SB1353 99TH GENERAL ASSEMBLY

LRB099 08112 RJF 28260 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1353

Introduced 2/18/2015, by Sen. Antonio Muñoz

SYNOPSIS AS INTRODUCED:

See Index

Amends the State Finance Act. Creates the Insurance Verification Fund. Amends the Illinois Vehicle Code. Creates an online insurance verification system with the assistance of an Insurance Verification Advisory Council composed of representatives from the Department of Insurance and the insurance industry. Provides that the online insurance verification system shall key vehicle registration information to current insurance information provided by insurers selling policies within the State. Provides that the Secretary may use the online insurance verification system to verify insurance information. Provides that authorized personnel shall serve as intermediaries for the courts, insurers, law enforcement agencies, and licensing officials to access the system for the purposes of verifying insurance information on a 24-hour basis through the Internet or other electronic system as developed by the Secretary. Provides that the Secretary may contract with a third party to develop the online insurance verification system. Provides that insurers shall provide information as required by the Secretary, and shall add a $1 fee on all policies issued to motorists to be paid into the Insurance Verification Fund for the purpose of operating the online insurance verification system. Provides that insurers that wilfully fail to provide information required by the Secretary shall be guilty of a business offense with a fine of up to $5,000. Provides that insurers shall be immune from liability for complying with the requirements of the Secretary. Provides that a violation of the prohibition on driving without insurance by the owner of a vehicle shall result in the suspension of the driver's license, regardless of whether the owner subsequently acquired insurance or terminated ownership of the vehicle. Provides that a person whose driver's license has been suspended for a violation of driving without insurance must pay a reinstatement fee of $100 and maintain proof of financial responsibility for 3 years. Provides that the Department of Transportation may access the online insurance verification system when compiling an accident report. Extends the repeal date of a Section concerning the verification of liability insurance policies.

A BILL FOR

AN ACT concerning transportation.

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

Section 5. The State Finance Act is amended by adding Section 5.866 as follows:

(30 ILCS 105/5.866 new)

Sec. 5.866. The Insurance Verification Fund.

Section 10. The Illinois Vehicle Code is amended by changing Sections 3-405, 3-707, 7-201.2, 7-314, 7-315, 7-318, 7-602, 7-604, 7-605, and 7-606 and by adding Sections 1-154.01 and 7-604.5 as follows:

(625 ILCS 5/1-154.01 new)

Sec. 1-154.01. Online insurance verification system. The database of insurance information developed and maintained by the Secretary of State under Section 7-604.5 of this Code.

(625 ILCS 5/3-405) (from Ch. 95 1/2, par. 3-405)

Sec. 3-405. Application for registration.

(a) Every owner of a vehicle subject to registration under this Code shall make application to the Secretary of State for the registration of such vehicle upon the appropriate form or forms furnished by the Secretary. Every such application shall bear the signature of the owner written with pen and ink and contain:

1. The name, domicile address, as defined in Section 1-115.5 of this Code, (except as otherwise provided in this paragraph 1) and mail address of the owner or business address of the owner if a firm, association or corporation. If the mailing address is a post office box number, the address listed on the driver license record may be used to verify residence. A police officer, a deputy sheriff, an elected sheriff, a law enforcement officer for the Department of State Police, a fire investigator, a state's attorney, an assistant state's attorney, a state's attorney special investigator, or a judicial officer may elect to furnish the address of the headquarters of the governmental entity, police district, or business address where he or she works instead of his or her domicile address, in which case that address shall be deemed to be his or her domicile address for all purposes under this Chapter 3. The spouse and children of a person who may elect under this paragraph 1 to furnish the address of the headquarters of the government entity, police district, or business address where the person works instead of the person's domicile address may, if they reside with that person, also elect to furnish the address of the headquarters of the government entity, police district, or business address where the person works as their domicile address, in which case that address shall be deemed to be their domicile address for all purposes under this Chapter 3. In this paragraph 1: (A) "police officer" has the meaning ascribed to "policeman" in Section 10-3-1 of the Illinois Municipal Code; (B) "deputy sheriff" means a deputy sheriff appointed under Section 3-6008 of the Counties Code; (C) "elected sheriff" means a sheriff commissioned pursuant to Section 3-6001 of the Counties Code; (D) "fire investigator" means a person classified as a peace officer under the Peace Officer Fire Investigation Act; (E) "state's attorney", "assistant state's attorney", and "state's attorney special investigator" mean a state's attorney, assistant state's attorney, and state's attorney special investigator commissioned or appointed under Division 3-9 of the Counties Code; and (F) "judicial officer" has the meaning ascribed to it in Section 1-10 of the Judicial Privacy Act.

2. A description of the vehicle, including such information as is required in an application for a certificate of title, determined under such standard rating as may be prescribed by the Secretary.

3. (Blank).

4. Such further information as may reasonably be required by the Secretary to enable him to determine whether the vehicle is lawfully entitled to registration and the owner entitled to a certificate of title.

5. An affirmation by the applicant that all information set forth is true and correct. If the application is for the registration of a motor vehicle, the applicant also shall affirm that the motor vehicle is insured as required by this Code, that such insurance will be maintained throughout the period for which the motor vehicle shall be registered, and that neither the owner, nor any person operating the motor vehicle with the owner's permission, shall operate the motor vehicle unless the required insurance is in effect. The Secretary of State may verify insurance information pertaining to the motor vehicle through the online insurance verification system. If the person signing the affirmation is not the sole owner of the vehicle, such person shall be deemed to have affirmed on behalf of all the owners of the vehicle. If the person signing the affirmation is not an owner of the vehicle, such person shall be deemed to have affirmed on behalf of the owner or owners of the vehicle. The lack of signature on the application shall not in any manner exempt the owner or owners from any provisions, requirements or penalties of this Code.

(b) When such application refers to a new vehicle purchased from a dealer the application shall be accompanied by a Manufacturer's Statement of Origin from the dealer, and a statement showing any lien retained by the dealer.

(Source: P.A. 97-847, eff. 1-1-13; 98-539, eff. 1-1-14; 98-787, eff. 7-25-14.)

(625 ILCS 5/3-707) (from Ch. 95 1/2, par. 3-707)

Sec. 3-707. Operation of uninsured motor vehicle - penalty.

(a) No person shall operate a motor vehicle unless the motor vehicle is covered by a liability insurance policy in accordance with Section 7-601 of this Code.

(a-5) A person commits the offense of operation of uninsured motor vehicle causing bodily harm when the person:

(1) operates a motor vehicle in violation of Section 7-601 of this Code; and

(2) causes, as a proximate result of the person's operation of the motor vehicle, bodily harm to another person.

(a-6) Uninsured operation of a motor vehicle under subsection (a-5) is a Class A misdemeanor. If a person convicted of the offense of operation of a motor vehicle under subsection (a-5) has previously been convicted of 2 or more violations of subsection (a-5) of this Section or of Section 7-601 of this Code, a fine of $2,500, in addition to any sentence of incarceration, must be imposed.

(b) Any person who fails to comply with a request by a law enforcement officer for display of evidence of insurance, as required under Section 7-602 of this Code, shall be deemed to be operating an uninsured motor vehicle unless the law enforcement officer verifies motor vehicle liability insurance coverage through the online insurance verification system.

(c) Except as provided in subsections (a-6) and (c-5), any operator of a motor vehicle subject to registration under this Code who is convicted of violating this Section is guilty of a business offense and shall be required to pay a fine in excess of $500, but not more than $1,000, except a person convicted of a third or subsequent violation of this Section shall be required to pay a fine of $1,000. However, no person charged with violating this Section shall be convicted if such person produces in court satisfactory evidence that at the time of the arrest the motor vehicle was covered by a liability insurance policy in accordance with Section 7-601 of this Code or an officer of the court verifies motor vehicle liability insurance coverage through the online insurance verification system. The chief judge of each circuit may designate an officer of the court to review the documentation demonstrating that at the time of arrest the motor vehicle was covered by a liability insurance policy or to verify motor vehicle liability insurance coverage through the online insurance verification system in accordance with Section 7-601 of this Code.

(c-1) A person convicted of violating this Section shall also have his or her driver's license, permit, or privileges suspended for 3 months. After the expiration of the 3 months, the person's driver's license, permit, or privileges shall not be reinstated until he or she has paid a reinstatement fee of $100. If a person violates this Section while his or her driver's license, permit, or privileges are suspended under this subsection (c-1), his or her driver's license, permit, or privileges shall be suspended for an additional 6 months and until he or she pays the reinstatement fee.

(c-5) A person who (i) has not previously been convicted of or received a disposition of court supervision for violating this Section and (ii) produces at his or her court appearance satisfactory evidence that the motor vehicle is covered, as of the date of the court appearance, by a liability insurance policy in accordance with Section 7-601 of this Code shall, for a violation of this Section, other than a violation of subsection (a-5), pay a fine of $100 and receive a disposition of court supervision. The person must, on the date that the period of court supervision is scheduled to terminate, produce satisfactory evidence that the vehicle was covered by the required liability insurance policy during the entire period of court supervision.

An officer of the court designated under subsection (c) may also review liability insurance documentation under this subsection (c-5) to determine if the motor vehicle is, as of the date of the court appearance, covered by a liability insurance policy or to verify the motor vehicle liability insurance coverage through the online insurance verification system in accordance with Section 7-601 of this Code. The officer of the court shall also determine, on the date the period of court supervision is scheduled to terminate, whether the vehicle was covered by the required policy during the entire period of court supervision.

(d) A person convicted a third or subsequent time of violating this Section or a similar provision of a local ordinance must give proof to the Secretary of State of the person's financial responsibility as defined in Section 7-315. The person must maintain the proof in a manner satisfactory to the Secretary for a minimum period of 3 years after the date the proof is first filed. The Secretary must suspend the driver's license of any person determined by the Secretary not to have provided adequate proof of financial responsibility as required by this subsection.

(Source: P.A. 96-143, eff. 1-1-10; 97-407, eff. 1-1-12.)

(625 ILCS 5/7-201.2) (from Ch. 95 1/2, par. 7-201.2)

Sec. 7-201.2. The Administrator, within 30 days after compiling sufficient information on a motor vehicle accident, shall certify to the Secretary of State the name of each owner and the name of each operator of any vehicle involved in the accident, his determination that security is required under this Code, and the amount of the security. The Administrator also shall supply to the Secretary of State a copy of any accident report requested by the Secretary. The Administrator may use the online insurance verification system for the purpose of determining or verifying whether or not a motor vehicle, owner, or operator was insured at the time of the motor vehicle accident.

The Administrator shall send a copy of the certification to each person whose name is certified. The copy, or an attachment thereto, shall contain in bold print an explanation that, because the person did not furnish the Department of Transportation with evidence that he or she is insured or otherwise able to pay for damages resulting from the accident, the person's name has been forwarded to the Secretary of State for possible suspension of his or her driver's license.

(Source: P.A. 84-797.)

(625 ILCS 5/7-314) (from Ch. 95 1/2, par. 7-314)

Sec. 7-314. Alternate methods of giving proof.

(a) Proof of financial responsibility when required under this Article may be given by filing with the Secretary of State:

1. A certificate of insurance as provided in Section 7-315 or Section 7-316;.

2. A bond as provided in Section 7-320; or

3. A deposit of securities as provided in Section 7-323.

(b) Proof of financial responsibility relating to a motor vehicle liability policy when required under this Code with respect to a motor vehicle or with respect to a person who is not the owner of a motor vehicle may be verified through the online insurance verification system.

(Source: P.A. 83-831.)

(625 ILCS 5/7-315) (from Ch. 95 1/2, par. 7-315)

Sec. 7-315. A certificate of insurance proof.

(a) Proof of financial responsibility may be made by filing with the Secretary of State the written or electronic certificate of any insurance carrier duly authorized to do business in this State, certifying that it has issued to or for the benefit of the person furnishing such proof and named as the insured in a motor vehicle liability policy, a motor vehicle liability policy or policies or in certain events an operator's policy meeting the requirements of this Code and that said policy or policies are then in full force and effect. All written or electronic certificates must be submitted in a manner satisfactory to the Secretary of State.

(b) Such certificate or certificates shall give the dates of issuance and expiration of such policy or policies and certify that the same shall not be canceled unless 15 days' prior written or electronic notice thereof be given to the Secretary of State and shall explicitly describe all motor vehicles covered thereby unless the policy or policies are issued to a person who is not the owner of a motor vehicle.

(c) The Secretary of State shall not accept any certificate or certificates unless the same shall cover all motor vehicles then registered in this State in the name of the person furnishing such proof as owner and an additional certificate or certificates shall be required as a condition precedent to the subsequent registration of any motor vehicle or motor vehicles in the name of the person giving such proof as owner.

(d) Proof of financial responsibility relating to a motor vehicle liability policy may be verified through the online insurance verification system.

(Source: P.A. 94-239, eff. 1-1-06.)

(625 ILCS 5/7-318) (from Ch. 95 1/2, par. 7-318)

Sec. 7-318. Notice of Cancellation or Termination of Certified Policy.

(a) When an insurance carrier has certified a motor vehicle liability policy or policies under this Act, it shall notify the Secretary of State of any cancellation by mailing a written or electronic notice at least 15 days prior to cancellation of such policy and the policy shall continue in full force and effect until the date of cancellation specified in such notice or until its expiration, except that such a policy subsequently procured and certified shall, on the effective date of its certification, terminate the insurance previously certified with respect to any vehicle designated in both certificates. All written or electronic certificates must be submitted in a manner satisfactory to the Secretary of State.

(b) If the Secretary of State has verified evidence of a motor vehicle liability policy using the online insurance verification system under subsection (d) of Section 7-315 of this Code, the Secretary of State shall continue to verify evidence of a motor vehicle liability policy using the online insurance verification system under subsection (d) of Section 7-315 of this Code for the applicable period.

(Source: P.A. 94-239, eff. 1-1-06.)

(625 ILCS 5/7-602) (from Ch. 95 1/2, par. 7-602)

Sec. 7-602. Insurance card. Every operator of a motor vehicle subject to Section 7-601 of this Code shall carry within the vehicle evidence of insurance. The evidence shall be legible and sufficient to demonstrate that the motor vehicle currently is covered by a liability insurance policy as required under Section 7-601 of this Code and may include, but is not limited to, the following:

(a) an insurance card provided by the insurer under this Section;

(b) the combination of proof of purchase of the motor vehicle within the previous 60 days and a current insurance card issued for the motor vehicle replaced by such purchase;

(c) the current declarations page of a liability insurance policy;

(d) a liability insurance binder, certificate of liability insurance or receipt for payment to an insurer or its authorized representative for a liability insurance premium, provided such document contains all information the Secretary of State by rule and regulation may require;

(e) a current rental agreement;

(f) registration plates, registration sticker or other evidence of registration issued by the Secretary only upon submission of proof of liability insurance pursuant to this Code;

(g) a certificate, decal, or other document or device issued by a governmental agency for a motor vehicle indicating the vehicle is insured for liability pursuant to law;

(h) the display of electronic images on a cellular phone or other type of portable electronic device. The use of a cellular phone or other type of portable electronic device to display proof of insurance does not constitute consent for a law enforcement officer, court, or other officer of the court to access other contents of the electronic device. Any law enforcement officer, court, or officer of the court presented with the device shall be immune from any liability resulting from damage to the mobile electronic device.

An insurance card shall be provided for each motor vehicle insured by the insurer issuing the liability insurance policy and may be issued in either paper or electronic format. Acceptable electronic formats shall permit display on a cellular phone or other portable electronic device and satisfy all other requirements of law and rule, including this Section, regarding form and content.

The form, contents and manner of issuance of the insurance card shall be prescribed by rules and regulations of the Secretary of State. The Secretary shall adopt rules requiring that reasonable measures be taken to prevent the fraudulent production of insurance cards. The insurance card shall display an effective date and an expiration date covering a period of time not to exceed 12 months. The insurance card shall contain the following disclaimer: "Examine policy exclusions carefully. This form does not constitute any part of your insurance policy." If the insurance policy represented by the insurance card does not cover any driver operating the motor vehicle with the owner's permission, or the owner when operating a motor vehicle other than the vehicle for which the policy is issued, the insurance card shall contain a warning of such limitations in the coverage provided by the policy.

No insurer shall issue a card, similar in appearance, form and content to the insurance card required under this Section, in connection with an insurance policy that does not provide the liability insurance coverage required under Section 7-601 of this Code.

The evidence of insurance shall be displayed upon request made by any law enforcement officer wearing a uniform or displaying a badge or other sign of authority. Any person who fails or refuses to comply with such request is in violation of Section 3-707 of this Code unless evidence of motor vehicle liability insurance or other evidence of financial responsibility as provided in this Code is verified through the online insurance verification system. Any person who displays evidence of insurance, knowing there is no valid liability insurance in effect on the motor vehicle as required under Section 7-601 of this Code or knowing the evidence of insurance is illegally altered, counterfeit or otherwise invalid, is in violation of Section 3-710 of this Code.

"Display" means the manual surrender of the evidence of insurance into the hands of the law enforcement officer, court, or officer of the court making the request for the officer's, court's, or officer of the court's inspection thereof.

(Source: P.A. 98-521, eff. 8-23-13.)

(625 ILCS 5/7-604) (from Ch. 95 1/2, par. 7-604)

(Section scheduled to be repealed on December 31, 2015)

Sec. 7-604. Verification of liability insurance policy.

(a) The Secretary of State may select random samples of registrations of motor vehicles subject to Section 7-601 of this Code, or owners thereof, for the purpose of verifying whether or not the motor vehicles are insured.

In addition to such general random samples of motor vehicle registrations, the Secretary may select for verification other random samples, including, but not limited to registrations of motor vehicles owned by persons:

(1) whose motor vehicle registrations during the preceding 4 years have been suspended pursuant to Section 7-606 or 7-607 of this Code;

(2) who during the preceding 4 years have been convicted of violating Section 3-707, 3-708 or 3-710 of this Code while operating vehicles owned by other persons;

(3) whose driving privileges have been suspended during the preceding 4 years;

(4) who during the preceding 4 years acquired ownership of motor vehicles while the registrations of such vehicles under the previous owners were suspended pursuant to Section 7-606 or 7-607 of this Code; or

(5) who during the preceding 4 years have received a disposition of supervision under subsection (c) of Section 5-6-1 of the Unified Code of Corrections for a violation of Section 3-707, 3-708, or 3-710 of this Code.

(a-1) The Secretary of State may review registrations of motor vehicles subject to Section 7-601 of this Code, or owners and operators thereof, for the purpose of verifying whether or not the motor vehicles are insured through the online insurance verification system. If the Secretary cannot verify the insurance status of a vehicle using the online insurance verification system or other method for deposits of cash or motor vehicle insurance liability bonds, the Secretary may send the owner or operator a request for information under subsection (c) of this Section.

(b) Upon receiving certification from the Department of Transportation under Section 7-201.2 of this Code of the name of an owner or operator of any motor vehicle involved in an accident, the Secretary may verify whether or not at the time of the accident such motor vehicle was covered by a liability insurance policy in accordance with Section 7-601 of this Code.

(c) In preparation for selection of random samples and their verification, the Secretary may send to owners of randomly selected motor vehicles, or to randomly selected motor vehicle owners, requests for information about their motor vehicles and liability insurance coverage. The request shall require the owner to state whether or not the motor vehicle was insured on the verification date stated in the Secretary's request and the request may require, but is not limited to, a statement by the owner of the names and addresses of insurers, policy numbers, and expiration dates of insurance coverage.

(d) Within 30 days after the Secretary mails a request, the owner to whom it is sent shall furnish the requested information to the Secretary above the owner's signed affirmation that such information is true and correct. Proof of insurance in effect on the verification date, as prescribed by the Secretary, may be considered by the Secretary to be a satisfactory response to the request for information.

Any owner whose response indicates that his or her vehicle was not covered by a liability insurance policy in accordance with Section 7-601 of this Code shall be deemed to have registered or maintained registration of a motor vehicle in violation of that Section. Any owner who fails to respond to such a request shall be deemed to have registered or maintained registration of a motor vehicle in violation of Section 7-601 of this Code.

(e) If the owner responds to the request for information by asserting that his or her vehicle was covered by a liability insurance policy on the verification date stated in the Secretary's request, the Secretary may conduct a verification of the response by furnishing necessary information to the insurer named in the response through the online insurance verification system. The insurer shall within 45 days inform the Secretary whether or not on the verification date stated the motor vehicle was insured by the insurer in accordance with Section 7-601 of this Code. The Secretary may by rule and regulation prescribe the procedures for verification.

(f) No random sample selected under this Section shall be categorized on the basis of race, color, religion, sex, national origin, ancestry, age, marital status, physical or mental disability, economic status or geography.

(g) This Section is repealed on December 31, 2016 2015.

(Source: P.A. 98-787, eff. 7-25-14.)

(625 ILCS 5/7-604.5 new)

Sec. 7-604.5. Online insurance verification system.

(a) For the purposes of this Section, except in those instances where the context clearly indicates a different meaning:

"Advisory council" means the Insurance Verification Advisory Council.

"Director" means the Director of Insurance or his or her designee.

"Insurer" means an insurance company licensed or authorized to do business in this State and insuring motor vehicles.

"NAIC number" means the unique identification number assigned to an insurance company by the National Association of Insurance Commissioners.

(b) The Insurance Verification Advisory Council is created and shall consist of a group of 14 voting members consisting of: 2 representatives of the Secretary of State, a representative of the Department of Transportation, a representative of the Department of Insurance, 3 insurance company representatives appointed by the Director of Insurance, a representative of the Specialty Insurers Association of Illinois, a representative of the Illinois Insurance Association, a representative of the American Insurance Association, a representative of the National Association of Mutual Insurance Companies, a representative of the Property and Casualty Insurers Association of America, a representative of the Independent Insurance Agents of Illinois, and a representative of the Illinois Judges Association appointed by the president of the association. This group shall be chaired by the Secretary of State or his or her designee.

(c) The advisory council shall:

(1) facilitate the implementation of an online insurance verification system;

(2) develop a detailed guide for insurers detailing the information necessary for compliance, how to supply this information, and other relevant rules;

(3) conduct a testing phase for the online insurance verification system; and

(4) issue a report, based on periodic reviews of the online insurance verification system, to the Secretary of State, the Secretary of Transportation, and the Director of Insurance evaluating the online insurance verification system's effectiveness in identifying uninsured motorists and making recommendations for improvement on or before January 1 of each year.

(d) The Secretary of State shall:

(1) cooperate with insurers in implementing the online insurance verification system;

(2) administer and maintain the online insurance verification system and implement changes as necessary;

(3) conduct a pilot project to test the online insurance verification system prior to statewide use;

(4) establish the online insurance verification system framework necessary to inquire of insurers by using multiple keys for greater matching accuracy, including, but not limited to: Insurer NAIC number, vehicle identification number, policy number, and other key or keys specified by the advisory council;

(5) keep the advisory council informed on implementation status;

(6) maintain the list of authorized requesting entities and individuals and make that a part of the online insurance verification system;

(7) provide data security for the type of information transferred as prescribed by the advisory council. Data secured via the online insurance verification system may not be shared with any party other than those permitted by State or federal privacy laws;

(8) keep the advisory council informed on functionality and planned or unplanned service interruptions;

(9) provide alternative methods of reporting for small insurers underwriting no more than 500 vehicles in the State; and

(10) establish a fund for the implementation and administration of the online insurance verification system.

(e) Nothing in this Section prohibits the Secretary from using the services of a third party vendor for facilitating the insurance verification program required by this Section. The Secretary may enter into a personal services contract with a consulting firm having personnel with extensive operational and management experience in the development, deployment, and operation of insurance verification programs. This firm shall assist in operating a pilot program by analyzing and using available data to share nationally-recognized best practices for operating insurance verification programs, to study existing and planned practices and implement recommendations for improvement, and to have responsibility for reducing uninsured motorist rates in this State.

(f) The online insurance verification system shall:

(1) be accessible to authorized personnel of the Secretary of State for direct inquiry;

(2) allow access by the courts, insurers, law enforcement, and offices of the licensing officials charged with motor vehicle registration and titling responsibilities only through authorized personnel of the Secretary of State;

(3) allow insurer access only to data or information transmission as required to operate the online insurance verification system;

(4) be able to verify on a 24-hour, 7 days per week basis, with the exception of time for system maintenance as prescribed by the advisory council, the insurance status of a motor vehicle through the Internet or other electronic system as recommended by the advisory council and adopted by the Secretary;

(5) be able to access insurance information by using multiple keys including but not limited to: Insurer NAIC number, vehicle identification numbers, policy number, and any other keys specified by the advisory council;

(6) provide data security for the type of information transferred as prescribed by the advisory council; and

(7) utilize open and agreed to data and data transmission standards and standard database schema as specified by the advisory council.

(g) Each insurer shall:

(1) cooperate with the Secretary in establishing and operating the online insurance verification system;

(2) provide the data necessary to verify insurance status through the online insurance verification system for a period of at least 6 months;

(3) provide data security for the type of information transferred as prescribed by the advisory council in accordance with State or federal privacy laws; and

(4) assess a $1.00 fee on all insurance policies issued to motorists in this State to support the operation and maintenance of the online insurance verification system. This fee shall be paid into the Insurance Verification Fund.

(h) An insurer that willfully fails to provide information as required by this Section shall be guilty of a business offense with a fine of up to $5,000 per violation.

(i) Insurers shall be immune from civil and administrative liability for good faith efforts to comply with the terms of this Section.

(j) The Insurance Verification Fund is created in the State treasury. Moneys in the Insurance Verification Fund shall be used by the Secretary for implementing and administering the online insurance verification system.

(625 ILCS 5/7-605) (from Ch. 95 1/2, par. 7-605)

Sec. 7-605. Uninsured motor vehicles - notice. If the Secretary determines that an owner has registered or maintained the registration of a motor vehicle without a liability insurance policy in accordance with Section 7-601 of this Code, the Secretary shall notify the owner that such owner's vehicle registration and driver's license shall be suspended 45 days after the date of the mailing of the notice unless the owner within 30 days furnishes proof of insurance in effect on the verification date, as prescribed by the Secretary.

(Source: P.A. 86-149.)

(625 ILCS 5/7-606) (from Ch. 95 1/2, par. 7-606)

Sec. 7-606. Uninsured motor vehicles - suspension and reinstatement of vehicle registration and driver's license.

(a) Suspension and reinstatement of vehicle registration.

The Secretary shall suspend the vehicle registration of any motor vehicle determined by the Secretary to be in violation of Section 7-601 of this Code, including any motor vehicle operated in violation of Section 3-707, 3-708 or 3-710 of this Code by an operator other than the owner of the vehicle. Neither the fact that, subsequent to the date of verification or conviction, the owner acquired the required liability insurance policy nor the fact that the owner terminated ownership of the motor vehicle shall have any bearing upon the Secretary's decision to suspend.

The Secretary is authorized to suspend the registration of any motor vehicle registered in this State upon receiving notice of the conviction of the operator of the motor vehicle in another State of an offense which, if committed in this State, would constitute a violation of Section 7-601 of this Code.

Until it is terminated, the suspension shall remain in force after the registration is renewed or a new registration is acquired for the motor vehicle. The suspension also shall apply to any motor vehicle to which the owner transfers the registration.

In the case of a first violation, the Secretary shall terminate the suspension upon payment by the owner of a reinstatement fee of $100 and submission of proof of insurance as prescribed by the Secretary.

In the case of a second or subsequent violation by a person having ownership interest in a motor vehicle or vehicles within the preceding 4 years, or a violation of Section 3-708 of this Code, the Secretary shall terminate the suspension 4 months after its effective date upon payment by the owner of a reinstatement fee of $100 and submission of proof of insurance as prescribed by the Secretary.

All fees collected under this Section shall be deposited into the Road Fund of the State treasury.

(b) Suspension and reinstatement of driver's license.

The Secretary shall suspend the driver's license of any owner of any vehicle determined by the Secretary to be in violation of Section 7-601 of this Code, including any motor vehicle operated in violation of Section 3-707, 3-708, or 3-710 of this Code by an operator other than the owner of the vehicle. Neither the fact that, subsequent to the date of verification or conviction, the owner acquired the required liability insurance policy nor the fact that the owner terminated ownership of the motor vehicle shall affect the Secretary's suspension.

The Secretary may suspend the driver's license of any owner of any motor vehicle registered in this State upon receiving notice of the conviction of the operator of the motor vehicle in another state of an offense which, if committed in this State, would constitute a violation of Section 7-601 of this Code.

In the case of a first violation, the Secretary shall terminate the suspension upon payment by the owner of a reinstatement fee of $100 and submission of proof of insurance as set forth below.

In the case of a second or subsequent violation by a person having ownership interest in a motor vehicle or vehicles within the preceding 4 years, or a violation of Section 3-708 of this Code, the Secretary shall terminate the suspension 4 months after its effective date upon payment by the owner of a reinstatement fee of $100 and submission of proof of insurance as set forth below.

A person whose license is suspended under this subsection must give proof to the Secretary of State of the person's financial responsibility as defined in Section 7-315. The person must maintain the proof in a manner satisfactory to the Secretary for a minimum period of 3 years after the date the proof is first filed.

All fees collected under this Section shall be deposited into the Road Fund.

(Source: P.A. 88-315.)