HB3395 99TH GENERAL ASSEMBLY

LRB099 09063 RJF 29252 b

99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB3395

Introduced , by Rep. Brandon W. Phelps

SYNOPSIS AS INTRODUCED:

625 ILCS 28/5
625 ILCS 28/10

Amends the Uninsured Motorist Verification Advisory Committee Act. Provides that the Uninsured Motorist Verification Advisory Committee shall include technology experts, among other committee members, to assist in the design and implementation of a program for the electronic verification of motor vehicle liability insurance. Requires the committee to report to the General Assembly, on or before January 31, 2016 (rather than 2015), with recommendations for the design and funding of a program for the electronic verification of motor vehicle liability insurance policies issued and in effect in the State and legislation to implement the program. Extends the repeal date of the Uninsured Motorist Verification Advisory Committee Act to July 1, 2017 (rather than 2016).

A BILL FOR

AN ACT concerning transportation.

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

Section 5. The Uninsured Motorist Verification Advisory Committee Act is amended by changing Sections 5 and 10 as follows:

(625 ILCS 28/5)

(Section scheduled to be repealed on July 1, 2016)

Sec. 5. Uninsured Motorist Verification Advisory Committee.

(a) The Secretary shall establish and appoint an Uninsured Motorist Verification Advisory Committee consisting of representatives of the Department of Insurance, insurance companies authorized to sell motor vehicle liability insurance policies in this State, insurance producers, technology experts, and other interested parties as designated by the Secretary, to assist in the design and implementation of a program for the electronic verification of motor vehicle liability insurance for motor vehicles that are subject to Section 7-601 of the Illinois Vehicle Code.

(b) The Uninsured Motorist Verification Advisory Committee shall report to the General Assembly, on or before January 31, 2016 2015, with recommendations for the design and funding of a program for the electronic verification of motor vehicle liability insurance policies issued and in effect in the State and legislation to implement the program that includes at a minimum the elements in subsection (d) of this Section.

(c) Based on the recommendations of the Uninsured Motorist Verification Advisory Committee, the Secretary shall adopt rules to implement a program for the electronic verification of motor vehicle liability insurance by July January 1, 2016 if and only if appropriations are made funding the electronic verification database as recommended by the Uninsured Motorist Advisory Committee.

(d) The electronic motor vehicle liability insurance verification program shall have the following elements:

(1) a requirement that insurance companies authorized to sell motor vehicle liability insurance in the State make available, in a format designated by the Secretary, the following information for each motor vehicle liability insurance policy issued by the company:

(A) the name of policy holder;

(B) the make, model, year and vehicle identification number of the covered vehicle;

(C) the policy number;

(D) the effective date of the policy; and

(E) the company's National Association of Insurance Commissioners number;

(2) a method of searching for motor vehicle liability insurance policies issued and in effect in the State by the keys indicated in paragraph (1) of this subsection;

(3) a requirement that the Secretary verify the existence of a liability insurance policy as required by Section 7-601 of the Illinois Vehicle Code for every motor vehicle registered in the Secretary's office at least once every 12 months;

(4) a provision that if the Secretary is unable to verify the existence of a liability insurance policy, then the vehicle owner shall be sent a written notice giving the owner 30 calendar days to provide evidence that the vehicle was insured on the date of the attempted verification of insurance, or evidence that the vehicle is no longer operable;

(5) a provision that any vehicle owner who fails to respond, or whose response indicates that his or her operable vehicle was not covered by a liability insurance policy in accordance with Section 7-601 of the Illinois Vehicle Code, shall be deemed to have registered or maintained registration of a motor vehicle in violation of that Section, and the Secretary shall suspend the registration of the vehicle; the vehicle owner shall be required to pay a reinstatement fee of $100 and provide proof of current insurance before the registration may be reinstated under Section 7-606 of the Illinois Vehicle Code; and

(6) a provision that if the owner responds to the request for information by asserting that his or her vehicle was covered by a liability insurance policy on the date of verification stated in the Secretary's request, then the Secretary may conduct a verification of the response by furnishing the necessary information to the insurer named in the response; the insurer shall within 7 calendar days inform the Secretary whether or not on the date of verification the motor vehicle was insured by the insurer in accordance with Section 7-601 of the Illinois Vehicle Code; if the insurer does not confirm insurance was in effect on the verification date, then the Secretary shall suspend the owner's registration of the vehicle; the vehicle owner shall be required to pay a reinstatement fee of $100 and provide proof of current insurance before the registration may be reinstated under Section 7-606 of the Illinois Vehicle Code.

(e) In addition to the annual verification of liability insurance the Secretary may select for verification other vehicles, including, but not limited to, motor vehicles owned or registered by persons:

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

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

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

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

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

(f) The Secretary shall not have regulatory authority over insurance companies. Regulatory authority over insurance companies shall remain with the Department of Insurance.

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

(625 ILCS 28/10)

(Section scheduled to be repealed on July 1, 2016)

Sec. 10. Expiration. This Act is repealed on July 1, 2017 2016.

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