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91_HB0604enr
HB0604 Enrolled 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 and
2 its officers, directors, and employees while acting
3 within the course and scope of their employment in the
4 minimum amounts of $100,000 for bodily injury to, or
5 death of, any person, $300,000 for bodily injury to, or
6 death of, two or more persons in any one accident, and
7 $50,000 for damage to property. Such policy shall expire
8 not sooner than December 31 of the year for which the
9 license was issued or renewed.
10 The liability insurance policy must provide
11 automobile liability coverage in the minimum amounts of
12 $100,000 for bodily injury to, or death of, any person,
13 $300,000 for bodily injury to, or death of, two or more
14 persons in any one accident, and $50,000 for damage to
15 property for any permitted user of the new vehicle
16 dealer's auto if the permitted user has no automobile
17 liability insurance of his or her own. The liability
18 insurance policy must provide automobile liability
19 coverage in the minimum amounts of $100,000 for bodily
20 injury to, or death of, any person, $300,000 for bodily
21 injury to, or death of, two or more persons in any one
22 accident, and $50,000 for damage to property for any
23 permitted user of the new vehicle dealer's auto if the
24 permitted user has automobile liability insurance of his
25 or her own but such insurance is less than the minimum
26 limits of subsection (a) of Section 7-601 and subsection
27 (b) of Section 7-317. If the permitted user of the new
28 vehicle dealer's auto has insurance of his own conforming
29 with or exceeding the minimum limits of subsection (a) of
30 Section 7-601 and subsection (b) of Section 7-317, the
31 permitted user's insurance shall be primary and the new
32 vehicle dealer's insurance shall apply only in excess of
33 the permitted user's insurance and any other insurance
34 including, but not limited to, underinsured motorists
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1 coverage applicable to the permitted user's liability.
2 Where the new vehicle dealer's insurance applies as
3 excess insurance, the limits shall be in the amounts of
4 $100,000 for bodily injury to, or death of, a person,
5 $300,000 for bodily injury to, or death of, 2 or more
6 persons in any one accident, and $50,000 for damage to
7 property.
8 As used in this paragraph 6, "permitted user" means
9 a person who is not an officer, director, or employee, or
10 a spouse of an officer, director, or employee of the new
11 vehicle dealer and is permitted or authorized to drive a
12 vehicle owned by the new vehicle dealer.
13 The expiration of the insurance policy shall not
14 terminate the liability under the policy arising during the
15 period for which the policy was filed. Trailer and mobile
16 home dealers are exempt from this requirement.
17 7. (A) An application for a new motor vehicle
18 dealer's license shall be accompanied by the
19 following license fees:
20 $100 for applicant's established place of
21 business, and $50 for each additional place of
22 business, if any, to which the application pertains;
23 but if the application is made after June 15 of any
24 year, the license fee shall be $50 for applicant's
25 established place of business plus $25 for each
26 additional place of business, if any, to which the
27 application pertains. License fees shall be
28 returnable only in the event that the application is
29 denied by the Secretary of State. All moneys
30 received by the Secretary of State as license fees
31 under this Section shall be deposited into the Motor
32 Vehicle Review Board Fund and shall be used to
33 administer the Motor Vehicle Review Board under the
34 Motor Vehicle Franchise Act.
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1 (B) An application for a new vehicle dealer's
2 license, other than for a new motor vehicle dealer's
3 license, shall be accompanied by the following
4 license fees:
5 $50 for applicant's established place of
6 business, and $25 for each additional place of
7 business, if any, to which the application pertains;
8 but if the application is made after June 15 of any
9 year, the license fee shall be $25 for applicant's
10 established place of business plus $12.50 for each
11 additional place of business, if any, to which the
12 application pertains. License fees shall be
13 returnable only in the event that the application is
14 denied by the Secretary of State.
15 8. A statement that the applicant's officers,
16 directors, shareholders having a 10% or greater ownership
17 interest therein, proprietor, a partner, member, officer,
18 director, trustee, manager or other principals in the
19 business have not committed in the past 3 years any one
20 violation as determined in any civil, criminal or
21 administrative proceedings of any one of the following
22 Acts:
23 (A) The Anti Theft Laws of the Illinois
24 Vehicle Code;
25 (B) The Certificate of Title Laws of the
26 Illinois Vehicle Code;
27 (C) The Offenses against Registration and
28 Certificates of Title Laws of the Illinois Vehicle
29 Code;
30 (D) The Dealers, Transporters, Wreckers and
31 Rebuilders Laws of the Illinois Vehicle Code;
32 (E) Section 21-2 of the Criminal Code of 1961,
33 Criminal Trespass to Vehicles; or
34 (F) The Retailers' Occupation Tax Act.
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1 9. A statement that the applicant's officers,
2 directors, shareholders having a 10% or greater ownership
3 interest therein, proprietor, partner, member, officer,
4 director, trustee, manager or other principals in the
5 business have not committed in any calendar year 3 or
6 more violations, as determined in any civil, criminal or
7 administrative proceedings, of any one or more of the
8 following Acts:
9 (A) The Consumer Finance Act;
10 (B) The Consumer Installment Loan Act;
11 (C) The Retail Installment Sales Act;
12 (D) The Motor Vehicle Retail Installment Sales
13 Act;
14 (E) The Interest Act;
15 (F) The Illinois Wage Assignment Act;
16 (G) Part 8 of Article XII of the Code of Civil
17 Procedure; or
18 (H) The Consumer Fraud Act.
19 10. A bond or certificate of deposit in the amount
20 of $20,000 for each location at which the applicant
21 intends to act as a new vehicle dealer. The bond shall
22 be for the term of the license, or its renewal, for which
23 application is made, and shall expire not sooner than
24 December 31 of the year for which the license was issued
25 or renewed. The bond shall run to the People of the
26 State of Illinois, with surety by a bonding or insurance
27 company authorized to do business in this State. It
28 shall be conditioned upon the proper transmittal of all
29 title and registration fees and taxes (excluding taxes
30 under the Retailers' Occupation Tax Act) accepted by the
31 applicant as a new vehicle dealer.
32 11. Such other information concerning the business
33 of the applicant as the Secretary of State may by rule or
34 regulation prescribe.
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1 12. A statement that the applicant understands
2 Chapter One through Chapter Five of this Code.
3 (c) Any change which renders no longer accurate any
4 information contained in any application for a new vehicle
5 dealer's license shall be amended within 30 days after the
6 occurrence of such change on such form as the Secretary of
7 State may prescribe by rule or regulation, accompanied by an
8 amendatory fee of $2.
9 (d) Anything in this Chapter 5 to the contrary
10 notwithstanding no person shall be licensed as a new vehicle
11 dealer unless:
12 1. He is authorized by contract in writing between
13 himself and the manufacturer or franchised distributor of
14 such make of vehicle to so sell the same in this State,
15 and
16 2. Such person shall maintain an established place
17 of business as defined in this Act.
18 (e) The Secretary of State shall, within a reasonable
19 time after receipt, examine an application submitted to him
20 under this Section and unless he makes a determination that
21 the application submitted to him does not conform with the
22 requirements of this Section or that grounds exist for a
23 denial of the application, under Section 5-501 of this
24 Chapter, grant the applicant an original new vehicle dealer's
25 license in writing for his established place of business and
26 a supplemental license in writing for each additional place
27 of business in such form as he may prescribe by rule or
28 regulation which shall include the following:
29 1. The name of the person licensed;
30 2. If a corporation, the name and address of its
31 officers or if a sole proprietorship, a partnership, an
32 unincorporated association or any similar form of
33 business organization, the name and address of the
34 proprietor or of each partner, member, officer, director,
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1 trustee or manager;
2 3. In the case of an original license, the
3 established place of business of the licensee;
4 4. In the case of a supplemental license, the
5 established place of business of the licensee and the
6 additional place of business to which such supplemental
7 license pertains;
8 5. The make or makes of new vehicles which the
9 licensee is licensed to sell.
10 (f) The appropriate instrument evidencing the license or
11 a certified copy thereof, provided by the Secretary of State,
12 shall be kept posted conspicuously in the established place
13 of business of the licensee and in each additional place of
14 business, if any, maintained by such licensee.
15 (g) Except as provided in subsection (h) hereof, all new
16 vehicle dealer's licenses granted under this Section shall
17 expire by operation of law on December 31 of the calendar
18 year for which they are granted unless sooner revoked or
19 cancelled under the provisions of Section 5-501 of this
20 Chapter.
21 (h) A new vehicle dealer's license may be renewed upon
22 application and payment of the fee required herein, and
23 submission of proof of coverage under an approved bond under
24 the "Retailers' Occupation Tax Act" or proof that applicant
25 is not subject to such bonding requirements, as in the case
26 of an original license, but in case an application for the
27 renewal of an effective license is made during the month of
28 December, the effective license shall remain in force until
29 the application is granted or denied by the Secretary of
30 State.
31 (i) All persons licensed as a new vehicle dealer are
32 required to furnish each purchaser of a motor vehicle:
33 1. In the case of a new vehicle a manufacturer's
34 statement of origin and in the case of a used motor
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1 vehicle a certificate of title, in either case properly
2 assigned to the purchaser;
3 2. A statement verified under oath that all
4 identifying numbers on the vehicle agree with those on
5 the certificate of title or manufacturer's statement of
6 origin;
7 3. A bill of sale properly executed on behalf of
8 such person;
9 4. A copy of the Uniform Invoice-transaction
10 reporting return referred to in Section 5-402 hereof;
11 5. In the case of a rebuilt vehicle, a copy of the
12 Disclosure of Rebuilt Vehicle Status; and
13 6. In the case of a vehicle for which the warranty
14 has been reinstated, a copy of the warranty.
15 This amendatory Act of 1983 shall be applicable to the
16 1984 registration year and thereafter.
17 (Source: P.A. 88-158; 89-145, eff. 7-14-95; 89-189, eff.
18 1-1-96; 89-433, eff. 12-15-95.)
19 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
20 Sec. 5-102. Used vehicle dealers must be licensed.
21 (a) No person, other than a licensed new vehicle dealer,
22 shall engage in the business of selling or dealing in, on
23 consignment or otherwise, 5 or more used vehicles of any make
24 during the year (except house trailers as authorized by
25 paragraph (j) of this Section and rebuilt salvage vehicles
26 sold by their rebuilders to persons licensed under this
27 Chapter), or act as an intermediary, agent or broker for any
28 licensed dealer or vehicle purchaser (other than as a
29 salesperson) or represent or advertise that he is so engaged
30 or intends to so engage in such business unless licensed to
31 do so by the Secretary of State under the provisions of this
32 Section.
33 (b) An application for a used vehicle dealer's license
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1 shall be filed with the Secretary of State, duly verified by
2 oath, in such form as the Secretary of State may by rule or
3 regulation prescribe and shall contain:
4 1. The name and type of business organization
5 established and additional places of business, if any, in
6 this State.
7 2. If the applicant is a corporation, a list of its
8 officers, directors, and shareholders having a ten
9 percent or greater ownership interest in the corporation,
10 setting forth the residence address of each; if the
11 applicant is a sole proprietorship, a partnership, an
12 unincorporated association, a trust, or any similar form
13 of business organization, the names and residence address
14 of the proprietor or of each partner, member, officer,
15 director, trustee or manager.
16 3. A statement that the applicant has been approved
17 for registration under the Retailers' Occupation Tax Act
18 by the Department of Revenue. However, this requirement
19 does not apply to a dealer who is already licensed
20 hereunder with the Secretary of State, and who is merely
21 applying for a renewal of his license. As evidence of
22 this fact, the application shall be accompanied by a
23 certification from the Department of Revenue showing that
24 the Department has approved the applicant for
25 registration under the Retailers' Occupation Tax Act.
26 4. A statement that the applicant has complied with
27 the appropriate liability insurance requirement. A
28 Certificate of Insurance in a solvent company authorized
29 to do business in the State of Illinois shall be included
30 with each application covering each location at which he
31 proposes to act as a used vehicle dealer. The policy must
32 provide liability coverage for the used vehicle dealer
33 and its officers, directors, and employees while acting
34 within the course and scope of their employment in the
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1 minimum amounts of $100,000 for bodily injury to, or
2 death of, any person, $300,000 for bodily injury to, or
3 death of, two or more persons in any one accident, and
4 $50,000 for damage to property. Such policy shall expire
5 not sooner than December 31 of the year for which the
6 license was issued or renewed.
7 The liability insurance policy must provide
8 automobile liability coverage in the minimum amounts of
9 $100,000 for bodily injury to, or death of, any person,
10 $300,000 for bodily injury to, or death of, two or more
11 persons in any one accident, and $50,000 for damage to
12 property for any permitted user of the used vehicle
13 dealer's auto if the permitted user has no automobile
14 liability insurance of his or her own. The liability
15 insurance policy must provide automobile liability
16 coverage in the minimum amounts of $100,000 for bodily
17 injury to, or death of, any person, $300,000 for bodily
18 injury to, or death of, two or more persons in any one
19 accident, and $50,000 for damage to property for any
20 permitted user of the used vehicle dealer's auto if the
21 permitted user has automobile liability insurance of his
22 or her own but the insurance is less than the minimum
23 limits of subsection (a) of Section 7-601 and subsection
24 (b) of Section 7-317. If the permitted user of the used
25 vehicle dealer's auto has insurance of his or her own
26 conforming with or exceeding the minimum limits of
27 subsection (a) of Section 7-601 and subsection (b) of
28 Section 7-317, the permitted user's insurance shall be
29 primary and the used vehicle dealer's insurance shall
30 apply only in excess of the permitted user's insurance
31 and any other insurance including, but not limited to,
32 underinsured motorists coverage applicable to the
33 permitted user's liability. Where the used vehicle
34 dealer's insurance applies as excess insurance, the
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1 limits shall be in the amounts of $100,000 for bodily
2 injury to, or death of, a person, $300,000 for bodily
3 injury to, or death of, 2 or more persons in any one
4 accident, and $50,000 for damage to property.
5 As used in this paragraph 4, "permitted user" means
6 a person who is not an officer, director, or employee or
7 a spouse of an officer, director, or employee of the used
8 vehicle dealer and is permitted or authorized to drive a
9 vehicle owned by the used vehicle dealer.
10 The expiration of the insurance policy shall not
11 terminate the liability under the policy arising during the
12 period for which the policy was filed. Trailer and mobile
13 home dealers are exempt from this requirement.
14 5. An application for a used vehicle dealer's
15 license shall be accompanied by the following license
16 fees:
17 $50 for applicant's established place of business,
18 and $25 for each additional place of business, if any, to
19 which the application pertains; however, if the
20 application is made after June 15 of any year, the
21 license fee shall be $25 for applicant's established
22 place of business plus $12.50 for each additional place
23 of business, if any, to which the application pertains.
24 License fees shall be returnable only in the event that
25 the application is denied by the Secretary of State.
26 6. A statement that the applicant's officers,
27 directors, shareholders having a 10% or greater ownership
28 interest therein, proprietor, partner, member, officer,
29 director, trustee, manager or other principals in the
30 business have not committed in the past 3 years any one
31 violation as determined in any civil, criminal or
32 administrative proceedings of any one of the following
33 Acts:
34 (A) The Anti Theft Laws of the Illinois
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1 Vehicle Code;
2 (B) The Certificate of Title Laws of the
3 Illinois Vehicle Code;
4 (C) The Offenses against Registration and
5 Certificates of Title Laws of the Illinois Vehicle
6 Code;
7 (D) The Dealers, Transporters, Wreckers and
8 Rebuilders Laws of the Illinois Vehicle Code;
9 (E) Section 21-2 of the Illinois Criminal Code
10 of 1961, Criminal Trespass to Vehicles; or
11 (F) The Retailers' Occupation Tax Act.
12 7. A statement that the applicant's officers,
13 directors, shareholders having a 10% or greater ownership
14 interest therein, proprietor, partner, member, officer,
15 director, trustee, manager or other principals in the
16 business have not committed in any calendar year 3 or
17 more violations, as determined in any civil or criminal
18 or administrative proceedings, of any one or more of the
19 following Acts:
20 (A) The Consumer Finance Act;
21 (B) The Consumer Installment Loan Act;
22 (C) The Retail Installment Sales Act;
23 (D) The Motor Vehicle Retail Installment Sales
24 Act;
25 (E) The Interest Act;
26 (F) The Illinois Wage Assignment Act;
27 (G) Part 8 of Article XII of the Code of Civil
28 Procedure; or
29 (H) The Consumer Fraud Act.
30 8. A bond or Certificate of Deposit in the amount
31 of $20,000 for each location at which the applicant
32 intends to act as a used vehicle dealer. The bond shall
33 be for the term of the license, or its renewal, for which
34 application is made, and shall expire not sooner than
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1 December 31 of the year for which the license was issued
2 or renewed. The bond shall run to the People of the
3 State of Illinois, with surety by a bonding or insurance
4 company authorized to do business in this State. It
5 shall be conditioned upon the proper transmittal of all
6 title and registration fees and taxes (excluding taxes
7 under the Retailers' Occupation Tax Act) accepted by the
8 applicant as a used vehicle dealer.
9 9. Such other information concerning the business
10 of the applicant as the Secretary of State may by rule or
11 regulation prescribe.
12 10. A statement that the applicant understands
13 Chapter 1 through Chapter 5 of this Code.
14 (c) Any change which renders no longer accurate any
15 information contained in any application for a used vehicle
16 dealer's license shall be amended within 30 days after the
17 occurrence of each change on such form as the Secretary of
18 State may prescribe by rule or regulation, accompanied by an
19 amendatory fee of $2.
20 (d) Anything in this Chapter to the contrary
21 notwithstanding, no person shall be licensed as a used
22 vehicle dealer unless such person maintains an established
23 place of business as defined in this Chapter.
24 (e) The Secretary of State shall, within a reasonable
25 time after receipt, examine an application submitted to him
26 under this Section. Unless the Secretary makes a
27 determination that the application submitted to him does not
28 conform to this Section or that grounds exist for a denial of
29 the application under Section 5-501 of this Chapter, he must
30 grant the applicant an original used vehicle dealer's license
31 in writing for his established place of business and a
32 supplemental license in writing for each additional place of
33 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 case of an original license, the established
9 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 (f) The appropriate instrument evidencing the license or
15 a certified copy thereof, provided by the Secretary of State
16 shall be kept posted, conspicuously, in the established place
17 of business of the licensee and in each additional place of
18 business, if any, maintained by such licensee.
19 (g) Except as provided in subsection (h) of this
20 Section, all used vehicle dealer's licenses granted under
21 this Section expire by operation of law on December 31 of the
22 calendar year for which they are granted unless sooner
23 revoked or cancelled under Section 5-501 of this Chapter.
24 (h) A used vehicle dealer's license may be renewed upon
25 application and payment of the fee required herein, and
26 submission of proof of coverage by an approved bond under the
27 "Retailers' Occupation Tax Act" or proof that applicant is
28 not subject to such bonding requirements, as in the case of
29 an original license, but in case an application for the
30 renewal of an effective license is made during the month of
31 December, the effective license shall remain in force until
32 the application for renewal is granted or denied by the
33 Secretary of State.
34 (i) All persons licensed as a used vehicle dealer are
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1 required to furnish each purchaser of a motor vehicle:
2 1. A certificate of title properly assigned to the
3 purchaser;
4 2. A statement verified under oath that all
5 identifying numbers on the vehicle agree with those on
6 the certificate of title;
7 3. A bill of sale properly executed on behalf of
8 such person;
9 4. A copy of the Uniform Invoice-transaction
10 reporting return referred to in Section 5-402 of this
11 Chapter;
12 5. In the case of a rebuilt vehicle, a copy of the
13 Disclosure of Rebuilt Vehicle Status; and
14 6. In the case of a vehicle for which the warranty
15 has been reinstated, a copy of the warranty.
16 (j) A real estate broker holding a valid certificate of
17 registration issued pursuant to "The Real Estate Brokers and
18 Salesmen License Act" may engage in the business of selling
19 or dealing in house trailers not his own without being
20 licensed as a used vehicle dealer under this Section; however
21 such broker shall maintain a record of the transaction
22 including the following:
23 (1) the name and address of the buyer and seller,
24 (2) the date of sale,
25 (3) a description of the mobile home, including the
26 vehicle identification number, make, model, and year, and
27 (4) the Illinois certificate of title number.
28 The foregoing records shall be available for inspection
29 by any officer of the Secretary of State's Office at any
30 reasonable hour.
31 (Source: P.A. 88-158; 89-189, eff. 1-1-96.)
32 (625 ILCS 5/7-202) (from Ch. 95 1/2, par. 7-202)
33 Sec. 7-202. Exceptions to requirements of security. (a)
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1 The requirements as to security and suspension as provided by
2 Sections 7-201 and 7-205 shall not apply:
3 1. To the driver or owner if such owner had in effect at
4 the time of such motor vehicle accident a liability policy
5 covering such driver and owner with respect to the vehicle
6 involved in such motor vehicle accident;
7 2. To the driver, if not the owner of such vehicle, if
8 there was in effect at the time of such motor vehicle
9 accident a liability policy or bond with respect to the
10 operation of motor vehicles not owned by the driver;
11 3. To the driver or owner if the liability of such
12 driver or owner for damages resulting from such motor vehicle
13 accident is covered by any other form of liability insurance
14 policy or bond;
15 4. To the driver or owner, if such owner is qualified as
16 a self-insurer as provided in Section 7-502;
17 5. To the owner if such owner at the time of such motor
18 vehicle accident was in compliance with Section 8-101 or
19 Section 9-101, or if the owner was a new or used vehicle
20 dealer in compliance with paragraph 6 of subsection (b) of
21 Section 5-101 or with paragraph 4 of subsection (b) of
22 Section 5-102;
23 6. To the driver or owner if such owner at the time of
24 such motor vehicle accident was in compliance with the
25 Federal Revised Interstate Commerce Act (P.L. 95-473), as now
26 or hereafter amended;
27 7. To the owner if the vehicle involved in such motor
28 vehicle accident was owned by the United States, this State
29 or any political sub-division of this State, any municipality
30 therein, or any local Mass Transit District;
31 8. To the driver or the owner of a vehicle involved in a
32 motor vehicle accident wherein no injury or damage was caused
33 to the person or property of any one other than such driver
34 or owner;
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1 9. To the driver or the owner of a vehicle which at the
2 time of the motor vehicle accident was parked, unless such
3 vehicle was parked at a place where parking was at the time
4 of the accident prohibited under any applicable law or
5 ordinance;
6 10. To the owner of a vehicle if at the time of the
7 motor vehicle accident the vehicle was being operated without
8 his permission, express or implied, or was parked by a person
9 who had been operating such motor vehicle without such
10 permission;
11 11. To the driver, if not the owner, of a commercial
12 motor vehicle on which there was no liability policy or bond
13 with respect to the operation of such vehicle in effect at
14 the time of the motor vehicle accident when the driver was
15 operating the vehicle in the course of the driver's
16 employment and had no actual knowledge of such lack of a
17 liability policy or bond prior to the motor vehicle accident.
18 (b) If at the time of the motor vehicle accident, an
19 owner or driver is covered by a motor vehicle liability
20 policy or bond meeting the requirements of this Code, such
21 owner or driver shall be exempt from suspension under Section
22 7-205 as to that motor vehicle accident, if the company
23 issuing the policy or bond has failed, and such policy or
24 bond was not effective at the time of the motor vehicle
25 accident or any time thereafter, provided, that the owner or
26 driver had no knowledge of the company's failure prior to the
27 motor vehicle accident, and such owner or driver has secured
28 within 30 days after learning of such failure another
29 liability policy or bond meeting the requirements of the Code
30 relating to future occurrences or motor vehicle accidents.
31 As used in this paragraph, the words "failed" or
32 "failure" mean that the company has suspended operations by
33 order of a court.
34 (Source: P.A. 85-293.)
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1 (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
2 Sec. 7-317. "Motor vehicle liability policy" defined.
3 (a) Certification. -A "motor vehicle liability policy",
4 as that term is used in this Act, means an "owner's policy"
5 or an "operator's policy" of liability insurance, certified
6 as provided in Section 7-315 or Section 7-316 as proof of
7 financial responsibility for the future, and issued, except
8 as otherwise provided in Section 7-316, by an insurance
9 carrier duly authorized to transact business in this State,
10 to or for the benefit of the person named therein as insured.
11 (b) Owner's Policy. --Such owner's policy of liability
12 insurance:
13 1. Shall designate by explicit description or by
14 appropriate reference, all motor vehicles with respect to
15 which coverage is thereby intended to be granted;
16 2. Shall insure the person named therein and any
17 other person using or responsible for the use of such
18 motor vehicle or vehicles with the express or implied
19 permission of the insured, except that with respect to
20 new vehicle dealers and used vehicle dealers, it shall
21 insure permitted users only to the extent provided in
22 paragraph 6 of subsection (b) of Section 5-101 and
23 paragraph 4 of subsection (b) of Section 5-102;
24 3. Shall insure every named insured and any other
25 person using or responsible for the use of any motor
26 vehicle owned by the named insured and used by such other
27 person with the express or implied permission of the
28 named insured on account of the maintenance, use or
29 operation of any motor vehicle owned by the named
30 insured, within the continental limits of the United
31 States or the Dominion of Canada against loss from
32 liability imposed by law arising from such maintenance,
33 use or operation, to the extent and aggregate amount,
34 exclusive of interest and cost, with respect to each
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1 motor vehicle, of $20,000 for bodily injury to or death
2 of one person as a result of any one accident and,
3 subject to such limit as to one person, the amount of
4 $40,000 for bodily injury to or death of all persons as a
5 result of any one accident and the amount of $15,000 for
6 damage to property of others as a result of any one
7 accident.
8 As used in this subsection (b), "permitted user" means a
9 person who is not an officer, director, or employee or a
10 spouse of an officer, director, or employee of a new or used
11 vehicle dealer and is permitted or authorized to drive a
12 vehicle owned by the new or used vehicle dealer.
13 (c) Operator's Policy. --When an operator's policy is
14 required, it shall insure the person named therein as insured
15 against the liability imposed by law upon the insured for
16 bodily injury to or death of any person or damage to property
17 to the amounts and limits above set forth and growing out of
18 the use or operation by the insured within the continental
19 limits of the United States or the Dominion of Canada of any
20 motor vehicle not owned by him.
21 (d) Required Statements in Policies. --Every motor
22 vehicle liability policy must specify the name and address of
23 the insured, the coverage afforded by the policy, the premium
24 charged therefor, the policy period, and the limits of
25 liability, and shall contain an agreement that the insurance
26 thereunder is provided in accordance with the coverage
27 defined in this Act, as respects bodily injury and death or
28 property damage or both, and is subject to all the provisions
29 of this Act.
30 (e) Policy Need Not Insure Workers' Compensation. --Any
31 liability policy or policies issued hereunder need not cover
32 any liability of the insured assumed by or imposed upon the
33 insured under any workers' compensation law nor any liability
34 for damage to property in charge of the insured or the
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1 insured's employees.
2 (f) Provisions Incorporated in Policy. --Every motor
3 vehicle liability policy is subject to the following
4 provisions which need not be contained therein:
5 1. The liability of the insurance carrier under any such
6 policy shall become absolute whenever loss or damage covered
7 by the policy occurs and the satisfaction by the insured of a
8 final judgment for such loss or damage shall not be a
9 condition precedent to the right or obligation of the carrier
10 to make payment on account of such loss or damage.
11 2. No such policy may be cancelled or annulled as
12 respects any loss or damage, by any agreement between the
13 carrier and the insured after the insured has become
14 responsible for such loss or damage, and any such
15 cancellation or annulment shall be void.
16 3. The insurance carrier shall, however, have the right
17 to settle any claim covered by the policy, and if such
18 settlement is made in good faith, the amount thereof shall be
19 deductible from the limits of liability specified in the
20 policy.
21 4. The policy, the written application therefor, if any,
22 and any rider or endorsement which shall not conflict with
23 the provisions of this Act shall constitute the entire
24 contract between the parties.
25 (g) Excess or Additional Coverage. --Any motor vehicle
26 liability policy may, however, grant any lawful coverage in
27 excess of or in addition to the coverage herein specified or
28 contain any agreements, provisions, or stipulations not in
29 conflict with the provisions of this Act and not otherwise
30 contrary to law.
31 (h) Reimbursement Provision Permitted. --The policy may
32 provide that the insured, or any other person covered by the
33 policy shall reimburse the insurance carrier for payment made
34 on account of any loss or damage claim or suit involving a
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1 breach of the terms, provisions or conditions of the policy;
2 and further, if the policy shall provide for limits in excess
3 of the limits specified in this Act, the insurance carrier
4 may plead against any plaintiff, with respect to the amount
5 of such excess limits of liability, any defense which it may
6 be entitled to plead against the insured.
7 (i) Proration of Insurance Permitted. --The policy may
8 provide for the pro-rating of the insurance thereunder with
9 other applicable valid and collectible insurance.
10 (j) Binders. --Any binder pending the issuance of any
11 policy, which binder contains or by reference includes the
12 provisions hereunder shall be sufficient proof of ability to
13 respond in damages.
14 (k) Copy of Policy to Be Filed with Department of
15 Insurance--Approval. --A copy of the form of every motor
16 vehicle liability policy which is to be used to meet the
17 requirements of this Act must be filed, by the company
18 offering such policy, with the Department of Insurance, which
19 shall approve or disapprove the policy within 30 days of its
20 filing. If the Department approves the policy in writing
21 within such 30 day period or fails to take action for 30
22 days, the form of policy shall be deemed approved as filed.
23 If within the 30 days the Department disapproves the form of
24 policy filed upon the ground that it does not comply with the
25 requirements of this Act, the Department shall give written
26 notice of its decision and its reasons therefor to the
27 carrier and the policy shall not be accepted as proof of
28 financial responsibility under this Act.
29 (l) Insurance Carrier Required to File Certificate. --An
30 insurance carrier who has issued a motor vehicle liability
31 policy or policies or an operator's policy meeting the
32 requirements of this Act shall, upon the request of the
33 insured therein, deliver to the insured for filing, or at the
34 request of the insured, shall file direct, with the Secretary
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1 of State a certificate, as required by this Act, which shows
2 that such policy or policies have been issued. No insurance
3 carrier may require the payment of any extra fee or
4 surcharge, in addition to the insurance premium, for the
5 execution, delivery or filing of such certificate.
6 (m) Proof When Made By Endorsement. --Any motor vehicle
7 liability policy which by endorsement contains the provisions
8 required hereunder shall be sufficient proof of ability to
9 respond in damages.
10 (Source: P.A. 85-730.)
11 (625 ILCS 5/7-601) (from Ch. 95 1/2, par. 7-601)
12 Sec. 7-601. Required liability insurance policy.
13 (a) No person shall operate, register or maintain
14 registration of, and no owner shall permit another person to
15 operate, register or maintain registration of, a motor
16 vehicle designed to be used on a public highway unless the
17 motor vehicle is covered by a liability insurance policy.
18 The insurance policy shall be issued in amounts no less
19 than the minimum amounts set for bodily injury or death and
20 for destruction of property under Section 7-203 of this Code,
21 and shall be issued in accordance with the requirements of
22 Sections 143a and 143a-2 of the Illinois Insurance Code, as
23 amended. No insurer other than an insurer authorized to do
24 business in this State shall issue a policy pursuant to this
25 Section for any vehicle subject to registration under this
26 Code. Nothing herein shall deprive an insurer of any policy
27 defense available at common law.
28 (b) The following vehicles are exempt from the
29 requirements of this Section:
30 (1) vehicles subject to the provisions of Chapters
31 8 or 18a, Article III or Section 7-609 of Chapter 7, or
32 Sections 12-606 or 12-707.01 of Chapter 12 of this Code;
33 (2) vehicles required to file proof of liability
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1 insurance with the Illinois Commerce Commission;
2 (3) vehicles covered by a certificate of
3 self-insurance under Section 7-502 of this Code;
4 (4) vehicles owned by the United States, the State
5 of Illinois, or any political subdivision, municipality
6 or local mass transit district;
7 (5) implements of husbandry;
8 (6) other vehicles complying with laws which
9 require them to be insured in amounts meeting or
10 exceeding the minimum amounts required under this
11 Section; and
12 (7) inoperable or stored vehicles that are not
13 operated, as defined by rules and regulations of the
14 Secretary; and.
15 (8) vehicles of new vehicle dealers and used
16 vehicle dealers complying with the paragraph 6 of
17 subsection (b) of Section 5-501 or paragraph 4 of
18 subsection (b) of Section 5-102.
19 (Source: P.A. 88-315; 89-669, eff. 1-1-97.)
20 Section 98. Applicability. The changes made by this
21 amendatory Act of the 91st General Assembly are prospective
22 and apply only on or after the effective date of this
23 amendatory Act of the 91st General Assembly.
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