Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts
soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide
Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
VEHICLES625 ILCS 5/7-314
(625 ILCS 5/) Illinois Vehicle Code.
(625 ILCS 5/7-314)
(from Ch. 95 1/2, par. 7-314)
Alternate methods of giving proof.
Proof of financial responsibility
when required under this Article may be given by filing with the Secretary of State:
1. A certificate of insurance as provided in Section 7-315 or Section
2. A bond as provided in Section 7-320; or
3. A deposit of securities as provided in Section 7-323.
(Source: P.A. 83-831.)
625 ILCS 5/7-315
(625 ILCS 5/7-315)
(from Ch. 95 1/2, par. 7-315)
A certificate of insurance proof.
(a) Proof of financial
may be made by filing with the Secretary of State the written or electronic
of any insurance carrier duly authorized to do business in this State,
that it has issued to or for the benefit of the person furnishing such proof
and named as the insured in a motor vehicle liability policy, a motor
vehicle liability policy or policies or in certain events an operator's
policy meeting the requirements of this Code and that said policy
or policies are then in full force and effect. All written or electronic certificates must be submitted in a manner satisfactory to the Secretary of State.
(b) Such certificate or certificates shall give the dates of issuance
and expiration of such policy or policies and certify that the same shall
not be canceled unless 15 days' prior written or electronic notice thereof
be given to the Secretary of State and shall explicitly describe all motor
vehicles covered thereby unless the policy or policies are issued to a person
not the owner of a motor vehicle.
(c) The Secretary of State shall not accept any certificate or
certificates unless the same shall cover all motor vehicles then registered
in this State in the name of the person furnishing such proof as owner and
an additional certificate or certificates shall be required as a condition
precedent to the subsequent registration of any motor vehicle or motor
vehicles in the name of the person giving such proof as owner.
(Source: P.A. 94-239, eff. 1-1-06.)
625 ILCS 5/7-316
(625 ILCS 5/7-316)
(from Ch. 95 1/2, par. 7-316)
Certificate furnished by nonresident
as proof. Any nonresident owner of a motor vehicle
not registered in this State may give proof of financial responsibility
by filing with the Secretary of State a certificate or certificates of an
insurance carrier authorized to transact business in the state or province
of the Dominion of Canada in
which the motor vehicle or motor vehicles described in such certificate
are registered, or if such nonresident does
not own a motor vehicle then in the state or province of the Dominion of
Canada in which the insured resides, and otherwise conforming to the provisions
of this Code, and the Secretary of State shall accept the same
if such carrier shall:
1. Execute a power of attorney authorizing the Secretary of State to accept
service on its behalf of notice of process in any action arising out
of a motor vehicle accident in this State;
2. Duly adopt a resolution which shall be binding upon it declaring that
its policies shall be deemed to be varied to comply with the laws of this
State relating to the terms of motor vehicle liability policies as required
by Section 7-317; and
3. Agree to accept as final and binding any final judgment duly rendered
in any action arising out of a motor vehicle accident in any court of
competent jurisdiction in this State.
(Source: P.A. 83-831.)
625 ILCS 5/7-316.1
(625 ILCS 5/7-316.1)
Nonresidents and former residents; when proof not required.
(a) Any nonresident or former Illinois resident who (i) has met all requirements for reinstatement of his or her driving or registration privileges under this Chapter except for filing proof of financial responsibility, (ii) resides outside of Illinois, and (iii) has applied for a driver's license in another state, shall be released from the requirement of showing proof of financial responsibility in this State if he or she presents to the Secretary of State, in a manner satisfactory to the Secretary, notice of his or her out-of-state residency.
(b) Any nonresident or former Illinois resident whose driver's license was revoked and who (i) has met all requirements for applying for driving privileges except for filing proof of financial responsibility under this Chapter, (ii) resides outside of Illinois, and (iii) has applied for a driver's license in another state, shall be released from the requirement of showing proof of financial responsibility in this State if he or she presents to the Secretary of State, in a manner satisfactory to the Secretary, notice of his or her out-of-state residency.
(b-5) Any nonresident or former Illinois resident who has submitted satisfactory documentation to the Secretary of State to be released of showing proof of financial responsibility in this State shall have his or her Illinois license cancelled 60 days after acceptance of notice of cancellation, as provided in Section 6-201 of this Code.
(c) If a nonresident or former Illinois resident released from the requirement of showing proof of financial responsibility in this State under subsection (a) or subsection (b) of this Section moves or returns to this State within 3 years of the date of release, that person must present to the Secretary of State, in a manner satisfactory to the Secretary, proof of insurance coverage during the period in which the person lived outside of Illinois. A person who fails to present the required proof may not be issued a driver's license until he or she presents proof of financial responsibility that is satisfactory under this Chapter. The proof of financial responsibility required under this subsection (c) must be shown or maintained for the period of time required under this Chapter.
(d) The Secretary shall adopt rules for implementing this Section.
(Source: P.A. 98-178, eff. 1-1-14.)
625 ILCS 5/7-317
(625 ILCS 5/7-317)
(from Ch. 95 1/2, par. 7-317)
"Motor vehicle liability policy" defined.
Certification. -A "motor vehicle liability policy", as that term is
used in this Act, means an "owner's policy" or an "operator's policy" of
liability insurance, certified as provided in Section 7-315 or Section
7-316 as proof of financial responsibility for the future, and issued,
except as otherwise provided in Section 7-316, by an insurance carrier
duly authorized to transact business in this State, to or for the
benefit of the person named therein as insured.
(b) Owner's Policy. --Such owner's policy of liability insurance:
1. Shall designate by explicit description or by
appropriate reference, all motor vehicles with respect to which coverage is thereby intended to be granted;
2. Shall insure the person named therein and any
other person using or responsible for the use of such motor vehicle or vehicles with the express or implied permission of the insured;
3. Shall insure every named insured and any other
person using or responsible for the use of any motor vehicle owned by the named insured and used by such other person with the express or implied permission of the named insured on account of the maintenance, use or operation of any motor vehicle owned by the named insured, within the continental limits of the United States or the Dominion of Canada against loss from liability imposed by law arising from such maintenance, use or operation, to the extent and aggregate amount, exclusive of interest and cost, with respect to each motor vehicle, of $25,000 for bodily injury to or death of one person as a result of any one accident and, subject to such limit as to one person, the amount of $50,000 for bodily injury to or death of all persons as a result of any one accident and the amount of $20,000 for damage to property of others as a result of any one accident. The changes to this paragraph made by this amendatory Act of the 98th General Assembly apply only to policies issued or renewed on or after January 1, 2015.
(c) Operator's Policy. --When an operator's policy is required, it
shall insure the person named therein as insured against the liability
imposed by law upon the insured for bodily injury to or death of any
person or damage to property to the amounts and limits above set forth
and growing out of the use or operation by the insured within the
continental limits of the United States or the Dominion of Canada of any
motor vehicle not owned by him.
(d) Required Statements in Policies. --Every motor vehicle liability
policy must specify the name and address of the insured, the coverage
afforded by the policy, the premium charged therefor, the policy period,
and the limits of liability, and shall contain an agreement that the
insurance thereunder is provided in accordance with the coverage defined
in this Act, as respects bodily injury and death or property damage or
both, and is subject to all the provisions of this Act.
(e) Policy Need Not Insure Workers' Compensation. --Any liability
policy or policies issued hereunder need not cover any liability of the
insured assumed by or imposed upon the insured under any workers'
compensation law nor any liability for damage to property in charge of
the insured or the insured's employees.
(f) Provisions Incorporated in Policy. --Every motor vehicle
liability policy is subject to the following provisions which need not
be contained therein:
1. The liability of the insurance carrier under any
such policy shall become absolute whenever loss or damage covered by the policy occurs and the satisfaction by the insured of a final judgment for such loss or damage shall not be a condition precedent to the right or obligation of the carrier to make payment on account of such loss or damage.
2. No such policy may be cancelled or annulled as
respects any loss or damage, by any agreement between the carrier and the insured after the insured has become responsible for such loss or damage, and any such cancellation or annulment shall be void.
3. The insurance carrier shall, however, have the
right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in the policy.
4. The policy, the written application therefor, if
any, and any rider or endorsement which shall not conflict with the provisions of this Act shall constitute the entire contract between the parties.
(g) Excess or Additional Coverage. --Any motor vehicle liability
policy may, however, grant any lawful coverage in excess of or in
addition to the coverage herein specified or contain any agreements,
provisions, or stipulations not in conflict with the provisions of this
Act and not otherwise contrary to law.
(h) Reimbursement Provision Permitted. --The policy may provide that
the insured, or any other person covered by the policy shall reimburse
the insurance carrier for payment made on account of any loss or damage
claim or suit involving a breach of the terms, provisions or conditions
of the policy; and further, if the policy shall provide for limits in
excess of the limits specified in this Act, the insurance carrier may
plead against any plaintiff, with respect to the amount of such excess
limits of liability, any defense which it may be entitled to plead
against the insured.
(i) Proration of Insurance Permitted. --The policy may provide for
the pro-rating of the insurance thereunder with other applicable valid
and collectible insurance.
(j) Binders. --Any binder pending the issuance of any policy, which
binder contains or by reference includes the provisions hereunder shall
be sufficient proof of ability to respond in damages.
(k) Copy of Policy to Be Filed with Department of
Insurance--Approval. --A copy of the form of every motor vehicle
liability policy which is to be used to meet the requirements of this
Act must be filed, by the company offering such policy, with the
Department of Insurance, which shall approve or disapprove the policy
within 30 days of its filing. If the Department approves the policy in
writing within such 30 day period or fails to take action for 30 days,
the form of policy shall be deemed approved as filed. If within the 30
days the Department disapproves the form of policy filed upon the ground
that it does not comply with the requirements of this Act, the
Department shall give written notice of its decision and its reasons
therefor to the carrier and the policy shall not be accepted as proof of
financial responsibility under this Act.
(l) Insurance Carrier Required to File Certificate. --An insurance
carrier who has issued a motor vehicle liability policy or policies or
an operator's policy meeting the requirements of this Act shall, upon
the request of the insured therein, deliver to the insured for filing,
or at the request of the insured, shall file direct, with the Secretary
of State a certificate, as required by this Act, which shows that such
policy or policies have been issued. No insurance carrier may require
the payment of any extra fee or surcharge, in addition to the insurance
premium, for the execution, delivery or filing of such certificate.
(m) Proof When Made By Endorsement. --Any motor vehicle liability
policy which by endorsement contains the provisions required hereunder
shall be sufficient proof of ability to respond in damages.
(Source: P.A. 98-519, eff. 1-1-15
625 ILCS 5/7-318
(625 ILCS 5/7-318)
(from Ch. 95 1/2, par. 7-318)
Notice of Cancellation or Termination of Certified Policy.
When an insurance carrier has certified a motor vehicle liability policy
or policies under this Act, it shall notify the Secretary of State of any
cancellation by mailing a written or electronic notice at least 15 days prior to
cancellation of such policy and the policy shall continue in full force and
effect until the date of cancellation specified in such notice or until its
expiration, except that such a policy subsequently procured and certified
shall, on the effective date of its certification, terminate the insurance
previously certified with respect to any vehicle designated in both
certificates. All written or electronic certificates must be submitted in a manner satisfactory to the Secretary of State.
(Source: P.A. 94-239, eff. 1-1-06.)
625 ILCS 5/7-319
(625 ILCS 5/7-319)
(from Ch. 95 1/2, par. 7-319)
This Act Not to Affect Other Policies.
Sections 7-301 through 7-329, each inclusive, of this Act shall not be
held to apply to or affect bonds or policies of automobile insurance
against liability which may now or hereafter be required by any other
provision of this Act and such bonds or policies, if endorsed to conform to
the requirements of this Act, shall be accepted as proof of financial
responsibility when required under this Act. This Act shall not be held to
apply to or affect policies insuring solely the insured named in the policy
against liability resulting from the maintenance, operation or use by
persons in the insured's employ or in his behalf of motor vehicles not
owned by the insured.
(Source: P.A. 76-1586.)
625 ILCS 5/7-320
(625 ILCS 5/7-320)
(from Ch. 95 1/2, par. 7-320)
Bond as Proof.
A person required to give proof of financial responsibility may file
with the Secretary of State a bond, executed by the person giving such
proof and by a surety company, duly authorized to transact business within
the State; or by the person, giving such proof and by 2 individual
sureties, each owning real estate within this State and having an equity
therein in the amount of such bond, which real estate shall be scheduled
1. The Secretary of State shall not accept any such real estate bond
unless it is first approved by a judge of a court.
2. The Secretary of State shall not accept any such bond unless it is
conditioned for payment in amounts and under the same circumstances as
would be required in a motor vehicle liability policy furnished by the
person giving such proof under this Act.
3. No such bond shall be cancelled unless 10 days' prior written
notice is given to the Secretary of State, but cancellation of such bond
shall not prevent recovery thereon with respect to any right or cause of
action arising prior to the date of cancellation.
4. The principal and sureties of every such real estate bond shall
execute and deliver an original and one copy of the bond and schedule and
in addition, when the real property or any part thereof, listed or
described in the schedule, shall lie in more than one county, then as many
extra copies as there are counties in which the real property, or any part
thereof, shall lie, to the judge to whom such bond is presented for
approval, who shall, if he approved the bond, endorse upon the original
and each copy of the bond the date of the approval thereof; and the clerk
of the court shall immediately file one of the copies with the recorder
in each county in which is situated any of the non-registered real
property so scheduled.
5. If any of the lands so scheduled shall have been registered under "An
Act concerning land titles", approved May 1, 1897, as amended, the clerk
of the court in which the bond is approved shall immediately file with the
registrar of titles in and for each county in which any of the registered
land so scheduled is situated, a notice stating that such land has been so
scheduled, and the registrar shall thereupon enter a memorial of such fact
upon the record.
6. The clerk of the court in which the bond is approved shall endorse
upon the original of each such real estate bond approved the date upon
which he or she filed a copy of such bond with the recorder in each
county in which is situated any of the non-registered real property so
scheduled or the notice with the registrar of titles in and for each
county in which any of the registered land scheduled is situated and shall
deliver such original bond to the principal thereon.
(Source: P.A. 83-1362.)
625 ILCS 5/7-321
(625 ILCS 5/7-321)
(from Ch. 95 1/2, par. 7-321)
When Bond Shall Constitute a Lien.
Such bond shall constitute a lien upon the unregistered real estate
so scheduled of any surety from the time when a copy of such bond is
filed in the office of the recorder in and for the county in
which such non-registered real property so scheduled is situated, and
such bond shall be a lien upon all registered real property listed or
described in the accompanying schedule from the time when notice, as
aforesaid, is filed in the office of the registrar of titles in and for
the county in which such registered real estate so scheduled is
situated. Such lien shall exist in favor of the People of the State of
Illinois for the use of any holder of a final judgment against the
principal on such bond upon a liability covered by the conditions of
(Source: P.A. 83-358.)
625 ILCS 5/7-322
(625 ILCS 5/7-322)
(from Ch. 95 1/2, par. 7-322)
Action on Bond.
If a judgment is rendered against the principal of any such surety or
real estate bond upon a liability covered by the conditions of such bond
and such judgment is not satisfied within thirty (30) days after it becomes
final, then the judgment creditor may, for his own use and benefit, and at
his sole expense, bring an action or actions in the name of the State
against the company or persons who executed such bond including an action
or proceeding to foreclose any lien that may exist upon the real estate of
a person who has executed such bond, which action shall be brought in like
manner and subject to all the provisions of law applicable to an action to
foreclose a mortgage upon real estate.
(Source: P.A. 76-1586.)
625 ILCS 5/7-323
(625 ILCS 5/7-323)
(from Ch. 95 1/2, par. 7-323)
Money Or Securities As Proof.
A person may give proof of financial responsibility by delivering to the
Secretary of State a receipt of the State Treasurer showing the deposit
with said State Treasurer of money in amount or securities endorsed in
blank by the owner thereof and approved by said State Treasurer and of a
market value in a total amount as would be required for coverage in a motor
vehicle liability policy furnished by the person giving such proof under
this Act. Such securities shall be of the type which may legally be
purchased as investments of trust funds by trustees.
(Source: P.A. 76-1586.)
625 ILCS 5/7-324
(625 ILCS 5/7-324)
(from Ch. 95 1/2, par. 7-324)
Application of Deposit.
All money or securities so deposited shall be subject to execution to
satisfy any judgment mentioned in this Act but shall not otherwise be
subject to attachment or execution. The State Treasurer shall not accept
any such deposit or issue a certificate therefor, and the Secretary of
State shall not accept such certificate unless accompanied by evidence that
there are no unsatisfied judgments against the depositor registered in the
county where the depositor resides.
(Source: P.A. 76-1586.)
625 ILCS 5/7-325
(625 ILCS 5/7-325)
(from Ch. 95 1/2, par. 7-325)
Owner may give proof for others.
Whenever the Secretary of
State determines that any person required to give proof under this Article
by reason of a revocation is not the owner of a motor vehicle but
was, at the time of such conviction a driver in the employ of an owner of
a motor vehicle, or a member of the immediate family or household of the
owner of a motor vehicle, the Secretary of State shall accept proof of financial
responsibility given by such owner in lieu of proof given by such other
person so long as such other person is operating a motor vehicle for which
the owner has given proof as herein provided.
(Source: P.A. 83-831.)
625 ILCS 5/7-326
(625 ILCS 5/7-326)
(from Ch. 95 1/2, par. 7-326)
Substitution of proof.
The Secretary of State shall cancel
any bond or return any certificate of insurance, or the Secretary of State
shall direct and the State Treasurer shall return any money or securities
to the person entitled thereto, upon the substitution and acceptance of
other adequate proof of financial responsibility pursuant to this Article.
(Source: P.A. 83-831.)
625 ILCS 5/7-327
(625 ILCS 5/7-327)
(from Ch. 95 1/2, par. 7-327)
Other proof may be required.
Whenever any evidence of proof
of ability to respond in damages filed under the provisions of this Article
no longer fulfills the purpose for which
required, the Secretary of State shall, for the purposes of this Chapter,
require other evidence of ability to respond in damages as required
by this Article, and the driver's license, registration
certificates, license plates and registration stickers involved shall be
suspended by the Secretary of State pending such proof.
(Source: P.A. 83-831.)