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91_HB0604
LRB9102408KSgc
1 AN ACT to amend the Illinois Vehicle Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Vehicle Code is amended by
5 changing Sections 5-101, 5-102, 7-202, 7-317, and 7-601 as
6 follows:
7 (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101)
8 Sec. 5-101. New vehicle dealers must be licensed.
9 (a) No person shall engage in this State in the business
10 of selling or dealing in, on consignment or otherwise, new
11 vehicles of any make, or act as an intermediary or agent or
12 broker for any licensed dealer or vehicle purchaser other
13 than as a salesperson, or represent or advertise that he is
14 so engaged or intends to so engage in such business unless
15 licensed to do so in writing by the Secretary of State under
16 the provisions of this Section.
17 (b) An application for a new vehicle dealer's license
18 shall be filed with the Secretary of State, duly verified by
19 oath, on such form as the Secretary of State may by rule or
20 regulation prescribe and shall contain:
21 1. The name and type of business organization of
22 the applicant and his established and additional places
23 of business, if any, in this State.
24 2. If the applicant is a corporation, a list of its
25 officers, directors, and shareholders having a ten
26 percent or greater ownership interest in the corporation,
27 setting forth the residence address of each; if the
28 applicant is a sole proprietorship, a partnership, an
29 unincorporated association, a trust, or any similar form
30 of business organization, the name and residence address
31 of the proprietor or of each partner, member, officer,
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1 director, trustee, or manager.
2 3. The make or makes of new vehicles which the
3 applicant will offer for sale at retail in this State.
4 4. The name of each manufacturer or franchised
5 distributor, if any, of new vehicles with whom the
6 applicant has contracted for the sale of such new
7 vehicles. As evidence of this fact, the application shall
8 be accompanied by a signed statement from each such
9 manufacturer or franchised distributor. If the applicant
10 is in the business of offering for sale new conversion
11 vehicles, trucks or vans, except for trucks modified to
12 serve a special purpose which includes but is not limited
13 to the following vehicles: street sweepers, fertilizer
14 spreaders, emergency vehicles, implements of husbandry or
15 maintenance type vehicles, he must furnish evidence of a
16 sales and service agreement from both the chassis
17 manufacturer and second stage manufacturer.
18 5. A statement that the applicant has been approved
19 for registration under the Retailers' Occupation Tax Act
20 by the Department of Revenue: Provided that this
21 requirement does not apply to a dealer who is already
22 licensed hereunder with the Secretary of State, and who
23 is merely applying for a renewal of his license. As
24 evidence of this fact, the application shall be
25 accompanied by a certification from the Department of
26 Revenue showing that that Department has approved the
27 applicant for registration under the Retailers'
28 Occupation Tax Act.
29 6. A statement that the applicant has complied with
30 the appropriate liability insurance requirement. A
31 Certificate of Insurance in a solvent company authorized
32 to do business in the State of Illinois shall be included
33 with each application covering each location at which he
34 proposes to act as a new vehicle dealer. The policy must
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1 provide liability coverage for the new vehicle dealer in
2 the minimum amounts of $100,000 for bodily injury to, or
3 death of, any person, $300,000 for bodily injury to, or
4 death of, two or more persons in any one accident, and
5 $50,000 for damage to property. Such policy shall expire
6 not sooner than December 31 of the year for which the
7 license was issued or renewed.
8 The liability insurance policy must provide motor
9 vehicle liability coverage up to the minimum amount of
10 $20,000 for bodily injury to, or death of, any person,
11 $40,000 for bodily injury to, or death of, 2 or more
12 persons in any one accident, and $15,000 for damage to
13 property for any permitted user of the new vehicle
14 dealer's motor vehicle if the permitted user has no motor
15 vehicle liability coverage of his or her own or has motor
16 vehicle liability coverage of less than the minimum
17 limits provided in Section 7-317 and Section 7-601 of
18 this Code. The expiration of the insurance policy shall
19 not terminate the liability under the policy arising
20 during the period for which the policy was filed.
21 Trailer and mobile home dealers are exempt from this
22 requirement.
23 7. (A) An application for a new motor vehicle
24 dealer's license shall be accompanied by the
25 following license fees:
26 $100 for applicant's established place of
27 business, and $50 for each additional place of
28 business, if any, to which the application pertains;
29 but if the application is made after June 15 of any
30 year, the license fee shall be $50 for applicant's
31 established place of business plus $25 for each
32 additional place of business, if any, to which the
33 application pertains. License fees shall be
34 returnable only in the event that the application is
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1 denied by the Secretary of State. All moneys
2 received by the Secretary of State as license fees
3 under this Section shall be deposited into the Motor
4 Vehicle Review Board Fund and shall be used to
5 administer the Motor Vehicle Review Board under the
6 Motor Vehicle Franchise Act.
7 (B) An application for a new vehicle dealer's
8 license, other than for a new motor vehicle dealer's
9 license, shall be accompanied by the following
10 license fees:
11 $50 for applicant's established place of
12 business, and $25 for each additional place of
13 business, if any, to which the application pertains;
14 but if the application is made after June 15 of any
15 year, the license fee shall be $25 for applicant's
16 established place of business plus $12.50 for each
17 additional place of business, if any, to which the
18 application pertains. License fees shall be
19 returnable only in the event that the application is
20 denied by the Secretary of State.
21 8. A statement that the applicant's officers,
22 directors, shareholders having a 10% or greater ownership
23 interest therein, proprietor, a partner, member, officer,
24 director, trustee, manager or other principals in the
25 business have not committed in the past 3 years any one
26 violation as determined in any civil, criminal or
27 administrative proceedings of any one of the following
28 Acts:
29 (A) The Anti Theft Laws of the Illinois
30 Vehicle Code;
31 (B) The Certificate of Title Laws of the
32 Illinois Vehicle Code;
33 (C) The Offenses against Registration and
34 Certificates of Title Laws of the Illinois Vehicle
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1 Code;
2 (D) The Dealers, Transporters, Wreckers and
3 Rebuilders Laws of the Illinois Vehicle Code;
4 (E) Section 21-2 of the Criminal Code of 1961,
5 Criminal Trespass to Vehicles; or
6 (F) The Retailers' Occupation Tax Act.
7 9. A statement that the applicant's officers,
8 directors, shareholders having a 10% or greater ownership
9 interest therein, proprietor, partner, member, officer,
10 director, trustee, manager or other principals in the
11 business have not committed in any calendar year 3 or
12 more violations, as determined in any civil, criminal or
13 administrative proceedings, of any one or more of the
14 following Acts:
15 (A) The Consumer Finance Act;
16 (B) The Consumer Installment Loan Act;
17 (C) The Retail Installment Sales Act;
18 (D) The Motor Vehicle Retail Installment Sales
19 Act;
20 (E) The Interest Act;
21 (F) The Illinois Wage Assignment Act;
22 (G) Part 8 of Article XII of the Code of Civil
23 Procedure; or
24 (H) The Consumer Fraud Act.
25 10. A bond or certificate of deposit in the amount
26 of $20,000 for each location at which the applicant
27 intends to act as a new vehicle dealer. The bond shall
28 be for the term of the license, or its renewal, for which
29 application is made, and shall expire not sooner than
30 December 31 of the year for which the license was issued
31 or renewed. The bond shall run to the People of the
32 State of Illinois, with surety by a bonding or insurance
33 company authorized to do business in this State. It
34 shall be conditioned upon the proper transmittal of all
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1 title and registration fees and taxes (excluding taxes
2 under the Retailers' Occupation Tax Act) accepted by the
3 applicant as a new vehicle dealer.
4 11. Such other information concerning the business
5 of the applicant as the Secretary of State may by rule or
6 regulation prescribe.
7 12. A statement that the applicant understands
8 Chapter One through Chapter Five of this Code.
9 (c) Any change which renders no longer accurate any
10 information contained in any application for a new vehicle
11 dealer's license shall be amended within 30 days after the
12 occurrence of such change on such form as the Secretary of
13 State may prescribe by rule or regulation, accompanied by an
14 amendatory fee of $2.
15 (d) Anything in this Chapter 5 to the contrary
16 notwithstanding no person shall be licensed as a new vehicle
17 dealer unless:
18 1. He is authorized by contract in writing between
19 himself and the manufacturer or franchised distributor of
20 such make of vehicle to so sell the same in this State,
21 and
22 2. Such person shall maintain an established place
23 of business as defined in this Act.
24 (e) The Secretary of State shall, within a reasonable
25 time after receipt, examine an application submitted to him
26 under this Section and unless he makes a determination that
27 the application submitted to him does not conform with the
28 requirements of this Section or that grounds exist for a
29 denial of the application, under Section 5-501 of this
30 Chapter, grant the applicant an original new vehicle dealer's
31 license in writing for his established place of business and
32 a supplemental license in writing for each additional place
33 of business in such form as he may prescribe by rule or
34 regulation which shall include the following:
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1 1. The name of the person licensed;
2 2. If a corporation, the name and address of its
3 officers or if a sole proprietorship, a partnership, an
4 unincorporated association or any similar form of
5 business organization, the name and address of the
6 proprietor or of each partner, member, officer, director,
7 trustee or manager;
8 3. In the case of an original license, the
9 established place of business of the licensee;
10 4. In the case of a supplemental license, the
11 established place of business of the licensee and the
12 additional place of business to which such supplemental
13 license pertains;
14 5. The make or makes of new vehicles which the
15 licensee is licensed to sell.
16 (f) The appropriate instrument evidencing the license or
17 a certified copy thereof, provided by the Secretary of State,
18 shall be kept posted conspicuously in the established place
19 of business of the licensee and in each additional place of
20 business, if any, maintained by such licensee.
21 (g) Except as provided in subsection (h) hereof, all new
22 vehicle dealer's licenses granted under this Section shall
23 expire by operation of law on December 31 of the calendar
24 year for which they are granted unless sooner revoked or
25 cancelled under the provisions of Section 5-501 of this
26 Chapter.
27 (h) A new vehicle dealer's license may be renewed upon
28 application and payment of the fee required herein, and
29 submission of proof of coverage under an approved bond under
30 the "Retailers' Occupation Tax Act" or proof that applicant
31 is not subject to such bonding requirements, as in the case
32 of an original license, but in case an application for the
33 renewal of an effective license is made during the month of
34 December, the effective license shall remain in force until
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1 the application is granted or denied by the Secretary of
2 State.
3 (i) All persons licensed as a new vehicle dealer are
4 required to furnish each purchaser of a motor vehicle:
5 1. In the case of a new vehicle a manufacturer's
6 statement of origin and in the case of a used motor
7 vehicle a certificate of title, in either case properly
8 assigned to the purchaser;
9 2. A statement verified under oath that all
10 identifying numbers on the vehicle agree with those on
11 the certificate of title or manufacturer's statement of
12 origin;
13 3. A bill of sale properly executed on behalf of
14 such person;
15 4. A copy of the Uniform Invoice-transaction
16 reporting return referred to in Section 5-402 hereof;
17 5. In the case of a rebuilt vehicle, a copy of the
18 Disclosure of Rebuilt Vehicle Status; and
19 6. In the case of a vehicle for which the warranty
20 has been reinstated, a copy of the warranty.
21 This amendatory Act of 1983 shall be applicable to the
22 1984 registration year and thereafter.
23 (Source: P.A. 88-158; 89-145, eff. 7-14-95; 89-189, eff.
24 1-1-96; 89-433, eff. 12-15-95.)
25 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
26 Sec. 5-102. Used vehicle dealers must be licensed.
27 (a) No person, other than a licensed new vehicle dealer,
28 shall engage in the business of selling or dealing in, on
29 consignment or otherwise, 5 or more used vehicles of any make
30 during the year (except house trailers as authorized by
31 paragraph (j) of this Section and rebuilt salvage vehicles
32 sold by their rebuilders to persons licensed under this
33 Chapter), or act as an intermediary, agent or broker for any
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1 licensed dealer or vehicle purchaser (other than as a
2 salesperson) or represent or advertise that he is so engaged
3 or intends to so engage in such business unless licensed to
4 do so by the Secretary of State under the provisions of this
5 Section.
6 (b) An application for a used vehicle dealer's license
7 shall be filed with the Secretary of State, duly verified by
8 oath, in such form as the Secretary of State may by rule or
9 regulation prescribe and shall contain:
10 1. The name and type of business organization
11 established and additional places of business, if any, in
12 this State.
13 2. If the applicant is a corporation, a list of its
14 officers, directors, and shareholders having a ten
15 percent or greater ownership interest in the corporation,
16 setting forth the residence address of each; if the
17 applicant is a sole proprietorship, a partnership, an
18 unincorporated association, a trust, or any similar form
19 of business organization, the names and residence address
20 of the proprietor or of each partner, member, officer,
21 director, trustee or manager.
22 3. A statement that the applicant has been approved
23 for registration under the Retailers' Occupation Tax Act
24 by the Department of Revenue. However, this requirement
25 does not apply to a dealer who is already licensed
26 hereunder with the Secretary of State, and who is merely
27 applying for a renewal of his license. As evidence of
28 this fact, the application shall be accompanied by a
29 certification from the Department of Revenue showing that
30 the Department has approved the applicant for
31 registration under the Retailers' Occupation Tax Act.
32 4. A statement that the applicant has complied with
33 the appropriate liability insurance requirement. A
34 Certificate of Insurance in a solvent company authorized
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1 to do business in the State of Illinois shall be included
2 with each application covering each location at which he
3 proposes to act as a used vehicle dealer. The policy must
4 provide liability coverage for the used vehicle dealer in
5 the minimum amounts of $100,000 for bodily injury to, or
6 death of, any person, $300,000 for bodily injury to, or
7 death of, two or more persons in any one accident, and
8 $50,000 for damage to property. Such policy shall expire
9 not sooner than December 31 of the year for which the
10 license was issued or renewed.
11 The liability insurance policy must provide motor
12 vehicle liability coverage up to the minimum amount of
13 $20,000 for bodily injury to, or death of, any person,
14 $40,000 for bodily injury to, or death of, 2 or more
15 persons in any one accident, and $15,000 for damage to
16 property for any permitted user of the used vehicle
17 dealer's motor vehicle if the permitted user has no motor
18 vehicle liability coverage of his or her own or has motor
19 vehicle liability coverage of less than the minimum
20 limits provided in Section 7-317 and Section 7-601 of
21 this Code. The expiration of the insurance policy shall
22 not terminate the liability under the policy arising
23 during the period for which the policy was filed.
24 Trailer and mobile home dealers are exempt from this
25 requirement.
26 5. An application for a used vehicle dealer's
27 license shall be accompanied by the following license
28 fees:
29 $50 for applicant's established place of business,
30 and $25 for each additional place of business, if any, to
31 which the application pertains; however, if the
32 application is made after June 15 of any year, the
33 license fee shall be $25 for applicant's established
34 place of business plus $12.50 for each additional place
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1 of business, if any, to which the application pertains.
2 License fees shall be returnable only in the event that
3 the application is denied by the Secretary of State.
4 6. A statement that the applicant's officers,
5 directors, shareholders having a 10% or greater ownership
6 interest therein, proprietor, partner, member, officer,
7 director, trustee, manager or other principals in the
8 business have not committed in the past 3 years any one
9 violation as determined in any civil, criminal or
10 administrative proceedings of any one of the following
11 Acts:
12 (A) The Anti Theft Laws of the Illinois
13 Vehicle Code;
14 (B) The Certificate of Title Laws of the
15 Illinois Vehicle Code;
16 (C) The Offenses against Registration and
17 Certificates of Title Laws of the Illinois Vehicle
18 Code;
19 (D) The Dealers, Transporters, Wreckers and
20 Rebuilders Laws of the Illinois Vehicle Code;
21 (E) Section 21-2 of the Illinois Criminal Code
22 of 1961, Criminal Trespass to Vehicles; or
23 (F) The Retailers' Occupation Tax Act.
24 7. A statement that the applicant's officers,
25 directors, shareholders having a 10% or greater ownership
26 interest therein, proprietor, partner, member, officer,
27 director, trustee, manager or other principals in the
28 business have not committed in any calendar year 3 or
29 more violations, as determined in any civil or criminal
30 or administrative proceedings, of any one or more of the
31 following Acts:
32 (A) The Consumer Finance Act;
33 (B) The Consumer Installment Loan Act;
34 (C) The Retail Installment Sales Act;
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1 (D) The Motor Vehicle Retail Installment Sales
2 Act;
3 (E) The Interest Act;
4 (F) The Illinois Wage Assignment Act;
5 (G) Part 8 of Article XII of the Code of Civil
6 Procedure; or
7 (H) The Consumer Fraud Act.
8 8. A bond or Certificate of Deposit in the amount
9 of $20,000 for each location at which the applicant
10 intends to act as a used vehicle dealer. The bond shall
11 be for the term of the license, or its renewal, for which
12 application is made, and shall expire not sooner than
13 December 31 of the year for which the license was issued
14 or renewed. The bond shall run to the People of the
15 State of Illinois, with surety by a bonding or insurance
16 company authorized to do business in this State. It
17 shall be conditioned upon the proper transmittal of all
18 title and registration fees and taxes (excluding taxes
19 under the Retailers' Occupation Tax Act) accepted by the
20 applicant as a used vehicle dealer.
21 9. Such other information concerning the business
22 of the applicant as the Secretary of State may by rule or
23 regulation prescribe.
24 10. A statement that the applicant understands
25 Chapter 1 through Chapter 5 of this Code.
26 (c) Any change which renders no longer accurate any
27 information contained in any application for a used vehicle
28 dealer's license shall be amended within 30 days after the
29 occurrence of each change on such form as the Secretary of
30 State may prescribe by rule or regulation, accompanied by an
31 amendatory fee of $2.
32 (d) Anything in this Chapter to the contrary
33 notwithstanding, no person shall be licensed as a used
34 vehicle dealer unless such person maintains an established
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1 place of business as defined in this Chapter.
2 (e) The Secretary of State shall, within a reasonable
3 time after receipt, examine an application submitted to him
4 under this Section. Unless the Secretary makes a
5 determination that the application submitted to him does not
6 conform to this Section or that grounds exist for a denial of
7 the application under Section 5-501 of this Chapter, he must
8 grant the applicant an original used vehicle dealer's license
9 in writing for his established place of business and a
10 supplemental license in writing for each additional place of
11 business in such form as he may prescribe by rule or
12 regulation which shall include the following:
13 1. The name of the person licensed;
14 2. If a corporation, the name and address of its
15 officers or if a sole proprietorship, a partnership, an
16 unincorporated association or any similar form of
17 business organization, the name and address of the
18 proprietor or of each partner, member, officer, director,
19 trustee or manager;
20 3. In case of an original license, the established
21 place of business of the licensee;
22 4. In the case of a supplemental license, the
23 established place of business of the licensee and the
24 additional place of business to which such supplemental
25 license pertains.
26 (f) The appropriate instrument evidencing the license or
27 a certified copy thereof, provided by the Secretary of State
28 shall be kept posted, conspicuously, in the established place
29 of business of the licensee and in each additional place of
30 business, if any, maintained by such licensee.
31 (g) Except as provided in subsection (h) of this
32 Section, all used vehicle dealer's licenses granted under
33 this Section expire by operation of law on December 31 of the
34 calendar year for which they are granted unless sooner
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1 revoked or cancelled under Section 5-501 of this Chapter.
2 (h) A used vehicle dealer's license may be renewed upon
3 application and payment of the fee required herein, and
4 submission of proof of coverage by an approved bond under the
5 "Retailers' Occupation Tax Act" or proof that applicant is
6 not subject to such bonding requirements, as in the case of
7 an original license, but in case an application for the
8 renewal of an effective license is made during the month of
9 December, the effective license shall remain in force until
10 the application for renewal is granted or denied by the
11 Secretary of State.
12 (i) All persons licensed as a used vehicle dealer are
13 required to furnish each purchaser of a motor vehicle:
14 1. A certificate of title properly assigned to the
15 purchaser;
16 2. A statement verified under oath that all
17 identifying numbers on the vehicle agree with those on
18 the certificate of title;
19 3. A bill of sale properly executed on behalf of
20 such person;
21 4. A copy of the Uniform Invoice-transaction
22 reporting return referred to in Section 5-402 of this
23 Chapter;
24 5. In the case of a rebuilt vehicle, a copy of the
25 Disclosure of Rebuilt Vehicle Status; and
26 6. In the case of a vehicle for which the warranty
27 has been reinstated, a copy of the warranty.
28 (j) A real estate broker holding a valid certificate of
29 registration issued pursuant to "The Real Estate Brokers and
30 Salesmen License Act" may engage in the business of selling
31 or dealing in house trailers not his own without being
32 licensed as a used vehicle dealer under this Section; however
33 such broker shall maintain a record of the transaction
34 including the following:
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1 (1) the name and address of the buyer and seller,
2 (2) the date of sale,
3 (3) a description of the mobile home, including the
4 vehicle identification number, make, model, and year, and
5 (4) the Illinois certificate of title number.
6 The foregoing records shall be available for inspection
7 by any officer of the Secretary of State's Office at any
8 reasonable hour.
9 (Source: P.A. 88-158; 89-189, eff. 1-1-96.)
10 (625 ILCS 5/7-202) (from Ch. 95 1/2, par. 7-202)
11 Sec. 7-202. Exceptions to requirements of security. (a)
12 The requirements as to security and suspension as provided by
13 Sections 7-201 and 7-205 shall not apply:
14 1. To the driver or owner if such owner had in effect at
15 the time of such motor vehicle accident a liability policy
16 covering such driver and owner with respect to the vehicle
17 involved in such motor vehicle accident;
18 2. To the driver, if not the owner of such vehicle, if
19 there was in effect at the time of such motor vehicle
20 accident a liability policy or bond with respect to the
21 operation of motor vehicles not owned by the driver;
22 3. To the driver or owner if the liability of such
23 driver or owner for damages resulting from such motor vehicle
24 accident is covered by any other form of liability insurance
25 policy or bond;
26 4. To the driver or owner, if such owner is qualified as
27 a self-insurer as provided in Section 7-502;
28 5. To the owner if such owner at the time of such motor
29 vehicle accident was in compliance with Section 8-101 or
30 Section 9-101, or if the owner was a new or used vehicle
31 dealer in compliance with paragraph (6) of subsection (b) of
32 Section 5-101 or with paragraph (6) of subsection (b) of
33 Section 5-102;
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1 6. To the driver or owner if such owner at the time of
2 such motor vehicle accident was in compliance with the
3 Federal Revised Interstate Commerce Act (P.L. 95-473), as now
4 or hereafter amended;
5 7. To the owner if the vehicle involved in such motor
6 vehicle accident was owned by the United States, this State
7 or any political sub-division of this State, any municipality
8 therein, or any local Mass Transit District;
9 8. To the driver or the owner of a vehicle involved in a
10 motor vehicle accident wherein no injury or damage was caused
11 to the person or property of any one other than such driver
12 or owner;
13 9. To the driver or the owner of a vehicle which at the
14 time of the motor vehicle accident was parked, unless such
15 vehicle was parked at a place where parking was at the time
16 of the accident prohibited under any applicable law or
17 ordinance;
18 10. To the owner of a vehicle if at the time of the
19 motor vehicle accident the vehicle was being operated without
20 his permission, express or implied, or was parked by a person
21 who had been operating such motor vehicle without such
22 permission;
23 11. To the driver, if not the owner, of a commercial
24 motor vehicle on which there was no liability policy or bond
25 with respect to the operation of such vehicle in effect at
26 the time of the motor vehicle accident when the driver was
27 operating the vehicle in the course of the driver's
28 employment and had no actual knowledge of such lack of a
29 liability policy or bond prior to the motor vehicle accident.
30 (b) If at the time of the motor vehicle accident, an
31 owner or driver is covered by a motor vehicle liability
32 policy or bond meeting the requirements of this Code, such
33 owner or driver shall be exempt from suspension under Section
34 7-205 as to that motor vehicle accident, if the company
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1 issuing the policy or bond has failed, and such policy or
2 bond was not effective at the time of the motor vehicle
3 accident or any time thereafter, provided, that the owner or
4 driver had no knowledge of the company's failure prior to the
5 motor vehicle accident, and such owner or driver has secured
6 within 30 days after learning of such failure another
7 liability policy or bond meeting the requirements of the Code
8 relating to future occurrences or motor vehicle accidents.
9 As used in this paragraph, the words "failed" or
10 "failure" mean that the company has suspended operations by
11 order of a court.
12 (Source: P.A. 85-293.)
13 (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
14 Sec. 7-317. "Motor vehicle liability policy" defined.
15 (a) Certification. -A "motor vehicle liability policy",
16 as that term is used in this Act, means an "owner's policy"
17 or an "operator's policy" of liability insurance, certified
18 as provided in Section 7-315 or Section 7-316 as proof of
19 financial responsibility for the future, and issued, except
20 as otherwise provided in Section 7-316, by an insurance
21 carrier duly authorized to transact business in this State,
22 to or for the benefit of the person named therein as insured.
23 (b) Owner's Policy. --Such owner's policy of liability
24 insurance:
25 1. Shall designate by explicit description or by
26 appropriate reference, all motor vehicles with respect to
27 which coverage is thereby intended to be granted;
28 2. Shall insure the person named therein and any
29 other person using or responsible for the use of such
30 motor vehicle or vehicles with the express or implied
31 permission of the insured, except that with respect to
32 new vehicle dealers and used vehicle dealers, it shall
33 insure permitted users only if the permitted users do not
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1 have any insurance coverage or have less than the
2 required minimum limits of $20,000 for bodily injury to,
3 or death of, any person, $40,000 for bodily injury to, or
4 death of, 2 or more persons in any one accident, and
5 $15,000 for damage to property, in which case the limits
6 of coverage owed by the owner to the permitted user are
7 the minimum limits set out in paragraph 4.;
8 3. Shall insure every named insured and any other
9 person using or responsible for the use of any motor
10 vehicle owned by the named insured and used by such other
11 person with the express or implied permission of the
12 named insured on account of the maintenance, use or
13 operation of any motor vehicle owned by the named
14 insured, within the continental limits of the United
15 States or the Dominion of Canada against loss from
16 liability imposed by law arising from such maintenance,
17 use or operation, to the extent and aggregate amount,
18 exclusive of interest and cost, with respect to each
19 motor vehicle, of $20,000 for bodily injury to or death
20 of one person as a result of any one accident and,
21 subject to such limit as to one person, the amount of
22 $40,000 for bodily injury to or death of all persons as a
23 result of any one accident and the amount of $15,000 for
24 damage to property of others as a result of any one
25 accident; and.
26 4. Shall insure a permitted user of a new vehicle
27 dealer's or used vehicle dealer's auto only if the
28 permitted user has no insurance coverage or has insurance
29 coverage with the limits less than the minimum required
30 limits of $20,000 for bodily injury to, or death of, any
31 person, $40,000 for bodily injury to, or death of, 2 or
32 more persons in any one accident, and $15,000 for damage
33 to property, in which case the owner's policy shall
34 provide the permitted user insurance coverage only up to
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1 the minimum required limits.
2 (c) Operator's Policy. --When an operator's policy is
3 required, it shall insure the person named therein as insured
4 against the liability imposed by law upon the insured for
5 bodily injury to or death of any person or damage to property
6 to the amounts and limits above set forth and growing out of
7 the use or operation by the insured within the continental
8 limits of the United States or the Dominion of Canada of any
9 motor vehicle not owned by him.
10 (d) Required Statements in Policies. --Every motor
11 vehicle liability policy must specify the name and address of
12 the insured, the coverage afforded by the policy, the premium
13 charged therefor, the policy period, and the limits of
14 liability, and shall contain an agreement that the insurance
15 thereunder is provided in accordance with the coverage
16 defined in this Act, as respects bodily injury and death or
17 property damage or both, and is subject to all the provisions
18 of this Act.
19 (e) Policy Need Not Insure Workers' Compensation. --Any
20 liability policy or policies issued hereunder need not cover
21 any liability of the insured assumed by or imposed upon the
22 insured under any workers' compensation law nor any liability
23 for damage to property in charge of the insured or the
24 insured's employees.
25 (f) Provisions Incorporated in Policy. --Every motor
26 vehicle liability policy is subject to the following
27 provisions which need not be contained therein:
28 1. The liability of the insurance carrier under any such
29 policy shall become absolute whenever loss or damage covered
30 by the policy occurs and the satisfaction by the insured of a
31 final judgment for such loss or damage shall not be a
32 condition precedent to the right or obligation of the carrier
33 to make payment on account of such loss or damage.
34 2. No such policy may be cancelled or annulled as
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1 respects any loss or damage, by any agreement between the
2 carrier and the insured after the insured has become
3 responsible for such loss or damage, and any such
4 cancellation or annulment shall be void.
5 3. The insurance carrier shall, however, have the right
6 to settle any claim covered by the policy, and if such
7 settlement is made in good faith, the amount thereof shall be
8 deductible from the limits of liability specified in the
9 policy.
10 4. The policy, the written application therefor, if any,
11 and any rider or endorsement which shall not conflict with
12 the provisions of this Act shall constitute the entire
13 contract between the parties.
14 (g) Excess or Additional Coverage. --Any motor vehicle
15 liability policy may, however, grant any lawful coverage in
16 excess of or in addition to the coverage herein specified or
17 contain any agreements, provisions, or stipulations not in
18 conflict with the provisions of this Act and not otherwise
19 contrary to law.
20 (h) Reimbursement Provision Permitted. --The policy may
21 provide that the insured, or any other person covered by the
22 policy shall reimburse the insurance carrier for payment made
23 on account of any loss or damage claim or suit involving a
24 breach of the terms, provisions or conditions of the policy;
25 and further, if the policy shall provide for limits in excess
26 of the limits specified in this Act, the insurance carrier
27 may plead against any plaintiff, with respect to the amount
28 of such excess limits of liability, any defense which it may
29 be entitled to plead against the insured.
30 (i) Proration of Insurance Permitted. --The policy may
31 provide for the pro-rating of the insurance thereunder with
32 other applicable valid and collectible insurance.
33 (j) Binders. --Any binder pending the issuance of any
34 policy, which binder contains or by reference includes the
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1 provisions hereunder shall be sufficient proof of ability to
2 respond in damages.
3 (k) Copy of Policy to Be Filed with Department of
4 Insurance--Approval. --A copy of the form of every motor
5 vehicle liability policy which is to be used to meet the
6 requirements of this Act must be filed, by the company
7 offering such policy, with the Department of Insurance, which
8 shall approve or disapprove the policy within 30 days of its
9 filing. If the Department approves the policy in writing
10 within such 30 day period or fails to take action for 30
11 days, the form of policy shall be deemed approved as filed.
12 If within the 30 days the Department disapproves the form of
13 policy filed upon the ground that it does not comply with the
14 requirements of this Act, the Department shall give written
15 notice of its decision and its reasons therefor to the
16 carrier and the policy shall not be accepted as proof of
17 financial responsibility under this Act.
18 (l) Insurance Carrier Required to File Certificate. --An
19 insurance carrier who has issued a motor vehicle liability
20 policy or policies or an operator's policy meeting the
21 requirements of this Act shall, upon the request of the
22 insured therein, deliver to the insured for filing, or at the
23 request of the insured, shall file direct, with the Secretary
24 of State a certificate, as required by this Act, which shows
25 that such policy or policies have been issued. No insurance
26 carrier may require the payment of any extra fee or
27 surcharge, in addition to the insurance premium, for the
28 execution, delivery or filing of such certificate.
29 (m) Proof When Made By Endorsement. --Any motor vehicle
30 liability policy which by endorsement contains the provisions
31 required hereunder shall be sufficient proof of ability to
32 respond in damages.
33 (Source: P.A. 85-730.)
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1 (625 ILCS 5/7-601) (from Ch. 95 1/2, par. 7-601)
2 Sec. 7-601. Required liability insurance policy.
3 (a) No person shall operate, register or maintain
4 registration of, and no owner shall permit another person to
5 operate, register or maintain registration of, a motor
6 vehicle designed to be used on a public highway unless the
7 motor vehicle is covered by a liability insurance policy.
8 The insurance policy shall be issued in amounts no less
9 than the minimum amounts set for bodily injury or death and
10 for destruction of property under Section 7-203 of this Code,
11 and shall be issued in accordance with the requirements of
12 Sections 143a and 143a-2 of the Illinois Insurance Code, as
13 amended. No insurer other than an insurer authorized to do
14 business in this State shall issue a policy pursuant to this
15 Section for any vehicle subject to registration under this
16 Code. Nothing herein shall deprive an insurer of any policy
17 defense available at common law.
18 (b) The following vehicles are exempt from the
19 requirements of this Section:
20 (1) vehicles subject to the provisions of Chapters
21 8 or 18a, Article III or Section 7-609 of Chapter 7, or
22 Sections 12-606 or 12-707.01 of Chapter 12 of this Code;
23 (2) vehicles required to file proof of liability
24 insurance with the Illinois Commerce Commission;
25 (3) vehicles covered by a certificate of
26 self-insurance under Section 7-502 of this Code; 365h1
27 (4) vehicles owned by the United States,
28 the State of Illinois, or any political subdivision,
29 municipality or local mass transit district;
30 (5) implements of husbandry;
31 (6) other vehicles complying with laws which
32 require them to be insured in amounts meeting or
33 exceeding the minimum amounts required under this
34 Section; and
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1 (7) inoperable or stored vehicles that are not
2 operated, as defined by rules and regulations of the
3 Secretary; and.
4 (8) vehicles of new vehicle dealers and used
5 vehicle dealers complying with the definition of "owner's
6 policy" in paragraphs (2), (3), and (4) of subsection
7 (b) of Section 7-317.
8 (Source: P.A. 88-315; 89-669, eff. 1-1-97.)