102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB2840

 

Introduced 2/19/2021, by Rep. Joe Sosnowski

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/1-164.5
625 ILCS 5/7-203  from Ch. 95 1/2, par. 7-203
625 ILCS 5/7-311  from Ch. 95 1/2, par. 7-311
625 ILCS 5/7-317  from Ch. 95 1/2, par. 7-317
625 ILCS 5/12-606  from Ch. 95 1/2, par. 12-606
625 ILCS 5/12-707.01  from Ch. 95 1/2, par. 12-707.01

    Amends the Illinois Vehicle Code. Increases the minimum mandatory coverage amounts for liability insurance policies in this State and increases the amounts sufficient to satisfy a judgment following a motor vehicle accident as follows: bodily injury or death to any one person from $25,000 to $50,000; bodily injury or death to more than one person from $50,000 to $100,000; and injury or destruction of property of others from $20,000 to $40,000.


LRB102 05073 HEP 15092 b

 

 

A BILL FOR

 

HB2840LRB102 05073 HEP 15092 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Vehicle Code is amended by
5changing Sections 1-164.5, 7-203, 7-311, 7-317, 12-606, and
612-707.01 as follows:
 
7    (625 ILCS 5/1-164.5)
8    Sec. 1-164.5. Proof of financial responsibility. Proof of
9ability to respond in damages for any liability thereafter
10incurred resulting from the ownership, maintenance, use or
11operation of a motor vehicle for bodily injury to or death of
12any person in the amount of $50,000 $25,000, and subject to
13this limit for any one person injured or killed, in the amount
14of $100,000 $50,000 for bodily injury to or death of 2 or more
15persons in any one accident, and for damage to property in the
16amount of $40,000 $20,000 resulting from any one accident.
17This proof in these amounts shall be furnished for each motor
18vehicle registered by every person required to furnish this
19proof. The changes to this Section made by this amendatory Act
20of the 98th General Assembly apply only to policies issued or
21renewed on or after January 1, 2015.
22(Source: P.A. 98-519, eff. 1-1-15.)
 

 

 

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1    (625 ILCS 5/7-203)  (from Ch. 95 1/2, par. 7-203)
2    Sec. 7-203. Requirements as to policy or bond. No such
3policy or bond referred to in Section 7-202 shall be effective
4under this Section unless issued by an insurance company or
5surety company authorized to do business in this State, except
6that if such motor vehicle was not registered in this State, or
7was a motor vehicle which was registered elsewhere than in
8this State at the effective date of the policy or bond, or the
9most recent renewal thereof, such policy or bond shall not be
10effective under this Section unless the insurance company or
11surety company, if not authorized to do business in this
12State, shall execute a power of attorney authorizing the
13Secretary of State to accept service on its behalf of notice or
14process in any action upon such policy or bond arising out of
15such motor vehicle accident. However, every such policy or
16bond is subject, if the motor vehicle accident has resulted in
17bodily injury or death, to a limit, exclusive of interest and
18costs, of not less than $50,000 $25,000 because of bodily
19injury to or death of any one person in any one motor vehicle
20accident and, subject to said limit for one person, to a limit
21of not less than $100,000 $50,000 because of bodily injury to
22or death of 2 or more persons in any one motor vehicle
23accident, and, if the motor vehicle accident has resulted in
24injury to or destruction of property, to a limit of not less
25than $40,000 $20,000 because of injury to or destruction of
26property of others in any one motor vehicle accident. The

 

 

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1changes to this Section made by this amendatory Act of the 98th
2General Assembly apply only to policies issued or renewed on
3or after January 1, 2015.
4    Upon receipt of a written motor vehicle accident report
5from the Administrator the insurance company or surety company
6named in such notice shall notify the Administrator within
7such time and in such manner as the Administrator may require,
8in case such policy or bond was not in effect at the time of
9such motor vehicle accident.
10(Source: P.A. 98-519, eff. 1-1-15.)
 
11    (625 ILCS 5/7-311)  (from Ch. 95 1/2, par. 7-311)
12    Sec. 7-311. Payments sufficient to satisfy requirements.
13    (a) Judgments herein referred to arising out of motor
14vehicle accidents occurring on or after January 1, 2015 (the
15effective date of Public Act 98-519) shall for the purpose of
16this Chapter be deemed satisfied:
17        1. when $50,000 $25,000 has been credited upon any
18    judgment or judgments rendered in excess of that amount
19    for bodily injury to or the death of one person as the
20    result of any one motor vehicle accident; or
21        2. when, subject to said limit of $50,000 $25,000 as
22    to any one person, the sum of $100,000 $50,000 has been
23    credited upon any judgment or judgments rendered in excess
24    of that amount for bodily injury to or the death of more
25    than one person as the result of any one motor vehicle

 

 

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1    accident; or
2        3. when $40,000 $20,000 has been credited upon any
3    judgment or judgments, rendered in excess of that amount
4    for damages to property of others as a result of any one
5    motor vehicle accident.
6    The changes to this subsection made by Public Act 98-519
7apply only to policies issued or renewed on or after January 1,
82015.
9    (b) Credit for such amounts shall be deemed a satisfaction
10of any such judgment or judgments in excess of said amounts
11only for the purposes of this Chapter.
12    (c) Whenever payment has been made in settlement of any
13claim for bodily injury, death, or property damage arising
14from a motor vehicle accident resulting in injury, death, or
15property damage to two or more persons in such accident, any
16such payment shall be credited in reduction of the amounts
17provided for in this Section.
18(Source: P.A. 99-78, eff. 7-20-15; 100-201, eff. 8-18-17.)
 
19    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
20    Sec. 7-317. "Motor vehicle liability policy" defined.
21    (a) Certification. -A "motor vehicle liability policy", as
22that term is used in this Act, means an "owner's policy" or an
23"operator's policy" of liability insurance, certified as
24provided in Section 7-315 or Section 7-316 as proof of
25financial responsibility for the future, and issued, except as

 

 

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1otherwise provided in Section 7-316, by an insurance carrier
2duly authorized to transact business in this State, to or for
3the benefit of the person named therein as insured.
4    (b) Owner's Policy. --Such owner's policy of liability
5insurance:
6        1. Shall designate by explicit description or by
7    appropriate reference, all motor vehicles with respect to
8    which coverage is thereby intended to be granted;
9        2. Shall insure the person named therein and any other
10    person using or responsible for the use of such motor
11    vehicle or vehicles with the express or implied permission
12    of the insured;
13        3. Shall insure every named insured and any other
14    person using or responsible for the use of any motor
15    vehicle owned by the named insured and used by such other
16    person with the express or implied permission of the named
17    insured on account of the maintenance, use or operation of
18    any motor vehicle owned by the named insured, within the
19    continental limits of the United States or the Dominion of
20    Canada against loss from liability imposed by law arising
21    from such maintenance, use or operation, to the extent and
22    aggregate amount, exclusive of interest and cost, with
23    respect to each motor vehicle, of $50,000 $25,000 for
24    bodily injury to or death of one person as a result of any
25    one accident and, subject to such limit as to one person,
26    the amount of $100,000 $50,000 for bodily injury to or

 

 

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1    death of all persons as a result of any one accident and
2    the amount of $40,000 $20,000 for damage to property of
3    others as a result of any one accident. The changes to this
4    paragraph made by this amendatory Act of the 98th General
5    Assembly apply only to policies issued or renewed on or
6    after January 1, 2015.
7    (c) Operator's Policy. --When an operator's policy is
8required, it shall insure the person named therein as insured
9against the liability imposed by law upon the insured for
10bodily injury to or death of any person or damage to property
11to the amounts and limits above set forth and growing out of
12the use or operation by the insured within the continental
13limits of the United States or the Dominion of Canada of any
14motor vehicle not owned by him.
15    (d) Required Statements in Policies. --Every motor vehicle
16liability policy must specify the name and address of the
17insured, the coverage afforded by the policy, the premium
18charged therefor, the policy period, and the limits of
19liability, and shall contain an agreement that the insurance
20thereunder is provided in accordance with the coverage defined
21in this Act, as respects bodily injury and death or property
22damage or both, and is subject to all the provisions of this
23Act.
24    (e) Policy Need Not Insure Workers' Compensation. --Any
25liability policy or policies issued hereunder need not cover
26any liability of the insured assumed by or imposed upon the

 

 

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1insured under any workers' compensation law nor any liability
2for damage to property in charge of the insured or the
3insured's employees.
4    (f) Provisions Incorporated in Policy. --Every motor
5vehicle liability policy is subject to the following
6provisions which need not be contained therein:
7        1. The liability of the insurance carrier under any
8    such policy shall become absolute whenever loss or damage
9    covered by the policy occurs and the satisfaction by the
10    insured of a final judgment for such loss or damage shall
11    not be a condition precedent to the right or obligation of
12    the carrier to make payment on account of such loss or
13    damage.
14        2. No such policy may be cancelled or annulled as
15    respects any loss or damage, by any agreement between the
16    carrier and the insured after the insured has become
17    responsible for such loss or damage, and any such
18    cancellation or annulment shall be void.
19        3. The insurance carrier shall, however, have the
20    right to settle any claim covered by the policy, and if
21    such settlement is made in good faith, the amount thereof
22    shall be deductible from the limits of liability specified
23    in the policy.
24        4. The policy, the written application therefor, if
25    any, and any rider or endorsement which shall not conflict
26    with the provisions of this Act shall constitute the

 

 

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1    entire contract between the parties.
2    (g) Excess or Additional Coverage. --Any motor vehicle
3liability policy may, however, grant any lawful coverage in
4excess of or in addition to the coverage herein specified or
5contain any agreements, provisions, or stipulations not in
6conflict with the provisions of this Act and not otherwise
7contrary to law.
8    (h) Reimbursement Provision Permitted. --The policy may
9provide that the insured, or any other person covered by the
10policy shall reimburse the insurance carrier for payment made
11on account of any loss or damage claim or suit involving a
12breach of the terms, provisions or conditions of the policy;
13and further, if the policy shall provide for limits in excess
14of the limits specified in this Act, the insurance carrier may
15plead against any plaintiff, with respect to the amount of
16such excess limits of liability, any defense which it may be
17entitled to plead against the insured.
18    (i) Proration of Insurance Permitted. --The policy may
19provide for the pro-rating of the insurance thereunder with
20other applicable valid and collectible insurance.
21    (j) Binders. --Any binder pending the issuance of any
22policy, which binder contains or by reference includes the
23provisions hereunder shall be sufficient proof of ability to
24respond in damages.
25    (k) Copy of Policy to Be Filed with Department of
26Insurance--Approval. --A copy of the form of every motor

 

 

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1vehicle liability policy which is to be used to meet the
2requirements of this Act must be filed, by the company
3offering such policy, with the Department of Insurance, which
4shall approve or disapprove the policy within 30 days of its
5filing. If the Department approves the policy in writing
6within such 30 day period or fails to take action for 30 days,
7the form of policy shall be deemed approved as filed. If within
8the 30 days the Department disapproves the form of policy
9filed upon the ground that it does not comply with the
10requirements of this Act, the Department shall give written
11notice of its decision and its reasons therefor to the carrier
12and the policy shall not be accepted as proof of financial
13responsibility under this Act.
14    (l) Insurance Carrier Required to File Certificate. --An
15insurance carrier who has issued a motor vehicle liability
16policy or policies or an operator's policy meeting the
17requirements of this Act shall, upon the request of the
18insured therein, deliver to the insured for filing, or at the
19request of the insured, shall file direct, with the Secretary
20of State a certificate, as required by this Act, which shows
21that such policy or policies have been issued. No insurance
22carrier may require the payment of any extra fee or surcharge,
23in addition to the insurance premium, for the execution,
24delivery or filing of such certificate.
25    (m) Proof When Made By Endorsement. --Any motor vehicle
26liability policy which by endorsement contains the provisions

 

 

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1required hereunder shall be sufficient proof of ability to
2respond in damages.
3(Source: P.A. 98-519, eff. 1-1-15.)
 
4    (625 ILCS 5/12-606)  (from Ch. 95 1/2, par. 12-606)
5    Sec. 12-606. Tow trucks; identification; equipment;
6insurance.
7    (a) Every tow truck, except those owned by governmental
8agencies, shall have displayed on each side thereof, a sign
9with letters not less than 2 inches in height, contrasting in
10color to that of the background, stating the full legal name,
11complete address (including street address and city), and
12telephone number of the owner or operator thereof. This
13information shall be permanently affixed to the sides of the
14tow truck.
15    (b) Every tow truck shall be equipped with:
16        (1) One or more brooms and shovels;
17        (2) One or more trash cans of at least 5 gallon
18    capacity; and
19        (3) One fire extinguisher. This extinguisher shall be
20    either:
21            (i) of the dry chemical or carbon dioxide type
22        with an aggregate rating of at least 4-B, C units, and
23        bearing the approval of a laboratory qualified by the
24        Division of Fire Prevention for this purpose; or
25            (ii) One that meets the requirements of the

 

 

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1        Federal Motor Carrier Safety Regulations of the United
2        States Department of Transportation for fire
3        extinguishers on commercial motor vehicles.
4    (c) Every owner or operator and driver of a tow truck shall
5comply with Section 11-1413 of this Code and shall remove or
6cause to be removed all glass and debris, except any (i)
7hazardous substance as defined in Section 3.215 of the
8Environmental Protection Act, (ii) hazardous waste as defined
9in Section 3.220 of the Environmental Protection Act, and
10(iii) medical samples or waste, including but not limited to
11any blood samples, used syringes, other used medical supplies,
12or any other potentially infectious medical waste as defined
13in Section 3.360 of the Environmental Protection Act,
14deposited upon any street or highway by the disabled vehicle
15being serviced, and shall in addition, spread dirt or sand or
16oil absorbent upon that portion of any street or highway where
17oil or grease has been deposited by the disabled vehicle being
18serviced.
19    (d) Every tow truck operator shall in addition file an
20indemnity bond, insurance policy, or other proof of insurance
21in a form to be prescribed by the Secretary for: garagekeepers
22liability insurance, in an amount no less than a combined
23single limit of $500,000, and truck (auto) liability insurance
24in an amount no less than a combined single limit of $500,000,
25on hook coverage or garagekeepers coverage in an amount of no
26less than $25,000 which shall indemnify or insure the tow

 

 

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1truck operator for the following:
2        (1) Bodily injury or damage to the property of others.
3        (2) Damage to any vehicle towed by the tower.
4        (3) In case of theft, loss of, or damage to any vehicle
5    stored, garagekeepers legal liability coverage in an
6    amount of no less than $50,000 $25,000.
7        (4) In case of injury to or occupational illness of
8    the tow truck driver or helper, workers compensation
9    insurance meeting the minimum requirements of the Workers'
10    Compensation Act.
11    Any such bond or policy shall be issued only by a bonding
12or insuring firm authorized to do business as such in the State
13of Illinois, and a certificate of such bond or policy shall be
14carried in the cab of each tow truck.
15    (e) The bond or policy required in subsection (d) shall
16provide that the insurance carrier may cancel it by serving
17previous notice, as required by Sections 143.14 and 143.16 of
18the Illinois Insurance Code, in writing, either personally or
19by registered mail, upon the owner or operator of the motor
20vehicle and upon the Secretary of State. Whenever any such
21bond or policy shall be so cancelled, the Secretary of State
22shall mark the policy "Cancelled" and shall require such owner
23or operator either to furnish a new bond or policy, in
24accordance with this Act.
25(Source: P.A. 100-863, eff. 8-14-18.)
 

 

 

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1    (625 ILCS 5/12-707.01)  (from Ch. 95 1/2, par. 12-707.01)
2    Sec. 12-707.01. Liability insurance.
3    (a) No school bus, first division vehicle including a taxi
4which is used for a purpose that requires a school bus driver
5permit, commuter van or motor vehicle owned by or used for hire
6by and in connection with the operation of private or public
7schools, day camps, summer camps or nursery schools, and no
8commuter van or passenger car used for a for-profit
9ridesharing arrangement, shall be operated for such purposes
10unless the owner thereof shall carry a minimum of personal
11injury liability insurance in the amount of $50,000 $25,000
12for any one person in any one accident, and subject to the
13limit for one person, $100,000 for two or more persons injured
14by reason of the operation of the vehicle in any one accident.
15This subsection (a) applies only to personal injury liability
16policies issued or renewed before January 1, 2013.
17    (b) Liability insurance policies issued or renewed on and
18after January 1, 2013 shall comply with the following:
19        (1) except as provided in subparagraph (2) of this
20    subsection (b), any vehicle that is used for a purpose
21    that requires a school bus driver permit under Section
22    6-104 of this Code shall carry a minimum of liability
23    insurance in the amount of $2,000,000. This minimum
24    insurance requirement may be satisfied by either (i) a
25    $2,000,000 combined single limit primary commercial
26    automobile policy; or (ii) a $1 million primary commercial

 

 

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1    automobile policy and a minimum $5,000,000 excess or
2    umbrella liability policy;
3        (2) any vehicle that is used for a purpose that
4    requires a school bus driver permit under Section 6-104 of
5    this Code and is used in connection with the operation of
6    private day care facilities, day camps, summer camps, or
7    nursery schools shall carry a minimum of liability
8    insurance in the amount of $1,000,000 combined single
9    limit per accident;
10        (3) any commuter van or passenger car used for a
11    for-profit ridesharing arrangement shall carry a minimum
12    of liability insurance in the amount of $500,000 combined
13    single limit per accident.
14    (c) Primary insurance coverage under the provisions of
15this Section must be provided by a licensed and admitted
16insurance carrier or an intergovernmental cooperative formed
17under Section 10 of Article VII of the Illinois Constitution,
18or Section 6 or 9 of the Intergovernmental Cooperation Act, or
19provided by a certified self-insurer under Section 7-502 of
20this Code. The excess or umbrella liability coverage
21requirement may be met by securing surplus line insurance as
22defined under Section 445 of the Illinois Insurance Code. If
23the excess or umbrella liability coverage requirement is met
24by securing surplus line insurance, that coverage must be
25effected through a licensed surplus line producer acting under
26the surplus line insurance laws and regulations of this State.

 

 

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1Nothing in this subsection (c) shall be construed as
2prohibiting a licensed and admitted insurance carrier or an
3intergovernmental cooperative formed under Section 10 of
4Article VII of the Illinois Constitution, or Section 6 or 9 of
5the Intergovernmental Cooperation Act, or a certified
6self-insurer under Section 7-502 of this Code, from retaining
7the risk required under paragraphs (1) and (2) of subsection
8(b) of this Section or issuing a single primary policy meeting
9the requirements of paragraphs (1) and (2) of subsection (b).
10    (d) Each owner of a vehicle required to obtain the minimum
11liability requirements under subsection (b) of this Section
12shall attest that the vehicle meets the minimum insurance
13requirements under this Section. The Secretary of State shall
14create a form for each owner of a vehicle to attest that the
15owner meets the minimum insurance requirements and the owner
16of the vehicle shall submit the form with each registration
17application. The form shall be valid for the full registration
18period; however, if at any time the Secretary has reason to
19believe that the owner does not have the minimum required
20amount of insurance for a vehicle, then the Secretary may
21require a certificate of insurance, or its equivalent, to
22ensure the vehicle is insured. If the owner fails to produce a
23certificate of insurance, or its equivalent, within 2 calendar
24days after the request was made, then the Secretary may revoke
25the vehicle owner's registration until the Secretary is
26assured the vehicle meets the minimum insurance requirements.

 

 

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1If the owner of a vehicle participates in an intergovernmental
2cooperative or is self-insured, then the owner shall attest
3that the insurance required under this Section is equivalent
4to or greater than the insurance required under paragraph (1)
5of subsection (b) of this Section. The Secretary may adopt any
6rules necessary to enforce the provisions of this subsection
7(d).
8(Source: P.A. 99-595, eff. 1-1-17.)