Sen. Daniel Biss

Filed: 4/30/2013





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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 $25,000 $20,000, and subject to
13this limit for any one person injured or killed, in the amount
14of $50,000 $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 $15,000 resulting from any one accident. This proof



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1in these amounts shall be furnished for each motor vehicle
2registered by every person required to furnish this proof. The
3changes to this Section made by this amendatory Act of the 98th
4General Assembly apply only to policies issued or renewed on or
5after January 1, 2015.
6(Source: P.A. 90-89, eff. 1-1-98.)
7    (625 ILCS 5/7-203)  (from Ch. 95 1/2, par. 7-203)
8    Sec. 7-203. Requirements as to policy or bond. No such
9policy or bond referred to in Section 7-202 shall be effective
10under this Section unless issued by an insurance company or
11surety company authorized to do business in this State, except
12that if such motor vehicle was not registered in this State, or
13was a motor vehicle which was registered elsewhere than in this
14State at the effective date of the policy or bond, or the most
15recent renewal thereof, such policy or bond shall not be
16effective under this Section unless the insurance company or
17surety company, if not authorized to do business in this State,
18shall execute a power of attorney authorizing the Secretary of
19State to accept service on its behalf of notice or process in
20any action upon such policy or bond arising out of such motor
21vehicle accident. However, every such policy or bond is
22subject, if the motor vehicle accident has resulted in bodily
23injury or death, to a limit, exclusive of interest and costs,
24of not less than $25,000 $20,000 because of bodily injury to or
25death of any one person in any one motor vehicle accident and,



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



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1motor vehicle accident; or
2    2. When, subject to said limit of $25,000 $20,000 as to any
3one person, the sum of $50,000 $40,000 has been credited upon
4any judgment or judgments rendered in excess of that amount for
5bodily injury to or the death of more than one person as the
6result of any one motor vehicle accident; or
7    3. When $15,000 has been credited upon any judgment or
8judgments, rendered in excess of that amount for damages to
9property of others as a result of any one motor vehicle
11    The changes to this subsection made by this amendatory Act
12of the 98th General Assembly apply only to policies issued or
13renewed on or after January 1, 2015.
14    (b) Credit for such amounts shall be deemed a satisfaction
15of any such judgment or judgments in excess of said amounts
16only for the purposes of this Chapter.
17    (c) Whenever payment has been made in settlement of any
18claim for bodily injury, death or property damage arising from
19a motor vehicle accident resulting in injury, death or property
20damage to two or more persons in such accident, any such
21payment shall be credited in reduction of the amounts provided
22for in this Section.
23(Source: P.A. 85-730.)
24    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
25    Sec. 7-317. "Motor vehicle liability policy" defined. (a)



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1Certification. -A "motor vehicle liability policy", as that
2term is used in this Act, means an "owner's policy" or an
3"operator's policy" of liability insurance, certified as
4provided in Section 7-315 or Section 7-316 as proof of
5financial responsibility for the future, and issued, except as
6otherwise provided in Section 7-316, by an insurance carrier
7duly authorized to transact business in this State, to or for
8the benefit of the person named therein as insured.
9    (b) Owner's Policy. --Such owner's policy of liability
11    1. Shall designate by explicit description or by
12appropriate reference, all motor vehicles with respect to which
13coverage is thereby intended to be granted;
14    2. Shall insure the person named therein and any other
15person using or responsible for the use of such motor vehicle
16or vehicles with the express or implied permission of the
18    3. Shall insure every named insured and any other person
19using or responsible for the use of any motor vehicle owned by
20the named insured and used by such other person with the
21express or implied permission of the named insured on account
22of the maintenance, use or operation of any motor vehicle owned
23by the named insured, within the continental limits of the
24United States or the Dominion of Canada against loss from
25liability imposed by law arising from such maintenance, use or
26operation, to the extent and aggregate amount, exclusive of



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1interest and cost, with respect to each motor vehicle, of
2$25,000 $20,000 for bodily injury to or death of one person as
3a result of any one accident and, subject to such limit as to
4one person, the amount of $50,000 $40,000 for bodily injury to
5or death of all persons as a result of any one accident and the
6amount of $15,000 for damage to property of others as a result
7of any one accident. The changes to this paragraph made by this
8amendatory Act of the 98th General Assembly apply only to
9policies issued or renewed on or after January 1, 2015.
10    (c) Operator's Policy. --When an operator's policy is
11required, it shall insure the person named therein as insured
12against the liability imposed by law upon the insured for
13bodily injury to or death of any person or damage to property
14to the amounts and limits above set forth and growing out of
15the use or operation by the insured within the continental
16limits of the United States or the Dominion of Canada of any
17motor vehicle not owned by him.
18    (d) Required Statements in Policies. --Every motor vehicle
19liability policy must specify the name and address of the
20insured, the coverage afforded by the policy, the premium
21charged therefor, the policy period, and the limits of
22liability, and shall contain an agreement that the insurance
23thereunder is provided in accordance with the coverage defined
24in this Act, as respects bodily injury and death or property
25damage or both, and is subject to all the provisions of this



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



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



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



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1liability policy which by endorsement contains the provisions
2required hereunder shall be sufficient proof of ability to
3respond in damages.
4(Source: P.A. 85-730.)
5    Section 99. Effective date. This Act takes effect January
61, 2015.".