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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 changing
5Section 12-707.01 as follows:
 
6    (625 ILCS 5/12-707.01)  (from Ch. 95 1/2, par. 12-707.01)
7    Sec. 12-707.01. Liability insurance.
8    (a) No school bus, first division vehicle including a taxi
9which is used for a purpose that requires a school bus driver
10permit, commuter van or motor vehicle owned by or used for hire
11by and in connection with the operation of private or public
12schools, day camps, summer camps or nursery schools, and no
13commuter van or passenger car used for a for-profit ridesharing
14arrangement, shall be operated for such purposes unless the
15owner thereof shall carry a minimum of personal injury
16liability insurance in the amount of $25,000 for any one person
17in any one accident, and subject to the limit for one person,
18$100,000 for two or more persons injured by reason of the
19operation of the vehicle in any one accident. This subsection
20(a) applies only to personal injury liability policies issued
21or renewed before January 1, 2013.
22    (b) Liability insurance policies issued or renewed on and
23after January 1, 2013 shall comply with the following:

 

 

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1        (1) except as provided in subparagraph (2) of this
2    subsection (b), any vehicle that is used for a purpose that
3    requires a school bus driver permit under Section 6-104 of
4    this Code shall carry a minimum of liability insurance in
5    the amount of $2,000,000. This minimum insurance
6    requirement may be satisfied by either (i) a $2,000,000
7    combined single limit primary commercial automobile
8    policy; or (ii) a $1 million primary commercial automobile
9    policy and a minimum $5,000,000 excess or umbrella
10    liability policy combined single limit per accident;
11        (2) any vehicle that is used for a purpose that
12    requires a school bus driver permit under Section 6-104 of
13    this Code and is used in connection with the operation of
14    private day care facilities, day camps, summer camps, or
15    nursery schools shall carry a minimum of liability
16    insurance in the amount of $1,000,000 combined single limit
17    per accident;
18        (3) any commuter van or passenger car used for a
19    for-profit ridesharing arrangement shall carry a minimum
20    of liability insurance in the amount of $500,000 combined
21    single limit per accident.
22    (c) Primary insurance coverage under the provisions of this
23Section must be provided by a licensed and admitted insurance
24carrier or an intergovernmental cooperative formed under
25Section 10 of Article VII of the Illinois Constitution, or
26Section 6 or 9 of the Intergovernmental Cooperation Act, or

 

 

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1provided by a certified self-insurer under Section 7-502 of
2this Code. The excess or umbrella liability coverage
3requirement may be met by securing surplus line insurance as
4defined under Section 445 of the Illinois Insurance Code. If
5the excess or umbrella liability coverage requirement is met by
6securing surplus line insurance, that coverage must be effected
7through a licensed surplus line producer acting under the
8surplus line insurance laws and regulations of this State.
9Nothing in this subsection (c) shall be construed as
10prohibiting a licensed and admitted insurance carrier or an
11intergovernmental cooperative formed under Section 10 of
12Article VII of the Illinois Constitution, or Section 6 or 9 of
13the Intergovernmental Cooperation Act, or a certified
14self-insurer under Section 7-502 of this Code, from retaining
15the risk required under paragraphs (1) and (2) of subsection
16(b) of this Section or issuing a single primary policy meeting
17the requirements of paragraphs (1) and (2) of subsection (b).
18    (d) Each owner of a vehicle required to obtain the minimum
19liability requirements under subsection (b) of this Section
20shall attest that the vehicle meets the minimum insurance
21requirements under this Section. The Secretary of State shall
22create a form for each owner of a vehicle to attest that the
23owner meets the minimum insurance requirements and the owner of
24the vehicle shall submit the form with each registration
25application. The form shall be valid for the full registration
26period; however, if at any time the Secretary has reason to

 

 

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1believe that the owner does not have the minimum required
2amount of insurance for a vehicle, then the Secretary may
3require a certificate of insurance, or its equivalent, to
4ensure the vehicle is insured. If the owner fails to produce a
5certificate of insurance, or its equivalent, within 2 calendar
6days after the request was made, then the Secretary may revoke
7the vehicle owner's registration until the Secretary is assured
8the vehicle meets the minimum insurance requirements. If the
9owner of a vehicle participates in an intergovernmental
10cooperative or is self-insured, then the owner shall attest
11that the insurance required under this Section is equivalent to
12or greater than the insurance required under paragraph (1) of
13subsection (b) of this Section. The Secretary may adopt any
14rules necessary to enforce the provisions of this subsection
15(d).
16(Source: P.A. 97-224, eff. 7-28-11; 97-1078, eff. 8-24-12.)