215 ILCS 5/143a-2
2021 Illinois Compiled Statutes|Chapter 215 - INSURANCE|215 ILCS 5/ - Illinois Insurance Code.|Article IX - Provisions Applicable To All Companies

 (from Ch. 73, par. 755a-2)Sec. 143a-2. (1) Additional uninsured motor vehicle  coverage. No policy insuring against loss resulting from liability imposed  by law for bodily injury or death suffered by any person arising out of the  ownership, maintenance or use of a motor vehicle shall be renewed or  delivered or issued for delivery in this State with respect to any motor  vehicle designed for use on public highways and required to be registered  in this State unless uninsured motorist coverage as required in Section  143a of this Code is included in an amount equal to the insured's bodily  injury liability limits unless specifically rejected by the insured as provided in paragraph (2) of this Section.  Each  insurance company providing the coverage must provide applicants with a  brief description of the coverage and advise them of their right to reject  the coverage in excess of the limits set forth in Section 7-203 of the  Illinois Vehicle Code.  The provisions of this amendatory Act of 1990 apply  to policies of insurance applied for after June 30, 1991.(2) Right of rejection of additional uninsured motorist  coverage. Any named insured or applicant may reject additional uninsured  motorist coverage in excess of the limits set forth in Section 7-203  of the Illinois Vehicle Code by making a written request for limits of uninsured motorist coverage which are less than bodily injury liability limits or a written rejection of limits in excess of those required by law. This election or rejection shall be binding on all persons insured under the policy. In those cases where the insured has elected  to purchase limits of uninsured motorist coverage which are less than  bodily injury liability limits or to reject limits in excess of those  required by law, the insurer need not provide in any renewal,  reinstatement, reissuance, substitute, amended, replacement or  supplementary policy, coverage in excess of that elected by the insured in  connection with a policy previously issued to such insured by the same  insurer unless the insured subsequently makes a written request for  such coverage.(3) The original document indicating the applicant's selection of  uninsured motorist coverage limits shall constitute sufficient evidence of  the applicant's selection of uninsured motorist coverage limits.  For purposes of this  Section any reproduction of the document by means of photograph,  photostat, microfiche, computerized optical imaging process, or other  similar process or means of reproduction shall be deemed the equivalent of  the original document.(4) For the purpose of this Code the term "underinsured motor vehicle"  means a motor vehicle whose ownership, maintenance or use has resulted in  bodily injury or death of the insured, as defined in the policy, and for  which the sum of the limits of liability under all bodily injury liability  insurance policies or under bonds or other security required to be  maintained under Illinois law applicable to the driver or to the person or  organization legally responsible for such vehicle and applicable to the  vehicle, is less than the limits for underinsured coverage provided the  insured as defined in the policy at the time of the accident.  The limits  of liability for an insurer providing underinsured motorist coverage shall  be the limits of such coverage, less those amounts actually recovered under  the applicable bodily injury insurance policies, bonds or other security  maintained on the underinsured motor vehicle.On or after July 1, 1983, no policy insuring against loss resulting  from liability imposed by law for bodily injury or death suffered by any  person arising out of the ownership, maintenance or use of a motor vehicle  shall be renewed or delivered or issued for delivery in this State with respect  to any motor vehicle designed for use on public highways and required to be  registered in this State unless underinsured motorist coverage is included  in such policy in an amount equal to the total amount of uninsured motorist  coverage provided in that policy where such uninsured motorist coverage  exceeds the limits set forth in Section 7-203 of the Illinois Vehicle Code.The changes made to this subsection (4) by this amendatory Act of the 93rd General Assembly apply to policies issued or renewed on or after December 1, 2004.(5) Scope.  Nothing herein shall prohibit an insurer from setting forth  policy terms and conditions which provide that if the insured has coverage  available under this Section under more than one policy or provision of  coverage, any recovery or benefits may be equal to, but may not exceed,  the higher of the applicable limits of the respective coverage, and the  limits of liability under this Section shall not be increased because  of multiple motor vehicles covered under the same policy of insurance.  Insurers providing liability coverage on an excess or umbrella basis are  neither required to provide, nor are they prohibited from offering or  making available coverages conforming to this Section on a supplemental  basis.  Notwithstanding the provisions of this Section, an insurer shall  not be prohibited from solely providing a combination of uninsured and  underinsured motorist coverages where the limits of liability under each  coverage is in the same amount.(6) Subrogation against underinsured motorists.  No insurer shall exercise  any right of subrogation under a policy providing additional uninsured motorist  coverage against an underinsured motorist where the insurer has been provided  with written notice in advance of a settlement between its insured and the  underinsured motorist and the insurer fails to advance a payment to  the insured, in an amount equal to the tentative settlement, within 30 days  following receipt of such notice.(7) A policy which provides underinsured motor vehicle coverage may  include a clause which denies payment until the limits of liability or  portion thereof under  all bodily injury liability insurance policies applicable to the  underinsured motor vehicle and its operators have been partially or fully  exhausted  by payment  of judgment or settlement.  A judgment or settlement of the bodily injury  claim in an amount less than the limits of liability of the bodily injury  coverages applicable to the claim shall not preclude the claimant from making  an underinsured motorist claim against the underinsured motorist coverage.  Any such provision in a policy of insurance  shall be inapplicable if the insured, or the legal representative of the  insured, and the insurer providing underinsured motor vehicle coverage  agree that the insured has suffered bodily injury or death as the result of  the negligent operation, maintenance, or use of an underinsured motor  vehicle and, without arbitration, agree also on the amount of damages that  the insured is legally entitled to collect.  The maximum amount payable  pursuant to such an underinsured motor vehicle insurance settlement  agreement shall not exceed the amount by which the limits of the  underinsured motorist coverage exceed the limits of the bodily injury  liability insurance of the owner or operator of the underinsured motor  vehicle.  Any such agreement shall be final as to the amount due and shall  be binding upon both the insured and the underinsured motorist insurer  regardless of the amount of any judgment, or any settlement reached between  any insured and the person or persons responsible for the accident.  No  such settlement agreement shall be concluded unless:  (i) the insured has  complied with all other applicable policy terms and conditions; and (ii)  before the conclusion of the settlement agreement, the insured has filed  suit against the underinsured motor vehicle owner or operator and has not  abandoned the suit, or settled the suit without preserving the rights of  the insurer providing underinsured motor vehicle coverage in the manner  described in paragraph (6) of this Section.       (Source: P.A. 93-762, eff. 7-16-04.)