AUTHORITY: Implementing and authorized by the Illinois Safety and Family Financial Responsibility Law [625 ILCS 5/Ch. 7].
SOURCE: Filed and effective December 17, 1971; codified at 6 Ill. Reg. 12674; repealed at 7 Ill. Reg. 13678, effective October 14, 1983; New Part adopted at 11 Ill. Reg. 20215, effective November 30, 1987; amended at 14 Ill. Reg. 6859, effective April 24, 1990; amended at 14 Ill. Reg. 10107, effective June 12, 1990; amended at 15 Ill. Reg. 15083, effective October 8, 1991; amended at 16 Ill. Reg. 2172, effective January 24, 1992; amended at 17 Ill. Reg. 8517, effective May 27, 1993; amended at 18 Ill. Reg. 10909, effective June 28, 1994; amended at 20 Ill. Reg. 398, effective December 20, 1995; amended at 20 Ill. Reg. 7956, effective May 30, 1996; amended at 24 Ill. Reg. 1672, effective January 14, 2000; emergency amendment at 27 Ill. Reg. 14361, effective August 20, 2003, for a maximum of 150 days; amended at 27 Ill. Reg. 18458, effective November 24, 2003; emergency amendment at 30 Ill. Reg. 7974, effective April 14, 2006, for a maximum of 150 days; emergency expired September 11, 2006; amended at 30 Ill. Reg. 6392, effective April 12, 2007; amended at 32 Ill. Reg. 16507, effective September 25, 2008; amended at 32 Ill. Reg. 19163, effective November 25, 2008; amended at 35 Ill. Reg. 1790, effective January 13, 2011; amended at 36 Ill. Reg. 5575, effective March 26, 2012; amended at 37 Ill. Reg. 3319, effective February 28, 2013; amended at 38 Ill. Reg. 6119, effective February 27, 2014; amended at 38 Ill. Reg. 20054, effective October 1, 2014; amended at 42 Ill. Reg. 16552, effective August 23, 2018; amended at 46 Ill. Reg. 4091, effective February 25, 2022.
Section 1070.10 Forms of Security
a) For purposes of this Section, the following definitions shall apply:
"Bank Draft" − a negotiable instrument that contains an unconditional promise to pay a certain sum of money that is payable on demand or at a definite time to the bearer or to order as provided in Section 3-104 of the Uniform Commercial Code [810 ILCS 5/3-104].
"Cashier Check" − a check that is the primary obligation of the issuing bank as indicated in Section 4-211 of the Uniform Commercial Code [810 ILCS 5/4-211]. It is drawn by the bank itself and issued by an authorized officer of the bank.
"Certified Check" − a check of a depositor drawn on a bank of which the holder of the check procures certification and the drawer and all prior endorsers are discharged as provided in Section 3-411 of the Uniform Commercial Code [810 ILCS 5/3-411]. The words "accepted or certified" are on the check along with the date and the signature of a bank official.
"Department" − Department of Driver Services of the Office of the Secretary of State.
b) The Department shall accept as security to establish proof of financial responsibility following an accident for purposes of the Illinois Safety and Family Financial Responsibility Law [625 ILCS 5/Ch. 7] the following: certified checks, money orders, bank drafts, cashier checks, surety bonds, and cash. The amount of security required is determined by the Illinois Department of Transportation. The person depositing security shall stipulate on a designated form supplied by the Secretary of State on whose behalf the deposit is made.
c) A surety bond shall not be accepted by the Department as a deposit of security as required by Section 7-201 of the Illinois Safety and Family Financial Responsibility Law [625 ILCS 5] unless the following conditions are met:
1) The form is completed.
2) The surety company is authorized to do business in Illinois or a power of attorney is executed in accordance with Section 7-203 of the Illinois Safety and Family Financial Responsibility Law [625 ILCS 5].
3) The bond specifies whom it is to cover.
4) The signatures are notarized.
5) The bond is accompanied by a power of attorney.
d) If a surety bond is accepted by the Department and the surety company later does not pay a judgment upon demand of the Department, the Department shall not accept any further bonds from the surety company until payment is made.
e) If a surety company has failed and ceased operations by order of a court, the Department shall notify the interested party that the party's driver's license and/or registration shall be suspended in 30 days if the party does not deposit the security required by Section 7-201 of the Illinois Safety Responsibility Law.
f) If a person's security requirement has not been terminated pursuant to Section 7-210 of the Illinois Safety and Family Financial Responsibility Law [625 ILCS 5], that person shall be eligible to file an affidavit for termination of surety bond attesting:
1) that 2 years have elapsed since the suspension occurred; or
2) that the applicable statute of limitations has expired, regardless of the length of time the suspension has been in effect, that no suit or claim for damages and/or personal injuries is filed and pending, and no judgment rendered remains unpaid.
g) All security deposits shall be deposited at the following address: Department of Driver Services, Safety and Financial Responsibility Section, 2701 South Dirksen Parkway, Springfield, IL 62723. No security shall be considered deposited until it is received by the Department at the above mentioned address in one of the above mentioned forms of security specified in subsection (b) of this Section hereof.
(Source: Amended at 46 Ill. Reg. 4091, effective February 25, 2022)
Section 1070.20 Future Proof
a) For purposes of this Section, the following definitions shall apply:
"Certificate of Insurance" − certificate filed with the Secretary of State's Office as proof that the person has purchased financial responsibility insurance as outlined in IVC Section 7-315.
"Department" − Department of Driver Services of the Office of the Secretary of State.
"Financial Responsibility Insurance" − insurance used to establish proof of financial responsibility as established in IVC Sections 7-315 and 7-316.
"Illinois Insurance Guarantee Fund" − section of the Illinois Department of Insurance which deals with disposition of assets following bankruptcy.
"Illinois Vehicle Code" or "Vehicle Code" or "IVC" − 625 ILCS 5.
"Law" – the Illinois Safety and Family Financial Responsibility Law of the Illinois Vehicle Code [625 ILCS 5/Ch. 7].
"Lien" − claim on property of another as security for payment of a just debt.
"Motor Vehicle Liability Policy" − "owner's policy" or an "operator's policy" of liability insurance that is certified pursuant to IVC Section 7-315 or 7-316, comports with IVC Section 1-164.5 and complies with the requirements of IVC Section 7-317(b), (c), (d) and (f).
"Proof of Financial Responsibility for the Future" − ability to respond in damages for any liability resulting from the ownership, maintenance, use or operation of a motor vehicle as provided in IVC Section 1-164.5.
"Real Estate Bond" − proof filed pursuant to IVC Section 7-320.
"Secretary of State" − Secretary of State of Illinois.
"Stock" − proportionate share in ownership of corporation held by individual and that is usually represented by a stock certificate.
"Surety" − a person who makes himself/herself liable for another's debts or defaults of obligations.
b) When a person purchases insurance to file proof of financial responsibility for the future, the insurance company will file a certificate of insurance with the Department. The certificate filed shall be either the AAMVA (American Association of Motor Vehicle Administrators) Uniform Financial Responsibility form, containing the insured's name and address, license number, and birthdate; current policy number and effective date of the insurance policy and the name of the insurance company with the signature of its authorized representative, or other certificate of insurance proof conforming to the requirements of IVC Section 7-315 or 7-316, which is endorsed and certifies policy limits as specified in IVC Section 1-164.5. If an owner's rather than operator's policy, it must include the model year, trade name and identification number of the vehicle. The owner's policy must also conform with the amounts specified in IVC Section 1-164.5.
c) If a person purchases a certificate of insurance to satisfy his/her requirement to file future proof of financial responsibility and the insurance company fails and is no longer in business, and ceases operations by order of a court, and the Department is notified by the Illinois Insurance Guarantee Fund of the non-operation of the insurance company, the person shall have 30 days after notification by the Department to file a new certificate of insurance or satisfy his/her future proof requirement by cash or one of the other alternate methods provided in IVC Section 7-314. If a suspension has been entered even though the person has filed future proof of financial responsibility within the 30 day time period, the suspension shall be removed.
d) If a person required to furnish proof of financial responsibility for the future chooses to file a bond pursuant to IVC Section 7-320, and the bond is executed by the person giving the proof and two individual sureties, the following conditions must be met:
1) Each surety must own real estate within the State of Illinois;
2) Each surety must have equity in that real estate in the amount of the bond;
3) The bond must be endorsed by the clerk of the court and approved by a judge as provided in IVC Section 7-320.
e) If any evidence of proof of financial responsibility for the future filed under the Law falls below the amount required as provided in IVC Section 1-164.5, additional evidence shall be required. Cash and securities are deposited with the Illinois State Treasurer and the Treasurer monitors the securities and informs the Department if its value falls below the amount required. A certificate of insurance or bonds, real estate bonds that are without liens, stocks and cash shall be accepted as evidence to establish the additional required proof of financial responsibility for the future. The additional security shall be sent to the Safety and Financial Responsibility Section, Department of Driver Services, 2701 South Dirksen Parkway, Springfield, Illinois 62723.
f) Whenever any evidence of proof of ability to respond in damages required to be filed pursuant to the provisions of IVC Section 7-301 no longer fulfills the purpose for which required, the Department shall require other evidence of ability to respond in damages, including but not limited to an endorsed certificate of insurance meeting the requirements of IVC Section 1-164.5, bonds, unencumbered real estate bonds, stocks or cash. The person required to post proof shall have 30 days after notification by the Department to post or file additional proof. If the person fails to post proof within 30 days, the Secretary of State shall suspend the driver's license, registration certificate, license plates and registration sticker pending receipt of such proof.
g) Proof of Financial Responsibility as required in the Law shall be made by filing with the Secretary of State a written or electronic certificate of insurance. Notices of cancellation or termination of the certified policy of insurance proof as required in IVC Sections 7-315 and 7-318 must be submitted in writing or electronically. All written or electronic certificates of insurance proof and cancellation or termination as required in the Law must be submitted in a manner satisfactory to the Secretary of State.
h) A notice of cancellation or termination of the certified policy of insurance for nonpayment of premiums shall only be sent to the Secretary of State after the insured has failed to discharge, on or after the due date, any of his or her obligations in connection with the payment of premiums, or installments that are payable directly to the insurer, its agent or a party that has financed the premium. In the event an insurance company violates the provisions of this subsection, that violation shall be reported to the Illinois Department of Financial and Professional Regulation-Division of Insurance.
i) Proof of Financial Responsibility as required in IVC Section 7-315, and notices of cancellation or termination of the certified policy of insurance, as required in IVC Section 7-318, when submitted by paper shall be 8½" X 11" in size. The Department shall return certificates submitted incorrectly to the insurance company. Certificates will not be processed until submitted on the correct size of paper.
(Source: Amended at 42 Ill. Reg. 16552, effective August 23, 2018)