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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 changing
5Sections 1-164.5, 7-203, 7-311, and 7-317 as follows:
6    (625 ILCS 5/1-164.5)
7    Sec. 1-164.5. Proof of financial responsibility. Proof of
8ability to respond in damages for any liability thereafter
9incurred resulting from the ownership, maintenance, use or
10operation of a motor vehicle for bodily injury to or death of
11any person in the amount of $25,000 $20,000, and subject to
12this limit for any one person injured or killed, in the amount
13of $50,000 $40,000 for bodily injury to or death of 2 or more
14persons in any one accident, and for damage to property in the
15amount of $20,000 $15,000 resulting from any one accident. This
16proof in these amounts shall be furnished for each motor
17vehicle registered by every person required to furnish this
18proof. The changes to this Section made by this amendatory Act
19of the 98th General Assembly apply only to policies issued or
20renewed on or after January 1, 2015.
21(Source: P.A. 90-89, eff. 1-1-98.)
22    (625 ILCS 5/7-203)  (from Ch. 95 1/2, par. 7-203)



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1    Sec. 7-203. Requirements as to policy or bond. No such
2policy or bond referred to in Section 7-202 shall be effective
3under this Section unless issued by an insurance company or
4surety company authorized to do business in this State, except
5that if such motor vehicle was not registered in this State, or
6was a motor vehicle which was registered elsewhere than in this
7State at the effective date of the policy or bond, or the most
8recent renewal thereof, such policy or bond shall not be
9effective under this Section unless the insurance company or
10surety company, if not authorized to do business in this State,
11shall execute a power of attorney authorizing the Secretary of
12State to accept service on its behalf of notice or process in
13any action upon such policy or bond arising out of such motor
14vehicle accident. However, every such policy or bond is
15subject, if the motor vehicle accident has resulted in bodily
16injury or death, to a limit, exclusive of interest and costs,
17of not less than $25,000 $20,000 because of bodily injury to or
18death of any one person in any one motor vehicle accident and,
19subject to said limit for one person, to a limit of not less
20than $50,000 $40,000 because of bodily injury to or death of 2
21or more persons in any one motor vehicle accident, and, if the
22motor vehicle accident has resulted in injury to or destruction
23of property, to a limit of not less than $20,000 $15,000
24because of injury to or destruction of property of others in
25any one motor vehicle accident. The changes to this Section
26made by this amendatory Act of the 98th General Assembly apply



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1only to policies issued or renewed on or after January 1, 2015.
2    Upon receipt of a written motor vehicle accident report
3from the Administrator the insurance company or surety company
4named in such notice shall notify the Administrator within such
5time and in such manner as the Administrator may require, in
6case such policy or bond was not in effect at the time of such
7motor vehicle accident.
8(Source: P.A. 85-730.)
9    (625 ILCS 5/7-311)  (from Ch. 95 1/2, par. 7-311)
10    Sec. 7-311. Payments sufficient to satisfy requirements.
11(a) Judgments herein referred to arising out of motor vehicle
12accidents occurring on or after the effective date of this
13amendatory Act of the 98th General Assembly January 1, 1956,
14shall for the purpose of this Chapter be deemed satisfied:
15    1. When $25,000 $20,000 has been credited upon any judgment
16or judgments rendered in excess of that amount for bodily
17injury to or the death of one person as the result of any one
18motor vehicle accident; or
19    2. When, subject to said limit of $25,000 $20,000 as to any
20one person, the sum of $50,000 $40,000 has been credited upon
21any judgment or judgments rendered in excess of that amount for
22bodily injury to or the death of more than one person as the
23result of any one motor vehicle accident; or
24    3. When $20,000 $15,000 has been credited upon any judgment
25or judgments, rendered in excess of that amount for damages to



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1property of others as a result of any one motor vehicle
3    The changes to this subsection made by this amendatory Act
4of the 98th General Assembly apply only to policies issued or
5renewed on or after January 1, 2015.
6    (b) Credit for such amounts shall be deemed a satisfaction
7of any such judgment or judgments in excess of said amounts
8only for the purposes of this Chapter.
9    (c) Whenever payment has been made in settlement of any
10claim for bodily injury, death or property damage arising from
11a motor vehicle accident resulting in injury, death or property
12damage to two or more persons in such accident, any such
13payment shall be credited in reduction of the amounts provided
14for in this Section.
15(Source: P.A. 85-730.)
16    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
17    Sec. 7-317. "Motor vehicle liability policy" defined. (a)
18Certification. -A "motor vehicle liability policy", as that
19term is used in this Act, means an "owner's policy" or an
20"operator's policy" of liability insurance, certified as
21provided in Section 7-315 or Section 7-316 as proof of
22financial responsibility for the future, and issued, except as
23otherwise provided in Section 7-316, by an insurance carrier
24duly authorized to transact business in this State, to or for
25the benefit of the person named therein as insured.



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1    (b) Owner's Policy. --Such owner's policy of liability
3    1. Shall designate by explicit description or by
4appropriate reference, all motor vehicles with respect to which
5coverage is thereby intended to be granted;
6    2. Shall insure the person named therein and any other
7person using or responsible for the use of such motor vehicle
8or vehicles with the express or implied permission of the
10    3. Shall insure every named insured and any other person
11using or responsible for the use of any motor vehicle owned by
12the named insured and used by such other person with the
13express or implied permission of the named insured on account
14of the maintenance, use or operation of any motor vehicle owned
15by the named insured, within the continental limits of the
16United States or the Dominion of Canada against loss from
17liability imposed by law arising from such maintenance, use or
18operation, to the extent and aggregate amount, exclusive of
19interest and cost, with respect to each motor vehicle, of
20$25,000 $20,000 for bodily injury to or death of one person as
21a result of any one accident and, subject to such limit as to
22one person, the amount of $50,000 $40,000 for bodily injury to
23or death of all persons as a result of any one accident and the
24amount of $20,000 $15,000 for damage to property of others as a
25result of any one accident. The changes to this paragraph made
26by this amendatory Act of the 98th General Assembly apply only



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1to policies issued or renewed on or after January 1, 2015.
2    (c) Operator's Policy. --When an operator's policy is
3required, it shall insure the person named therein as insured
4against the liability imposed by law upon the insured for
5bodily injury to or death of any person or damage to property
6to the amounts and limits above set forth and growing out of
7the use or operation by the insured within the continental
8limits of the United States or the Dominion of Canada of any
9motor vehicle not owned by him.
10    (d) Required Statements in Policies. --Every motor vehicle
11liability policy must specify the name and address of the
12insured, the coverage afforded by the policy, the premium
13charged therefor, the policy period, and the limits of
14liability, and shall contain an agreement that the insurance
15thereunder is provided in accordance with the coverage defined
16in this Act, as respects bodily injury and death or property
17damage or both, and is subject to all the provisions of this
19    (e) Policy Need Not Insure Workers' Compensation. --Any
20liability policy or policies issued hereunder need not cover
21any liability of the insured assumed by or imposed upon the
22insured under any workers' compensation law nor any liability
23for damage to property in charge of the insured or the
24insured's employees.
25    (f) Provisions Incorporated in Policy. --Every motor
26vehicle liability policy is subject to the following provisions



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1which need not be contained therein:
2    1. The liability of the insurance carrier under any such
3policy shall become absolute whenever loss or damage covered by
4the policy occurs and the satisfaction by the insured of a
5final judgment for such loss or damage shall not be a condition
6precedent to the right or obligation of the carrier to make
7payment on account of such loss or damage.
8    2. No such policy may be cancelled or annulled as respects
9any loss or damage, by any agreement between the carrier and
10the insured after the insured has become responsible for such
11loss or damage, and any such cancellation or annulment shall be
13    3. The insurance carrier shall, however, have the right to
14settle any claim covered by the policy, and if such settlement
15is made in good faith, the amount thereof shall be deductible
16from the limits of liability specified in the policy.
17    4. The policy, the written application therefor, if any,
18and any rider or endorsement which shall not conflict with the
19provisions of this Act shall constitute the entire contract
20between the parties.
21    (g) Excess or Additional Coverage. --Any motor vehicle
22liability policy may, however, grant any lawful coverage in
23excess of or in addition to the coverage herein specified or
24contain any agreements, provisions, or stipulations not in
25conflict with the provisions of this Act and not otherwise
26contrary to law.



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1    (h) Reimbursement Provision Permitted. --The policy may
2provide that the insured, or any other person covered by the
3policy shall reimburse the insurance carrier for payment made
4on account of any loss or damage claim or suit involving a
5breach of the terms, provisions or conditions of the policy;
6and further, if the policy shall provide for limits in excess
7of the limits specified in this Act, the insurance carrier may
8plead against any plaintiff, with respect to the amount of such
9excess limits of liability, any defense which it may be
10entitled to plead against the insured.
11    (i) Proration of Insurance Permitted. --The policy may
12provide for the pro-rating of the insurance thereunder with
13other applicable valid and collectible insurance.
14    (j) Binders. --Any binder pending the issuance of any
15policy, which binder contains or by reference includes the
16provisions hereunder shall be sufficient proof of ability to
17respond in damages.
18    (k) Copy of Policy to Be Filed with Department of
19Insurance--Approval. --A copy of the form of every motor
20vehicle liability policy which is to be used to meet the
21requirements of this Act must be filed, by the company offering
22such policy, with the Department of Insurance, which shall
23approve or disapprove the policy within 30 days of its filing.
24If the Department approves the policy in writing within such 30
25day period or fails to take action for 30 days, the form of
26policy shall be deemed approved as filed. If within the 30 days



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1the Department disapproves the form of policy filed upon the
2ground that it does not comply with the requirements of this
3Act, the Department shall give written notice of its decision
4and its reasons therefor to the carrier and the policy shall
5not be accepted as proof of financial responsibility under this
7    (l) Insurance Carrier Required to File Certificate. --An
8insurance carrier who has issued a motor vehicle liability
9policy or policies or an operator's policy meeting the
10requirements of this Act shall, upon the request of the insured
11therein, deliver to the insured for filing, or at the request
12of the insured, shall file direct, with the Secretary of State
13a certificate, as required by this Act, which shows that such
14policy or policies have been issued. No insurance carrier may
15require the payment of any extra fee or surcharge, in addition
16to the insurance premium, for the execution, delivery or filing
17of such certificate.
18    (m) Proof When Made By Endorsement. --Any motor vehicle
19liability policy which by endorsement contains the provisions
20required hereunder shall be sufficient proof of ability to
21respond in damages.
22(Source: P.A. 85-730.)
23    Section 99. Effective date. This Act takes effect January
241, 2015.