Legal/Legislative Scene

Governor endorses insurance reforms

By Peter M. Murphy Legal/Legislative Counsel

Governor Thompson delivered his State of the State Message on February 10,1986, and focused, in part, on two issues of great significance to park and recreation interests in Illinois.

The first was his recognition of the serious problems local government in Illinois is having with the rapid escalation in insurance costs. He identified the issue "Not as taking away the rights of the individual — these must always be protected. The issue is having a rational tort system for personal injury and product liability that can encourage economic growth and job creation."

He went on to say that "Serious tort reform must be approved by the General Assembly in 1986. This will not be easy, but it is necessary. At a minimum, changes must be made in the areas of joint and several liability, caps on awards, and modified comparative negligence, which now combine to cause the unfair 'deep pocket' problem that can result in a party that is found to be only 10 percent at fault, paying the entire 100 percent of the injury award.

"Some insurance companies are not without blame. Their underwriting policies often do not reward businesses with good claims records and states with progressive tort systems. As a start toward reforms, I propose that a 60-day notification period for all cancellation notices be required by law.

"In addition, the availability of claims information should be made available upon request so consumers can show potential insurers that the reason for their cancellation, or large rate increase, was not because of a poor claims record."

Thompson also spoke of the role and strength recreation provides to the State. He called recreation and tourism "major industries in Illinois" and said, "If the product was produced in foreign factories, everyone would understand that. But the product is forests, and parks, and lakes, and rivers, fishing, boating, camping, hunting, historic sites, natural beauty, art, culture, convention centers, county fairs, two State fairs, McCormick Place, racing, sports. . . .

"Hundreds of thousands of jobs in the hidden industry of tourism. Together we have done much, but we need to do more."

The recognition by Thompson of recreation's contribution to the State's economy prefaces one of the most important events to take place during 1986 — the Governor's Conference on the Economic Significance of Recreation to be held in Springfield April 29 - May 1. (See the complete conference agenda beginning on page 7.)

The conference has an outstanding lineup of speakers and array of substantive sessions on the economic contributions recreation makes to Illinois' economy. I also look forward to seeing you in Springfield on April 9 for Insurance Crisis Day and on June 11 for the annual Legislative Conference and Reception.

All park commissioners should mark their calendars for the May 17 Commissioners' Training Seminar. Additional information will be available soon.

Insurance-related legislation

Although the package of legislative proposals recommended by the Illinois Coalition on the Insurance Crisis (ICIC) has not been introduced at this writing, the following approaches have been introduced to address the insurance crisis. There is no question that insurance-related proposals will dominate the attention of the legislature this spring.

HB 2607 (Levin, et al.)

Amends Section 143.17 of the Insurance Code to provide a 90-day notice of cancellation (now 30 days).

HB 2632 (Klemm)

Amends Counties Act and Local Governmental and Governmental Employees Tort Immunity Act. Deletes provisions that companies issuing liability insurance policies to local governmental units are required to waive immunities and exemptions otherwise available to the local governmental units.

HB 2633 (Klemm)

Amends Environmental Protection Act. Provides that no local governmental unit shall be liable for any injury resulting from exercising its authority set down by the State Environmental Protection Agency (EPA) unless the injury is caused by willful

Illinois Parks and Recreation 30 March/April 1986

wanton negligency. Provides that insurance policies may provide for nonpayment of claims which otherwise would be barred.

HB 2670 (Greiman)

Amends Antitrust Act. Removes provisions exempting insurance-related activities.

HB 2800 (Giglio)

Amends the Insurance Code. Provides that commercial liability insurance premiums shall not be increased by more than 50 percent above previous year's premium unless such increases are justified based upon that insured's claims experiences. Provides for other related provisions.

SB 1556 (Schuneman)

Amends the Insurance Code. Provides that no premium increase, upon renewal, of 50 percent or more for a commercial liability policy shall be effective unless the insured may continue at the existing premium rate for a period of 60 days after receipt of notice of such increase.

Keep your eye on ...

HB 2598 (Stem)

Amends Governmental Ethics Act. Eliminates the $100-per-day penalty for failure to file a statement of economic interests.

HB 2698 (O'Connell)

New Act provides that if an elected member of a governing board of a unit of local government fails to attend 50 percent or more of regularly scheduled board meetings in any year, the member shall be deemed to have resigned.

HB 2726 (Olson)

Amends Act providing for creation/management of forest preserve districts in counties under 3,000,000; extends powers outside Cook County with more than 25,000 people concerning recreational facilities.

HB 2776 (Saltsman)

Amends Carnival and Amusement Rides Safety Act. Reduces from $1 million to $500,000 the liability insurance necessary for a permit to operate a permanent, immobile amusement ride.

HB 2788 (Farley)

Amends the Municipal Code. Prohibits cities over 1 million from imposing a tax or surcharge based on or added to mooring or docking fees imposed by a park district; preempts home rule.

HB 2795 (O'Connell, et al.)

Amends the Vehicle Code. Provides that no local authority, including park districts, shall ban any vehicle under 8,000 pounds and used for noncommercial purposes from operating/parking on any boulevard, with certain exceptions.

SB 1492 (Etheredge)

Amends the Liquor Control Act. Authorizes beer/wine sales at professional sporting events/concerts on premises owned by the Forest Preserve District of Kane County.

SB 1502 (Geo-Karis)

New Act authorizes units of local government, school and community college districts to establish plans for tax-sheltered benefits for officials and employees.

SB 1533 (Sangmeister)

Bans smoking in areas which are used by and open to the public except in portions of such areas in which smoking is expressly permitted. Provides for certain penalties and allowances.

SB 1538 (Savickas)

Amends the Municipal Code. Bans cities which are home rule units from imposing under such authority a tax based on fees imposed by another governmental unit unless permission is obtained from such units. Preempts home rule.

SB 1555 (Topinka)

Appropriates $250,000 to the Illinois Department of Conservation (DOC) for Urban Forestry Assistance Grants made to units of local government, including park districts.

Illinois Parks and Recreation 31 March/April 1986