101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB2178

 

Introduced , by Rep. Michael D. Unes

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/1-164.5
625 ILCS 5/7-203  from Ch. 95 1/2, par. 7-203
625 ILCS 5/7-311  from Ch. 95 1/2, par. 7-311
625 ILCS 5/7-317  from Ch. 95 1/2, par. 7-317

    Amends the Illinois Vehicle Code. Increases the minimum mandatory coverage amounts for liability insurance policies in this State and increases the amounts sufficient to satisfy a judgment following a motor vehicle accident as follows: bodily injury or death to any one person from $25,000 to $50,000; bodily injury or death to more than one person from $50,000 to $100,000; and injury or destruction of property of others from $20,000 to $40,000.


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A BILL FOR

 

HB2178LRB101 05180 TAE 50192 b

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 $50,000 $25,000, and subject to
12this limit for any one person injured or killed, in the amount
13of $100,000 $50,000 for bodily injury to or death of 2 or more
14persons in any one accident, and for damage to property in the
15amount of $40,000 $20,000 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. 98-519, eff. 1-1-15.)
 
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 $50,000 $25,000 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 $100,000 $50,000 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 $40,000 $20,000
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. 98-519, eff. 1-1-15.)
 
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
12vehicle accidents occurring on or after January 1, 2015 (the
13effective date of Public Act 98-519) shall for the purpose of
14this Chapter be deemed satisfied:
15        1. when $50,000 $25,000 has been credited upon any
16    judgment or judgments rendered in excess of that amount for
17    bodily injury to or the death of one person as the result
18    of any one motor vehicle accident; or
19        2. when, subject to said limit of $50,000 $25,000 as to
20    any one person, the sum of $100,000 $50,000 has been
21    credited upon any judgment or judgments rendered in excess
22    of that amount for bodily injury to or the death of more
23    than one person as the result of any one motor vehicle
24    accident; or
25        3. when $40,000 $20,000 has been credited upon any

 

 

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1    judgment or judgments, rendered in excess of that amount
2    for damages to property of others as a result of any one
3    motor vehicle accident.
4    The changes to this subsection made by Public Act 98-519
5apply only to policies issued or renewed on or after January 1,
62015.
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
13property damage to two or more persons in such accident, any
14such payment shall be credited in reduction of the amounts
15provided for in this Section.
16(Source: P.A. 99-78, eff. 7-20-15; 100-201, eff. 8-18-17.)
 
17    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
18    Sec. 7-317. "Motor vehicle liability policy" defined.
19    (a) Certification. -A "motor vehicle liability policy", as
20that term 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
3insurance:
4        1. Shall designate by explicit description or by
5    appropriate reference, all motor vehicles with respect to
6    which coverage is thereby intended to be granted;
7        2. Shall insure the person named therein and any other
8    person using or responsible for the use of such motor
9    vehicle or vehicles with the express or implied permission
10    of the insured;
11        3. Shall insure every named insured and any other
12    person using or responsible for the use of any motor
13    vehicle owned by the named insured and used by such other
14    person with the express or implied permission of the named
15    insured on account of the maintenance, use or operation of
16    any motor vehicle owned by the named insured, within the
17    continental limits of the United States or the Dominion of
18    Canada against loss from liability imposed by law arising
19    from such maintenance, use or operation, to the extent and
20    aggregate amount, exclusive of interest and cost, with
21    respect to each motor vehicle, of $50,000 $25,000 for
22    bodily injury to or death of one person as a result of any
23    one accident and, subject to such limit as to one person,
24    the amount of $100,000 $50,000 for bodily injury to or
25    death of all persons as a result of any one accident and
26    the amount of $40,000 $20,000 for damage to property of

 

 

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1    others as a result of any one accident. The changes to this
2    paragraph made by this amendatory Act of the 98th General
3    Assembly apply only to policies issued or renewed on or
4    after January 1, 2015.
5    (c) Operator's Policy. --When an operator's policy is
6required, it shall insure the person named therein as insured
7against the liability imposed by law upon the insured for
8bodily injury to or death of any person or damage to property
9to the amounts and limits above set forth and growing out of
10the use or operation by the insured within the continental
11limits of the United States or the Dominion of Canada of any
12motor vehicle not owned by him.
13    (d) Required Statements in Policies. --Every motor vehicle
14liability policy must specify the name and address of the
15insured, the coverage afforded by the policy, the premium
16charged therefor, the policy period, and the limits of
17liability, and shall contain an agreement that the insurance
18thereunder is provided in accordance with the coverage defined
19in this Act, as respects bodily injury and death or property
20damage or both, and is subject to all the provisions of this
21Act.
22    (e) Policy Need Not Insure Workers' Compensation. --Any
23liability policy or policies issued hereunder need not cover
24any liability of the insured assumed by or imposed upon the
25insured under any workers' compensation law nor any liability
26for damage to property in charge of the insured or the

 

 

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

 

 

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

 

 

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1such policy, with the Department of Insurance, which shall
2approve or disapprove the policy within 30 days of its filing.
3If the Department approves the policy in writing within such 30
4day period or fails to take action for 30 days, the form of
5policy shall be deemed approved as filed. If within the 30 days
6the Department disapproves the form of policy filed upon the
7ground that it does not comply with the requirements of this
8Act, the Department shall give written notice of its decision
9and its reasons therefor to the carrier and the policy shall
10not be accepted as proof of financial responsibility under this
11Act.
12    (l) Insurance Carrier Required to File Certificate. --An
13insurance carrier who has issued a motor vehicle liability
14policy or policies or an operator's policy meeting the
15requirements of this Act shall, upon the request of the insured
16therein, deliver to the insured for filing, or at the request
17of the insured, shall file direct, with the Secretary of State
18a certificate, as required by this Act, which shows that such
19policy or policies have been issued. No insurance carrier may
20require the payment of any extra fee or surcharge, in addition
21to the insurance premium, for the execution, delivery or filing
22of such certificate.
23    (m) Proof When Made By Endorsement. --Any motor vehicle
24liability policy which by endorsement contains the provisions
25required hereunder shall be sufficient proof of ability to
26respond in damages.

 

 

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1(Source: P.A. 98-519, eff. 1-1-15.)