101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5491

 

Introduced , by Rep. Diane Pappas

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/7-601  from Ch. 95 1/2, par. 7-601

    Amends the Mandatory Insurance Article of the Illinois Vehicle Code. Provides that a person may not terminate a mandatory insurance policy unless he or she provides sufficient proof to the Director of Insurance and the Secretary of State that: (i) the person has obtained other insurance coverage, equivalent to the mandatory insurance; (ii) ownership of the motor vehicle has been transferred to another person; or (iii) the motor vehicle is in storage with the license plates removed and under the owner's control in such a way that the vehicle cannot legally be operated on roads in the State.


LRB101 18878 LNS 68336 b

 

 

A BILL FOR

 

HB5491LRB101 18878 LNS 68336 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
5Section 7-601 as follows:
 
6    (625 ILCS 5/7-601)  (from Ch. 95 1/2, par. 7-601)
7    Sec. 7-601. Required liability insurance policy.
8    (a) No person shall operate, register or maintain
9registration of, and no owner shall permit another person to
10operate, register or maintain registration of, a motor vehicle
11designed to be used on a public highway in this State unless
12the motor vehicle is covered by a liability insurance policy.
13    The insurance policy shall be issued in amounts no less
14than the minimum amounts set for bodily injury or death and for
15destruction of property under Section 7-203 of this Code, and
16shall be issued in accordance with the requirements of Sections
17143a and 143a-2 of the Illinois Insurance Code, as amended. No
18insurer other than an insurer authorized to do business in this
19State shall issue a policy pursuant to this Section for any
20vehicle subject to registration under this Code. Nothing herein
21shall deprive an insurer of any policy defense available at
22common law.
23    (b) The following vehicles are exempt from the requirements

 

 

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1of this Section:
2        (1) vehicles subject to the provisions of Chapters 8 or
3    18a, Article III or Section 7-609 of Chapter 7, or Sections
4    12-606 or 12-707.01 of Chapter 12 of this Code;
5        (2) vehicles required to file proof of liability
6    insurance with the Illinois Commerce Commission;
7        (3) vehicles covered by a certificate of
8    self-insurance under Section 7-502 of this Code;
9        (4) vehicles owned by the United States, the State of
10    Illinois, or any political subdivision, municipality or
11    local mass transit district;
12        (5) implements of husbandry;
13        (6) other vehicles complying with laws which require
14    them to be insured in amounts meeting or exceeding the
15    minimum amounts required under this Section; and
16        (7) inoperable or stored vehicles that are not
17    operated, as defined by rules and regulations of the
18    Secretary.
19    (c) Every employee of a State agency, as that term is
20defined in the Illinois State Auditing Act, who is assigned a
21specific vehicle owned or leased by the State on an ongoing
22basis shall provide the certification described in this Section
23annually to the director or chief executive officer of his or
24her agency.
25    The certification shall affirm that the employee is duly
26licensed to drive the assigned vehicle and that (i) the

 

 

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1employee has liability insurance coverage extending to the
2employee when the assigned vehicle is used for other than
3official State business, or (ii) the employee has filed a bond
4with the Secretary of State as proof of financial
5responsibility, in an amount equal to, or in excess of the
6requirements stated within this Section. Upon request of the
7agency director or chief executive officer, the employee shall
8present evidence to support the certification.
9    The certification shall be provided during the period July
101 through July 31 of each calendar year, or within 30 days of
11any new assignment of a vehicle on an ongoing basis, whichever
12is later.
13    The employee's authorization to use the assigned vehicle
14shall automatically be rescinded upon:
15        (1) the revocation or suspension of the license
16    required to drive the assigned vehicle;
17        (2) the cancellation or termination for any reason of
18    the automobile liability insurance coverage as required in
19    item (c)(i); or
20        (3) the termination of the bond filed with the
21    Secretary of State.
22    All State employees providing the required certification
23shall immediately notify the agency director or chief executive
24officer in the event any of these actions occur.
25    All peace officers employed by a State agency who are
26primarily responsible for prevention and detection of crime and

 

 

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1the enforcement of the criminal, traffic, or highway laws of
2this State, and prohibited by agency rule or policy to use an
3assigned vehicle owned or leased by the State for regular
4personal or off-duty use, are exempt from the requirements of
5this Section.
6    (d) No person shall operate a motor vehicle registered in
7another state upon the highways of this State unless the
8vehicle is covered by a liability insurance policy. The
9operator of the vehicle shall carry within the vehicle evidence
10of the insurance.
11    (e) A person may not terminate mandatory insurance coverage
12under this Section unless he or she provides proof to the
13Director of Insurance and the Secretary of State that: (i) the
14person has obtained other insurance coverage equivalent to the
15mandatory insurance required under this Section; (ii)
16ownership of the motor vehicle has been transferred to another
17person; or (iii) the motor vehicle is in storage with the
18license plates removed and under the owner's control in such a
19way that the vehicle cannot legally be operated on roads in
20this State.
21(Source: P.A. 100-202, eff. 1-1-18; 100-828, eff. 1-1-19.)