On February 23, 2010, hundreds of insurance professionals descended on Springfield to take part in the annual Insurance Legislative Day. This annual event is a good reminder of the daily activity taking place in our capital that can have a huge impact on our businesses and personal insurance policies. This article will highlight some of the bills that are currently being debated in the House and Senate. A few could have an enormous economic impact on our state.

Non-Highway Vehicles (SB 3629)

Increase Minimum Liability Limits (HB 5046)

Mandatory Arbitration (SB 2818)
Background. There currently exists a nationwide inter-company arbitration agreement signed by most standard automobile insurance companies for the settlement of automobile physical damages matters under $100,000. The department was approached by a major insurance company asking for assistance in automobile subrogation matters between it and non-standard automobile insurers in Illinois, most, if not all, of which are not members of the agreement. According to the company, the average claim settlement cycle time for claims with a non-standard carrier is 249 days, compared to 72 days for a standard carrier.

Proposal. The bill would require arbitration of automobile physical damage claims in accordance with the terms of the arbitration agreement, as adopted and, from time to time, amended by its members. It would also require every insurer licensed to issue automobile insurance to be a member of the agreement, or any successor.

As Americans, we are blessed to have a vote and a say in how our lives are affected by new legislation. As legislation is introduced, make sure you stay in contact with your representatives by phone, mail or personal contact. Many bills are affecting your life. Legislators are elected by you to serve you, but they cannot help you if you don’t help them by communicating your issues. Hopefully this has helped you have a better understanding of some of the issues facing the insurance industry that will ultimately affect you. iBi