Public Act 098-0519
 
SB1898 EnrolledLRB098 08190 MLW 38288 b

    AN ACT concerning transportation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Vehicle Code is amended by changing
Sections 1-164.5, 7-203, 7-311, and 7-317 as follows:
 
    (625 ILCS 5/1-164.5)
    Sec. 1-164.5. Proof of financial responsibility. Proof of
ability to respond in damages for any liability thereafter
incurred resulting from the ownership, maintenance, use or
operation of a motor vehicle for bodily injury to or death of
any person in the amount of $25,000 $20,000, and subject to
this limit for any one person injured or killed, in the amount
of $50,000 $40,000 for bodily injury to or death of 2 or more
persons in any one accident, and for damage to property in the
amount of $20,000 $15,000 resulting from any one accident. This
proof in these amounts shall be furnished for each motor
vehicle registered by every person required to furnish this
proof. The changes to this Section made by this amendatory Act
of the 98th General Assembly apply only to policies issued or
renewed on or after January 1, 2015.
(Source: P.A. 90-89, eff. 1-1-98.)
 
    (625 ILCS 5/7-203)  (from Ch. 95 1/2, par. 7-203)
    Sec. 7-203. Requirements as to policy or bond. No such
policy or bond referred to in Section 7-202 shall be effective
under this Section unless issued by an insurance company or
surety company authorized to do business in this State, except
that if such motor vehicle was not registered in this State, or
was a motor vehicle which was registered elsewhere than in this
State at the effective date of the policy or bond, or the most
recent renewal thereof, such policy or bond shall not be
effective under this Section unless the insurance company or
surety company, if not authorized to do business in this State,
shall execute a power of attorney authorizing the Secretary of
State to accept service on its behalf of notice or process in
any action upon such policy or bond arising out of such motor
vehicle accident. However, every such policy or bond is
subject, if the motor vehicle accident has resulted in bodily
injury or death, to a limit, exclusive of interest and costs,
of not less than $25,000 $20,000 because of bodily injury to or
death of any one person in any one motor vehicle accident and,
subject to said limit for one person, to a limit of not less
than $50,000 $40,000 because of bodily injury to or death of 2
or more persons in any one motor vehicle accident, and, if the
motor vehicle accident has resulted in injury to or destruction
of property, to a limit of not less than $20,000 $15,000
because of injury to or destruction of property of others in
any one motor vehicle accident. The changes to this Section
made by this amendatory Act of the 98th General Assembly apply
only to policies issued or renewed on or after January 1, 2015.
    Upon receipt of a written motor vehicle accident report
from the Administrator the insurance company or surety company
named in such notice shall notify the Administrator within such
time and in such manner as the Administrator may require, in
case such policy or bond was not in effect at the time of such
motor vehicle accident.
(Source: P.A. 85-730.)
 
    (625 ILCS 5/7-311)  (from Ch. 95 1/2, par. 7-311)
    Sec. 7-311. Payments sufficient to satisfy requirements.
(a) Judgments herein referred to arising out of motor vehicle
accidents occurring on or after the effective date of this
amendatory Act of the 98th General Assembly January 1, 1956,
shall for the purpose of this Chapter be deemed satisfied:
    1. When $25,000 $20,000 has been credited upon any judgment
or judgments rendered in excess of that amount for bodily
injury to or the death of one person as the result of any one
motor vehicle accident; or
    2. When, subject to said limit of $25,000 $20,000 as to any
one person, the sum of $50,000 $40,000 has been credited upon
any judgment or judgments rendered in excess of that amount for
bodily injury to or the death of more than one person as the
result of any one motor vehicle accident; or
    3. When $20,000 $15,000 has been credited upon any judgment
or judgments, rendered in excess of that amount for damages to
property of others as a result of any one motor vehicle
accident.
    The changes to this subsection made by this amendatory Act
of the 98th General Assembly apply only to policies issued or
renewed on or after January 1, 2015.
    (b) Credit for such amounts shall be deemed a satisfaction
of any such judgment or judgments in excess of said amounts
only for the purposes of this Chapter.
    (c) Whenever payment has been made in settlement of any
claim for bodily injury, death or property damage arising from
a motor vehicle accident resulting in injury, death or property
damage to two or more persons in such accident, any such
payment shall be credited in reduction of the amounts provided
for in this Section.
(Source: P.A. 85-730.)
 
    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
    Sec. 7-317. "Motor vehicle liability policy" defined. (a)
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 $20,000 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 $40,000 for bodily injury to
or death of all persons as a result of any one accident and the
amount of $20,000 $15,000 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. 85-730.)
 
    Section 99. Effective date. This Act takes effect January
1, 2015.