TITLE 92: TRANSPORTATION
CHAPTER II: SECRETARY OF STATE
PART 1070 ILLINOIS SAFETY RESPONSIBILITY LAW
SECTION 1070.20 FUTURE PROOF
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 7-302 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 7-302.
"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 7-302. 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 7-302.
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 7-302, 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 7-302, 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 32 Ill. Reg. 19163, effective November 25, 2008)