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1    AN ACT concerning regulation.
 
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 7-604 and 7-607 and by adding Section 7-604.5 as
6follows:
 
7    (625 ILCS 5/7-604)  (from Ch. 95 1/2, par. 7-604)
8    (Section scheduled to be repealed on December 31, 2016)
9    Sec. 7-604. Verification of liability insurance policy.
10    (a) The Secretary of State may select random samples of
11registrations of motor vehicles subject to Section 7-601 of
12this Code, or owners thereof, for the purpose of verifying
13whether or not the motor vehicles are insured.
14    In addition to such general random samples of motor vehicle
15registrations, the Secretary may select for verification other
16random samples, including, but not limited to registrations of
17motor vehicles owned by persons:
18        (1) whose motor vehicle registrations during the
19    preceding 4 years have been suspended pursuant to Section
20    7-606 or 7-607 of this Code;
21        (2) who during the preceding 4 years have been
22    convicted of violating Section 3-707, 3-708 or 3-710 of
23    this Code while operating vehicles owned by other persons;

 

 

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1        (3) whose driving privileges have been suspended
2    during the preceding 4 years;
3        (4) who during the preceding 4 years acquired ownership
4    of motor vehicles while the registrations of such vehicles
5    under the previous owners were suspended pursuant to
6    Section 7-606 or 7-607 of this Code; or
7        (5) who during the preceding 4 years have received a
8    disposition of supervision under subsection (c) of Section
9    5-6-1 of the Unified Code of Corrections for a violation of
10    Section 3-707, 3-708, or 3-710 of this Code.
11    (b) Upon receiving certification from the Department of
12Transportation under Section 7-201.2 of this Code of the name
13of an owner or operator of any motor vehicle involved in an
14accident, the Secretary may verify whether or not at the time
15of the accident such motor vehicle was covered by a liability
16insurance policy in accordance with Section 7-601 of this Code.
17    (c) In preparation for selection of random samples and
18their verification, the Secretary may send to owners of
19randomly selected motor vehicles, or to randomly selected motor
20vehicle owners, requests for information about their motor
21vehicles and liability insurance coverage. The request shall
22require the owner to state whether or not the motor vehicle was
23insured on the verification date stated in the Secretary's
24request and the request may require, but is not limited to, a
25statement by the owner of the names and addresses of insurers,
26policy numbers, and expiration dates of insurance coverage.

 

 

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1    (d) Within 30 days after the Secretary mails a request, the
2owner to whom it is sent shall furnish the requested
3information to the Secretary above the owner's signed
4affirmation that such information is true and correct. Proof of
5insurance in effect on the verification date, as prescribed by
6the Secretary, may be considered by the Secretary to be a
7satisfactory response to the request for information.
8    Any owner whose response indicates that his or her vehicle
9was not covered by a liability insurance policy in accordance
10with Section 7-601 of this Code shall be deemed to have
11registered or maintained registration of a motor vehicle in
12violation of that Section. Any owner who fails to respond to
13such a request shall be deemed to have registered or maintained
14registration of a motor vehicle in violation of Section 7-601
15of this Code.
16    (e) If the owner responds to the request for information by
17asserting that his or her vehicle was covered by a liability
18insurance policy on the verification date stated in the
19Secretary's request, the Secretary may conduct a verification
20of the response by furnishing necessary information to the
21insurer named in the response. The insurer shall within 45 days
22inform the Secretary whether or not on the verification date
23stated the motor vehicle was insured by the insurer in
24accordance with Section 7-601 of this Code. The Secretary may
25by rule and regulation prescribe the procedures for
26verification.

 

 

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1    (f) No random sample selected under this Section shall be
2categorized on the basis of race, color, religion, sex,
3national origin, ancestry, age, marital status, physical or
4mental disability, economic status or geography.
5    (f-5) This Section shall be inoperative upon the effective
6date of the rules adopted by the Secretary to implement Section
77-604.5 of this Code.
8    (g) This Section is repealed on December 31, 2016.
9(Source: P.A. 98-787, eff. 7-25-14; 99-333, eff. 12-30-15 (see
10Section 15 of P.A. 99-483 for the effective date of changes
11made by P.A. 99-333).)
 
12    (625 ILCS 5/7-604.5 new)
13    Sec. 7-604.5. Electronic verification of a liability
14insurance policy.
15    (a) The Secretary may implement a program of electronic
16motor vehicle liability insurance policy verification for
17motor vehicles subject to Section 7-601 of this Code for the
18purpose of verifying whether or not the motor vehicle is
19insured. The program shall include, but is not limited to:
20        (1) a requirement that an insurance company authorized
21    to sell motor vehicle liability insurance in this State
22    shall make available, in a format designated by the
23    Secretary, to the Secretary for each motor vehicle
24    liability insurance policy issued by the company the
25    following information:

 

 

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1            (A) the name of the policy holder;
2            (B) the make, model, year, and vehicle
3        identification number of the covered motor vehicle;
4            (C) the policy number;
5            (D) the policy effective date;
6            (E) the insurance company's National Association
7        of Insurance Commissioners number; and
8            (F) any other information the Secretary deems
9        necessary;
10        (2) a method for searching motor vehicle liability
11    insurance policies issued and in effect in this State by
12    using the information under subparagraphs (A), (B), or (C)
13    of paragraph (1) of this subsection (a);
14        (3) a requirement that at least twice per calendar
15    year, the Secretary shall verify the existence of a
16    liability insurance policy for every registered motor
17    vehicle subject to Section 7-601 of this Code; and if the
18    Secretary is unable to verify the existence of a liability
19    insurance policy, the Secretary shall send the vehicle
20    owner a written notice allowing the vehicle owner 30
21    calendar days to provide proof of insurance on the date of
22    the attempted verification, or to provide proof that the
23    vehicle is no longer operable;
24        (4) a requirement that a vehicle owner who does not
25    provide proof of insurance or proof of an inoperable
26    vehicle under paragraph (3) of this subsection (a) shall be

 

 

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1    in violation of Section 7-601 of this Code and the
2    Secretary shall suspend the vehicle's registration and the
3    owner of the vehicle shall pay any applicable reinstatement
4    fees under Section 7-606 of this Code; and
5        (5) a requirement that if a vehicle owner provides
6    proof of insurance on the date of the attempted
7    verification under paragraph (3) of this subsection (a),
8    the Secretary shall verify the vehicle owner's response by
9    furnishing necessary information to the insurance company.
10    Within 7 calendar days of receiving the information, the
11    insurance company shall confirm and notify the Secretary
12    the dates of the motor vehicle's insurance coverage. If the
13    insurance company does not confirm coverage for the date of
14    the attempted verification, the Secretary shall suspend
15    the vehicle's registration and the owner of the vehicle
16    shall pay any applicable reinstatement fees under Section
17    7-606 of this Code.
18    (b) In addition to the semi-annual verification of
19liability insurance under subsection (a) of this Section, the
20Secretary may select monthly verification for a motor vehicle,
21including, but not limited to, a motor vehicle owned or
22operated by a person:
23        (1) whose motor vehicle registration during the
24    preceding 4 years has been suspended under Section 7-606 or
25    7-607 of this Code;
26        (2) who, during the preceding 4 years, has been

 

 

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1    convicted of violating Section 3-707, 3-708, or 3-710 of
2    this Code while operating a vehicle owned by another
3    person;
4        (3) whose driving privileges have been suspended
5    during the preceding 4 years;
6        (4) who, during the preceding 4 years, acquired
7    ownership of a motor vehicle while the registration of the
8    vehicle under the previous owner was suspended under
9    Section 7-606 or 7-607 of this Code; or
10        (5) who, during the preceding 4 years, has received a
11    disposition of supervision under subsection (c) of Section
12    5-6-1 of the Unified Code of Corrections for a violation of
13    Section 3-707, 3-708, or 3-710 of this Code.
14    (c) The Secretary may contract with a private contractor to
15carry out the Secretary's duties under this Section.
16    (d) Nothing in this Section provides the Secretary with
17regulatory authority over insurance companies.
18    (e) The Secretary may adopt any rules necessary to
19implement this Section.
 
20    (625 ILCS 5/7-607)  (from Ch. 95 1/2, par. 7-607)
21    Sec. 7-607. Submission of false proof - penalty. If the
22Secretary determines that the proof of insurance submitted by a
23motor vehicle owner under Section 7-604, 7-604.5, 7-605 or
247-606 of this Code is false, the Secretary shall suspend the
25owner's vehicle registration. The Secretary shall terminate

 

 

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1the suspension 6 months after its effective date upon payment
2by the owner of a reinstatement fee of $200 and submission of
3proof of insurance as prescribed by the Secretary.
4    All fees collected under this Section shall be disbursed
5under subsection (g) of Section 2-119 of this Code.
6(Source: P.A. 99-127, eff. 1-1-16.)
 
7    Section 96. No revival or extension. This Act does not
8revive or extend any Section or Act otherwise repealed.