Illinois legislation · 104th General Assembly
Illinois HB4160: AUTO INS-RIGHT TO APPRAISAL
Status: Signed into law, August 7, 2026
Amends the Illinois Insurance Code. Provides that every automobile insurance policy issued, renewed, or delivered in Illinois that includes first-party coverage for physical damage shall contain a provision granting either the insured or the insurer the right to invoke appraisal in the event of a dispute over (i) the actual cash value or amount of a loss, including repairable or total loss amounts; or (ii) the value of a settlement offer made to a third-party claimant. Sets forth provisions concerning the selection of appraisers; appointment of an umpire in the event of a disagreement between appraisers; issuance of the award following the appraisal; the binding effect of an agreement between appraisers or one appraiser and the umpire; cost allocation and consumer protections; the right of appraisal for third-party claimants; and enforcement and penalties. Creates the Automotive Appraisal Standards Advisory Board to provide guidance on rulemaking, enforcement priorities, and best practices. Sets forth membership provisions and provides that the Board shall meet no less than quarterly and may issue nonbinding recommendations to the Department of Insurance regarding updates to rules and emerging trends impacting fair claim resolution. Requires the Department to publish meeting summaries and any formal recommendations on its public website. Provides that the Department may adopt rules necessary to implement and enforce provisions concerning the right to appraisal. Effective 90 days after becoming law.
What the bill says
A bill FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4160Introduced 10/15/2025, by Rep. Tracy Katz MuhlSYNOPSIS AS INTRODUCED: ILCS 5/143.13b new 215 ILCS 5/143.13b new ILCS 5/143.13b new Amends the Illinois Insurance Code. Provides that every automobileinsurance policy issued, renewed, or delivered in Illinois that includesfirst-party coverage for physical damage shall contain a provisiongranting either the insured or the insurer the right to invoke appraisal inthe event of a dispute over (i) the actual cash value or amount of a loss,including repairable or total loss amounts…
From the introduced text, October 15, 2025:
A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4160Introduced 10/15/2025, by Rep. Tracy Katz MuhlSYNOPSIS AS INTRODUCED: ILCS 5/143.13b new 215 ILCS 5/143.13b new ILCS 5/143.13b new Amends the Illinois Insurance Code. Provides that every automobileinsurance policy issued, renewed, or delivered in Illinois that includesfirst-party coverage for physical damage shall contain a provisiongranting either the insured or the insurer the right to invoke appraisal inthe event of a dispute over (i) the actual cash value or amount of a loss,including repairable or total loss amounts; or (ii) the value of asettlement offer made to a third-party claimant. Sets forth provisionsconcerning the selection of appraisers; appointment of an umpire in theevent of a disagreement between appraisers; issuance of the awardfollowing the appraisal; the binding effect of an agreement betweenappraisers or one appraiser and the umpire; cost allocation and consumerprotections; the right of appraisal for third-party claimants; andenforcement and penalties. Creates the Automotive Appraisal StandardsAdvisory Board to provide guidance on rulemaking, enforcement priorities,and best practices. Sets forth membership provisions and provides that theBoard shall meet no less than quarterly and may issue nonbindingrecommendations to the Department of Insurance regarding updates to rulesand emerging trends impacting fair claim resolution. Requires theDepartment to publish meeting summaries and any formal recommendations onits public website. Provides that the Department may adopt rules necessaryto …