Section 8010.80  Exemption For Certain Religious Organizations

a)         In order to qualify for the exemption from the Mandatory Insurance requirement as specified in Section 7-609 of the Act, the religious organization shall submit the following to the Secretary of State:  

1)         evidence that it has paid or, by agreement with the other party or parties involved, is paying in a timely manner for all damages for which it was liable for over the past two years;

2)         a letter of credit;

3)         a complete description of each motor vehicle covered by the letter of credit including the make, model, year, vehicle identification number (V.I.N.) and the current Illinois registration plate number;

4)         a complete listing of vehicle owners' drivers license numbers which correspond to each vehicle covered by the letter of credit; and

5)         the name of an individual or individuals who will serve as a designated organization representative in communication with the office. The listing shall include the representatives' names, addresses and telephone numbers.

b)         The letter of credit shall be irrevocable and meet the criteria provided in Section 7-609 of the Act and shall guarantee coverage of $20,000 and $40,000 for bodily injury or death of one or more persons and $15,000 for property damage for a combined single limit coverage per vehicle per accident of $55,000.  The amount of the letter of credit shall be issued in accordance with the following formula:  

            The scale shall continue at the progressive amounts of $55,000 per each additional 50 vehicles.

c)         The letter of credit shall name the financial institution issuing the letter of credit as the "issuer," the religious organization receiving the letter of credit as the "customer," and the licensed corporate trustee as the "beneficiary" (see Ill. Rev. Stat. 1989, ch. 17, par. 1551-5.05). The "beneficiary" shall, as a result of a court judgment or at the request of the customer, draw upon the letter of credit to compensate in the amount of the judgment any person or persons to whom the religious organization is liable for damages as the result of ownership, maintenance, use or operation of a motor vehicle.

d)         Upon the granting of a religious organization exemption status, the Secretary of State shall issue a certificate of exemption for each motor vehicle covered by the letter of credit that shall serve as evidence of insurance in accordance with Section 7-602 of the Act.  If at any time the exempted religious organization no longer meets the minimum requirements of this Section, the religious organization shall be required to return each certificate of exemption.  Certificates of exemption which are lost, stolen or mutilated shall be reported to the Secretary of State for reissuance and the Secretary of State shall report all pertinent information to law enforcement authorities having jurisdiction in such matters.

e)         Religious organizations requesting or submitting exemption status instructions, affirmation statement applications or any other related documents shall write or call:  

Office of the Secretary of State

Mandatory Insurance Division

Springfield, Illinois 62756

217/524-4946

(Source:  Added at 14 Ill. Reg. 19369, effective December 1, 1990)