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91_HB0604eng
HB0604 Engrossed 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
9 automobile liability coverage in the minimum amounts of
10 $100,000 for bodily injury to, or death of, any person,
11 $300,000 for bodily injury to, or death of, two or more
12 persons in any one accident, and $50,000 for damage to
13 property for any permitted user of the new vehicle
14 dealer's auto if the permitted user has no automobile
15 liability insurance of his or her own. The liability
16 insurance policy must provide automobile liability
17 coverage in the minimum amounts of $100,000 for bodily
18 injury to, or death of, any person, $300,000 for bodily
19 injury to, or death of, two or more persons in any one
20 accident, and $50,000 for damage to property for any
21 permitted user of the new vehicle dealer's auto if the
22 permitted user has automobile liability insurance of his
23 or her own but such insurance is less than the minimum
24 limits of subsection (a) of Section 7-601 and subsection
25 (b) of Section 7-317. If the permitted user of the new
26 vehicle dealer's auto has insurance of his own conforming
27 with or exceeding the minimum limits of subsection (a) of
28 Section 7-601 and subsection (b) of Section 7-317, the
29 new vehicle dealer's insurance does not provide any
30 insurance for the permitted user.
31 The expiration of the insurance policy shall not
32 terminate the liability under the policy arising during the
33 period for which the policy was filed. Trailer and mobile
34 home dealers are exempt from this requirement.
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1 7. (A) An application for a new motor vehicle
2 dealer's license shall be accompanied by the
3 following license fees:
4 $100 for applicant's established place of
5 business, and $50 for each additional place of
6 business, if any, to which the application pertains;
7 but if the application is made after June 15 of any
8 year, the license fee shall be $50 for applicant's
9 established place of business plus $25 for each
10 additional place of business, if any, to which the
11 application pertains. License fees shall be
12 returnable only in the event that the application is
13 denied by the Secretary of State. All moneys
14 received by the Secretary of State as license fees
15 under this Section shall be deposited into the Motor
16 Vehicle Review Board Fund and shall be used to
17 administer the Motor Vehicle Review Board under the
18 Motor Vehicle Franchise Act.
19 (B) An application for a new vehicle dealer's
20 license, other than for a new motor vehicle dealer's
21 license, shall be accompanied by the following
22 license fees:
23 $50 for applicant's established place of
24 business, and $25 for each additional place of
25 business, if any, to which the application pertains;
26 but if the application is made after June 15 of any
27 year, the license fee shall be $25 for applicant's
28 established place of business plus $12.50 for each
29 additional place of business, if any, to which the
30 application pertains. License fees shall be
31 returnable only in the event that the application is
32 denied by the Secretary of State.
33 8. A statement that the applicant's officers,
34 directors, shareholders having a 10% or greater ownership
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1 interest therein, proprietor, a partner, member, officer,
2 director, trustee, manager or other principals in the
3 business have not committed in the past 3 years any one
4 violation as determined in any civil, criminal or
5 administrative proceedings of any one of the following
6 Acts:
7 (A) The Anti Theft Laws of the Illinois
8 Vehicle Code;
9 (B) The Certificate of Title Laws of the
10 Illinois Vehicle Code;
11 (C) The Offenses against Registration and
12 Certificates of Title Laws of the Illinois Vehicle
13 Code;
14 (D) The Dealers, Transporters, Wreckers and
15 Rebuilders Laws of the Illinois Vehicle Code;
16 (E) Section 21-2 of the Criminal Code of 1961,
17 Criminal Trespass to Vehicles; or
18 (F) The Retailers' Occupation Tax Act.
19 9. A statement that the applicant's officers,
20 directors, shareholders having a 10% or greater ownership
21 interest therein, proprietor, partner, member, officer,
22 director, trustee, manager or other principals in the
23 business have not committed in any calendar year 3 or
24 more violations, as determined in any civil, criminal or
25 administrative proceedings, of any one or more of the
26 following Acts:
27 (A) The Consumer Finance Act;
28 (B) The Consumer Installment Loan Act;
29 (C) The Retail Installment Sales Act;
30 (D) The Motor Vehicle Retail Installment Sales
31 Act;
32 (E) The Interest Act;
33 (F) The Illinois Wage Assignment Act;
34 (G) Part 8 of Article XII of the Code of Civil
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1 Procedure; or
2 (H) The Consumer Fraud Act.
3 10. A bond or certificate of deposit in the amount
4 of $20,000 for each location at which the applicant
5 intends to act as a new vehicle dealer. The bond shall
6 be for the term of the license, or its renewal, for which
7 application is made, and shall expire not sooner than
8 December 31 of the year for which the license was issued
9 or renewed. The bond shall run to the People of the
10 State of Illinois, with surety by a bonding or insurance
11 company authorized to do business in this State. It
12 shall be conditioned upon the proper transmittal of all
13 title and registration fees and taxes (excluding taxes
14 under the Retailers' Occupation Tax Act) accepted by the
15 applicant as a new vehicle dealer.
16 11. Such other information concerning the business
17 of the applicant as the Secretary of State may by rule or
18 regulation prescribe.
19 12. A statement that the applicant understands
20 Chapter One through Chapter Five of this Code.
21 (c) Any change which renders no longer accurate any
22 information contained in any application for a new vehicle
23 dealer's license shall be amended within 30 days after the
24 occurrence of such change on such form as the Secretary of
25 State may prescribe by rule or regulation, accompanied by an
26 amendatory fee of $2.
27 (d) Anything in this Chapter 5 to the contrary
28 notwithstanding no person shall be licensed as a new vehicle
29 dealer unless:
30 1. He is authorized by contract in writing between
31 himself and the manufacturer or franchised distributor of
32 such make of vehicle to so sell the same in this State,
33 and
34 2. Such person shall maintain an established place
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1 of business as defined in this Act.
2 (e) The Secretary of State shall, within a reasonable
3 time after receipt, examine an application submitted to him
4 under this Section and unless he makes a determination that
5 the application submitted to him does not conform with the
6 requirements of this Section or that grounds exist for a
7 denial of the application, under Section 5-501 of this
8 Chapter, grant the applicant an original new vehicle dealer's
9 license in writing for his established place of business and
10 a supplemental license in writing for each additional place
11 of 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 the case of an original license, the
21 established 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 5. The make or makes of new vehicles which the
27 licensee is licensed to sell.
28 (f) The appropriate instrument evidencing the license or
29 a certified copy thereof, provided by the Secretary of State,
30 shall be kept posted conspicuously in the established place
31 of business of the licensee and in each additional place of
32 business, if any, maintained by such licensee.
33 (g) Except as provided in subsection (h) hereof, all new
34 vehicle dealer's licenses granted under this Section shall
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1 expire by operation of law on December 31 of the calendar
2 year for which they are granted unless sooner revoked or
3 cancelled under the provisions of Section 5-501 of this
4 Chapter.
5 (h) A new vehicle dealer's license may be renewed upon
6 application and payment of the fee required herein, and
7 submission of proof of coverage under an approved bond under
8 the "Retailers' Occupation Tax Act" or proof that applicant
9 is not subject to such bonding requirements, as in the case
10 of an original license, but in case an application for the
11 renewal of an effective license is made during the month of
12 December, the effective license shall remain in force until
13 the application is granted or denied by the Secretary of
14 State.
15 (i) All persons licensed as a new vehicle dealer are
16 required to furnish each purchaser of a motor vehicle:
17 1. In the case of a new vehicle a manufacturer's
18 statement of origin and in the case of a used motor
19 vehicle a certificate of title, in either case properly
20 assigned to the purchaser;
21 2. A statement verified under oath that all
22 identifying numbers on the vehicle agree with those on
23 the certificate of title or manufacturer's statement of
24 origin;
25 3. A bill of sale properly executed on behalf of
26 such person;
27 4. A copy of the Uniform Invoice-transaction
28 reporting return referred to in Section 5-402 hereof;
29 5. In the case of a rebuilt vehicle, a copy of the
30 Disclosure of Rebuilt Vehicle Status; and
31 6. In the case of a vehicle for which the warranty
32 has been reinstated, a copy of the warranty.
33 This amendatory Act of 1983 shall be applicable to the
34 1984 registration year and thereafter.
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1 (Source: P.A. 88-158; 89-145, eff. 7-14-95; 89-189, eff.
2 1-1-96; 89-433, eff. 12-15-95.)
3 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
4 Sec. 5-102. Used vehicle dealers must be licensed.
5 (a) No person, other than a licensed new vehicle dealer,
6 shall engage in the business of selling or dealing in, on
7 consignment or otherwise, 5 or more used vehicles of any make
8 during the year (except house trailers as authorized by
9 paragraph (j) of this Section and rebuilt salvage vehicles
10 sold by their rebuilders to persons licensed under this
11 Chapter), or act as an intermediary, agent or broker for any
12 licensed dealer or vehicle purchaser (other than as a
13 salesperson) or represent or advertise that he is so engaged
14 or intends to so engage in such business unless licensed to
15 do so by the Secretary of State under the provisions of this
16 Section.
17 (b) An application for a used vehicle dealer's license
18 shall be filed with the Secretary of State, duly verified by
19 oath, in 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
22 established and additional places of business, if any, in
23 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 names and residence address
31 of the proprietor or of each partner, member, officer,
32 director, trustee or manager.
33 3. A statement that the applicant has been approved
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1 for registration under the Retailers' Occupation Tax Act
2 by the Department of Revenue. However, this requirement
3 does not apply to a dealer who is already licensed
4 hereunder with the Secretary of State, and who is merely
5 applying for a renewal of his license. As evidence of
6 this fact, the application shall be accompanied by a
7 certification from the Department of Revenue showing that
8 the Department has approved the applicant for
9 registration under the Retailers' Occupation Tax Act.
10 4. A statement that the applicant has complied with
11 the appropriate liability insurance requirement. A
12 Certificate of Insurance in a solvent company authorized
13 to do business in the State of Illinois shall be included
14 with each application covering each location at which he
15 proposes to act as a used vehicle dealer. The policy must
16 provide liability coverage for the used vehicle dealer in
17 the minimum amounts of $100,000 for bodily injury to, or
18 death of, any person, $300,000 for bodily injury to, or
19 death of, two or more persons in any one accident, and
20 $50,000 for damage to property. Such policy shall expire
21 not sooner than December 31 of the year for which the
22 license was issued or renewed.
23 The liability insurance policy must provide
24 automobile liability coverage in the minimum amounts of
25 $100,000 for bodily injury to, or death of, any person,
26 $300,000 for bodily injury to, or death of, two or more
27 persons in any one accident, and $50,000 for damage to
28 property for any permitted user of the used vehicle
29 dealer's auto if the permitted user has no automobile
30 liability insurance of his or her own. The liability
31 insurance policy must provide automobile liability
32 coverage in the minimum amounts of $100,000 for bodily
33 injury to, or death of, any person, $300,000 for bodily
34 injury to, or death of, two or more persons in any one
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1 accident, and $50,000 for damage to property for any
2 permitted user of the used vehicle dealer's auto if the
3 permitted user has automobile liability insurance of his
4 or her own but the insurance is less than the minimum
5 limits of subsection (a) of Section 7-601 and subsection
6 (b) of Section 7-317. If the permitted user of the used
7 vehicle dealer's auto has insurance of his or her own
8 conforming with or exceeding the minimum limits of
9 subsection (a) of Section 7-601 and subsection (b) of
10 Section 7-317, the used vehicle dealer's insurance does
11 not provide any insurance for the permitted user.
12 The expiration of the insurance policy shall not
13 terminate the liability under the policy arising during the
14 period for which the policy was filed. Trailer and mobile
15 home dealers are exempt from this requirement.
16 5. An application for a used vehicle dealer's
17 license shall be accompanied by the following license
18 fees:
19 $50 for applicant's established place of business,
20 and $25 for each additional place of business, if any, to
21 which the application pertains; however, if the
22 application is made after June 15 of any year, the
23 license fee shall be $25 for applicant's established
24 place of business plus $12.50 for each additional place
25 of business, if any, to which the application pertains.
26 License fees shall be returnable only in the event that
27 the application is denied by the Secretary of State.
28 6. A statement that the applicant's officers,
29 directors, shareholders having a 10% or greater ownership
30 interest therein, proprietor, partner, member, officer,
31 director, trustee, manager or other principals in the
32 business have not committed in the past 3 years any one
33 violation as determined in any civil, criminal or
34 administrative proceedings of any one of the following
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1 Acts:
2 (A) The Anti Theft Laws of the Illinois
3 Vehicle Code;
4 (B) The Certificate of Title Laws of the
5 Illinois Vehicle Code;
6 (C) The Offenses against Registration and
7 Certificates of Title Laws of the Illinois Vehicle
8 Code;
9 (D) The Dealers, Transporters, Wreckers and
10 Rebuilders Laws of the Illinois Vehicle Code;
11 (E) Section 21-2 of the Illinois Criminal Code
12 of 1961, Criminal Trespass to Vehicles; or
13 (F) The Retailers' Occupation Tax Act.
14 7. A statement that the applicant's officers,
15 directors, shareholders having a 10% or greater ownership
16 interest therein, proprietor, partner, member, officer,
17 director, trustee, manager or other principals in the
18 business have not committed in any calendar year 3 or
19 more violations, as determined in any civil or criminal
20 or administrative proceedings, of any one or more of the
21 following Acts:
22 (A) The Consumer Finance Act;
23 (B) The Consumer Installment Loan Act;
24 (C) The Retail Installment Sales Act;
25 (D) The Motor Vehicle Retail Installment Sales
26 Act;
27 (E) The Interest Act;
28 (F) The Illinois Wage Assignment Act;
29 (G) Part 8 of Article XII of the Code of Civil
30 Procedure; or
31 (H) The Consumer Fraud Act.
32 8. A bond or Certificate of Deposit in the amount
33 of $20,000 for each location at which the applicant
34 intends to act as a used vehicle dealer. The bond shall
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1 be for the term of the license, or its renewal, for which
2 application is made, and shall expire not sooner than
3 December 31 of the year for which the license was issued
4 or renewed. The bond shall run to the People of the
5 State of Illinois, with surety by a bonding or insurance
6 company authorized to do business in this State. It
7 shall be conditioned upon the proper transmittal of all
8 title and registration fees and taxes (excluding taxes
9 under the Retailers' Occupation Tax Act) accepted by the
10 applicant as a used vehicle dealer.
11 9. Such other information concerning the business
12 of the applicant as the Secretary of State may by rule or
13 regulation prescribe.
14 10. A statement that the applicant understands
15 Chapter 1 through Chapter 5 of this Code.
16 (c) Any change which renders no longer accurate any
17 information contained in any application for a used vehicle
18 dealer's license shall be amended within 30 days after the
19 occurrence of each change on such form as the Secretary of
20 State may prescribe by rule or regulation, accompanied by an
21 amendatory fee of $2.
22 (d) Anything in this Chapter to the contrary
23 notwithstanding, no person shall be licensed as a used
24 vehicle dealer unless such person maintains an established
25 place of business as defined in this Chapter.
26 (e) The Secretary of State shall, within a reasonable
27 time after receipt, examine an application submitted to him
28 under this Section. Unless the Secretary makes a
29 determination that the application submitted to him does not
30 conform to this Section or that grounds exist for a denial of
31 the application under Section 5-501 of this Chapter, he must
32 grant the applicant an original used vehicle dealer's license
33 in writing for his established place of business and a
34 supplemental license in writing for each additional place of
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1 business in such form as he may prescribe by rule or
2 regulation which shall include the following:
3 1. The name of the person licensed;
4 2. If a corporation, the name and address of its
5 officers or if a sole proprietorship, a partnership, an
6 unincorporated association or any similar form of
7 business organization, the name and address of the
8 proprietor or of each partner, member, officer, director,
9 trustee or manager;
10 3. In case of an original license, the established
11 place of business of the licensee;
12 4. In the case of a supplemental license, the
13 established place of business of the licensee and the
14 additional place of business to which such supplemental
15 license pertains.
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) of this
22 Section, all used vehicle dealer's licenses granted under
23 this Section expire by operation of law on December 31 of the
24 calendar year for which they are granted unless sooner
25 revoked or cancelled under Section 5-501 of this Chapter.
26 (h) A used vehicle dealer's license may be renewed upon
27 application and payment of the fee required herein, and
28 submission of proof of coverage by an approved bond under the
29 "Retailers' Occupation Tax Act" or proof that applicant is
30 not subject to such bonding requirements, as in the case of
31 an original license, but in case an application for the
32 renewal of an effective license is made during the month of
33 December, the effective license shall remain in force until
34 the application for renewal is granted or denied by the
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1 Secretary of State.
2 (i) All persons licensed as a used vehicle dealer are
3 required to furnish each purchaser of a motor vehicle:
4 1. A certificate of title properly assigned to the
5 purchaser;
6 2. A statement verified under oath that all
7 identifying numbers on the vehicle agree with those on
8 the certificate of title;
9 3. A bill of sale properly executed on behalf of
10 such person;
11 4. A copy of the Uniform Invoice-transaction
12 reporting return referred to in Section 5-402 of this
13 Chapter;
14 5. In the case of a rebuilt vehicle, a copy of the
15 Disclosure of Rebuilt Vehicle Status; and
16 6. In the case of a vehicle for which the warranty
17 has been reinstated, a copy of the warranty.
18 (j) A real estate broker holding a valid certificate of
19 registration issued pursuant to "The Real Estate Brokers and
20 Salesmen License Act" may engage in the business of selling
21 or dealing in house trailers not his own without being
22 licensed as a used vehicle dealer under this Section; however
23 such broker shall maintain a record of the transaction
24 including the following:
25 (1) the name and address of the buyer and seller,
26 (2) the date of sale,
27 (3) a description of the mobile home, including the
28 vehicle identification number, make, model, and year, and
29 (4) the Illinois certificate of title number.
30 The foregoing records shall be available for inspection
31 by any officer of the Secretary of State's Office at any
32 reasonable hour.
33 (Source: P.A. 88-158; 89-189, eff. 1-1-96.)
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1 (625 ILCS 5/7-202) (from Ch. 95 1/2, par. 7-202)
2 Sec. 7-202. Exceptions to requirements of security. (a)
3 The requirements as to security and suspension as provided by
4 Sections 7-201 and 7-205 shall not apply:
5 1. To the driver or owner if such owner had in effect at
6 the time of such motor vehicle accident a liability policy
7 covering such driver and owner with respect to the vehicle
8 involved in such motor vehicle accident;
9 2. To the driver, if not the owner of such vehicle, if
10 there was in effect at the time of such motor vehicle
11 accident a liability policy or bond with respect to the
12 operation of motor vehicles not owned by the driver;
13 3. To the driver or owner if the liability of such
14 driver or owner for damages resulting from such motor vehicle
15 accident is covered by any other form of liability insurance
16 policy or bond;
17 4. To the driver or owner, if such owner is qualified as
18 a self-insurer as provided in Section 7-502;
19 5. To the owner if such owner at the time of such motor
20 vehicle accident was in compliance with Section 8-101 or
21 Section 9-101, or if the owner was a new or used vehicle
22 dealer in compliance with paragraph 6 of subsection (b) of
23 Section 5-101 or with paragraph 4 of subsection (b) of
24 Section 5-102;
25 6. To the driver or owner if such owner at the time of
26 such motor vehicle accident was in compliance with the
27 Federal Revised Interstate Commerce Act (P.L. 95-473), as now
28 or hereafter amended;
29 7. To the owner if the vehicle involved in such motor
30 vehicle accident was owned by the United States, this State
31 or any political sub-division of this State, any municipality
32 therein, or any local Mass Transit District;
33 8. To the driver or the owner of a vehicle involved in a
34 motor vehicle accident wherein no injury or damage was caused
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1 to the person or property of any one other than such driver
2 or owner;
3 9. To the driver or the owner of a vehicle which at the
4 time of the motor vehicle accident was parked, unless such
5 vehicle was parked at a place where parking was at the time
6 of the accident prohibited under any applicable law or
7 ordinance;
8 10. To the owner of a vehicle if at the time of the
9 motor vehicle accident the vehicle was being operated without
10 his permission, express or implied, or was parked by a person
11 who had been operating such motor vehicle without such
12 permission;
13 11. To the driver, if not the owner, of a commercial
14 motor vehicle on which there was no liability policy or bond
15 with respect to the operation of such vehicle in effect at
16 the time of the motor vehicle accident when the driver was
17 operating the vehicle in the course of the driver's
18 employment and had no actual knowledge of such lack of a
19 liability policy or bond prior to the motor vehicle accident.
20 (b) If at the time of the motor vehicle accident, an
21 owner or driver is covered by a motor vehicle liability
22 policy or bond meeting the requirements of this Code, such
23 owner or driver shall be exempt from suspension under Section
24 7-205 as to that motor vehicle accident, if the company
25 issuing the policy or bond has failed, and such policy or
26 bond was not effective at the time of the motor vehicle
27 accident or any time thereafter, provided, that the owner or
28 driver had no knowledge of the company's failure prior to the
29 motor vehicle accident, and such owner or driver has secured
30 within 30 days after learning of such failure another
31 liability policy or bond meeting the requirements of the Code
32 relating to future occurrences or motor vehicle accidents.
33 As used in this paragraph, the words "failed" or
34 "failure" mean that the company has suspended operations by
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1 order of a court.
2 (Source: P.A. 85-293.)
3 (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
4 Sec. 7-317. "Motor vehicle liability policy" defined.
5 (a) Certification. -A "motor vehicle liability policy",
6 as that term is used in this Act, means an "owner's policy"
7 or an "operator's policy" of liability insurance, certified
8 as provided in Section 7-315 or Section 7-316 as proof of
9 financial responsibility for the future, and issued, except
10 as otherwise provided in Section 7-316, by an insurance
11 carrier duly authorized to transact business in this State,
12 to or for the benefit of the person named therein as insured.
13 (b) Owner's Policy. --Such owner's policy of liability
14 insurance:
15 1. Shall designate by explicit description or by
16 appropriate reference, all motor vehicles with respect to
17 which coverage is thereby intended to be granted;
18 2. Shall insure the person named therein and any
19 other person using or responsible for the use of such
20 motor vehicle or vehicles with the express or implied
21 permission of the insured, except that with respect to
22 new vehicle dealers and used vehicle dealers, it shall
23 insure permitted users only if the permitted users do not
24 have any insurance coverage or have less than the
25 required minimum limits of $20,000 for bodily injury to,
26 or death of, any person, $40,000 for bodily injury to, or
27 death of, 2 or more persons in any one accident, and
28 $15,000 for damage to property, in which case the limits
29 of coverage owed by the owner to the permitted user are
30 the minimum limits set out in paragraph 4;
31 3. Shall insure every named insured and any other
32 person using or responsible for the use of any motor
33 vehicle owned by the named insured and used by such other
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1 person with the express or implied permission of the
2 named insured on account of the maintenance, use or
3 operation of any motor vehicle owned by the named
4 insured, within the continental limits of the United
5 States or the Dominion of Canada against loss from
6 liability imposed by law arising from such maintenance,
7 use or operation, to the extent and aggregate amount,
8 exclusive of interest and cost, with respect to each
9 motor vehicle, of $20,000 for bodily injury to or death
10 of one person as a result of any one accident and,
11 subject to such limit as to one person, the amount of
12 $40,000 for bodily injury to or death of all persons as a
13 result of any one accident and the amount of $15,000 for
14 damage to property of others as a result of any one
15 accident; and.
16 4. Shall insure a permitted user of a new vehicle
17 dealer's or used vehicle dealer's auto only if the
18 permitted user has no insurance coverage or has insurance
19 coverage with the limits less than the minimum required
20 limits of $20,000 for bodily injury to, or death of, any
21 person, $40,000 for bodily injury to, or death of, 2 or
22 more persons in any one accident, and $15,000 for damage
23 to property, in which case the dealer's policy shall
24 provide automobile liability coverage in the minimum
25 amounts of $100,000 for bodily injury to, or death of,
26 any person, $300,000 for bodily injury to, or death of,
27 two or more persons in any one accident, and $50,000 for
28 damage to property.
29 (c) Operator's Policy. --When an operator's policy is
30 required, it shall insure the person named therein as insured
31 against the liability imposed by law upon the insured for
32 bodily injury to or death of any person or damage to property
33 to the amounts and limits above set forth and growing out of
34 the use or operation by the insured within the continental
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1 limits of the United States or the Dominion of Canada of any
2 motor vehicle not owned by him.
3 (d) Required Statements in Policies. --Every motor
4 vehicle liability policy must specify the name and address of
5 the insured, the coverage afforded by the policy, the premium
6 charged therefor, the policy period, and the limits of
7 liability, and shall contain an agreement that the insurance
8 thereunder is provided in accordance with the coverage
9 defined in this Act, as respects bodily injury and death or
10 property damage or both, and is subject to all the provisions
11 of this Act.
12 (e) Policy Need Not Insure Workers' Compensation. --Any
13 liability policy or policies issued hereunder need not cover
14 any liability of the insured assumed by or imposed upon the
15 insured under any workers' compensation law nor any liability
16 for damage to property in charge of the insured or the
17 insured's employees.
18 (f) Provisions Incorporated in Policy. --Every motor
19 vehicle liability policy is subject to the following
20 provisions which need not be contained therein:
21 1. The liability of the insurance carrier under any such
22 policy shall become absolute whenever loss or damage covered
23 by the policy occurs and the satisfaction by the insured of a
24 final judgment for such loss or damage shall not be a
25 condition precedent to the right or obligation of the carrier
26 to make payment on account of such loss or damage.
27 2. No such policy may be cancelled or annulled as
28 respects any loss or damage, by any agreement between the
29 carrier and the insured after the insured has become
30 responsible for such loss or damage, and any such
31 cancellation or annulment shall be void.
32 3. The insurance carrier shall, however, have the right
33 to settle any claim covered by the policy, and if such
34 settlement is made in good faith, the amount thereof shall be
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1 deductible from the limits of liability specified in the
2 policy.
3 4. The policy, the written application therefor, if any,
4 and any rider or endorsement which shall not conflict with
5 the provisions of this Act shall constitute the entire
6 contract between the parties.
7 (g) Excess or Additional Coverage. --Any motor vehicle
8 liability policy may, however, grant any lawful coverage in
9 excess of or in addition to the coverage herein specified or
10 contain any agreements, provisions, or stipulations not in
11 conflict with the provisions of this Act and not otherwise
12 contrary to law.
13 (h) Reimbursement Provision Permitted. --The policy may
14 provide that the insured, or any other person covered by the
15 policy shall reimburse the insurance carrier for payment made
16 on account of any loss or damage claim or suit involving a
17 breach of the terms, provisions or conditions of the policy;
18 and further, if the policy shall provide for limits in excess
19 of the limits specified in this Act, the insurance carrier
20 may plead against any plaintiff, with respect to the amount
21 of such excess limits of liability, any defense which it may
22 be entitled to plead against the insured.
23 (i) Proration of Insurance Permitted. --The policy may
24 provide for the pro-rating of the insurance thereunder with
25 other applicable valid and collectible insurance.
26 (j) Binders. --Any binder pending the issuance of any
27 policy, which binder contains or by reference includes the
28 provisions hereunder shall be sufficient proof of ability to
29 respond in damages.
30 (k) Copy of Policy to Be Filed with Department of
31 Insurance--Approval. --A copy of the form of every motor
32 vehicle liability policy which is to be used to meet the
33 requirements of this Act must be filed, by the company
34 offering such policy, with the Department of Insurance, which
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1 shall approve or disapprove the policy within 30 days of its
2 filing. If the Department approves the policy in writing
3 within such 30 day period or fails to take action for 30
4 days, the form of policy shall be deemed approved as filed.
5 If within the 30 days the Department disapproves the form of
6 policy filed upon the ground that it does not comply with the
7 requirements of this Act, the Department shall give written
8 notice of its decision and its reasons therefor to the
9 carrier and the policy shall not be accepted as proof of
10 financial responsibility under this Act.
11 (l) Insurance Carrier Required to File Certificate. --An
12 insurance carrier who has issued a motor vehicle liability
13 policy or policies or an operator's policy meeting the
14 requirements of this Act shall, upon the request of the
15 insured therein, deliver to the insured for filing, or at the
16 request of the insured, shall file direct, with the Secretary
17 of State a certificate, as required by this Act, which shows
18 that such policy or policies have been issued. No insurance
19 carrier may require the payment of any extra fee or
20 surcharge, in addition to the insurance premium, for the
21 execution, delivery or filing of such certificate.
22 (m) Proof When Made By Endorsement. --Any motor vehicle
23 liability policy which by endorsement contains the provisions
24 required hereunder shall be sufficient proof of ability to
25 respond in damages.
26 (Source: P.A. 85-730.)
27 (625 ILCS 5/7-601) (from Ch. 95 1/2, par. 7-601)
28 Sec. 7-601. Required liability insurance policy.
29 (a) No person shall operate, register or maintain
30 registration of, and no owner shall permit another person to
31 operate, register or maintain registration of, a motor
32 vehicle designed to be used on a public highway unless the
33 motor vehicle is covered by a liability insurance policy.
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1 The insurance policy shall be issued in amounts no less
2 than the minimum amounts set for bodily injury or death and
3 for destruction of property under Section 7-203 of this Code,
4 and shall be issued in accordance with the requirements of
5 Sections 143a and 143a-2 of the Illinois Insurance Code, as
6 amended. No insurer other than an insurer authorized to do
7 business in this State shall issue a policy pursuant to this
8 Section for any vehicle subject to registration under this
9 Code. Nothing herein shall deprive an insurer of any policy
10 defense available at common law.
11 (b) The following vehicles are exempt from the
12 requirements of this Section:
13 (1) vehicles subject to the provisions of Chapters
14 8 or 18a, Article III or Section 7-609 of Chapter 7, or
15 Sections 12-606 or 12-707.01 of Chapter 12 of this Code;
16 (2) vehicles required to file proof of liability
17 insurance with the Illinois Commerce Commission;
18 (3) vehicles covered by a certificate of
19 self-insurance under Section 7-502 of this Code;
20 (4) vehicles owned by the United States, the State
21 of Illinois, or any political subdivision, municipality
22 or local mass transit district;
23 (5) implements of husbandry;
24 (6) other vehicles complying with laws which
25 require them to be insured in amounts meeting or
26 exceeding the minimum amounts required under this
27 Section; and
28 (7) inoperable or stored vehicles that are not
29 operated, as defined by rules and regulations of the
30 Secretary; and.
31 (8) vehicles of new vehicle dealers and used
32 vehicle dealers complying with the paragraph 6 of
33 subsection (b) of Section 5-501 or paragraph 4 of
34 subsection (b) of Section 5-102.
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1 (Source: P.A. 88-315; 89-669, eff. 1-1-97.)
2 Section 98. Applicability. The changes made by this
3 amendatory Act of the 91st General Assembly are prospective
4 and apply only on or after the effective date of this
5 amendatory Act of the 91st General Assembly.
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