103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB5520

 

Introduced 2/9/2024, by Rep. Diane Blair-Sherlock

 

SYNOPSIS AS INTRODUCED:
 
625 ILCS 5/7-203  from Ch. 95 1/2, par. 7-203
625 ILCS 5/7-317  from Ch. 95 1/2, par. 7-317
625 ILCS 5/7-330 new

    Amends the Illinois Vehicle Code. Establishes that a motor vehicle owner shall provide a liability policy and every such policy or bond is subject, if the motor vehicle crash has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than $30,000 (rather than $25,000) because of bodily injury to or death of any one person in any one motor vehicle crash and, subject to said limit for one person, to a limit of not less than $60,000 (rather $50,000) because of bodily injury to or death of 2 or more persons in any one motor vehicle crash, and, if the motor vehicle crash has resulted in injury to or destruction of property, to a limit of not less than $25,000 (rather than $20,000). Provides that a commercial vehicle must be insured of not less than $50,000 because of bodily injury to or death of any one person in any one motor vehicle crash and, subject to said limit for one person, to a limit of not less than $100,000 because of bodily injury to or death of 2 or more persons in any one motor vehicle crash, and, if the motor vehicle crash has resulted in injury to or destruction of property, to a limit of not less than $50,000 because of injury to or destruction of property of others in any one motor vehicle crash.


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A BILL FOR

 

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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
5changing Sections 7-203 and 7-317 and by adding Section 7-330
6as follows:
 
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
14this State at the effective date of the policy or bond, or the
15most recent 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
18State, shall execute a power of attorney authorizing the
19Secretary of State to accept service on its behalf of notice or
20process in any action upon such policy or bond arising out of
21such motor vehicle crash. However, every such policy or bond
22is subject, if the motor vehicle crash has resulted in bodily
23injury or death, to a limit, exclusive of interest and costs,

 

 

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1of not less than $30,000 $25,000 because of bodily injury to or
2death of any one person in any one motor vehicle crash and,
3subject to said limit for one person, to a limit of not less
4than $60,000 $50,000 because of bodily injury to or death of 2
5or more persons in any one motor vehicle crash, and, if the
6motor vehicle crash has resulted in injury to or destruction
7of property, to a limit of not less than $25,000 $20,000
8because of injury to or destruction of property of others in
9any one motor vehicle crash. The changes to this Section made
10by this amendatory Act of the 98th General Assembly apply only
11to policies issued or renewed on or after January 1, 2015.
12    Upon receipt of a written motor vehicle crash report from
13the Administrator the insurance company or surety company
14named in such notice shall notify the Administrator within
15such time and in such manner as the Administrator may require,
16in case such policy or bond was not in effect at the time of
17such motor vehicle crash.
18(Source: P.A. 102-982, eff. 7-1-23.)
 
19    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
20    Sec. 7-317. "Motor vehicle liability policy" defined.
21    (a) Certification. -A "motor vehicle liability policy", as
22that term is used in this Act, means an "owner's policy" or an
23"operator's policy" of liability insurance, certified as
24provided in Section 7-315 or Section 7-316 as proof of
25financial responsibility for the future, and issued, except as

 

 

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1otherwise provided in Section 7-316, by an insurance carrier
2duly authorized to transact business in this State, to or for
3the benefit of the person named therein as insured.
4    (b) Owner's Policy. --Such owner's policy of liability
5insurance:
6        1. Shall designate by explicit description or by
7    appropriate reference, all motor vehicles with respect to
8    which coverage is thereby intended to be granted;
9        2. Shall insure the person named therein and any other
10    person using or responsible for the use of such motor
11    vehicle or vehicles with the express or implied permission
12    of the insured;
13        3. Shall insure every named insured and any other
14    person using or responsible for the use of any motor
15    vehicle owned by the named insured and used by such other
16    person with the express or implied permission of the named
17    insured on account of the maintenance, use or operation of
18    any motor vehicle owned by the named insured, within the
19    continental limits of the United States or the Dominion of
20    Canada against loss from liability imposed by law arising
21    from such maintenance, use or operation, to the extent and
22    aggregate amount, exclusive of interest and cost, with
23    respect to each motor vehicle, of $30,000 $25,000 for
24    bodily injury to or death of one person as a result of any
25    one crash and, subject to such limit as to one person, the
26    amount of $60,000 $50,000 for bodily injury to or death of

 

 

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1    all persons as a result of any one crash and the amount of
2    $25,000 $20,000 for damage to property of others as a
3    result of any one crash. The changes to this paragraph
4    made by this amendatory Act of the 98th General Assembly
5    apply only to policies issued or renewed on or after
6    January 1, 2015.
7    (c) Operator's Policy. --When an operator's policy is
8required, it shall insure the person named therein as insured
9against the liability imposed by law upon the insured for
10bodily injury to or death of any person or damage to property
11to the amounts and limits above set forth and growing out of
12the use or operation by the insured within the continental
13limits of the United States or the Dominion of Canada of any
14motor vehicle not owned by him.
15    (d) Required Statements in Policies. --Every motor vehicle
16liability policy must specify the name and address of the
17insured, the coverage afforded by the policy, the premium
18charged therefor, the policy period, and the limits of
19liability, and shall contain an agreement that the insurance
20thereunder is provided in accordance with the coverage defined
21in this Act, as respects bodily injury and death or property
22damage or both, and is subject to all the provisions of this
23Act.
24    (e) Policy Need Not Insure Workers' Compensation. --Any
25liability policy or policies issued hereunder need not cover
26any liability of the insured assumed by or imposed upon the

 

 

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

 

 

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

 

 

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

 

 

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1required hereunder shall be sufficient proof of ability to
2respond in damages.
3(Source: P.A. 102-982, eff. 7-1-23.)
 
4    (625 ILCS 5/7-330 new)
5    Sec. 7-330. Proof of financial responsibility; persons who
6own and operate commercial vehicles. Except as otherwise
7provided, commercial vehicles must be insured of not less than
8$50,000 because of bodily injury to or death of any one person
9in any one motor vehicle crash and, subject to said limit for
10one person, to a limit of not less than $100,000 because of
11bodily injury to or death of 2 or more persons in any one motor
12vehicle crash, and, if the motor vehicle crash has resulted in
13injury to or destruction of property, to a limit of not less
14than $50,000 because of injury to or destruction of property
15of others in any one motor vehicle crash.