage coverage, allowing either the insured or insurer to demand appraisal when disputing:
    • actual cash value or amount of a loss (repairable or total loss), or
    • the value of a settlement offer made to a third‑party claimant.
  • Timeline and selection:
    • Written demand triggers selection: within 7 calendar days each party selects a competent, disinterested appraiser and notifies the other party.
    • Two appraisers independently determine value. If they disagree within 5 calendar days, they jointly select an umpire; failure to agree on an umpire within 15 calendar days allows court or Department of Insurance assistance.
    • Award issued by both appraisers or by one appraiser and the umpire; agreement of any two is binding.
  • Cost allocation and fee shifting:
    • Each party pays its appraiser.
    • Umpire fees split equally unless the final appraisal award is at least 10% more favorable to the policyholder or third‑party claimant than the insurer’s last written offer — in that case the insurer pays all appraisal and umpire fees.
  • Third‑party claimants:
    • Third‑party claimants may invoke the appraisal process on the same terms and timelines as the insured.
  • Enforcement and penalties:
    • Civil penalty up to $5,000 per violation for insurers who fail to comply; additional administrative penalties; potential liability for insured’s/claimant’s attorney fees and appraisal costs if insurer delayed/obstructed or acted in bad faith.
    • Repeated violations may lead to suspension or revocation of the insurer’s authority to write auto policies in Illinois.
  • Automotive Appraisal Standards Advisory Board:
    • Department of Insurance to create the Board within 120 days of the Act’s effective date.
    • Board composition (appointed by Director): 2 collision repair/ OEM reps; 2 insurance industry reps; 2 consumer protection/AG reps; 2 public members.
    • Board meets at least quarterly, issues nonbinding recommendations and guidance; Department to publish meeting summaries and recommendations.
  • Rulemaking and effective dates:
    • Department may adopt rules to implement the statute. (Introduced text indicates an effective date 90 days after enactment and Board creation within 120 days.)

Who would be affected

  • Automobile insurers writing physical‑damage coverage in Illinois (policy language, claims handling, potential costs and penalties).
  • Insured policyholders (gain a statutory appraisal remedy and consumer protections).
  • Third‑party claimants (explicit right to invoke appraisal when settlement value is disputed).
  • Automotive repair industry, appraisal professionals, and Department of Insurance (participation, standards, and advisory role).

Potential impact

  • Could speed and formalize resolution of valuation disputes outside litigation.
  • Expands appraisal remedies to third‑party claimants, potentially increasing insurer exposure and administrative complexity.
  • Creates financial incentives/penalties that may discourage bad‑faith delay or obstruction by insurers.
  • Requires insurers to adapt policy language, adjust claims processes, and possibly face increased appraisal and attorney‑fee exposure.

Procedural status

  • Filed/introduced March 13, 2025. Referred to committee. Bill died in committee (no enactment).

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

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