HB4776 94TH GENERAL ASSEMBLY

LRB094 17373 LJB 52668 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB4776

Introduced 1/18/2006, by Rep. Naomi D. Jakobsson

SYNOPSIS AS INTRODUCED:

215 ILCS 5/143.26b new
625 ILCS 5/7-612 new

Amends the Illinois Insurance Code. Requires insurers issuing policies of automobile insurance to report to the Secretary of State when insureds cancel their automobile insurance policies or do not renew their automobile insurance policies. Amends the Illinois Vehicle Code. Requires the Secretary of State to maintain a database of drivers' automobile insurance coverage and track any lapses in coverage or cancellations. Provides that the Secretary of State may suspend the motor vehicle registration of any person found to have a history of purchasing insurance and cancelling or not renewing it and not obtaining automobile insurance with another insurer.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning insurance.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Insurance Code is amended by adding Section 143.26b as follows:

(215 ILCS 5/143.26b new)

Sec. 143.26b. Cancellation of automobile insurance by insureds. An insurance company that issues policies of automobile insurance shall report to the Secretary of State when an insured cancels his or her automobile insurance policies or does not renew his or her automobile insurance policies.

Section 10. The Illinois Vehicle Code is amended by adding Section 7-612 as follows:

(625 ILCS 5/7-612 new)

Sec. 7-612. Cancellation or nonrenewal of insurance policies.

(a) The Secretary of State shall maintain a database of drivers' automobile insurance coverage and track any lapses in coverage or cancellations.

(b) The Secretary of State may suspend the motor vehicle registration of any person found to have, on 2 or more occasions, purchased automobile insurance and canceled or not renewed the insurance and who has not obtained automobile insurance with another insurer.