Illinois General Assembly - Full Text of SB1898
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Full Text of SB1898  98th General Assembly


Sen. Daniel Biss

Filed: 4/15/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 1898, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Illinois Vehicle Code is amended by
6changing Sections 1-164.5, 7-203, 7-311, and 7-317 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 $30,000 $20,000, and subject to
13this limit for any one person injured or killed, in the amount
14of $60,000 $40,000 for bodily injury to or death of 2 or more
15persons in any one accident, and for damage to property in the
16amount of $20,000 $15,000 resulting from any one accident. This



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1proof in these amounts shall be furnished for each motor
2vehicle registered by every person required to furnish this
4(Source: P.A. 90-89, eff. 1-1-98.)
5    (625 ILCS 5/7-203)  (from Ch. 95 1/2, par. 7-203)
6    Sec. 7-203. Requirements as to policy or bond. No such
7policy or bond referred to in Section 7-202 shall be effective
8under this Section unless issued by an insurance company or
9surety company authorized to do business in this State, except
10that if such motor vehicle was not registered in this State, or
11was a motor vehicle which was registered elsewhere than in this
12State at the effective date of the policy or bond, or the most
13recent renewal thereof, such policy or bond shall not be
14effective under this Section unless the insurance company or
15surety company, if not authorized to do business in this State,
16shall execute a power of attorney authorizing the Secretary of
17State to accept service on its behalf of notice or process in
18any action upon such policy or bond arising out of such motor
19vehicle accident. However, every such policy or bond is
20subject, if the motor vehicle accident has resulted in bodily
21injury or death, to a limit, exclusive of interest and costs,
22of not less than $30,000 $20,000 because of bodily injury to or
23death of any one person in any one motor vehicle accident and,
24subject to said limit for one person, to a limit of not less
25than $60,000 $40,000 because of bodily injury to or death of 2



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1or more persons in any one motor vehicle accident, and, if the
2motor vehicle accident has resulted in injury to or destruction
3of property, to a limit of not less than $20,000 $15,000
4because of injury to or destruction of property of others in
5any one motor vehicle accident.
6    Upon receipt of a written motor vehicle accident report
7from the Administrator the insurance company or surety company
8named in such notice shall notify the Administrator within such
9time and in such manner as the Administrator may require, in
10case such policy or bond was not in effect at the time of such
11motor vehicle accident.
12(Source: P.A. 85-730.)
13    (625 ILCS 5/7-311)  (from Ch. 95 1/2, par. 7-311)
14    Sec. 7-311. Payments sufficient to satisfy requirements.
15(a) Judgments herein referred to arising out of motor vehicle
16accidents occurring on or after the effective date of this
17amendatory Act of the 98th General Assembly January 1, 1956,
18shall for the purpose of this Chapter be deemed satisfied:
19    1. When $30,000 $20,000 has been credited upon any judgment
20or judgments rendered in excess of that amount for bodily
21injury to or the death of one person as the result of any one
22motor vehicle accident; or
23    2. When, subject to said limit of $30,000 $20,000 as to any
24one person, the sum of $60,000 $40,000 has been credited upon
25any judgment or judgments rendered in excess of that amount for



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1bodily injury to or the death of more than one person as the
2result of any one motor vehicle accident; or
3    3. When $20,000 $15,000 has been credited upon any judgment
4or judgments, rendered in excess of that amount for damages to
5property of others as a result of any one motor vehicle
7    (b) Credit for such amounts shall be deemed a satisfaction
8of any such judgment or judgments in excess of said amounts
9only for the purposes of this Chapter.
10    (c) Whenever payment has been made in settlement of any
11claim for bodily injury, death or property damage arising from
12a motor vehicle accident resulting in injury, death or property
13damage to two or more persons in such accident, any such
14payment shall be credited in reduction of the amounts provided
15for in this Section.
16(Source: P.A. 85-730.)
17    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
18    Sec. 7-317. "Motor vehicle liability policy" defined. (a)
19Certification. -A "motor vehicle liability policy", as that
20term is used in this Act, means an "owner's policy" or an
21"operator's policy" of liability insurance, certified as
22provided in Section 7-315 or Section 7-316 as proof of
23financial responsibility for the future, and issued, except as
24otherwise provided in Section 7-316, by an insurance carrier
25duly authorized to transact business in this State, to or for



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1the benefit of the person named therein as insured.
2    (b) Owner's Policy. --Such owner's policy of liability
4    1. Shall designate by explicit description or by
5appropriate reference, all motor vehicles with respect to which
6coverage is thereby intended to be granted;
7    2. Shall insure the person named therein and any other
8person using or responsible for the use of such motor vehicle
9or vehicles with the express or implied permission of the
11    3. Shall insure every named insured and any other person
12using or responsible for the use of any motor vehicle owned by
13the named insured and used by such other person with the
14express or implied permission of the named insured on account
15of the maintenance, use or operation of any motor vehicle owned
16by the named insured, within the continental limits of the
17United States or the Dominion of Canada against loss from
18liability imposed by law arising from such maintenance, use or
19operation, to the extent and aggregate amount, exclusive of
20interest and cost, with respect to each motor vehicle, of
21$30,000 $20,000 for bodily injury to or death of one person as
22a result of any one accident and, subject to such limit as to
23one person, the amount of $60,000 $40,000 for bodily injury to
24or death of all persons as a result of any one accident and the
25amount of $20,000 $15,000 for damage to property of others as a
26result of any one accident.



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



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



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



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