99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1353

 

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

 

SYNOPSIS AS INTRODUCED:
 
See Index

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


LRB099 08112 RJF 28260 b

 

 

A BILL FOR

 

SB1353LRB099 08112 RJF 28260 b

1    AN ACT concerning transportation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.866 as follows:
 
6    (30 ILCS 105/5.866 new)
7    Sec. 5.866. The Insurance Verification Fund.
 
8    Section 10. The Illinois Vehicle Code is amended by
9changing Sections 3-405, 3-707, 7-201.2, 7-314, 7-315, 7-318,
107-602, 7-604, 7-605, and 7-606 and by adding Sections 1-154.01
11and 7-604.5 as follows:
 
12    (625 ILCS 5/1-154.01 new)
13    Sec. 1-154.01. Online insurance verification system. The
14database of insurance information developed and maintained by
15the Secretary of State under Section 7-604.5 of this Code.
 
16    (625 ILCS 5/3-405)  (from Ch. 95 1/2, par. 3-405)
17    Sec. 3-405. Application for registration.
18    (a) Every owner of a vehicle subject to registration under
19this Code shall make application to the Secretary of State for
20the registration of such vehicle upon the appropriate form or

 

 

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1forms furnished by the Secretary. Every such application shall
2bear the signature of the owner written with pen and ink and
3contain:
4        1. The name, domicile address, as defined in Section
5    1-115.5 of this Code, (except as otherwise provided in this
6    paragraph 1) and mail address of the owner or business
7    address of the owner if a firm, association or corporation.
8    If the mailing address is a post office box number, the
9    address listed on the driver license record may be used to
10    verify residence. A police officer, a deputy sheriff, an
11    elected sheriff, a law enforcement officer for the
12    Department of State Police, a fire investigator, a state's
13    attorney, an assistant state's attorney, a state's
14    attorney special investigator, or a judicial officer may
15    elect to furnish the address of the headquarters of the
16    governmental entity, police district, or business address
17    where he or she works instead of his or her domicile
18    address, in which case that address shall be deemed to be
19    his or her domicile address for all purposes under this
20    Chapter 3. The spouse and children of a person who may
21    elect under this paragraph 1 to furnish the address of the
22    headquarters of the government entity, police district, or
23    business address where the person works instead of the
24    person's domicile address may, if they reside with that
25    person, also elect to furnish the address of the
26    headquarters of the government entity, police district, or

 

 

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1    business address where the person works as their domicile
2    address, in which case that address shall be deemed to be
3    their domicile address for all purposes under this Chapter
4    3. In this paragraph 1: (A) "police officer" has the
5    meaning ascribed to "policeman" in Section 10-3-1 of the
6    Illinois Municipal Code; (B) "deputy sheriff" means a
7    deputy sheriff appointed under Section 3-6008 of the
8    Counties Code; (C) "elected sheriff" means a sheriff
9    commissioned pursuant to Section 3-6001 of the Counties
10    Code; (D) "fire investigator" means a person classified as
11    a peace officer under the Peace Officer Fire Investigation
12    Act; (E) "state's attorney", "assistant state's attorney",
13    and "state's attorney special investigator" mean a state's
14    attorney, assistant state's attorney, and state's attorney
15    special investigator commissioned or appointed under
16    Division 3-9 of the Counties Code; and (F) "judicial
17    officer" has the meaning ascribed to it in Section 1-10 of
18    the Judicial Privacy Act.
19        2. A description of the vehicle, including such
20    information as is required in an application for a
21    certificate of title, determined under such standard
22    rating as may be prescribed by the Secretary.
23        3. (Blank).
24        4. Such further information as may reasonably be
25    required by the Secretary to enable him to determine
26    whether the vehicle is lawfully entitled to registration

 

 

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1    and the owner entitled to a certificate of title.
2        5. An affirmation by the applicant that all information
3    set forth is true and correct. If the application is for
4    the registration of a motor vehicle, the applicant also
5    shall affirm that the motor vehicle is insured as required
6    by this Code, that such insurance will be maintained
7    throughout the period for which the motor vehicle shall be
8    registered, and that neither the owner, nor any person
9    operating the motor vehicle with the owner's permission,
10    shall operate the motor vehicle unless the required
11    insurance is in effect. The Secretary of State may verify
12    insurance information pertaining to the motor vehicle
13    through the online insurance verification system. If the
14    person signing the affirmation is not the sole owner of the
15    vehicle, such person shall be deemed to have affirmed on
16    behalf of all the owners of the vehicle. If the person
17    signing the affirmation is not an owner of the vehicle,
18    such person shall be deemed to have affirmed on behalf of
19    the owner or owners of the vehicle. The lack of signature
20    on the application shall not in any manner exempt the owner
21    or owners from any provisions, requirements or penalties of
22    this Code.
23    (b) When such application refers to a new vehicle purchased
24from a dealer the application shall be accompanied by a
25Manufacturer's Statement of Origin from the dealer, and a
26statement showing any lien retained by the dealer.

 

 

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1(Source: P.A. 97-847, eff. 1-1-13; 98-539, eff. 1-1-14; 98-787,
2eff. 7-25-14.)
 
3    (625 ILCS 5/3-707)  (from Ch. 95 1/2, par. 3-707)
4    Sec. 3-707. Operation of uninsured motor vehicle - penalty.
5    (a) No person shall operate a motor vehicle unless the
6motor vehicle is covered by a liability insurance policy in
7accordance with Section 7-601 of this Code.
8    (a-5) A person commits the offense of operation of
9uninsured motor vehicle causing bodily harm when the person:
10        (1) operates a motor vehicle in violation of Section
11    7-601 of this Code; and
12        (2) causes, as a proximate result of the person's
13    operation of the motor vehicle, bodily harm to another
14    person.
15    (a-6) Uninsured operation of a motor vehicle under
16subsection (a-5) is a Class A misdemeanor. If a person
17convicted of the offense of operation of a motor vehicle under
18subsection (a-5) has previously been convicted of 2 or more
19violations of subsection (a-5) of this Section or of Section
207-601 of this Code, a fine of $2,500, in addition to any
21sentence of incarceration, must be imposed.
22    (b) Any person who fails to comply with a request by a law
23enforcement officer for display of evidence of insurance, as
24required under Section 7-602 of this Code, shall be deemed to
25be operating an uninsured motor vehicle unless the law

 

 

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1enforcement officer verifies motor vehicle liability insurance
2coverage through the online insurance verification system.
3    (c) Except as provided in subsections (a-6) and (c-5), any
4operator of a motor vehicle subject to registration under this
5Code who is convicted of violating this Section is guilty of a
6business offense and shall be required to pay a fine in excess
7of $500, but not more than $1,000, except a person convicted of
8a third or subsequent violation of this Section shall be
9required to pay a fine of $1,000. However, no person charged
10with violating this Section shall be convicted if such person
11produces in court satisfactory evidence that at the time of the
12arrest the motor vehicle was covered by a liability insurance
13policy in accordance with Section 7-601 of this Code or an
14officer of the court verifies motor vehicle liability insurance
15coverage through the online insurance verification system. The
16chief judge of each circuit may designate an officer of the
17court to review the documentation demonstrating that at the
18time of arrest the motor vehicle was covered by a liability
19insurance policy or to verify motor vehicle liability insurance
20coverage through the online insurance verification system in
21accordance with Section 7-601 of this Code.
22    (c-1) A person convicted of violating this Section shall
23also have his or her driver's license, permit, or privileges
24suspended for 3 months. After the expiration of the 3 months,
25the person's driver's license, permit, or privileges shall not
26be reinstated until he or she has paid a reinstatement fee of

 

 

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1$100. If a person violates this Section while his or her
2driver's license, permit, or privileges are suspended under
3this subsection (c-1), his or her driver's license, permit, or
4privileges shall be suspended for an additional 6 months and
5until he or she pays the reinstatement fee.
6    (c-5) A person who (i) has not previously been convicted of
7or received a disposition of court supervision for violating
8this Section and (ii) produces at his or her court appearance
9satisfactory evidence that the motor vehicle is covered, as of
10the date of the court appearance, by a liability insurance
11policy in accordance with Section 7-601 of this Code shall, for
12a violation of this Section, other than a violation of
13subsection (a-5), pay a fine of $100 and receive a disposition
14of court supervision. The person must, on the date that the
15period of court supervision is scheduled to terminate, produce
16satisfactory evidence that the vehicle was covered by the
17required liability insurance policy during the entire period of
18court supervision.
19    An officer of the court designated under subsection (c) may
20also review liability insurance documentation under this
21subsection (c-5) to determine if the motor vehicle is, as of
22the date of the court appearance, covered by a liability
23insurance policy or to verify the motor vehicle liability
24insurance coverage through the online insurance verification
25system in accordance with Section 7-601 of this Code. The
26officer of the court shall also determine, on the date the

 

 

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1period of court supervision is scheduled to terminate, whether
2the vehicle was covered by the required policy during the
3entire period of court supervision.
4    (d) A person convicted a third or subsequent time of
5violating this Section or a similar provision of a local
6ordinance must give proof to the Secretary of State of the
7person's financial responsibility as defined in Section 7-315.
8The person must maintain the proof in a manner satisfactory to
9the Secretary for a minimum period of 3 years after the date
10the proof is first filed. The Secretary must suspend the
11driver's license of any person determined by the Secretary not
12to have provided adequate proof of financial responsibility as
13required by this subsection.
14(Source: P.A. 96-143, eff. 1-1-10; 97-407, eff. 1-1-12.)
 
15    (625 ILCS 5/7-201.2)  (from Ch. 95 1/2, par. 7-201.2)
16    Sec. 7-201.2. The Administrator, within 30 days after
17compiling sufficient information on a motor vehicle accident,
18shall certify to the Secretary of State the name of each owner
19and the name of each operator of any vehicle involved in the
20accident, his determination that security is required under
21this Code, and the amount of the security. The Administrator
22also shall supply to the Secretary of State a copy of any
23accident report requested by the Secretary. The Administrator
24may use the online insurance verification system for the
25purpose of determining or verifying whether or not a motor

 

 

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1vehicle, owner, or operator was insured at the time of the
2motor vehicle accident.
3    The Administrator shall send a copy of the certification to
4each person whose name is certified. The copy, or an attachment
5thereto, shall contain in bold print an explanation that,
6because the person did not furnish the Department of
7Transportation with evidence that he or she is insured or
8otherwise able to pay for damages resulting from the accident,
9the person's name has been forwarded to the Secretary of State
10for possible suspension of his or her driver's license.
11(Source: P.A. 84-797.)
 
12    (625 ILCS 5/7-314)  (from Ch. 95 1/2, par. 7-314)
13    Sec. 7-314. Alternate methods of giving proof.
14    (a) Proof of financial responsibility when required under
15this Article may be given by filing with the Secretary of
16State:
17        1. A certificate of insurance as provided in Section
18    7-315 or Section 7-316;.
19        2. A bond as provided in Section 7-320; or
20        3. A deposit of securities as provided in Section
21    7-323.
22    (b) Proof of financial responsibility relating to a motor
23vehicle liability policy when required under this Code with
24respect to a motor vehicle or with respect to a person who is
25not the owner of a motor vehicle may be verified through the

 

 

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1online insurance verification system.
2(Source: P.A. 83-831.)
 
3    (625 ILCS 5/7-315)  (from Ch. 95 1/2, par. 7-315)
4    Sec. 7-315. A certificate of insurance proof.
5    (a) Proof of financial responsibility may be made by filing
6with the Secretary of State the written or electronic
7certificate of any insurance carrier duly authorized to do
8business in this State, certifying that it has issued to or for
9the benefit of the person furnishing such proof and named as
10the insured in a motor vehicle liability policy, a motor
11vehicle liability policy or policies or in certain events an
12operator's policy meeting the requirements of this Code and
13that said policy or policies are then in full force and effect.
14All written or electronic certificates must be submitted in a
15manner satisfactory to the Secretary of State.
16    (b) Such certificate or certificates shall give the dates
17of issuance and expiration of such policy or policies and
18certify that the same shall not be canceled unless 15 days'
19prior written or electronic notice thereof be given to the
20Secretary of State and shall explicitly describe all motor
21vehicles covered thereby unless the policy or policies are
22issued to a person who is not the owner of a motor vehicle.
23    (c) The Secretary of State shall not accept any certificate
24or certificates unless the same shall cover all motor vehicles
25then registered in this State in the name of the person

 

 

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1furnishing such proof as owner and an additional certificate or
2certificates shall be required as a condition precedent to the
3subsequent registration of any motor vehicle or motor vehicles
4in the name of the person giving such proof as owner.
5    (d) Proof of financial responsibility relating to a motor
6vehicle liability policy may be verified through the online
7insurance verification system.
8(Source: P.A. 94-239, eff. 1-1-06.)
 
9    (625 ILCS 5/7-318)  (from Ch. 95 1/2, par. 7-318)
10    Sec. 7-318. Notice of Cancellation or Termination of
11Certified Policy.
12    (a) When an insurance carrier has certified a motor vehicle
13liability policy or policies under this Act, it shall notify
14the Secretary of State of any cancellation by mailing a written
15or electronic notice at least 15 days prior to cancellation of
16such policy and the policy shall continue in full force and
17effect until the date of cancellation specified in such notice
18or until its expiration, except that such a policy subsequently
19procured and certified shall, on the effective date of its
20certification, terminate the insurance previously certified
21with respect to any vehicle designated in both certificates.
22All written or electronic certificates must be submitted in a
23manner satisfactory to the Secretary of State.
24    (b) If the Secretary of State has verified evidence of a
25motor vehicle liability policy using the online insurance

 

 

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1verification system under subsection (d) of Section 7-315 of
2this Code, the Secretary of State shall continue to verify
3evidence of a motor vehicle liability policy using the online
4insurance verification system under subsection (d) of Section
57-315 of this Code for the applicable period.
6(Source: P.A. 94-239, eff. 1-1-06.)
 
7    (625 ILCS 5/7-602)  (from Ch. 95 1/2, par. 7-602)
8    Sec. 7-602. Insurance card. Every operator of a motor
9vehicle subject to Section 7-601 of this Code shall carry
10within the vehicle evidence of insurance. The evidence shall be
11legible and sufficient to demonstrate that the motor vehicle
12currently is covered by a liability insurance policy as
13required under Section 7-601 of this Code and may include, but
14is not limited to, the following:
15        (a) an insurance card provided by the insurer under
16    this Section;
17        (b) the combination of proof of purchase of the motor
18    vehicle within the previous 60 days and a current insurance
19    card issued for the motor vehicle replaced by such
20    purchase;
21        (c) the current declarations page of a liability
22    insurance policy;
23        (d) a liability insurance binder, certificate of
24    liability insurance or receipt for payment to an insurer or
25    its authorized representative for a liability insurance

 

 

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1    premium, provided such document contains all information
2    the Secretary of State by rule and regulation may require;
3        (e) a current rental agreement;
4        (f) registration plates, registration sticker or other
5    evidence of registration issued by the Secretary only upon
6    submission of proof of liability insurance pursuant to this
7    Code;
8        (g) a certificate, decal, or other document or device
9    issued by a governmental agency for a motor vehicle
10    indicating the vehicle is insured for liability pursuant to
11    law;
12        (h) the display of electronic images on a cellular
13    phone or other type of portable electronic device. The use
14    of a cellular phone or other type of portable electronic
15    device to display proof of insurance does not constitute
16    consent for a law enforcement officer, court, or other
17    officer of the court to access other contents of the
18    electronic device. Any law enforcement officer, court, or
19    officer of the court presented with the device shall be
20    immune from any liability resulting from damage to the
21    mobile electronic device.
22    An insurance card shall be provided for each motor vehicle
23insured by the insurer issuing the liability insurance policy
24and may be issued in either paper or electronic format.
25Acceptable electronic formats shall permit display on a
26cellular phone or other portable electronic device and satisfy

 

 

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1all other requirements of law and rule, including this Section,
2regarding form and content.
3    The form, contents and manner of issuance of the insurance
4card shall be prescribed by rules and regulations of the
5Secretary of State. The Secretary shall adopt rules requiring
6that reasonable measures be taken to prevent the fraudulent
7production of insurance cards. The insurance card shall display
8an effective date and an expiration date covering a period of
9time not to exceed 12 months. The insurance card shall contain
10the following disclaimer: "Examine policy exclusions
11carefully. This form does not constitute any part of your
12insurance policy." If the insurance policy represented by the
13insurance card does not cover any driver operating the motor
14vehicle with the owner's permission, or the owner when
15operating a motor vehicle other than the vehicle for which the
16policy is issued, the insurance card shall contain a warning of
17such limitations in the coverage provided by the policy.
18    No insurer shall issue a card, similar in appearance, form
19and content to the insurance card required under this Section,
20in connection with an insurance policy that does not provide
21the liability insurance coverage required under Section 7-601
22of this Code.
23    The evidence of insurance shall be displayed upon request
24made by any law enforcement officer wearing a uniform or
25displaying a badge or other sign of authority. Any person who
26fails or refuses to comply with such request is in violation of

 

 

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1Section 3-707 of this Code unless evidence of motor vehicle
2liability insurance or other evidence of financial
3responsibility as provided in this Code is verified through the
4online insurance verification system. Any person who displays
5evidence of insurance, knowing there is no valid liability
6insurance in effect on the motor vehicle as required under
7Section 7-601 of this Code or knowing the evidence of insurance
8is illegally altered, counterfeit or otherwise invalid, is in
9violation of Section 3-710 of this Code.
10    "Display" means the manual surrender of the evidence of
11insurance into the hands of the law enforcement officer, court,
12or officer of the court making the request for the officer's,
13court's, or officer of the court's inspection thereof.
14(Source: P.A. 98-521, eff. 8-23-13.)
 
15    (625 ILCS 5/7-604)  (from Ch. 95 1/2, par. 7-604)
16    (Section scheduled to be repealed on December 31, 2015)
17    Sec. 7-604. Verification of liability insurance policy.
18    (a) The Secretary of State may select random samples of
19registrations of motor vehicles subject to Section 7-601 of
20this Code, or owners thereof, for the purpose of verifying
21whether or not the motor vehicles are insured.
22    In addition to such general random samples of motor vehicle
23registrations, the Secretary may select for verification other
24random samples, including, but not limited to registrations of
25motor vehicles owned by persons:

 

 

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1        (1) whose motor vehicle registrations during the
2    preceding 4 years have been suspended pursuant to Section
3    7-606 or 7-607 of this Code;
4        (2) who during the preceding 4 years have been
5    convicted of violating Section 3-707, 3-708 or 3-710 of
6    this Code while operating vehicles owned by other persons;
7        (3) whose driving privileges have been suspended
8    during the preceding 4 years;
9        (4) who during the preceding 4 years acquired ownership
10    of motor vehicles while the registrations of such vehicles
11    under the previous owners were suspended pursuant to
12    Section 7-606 or 7-607 of this Code; or
13        (5) who during the preceding 4 years have received a
14    disposition of supervision under subsection (c) of Section
15    5-6-1 of the Unified Code of Corrections for a violation of
16    Section 3-707, 3-708, or 3-710 of this Code.
17    (a-1) The Secretary of State may review registrations of
18motor vehicles subject to Section 7-601 of this Code, or owners
19and operators thereof, for the purpose of verifying whether or
20not the motor vehicles are insured through the online insurance
21verification system. If the Secretary cannot verify the
22insurance status of a vehicle using the online insurance
23verification system or other method for deposits of cash or
24motor vehicle insurance liability bonds, the Secretary may send
25the owner or operator a request for information under
26subsection (c) of this Section.

 

 

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1    (b) Upon receiving certification from the Department of
2Transportation under Section 7-201.2 of this Code of the name
3of an owner or operator of any motor vehicle involved in an
4accident, the Secretary may verify whether or not at the time
5of the accident such motor vehicle was covered by a liability
6insurance policy in accordance with Section 7-601 of this Code.
7    (c) In preparation for selection of random samples and
8their verification, the Secretary may send to owners of
9randomly selected motor vehicles, or to randomly selected motor
10vehicle owners, requests for information about their motor
11vehicles and liability insurance coverage. The request shall
12require the owner to state whether or not the motor vehicle was
13insured on the verification date stated in the Secretary's
14request and the request may require, but is not limited to, a
15statement by the owner of the names and addresses of insurers,
16policy numbers, and expiration dates of insurance coverage.
17    (d) Within 30 days after the Secretary mails a request, the
18owner to whom it is sent shall furnish the requested
19information to the Secretary above the owner's signed
20affirmation that such information is true and correct. Proof of
21insurance in effect on the verification date, as prescribed by
22the Secretary, may be considered by the Secretary to be a
23satisfactory response to the request for information.
24    Any owner whose response indicates that his or her vehicle
25was not covered by a liability insurance policy in accordance
26with Section 7-601 of this Code shall be deemed to have

 

 

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1registered or maintained registration of a motor vehicle in
2violation of that Section. Any owner who fails to respond to
3such a request shall be deemed to have registered or maintained
4registration of a motor vehicle in violation of Section 7-601
5of this Code.
6    (e) If the owner responds to the request for information by
7asserting that his or her vehicle was covered by a liability
8insurance policy on the verification date stated in the
9Secretary's request, the Secretary may conduct a verification
10of the response by furnishing necessary information to the
11insurer named in the response through the online insurance
12verification system. The insurer shall within 45 days inform
13the Secretary whether or not on the verification date stated
14the motor vehicle was insured by the insurer in accordance with
15Section 7-601 of this Code. The Secretary may by rule and
16regulation prescribe the procedures for verification.
17    (f) No random sample selected under this Section shall be
18categorized on the basis of race, color, religion, sex,
19national origin, ancestry, age, marital status, physical or
20mental disability, economic status or geography.
21    (g) This Section is repealed on December 31, 2016 2015.
22(Source: P.A. 98-787, eff. 7-25-14.)
 
23    (625 ILCS 5/7-604.5 new)
24    Sec. 7-604.5. Online insurance verification system.
25    (a) For the purposes of this Section, except in those

 

 

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1instances where the context clearly indicates a different
2meaning:
3        "Advisory council" means the Insurance Verification
4    Advisory Council.
5        "Director" means the Director of Insurance or his or
6    her designee.
7        "Insurer" means an insurance company licensed or
8    authorized to do business in this State and insuring motor
9    vehicles.
10        "NAIC number" means the unique identification number
11    assigned to an insurance company by the National
12    Association of Insurance Commissioners.
13    (b) The Insurance Verification Advisory Council is created
14and shall consist of a group of 14 voting members consisting
15of: 2 representatives of the Secretary of State, a
16representative of the Department of Transportation, a
17representative of the Department of Insurance, 3 insurance
18company representatives appointed by the Director of
19Insurance, a representative of the Specialty Insurers
20Association of Illinois, a representative of the Illinois
21Insurance Association, a representative of the American
22Insurance Association, a representative of the National
23Association of Mutual Insurance Companies, a representative of
24the Property and Casualty Insurers Association of America, a
25representative of the Independent Insurance Agents of
26Illinois, and a representative of the Illinois Judges

 

 

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1Association appointed by the president of the association. This
2group shall be chaired by the Secretary of State or his or her
3designee.
4    (c) The advisory council shall:
5        (1) facilitate the implementation of an online
6    insurance verification system;
7        (2) develop a detailed guide for insurers detailing the
8    information necessary for compliance, how to supply this
9    information, and other relevant rules;
10        (3) conduct a testing phase for the online insurance
11    verification system; and
12        (4) issue a report, based on periodic reviews of the
13    online insurance verification system, to the Secretary of
14    State, the Secretary of Transportation, and the Director of
15    Insurance evaluating the online insurance verification
16    system's effectiveness in identifying uninsured motorists
17    and making recommendations for improvement on or before
18    January 1 of each year.
19    (d) The Secretary of State shall:
20        (1) cooperate with insurers in implementing the online
21    insurance verification system;
22        (2) administer and maintain the online insurance
23    verification system and implement changes as necessary;
24        (3) conduct a pilot project to test the online
25    insurance verification system prior to statewide use;
26        (4) establish the online insurance verification system

 

 

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1    framework necessary to inquire of insurers by using
2    multiple keys for greater matching accuracy, including,
3    but not limited to: Insurer NAIC number, vehicle
4    identification number, policy number, and other key or keys
5    specified by the advisory council;
6        (5) keep the advisory council informed on
7    implementation status;
8        (6) maintain the list of authorized requesting
9    entities and individuals and make that a part of the online
10    insurance verification system;
11        (7) provide data security for the type of information
12    transferred as prescribed by the advisory council. Data
13    secured via the online insurance verification system may
14    not be shared with any party other than those permitted by
15    State or federal privacy laws;
16        (8) keep the advisory council informed on
17    functionality and planned or unplanned service
18    interruptions;
19        (9) provide alternative methods of reporting for small
20    insurers underwriting no more than 500 vehicles in the
21    State; and
22        (10) establish a fund for the implementation and
23    administration of the online insurance verification
24    system.
25    (e) Nothing in this Section prohibits the Secretary from
26using the services of a third party vendor for facilitating the

 

 

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1insurance verification program required by this Section. The
2Secretary may enter into a personal services contract with a
3consulting firm having personnel with extensive operational
4and management experience in the development, deployment, and
5operation of insurance verification programs. This firm shall
6assist in operating a pilot program by analyzing and using
7available data to share nationally-recognized best practices
8for operating insurance verification programs, to study
9existing and planned practices and implement recommendations
10for improvement, and to have responsibility for reducing
11uninsured motorist rates in this State.
12    (f) The online insurance verification system shall:
13        (1) be accessible to authorized personnel of the
14    Secretary of State for direct inquiry;
15        (2) allow access by the courts, insurers, law
16    enforcement, and offices of the licensing officials
17    charged with motor vehicle registration and titling
18    responsibilities only through authorized personnel of the
19    Secretary of State;
20        (3) allow insurer access only to data or information
21    transmission as required to operate the online insurance
22    verification system;
23        (4) be able to verify on a 24-hour, 7 days per week
24    basis, with the exception of time for system maintenance as
25    prescribed by the advisory council, the insurance status of
26    a motor vehicle through the Internet or other electronic

 

 

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1    system as recommended by the advisory council and adopted
2    by the Secretary;
3        (5) be able to access insurance information by using
4    multiple keys including but not limited to: Insurer NAIC
5    number, vehicle identification numbers, policy number, and
6    any other keys specified by the advisory council;
7        (6) provide data security for the type of information
8    transferred as prescribed by the advisory council; and
9        (7) utilize open and agreed to data and data
10    transmission standards and standard database schema as
11    specified by the advisory council.
12    (g) Each insurer shall:
13        (1) cooperate with the Secretary in establishing and
14    operating the online insurance verification system;
15        (2) provide the data necessary to verify insurance
16    status through the online insurance verification system
17    for a period of at least 6 months;
18        (3) provide data security for the type of information
19    transferred as prescribed by the advisory council in
20    accordance with State or federal privacy laws; and
21        (4) assess a $1.00 fee on all insurance policies issued
22    to motorists in this State to support the operation and
23    maintenance of the online insurance verification system.
24    This fee shall be paid into the Insurance Verification
25    Fund.
26    (h) An insurer that willfully fails to provide information

 

 

SB1353- 24 -LRB099 08112 RJF 28260 b

1as required by this Section shall be guilty of a business
2offense with a fine of up to $5,000 per violation.
3    (i) Insurers shall be immune from civil and administrative
4liability for good faith efforts to comply with the terms of
5this Section.
6    (j) The Insurance Verification Fund is created in the State
7treasury. Moneys in the Insurance Verification Fund shall be
8used by the Secretary for implementing and administering the
9online insurance verification system.
 
10    (625 ILCS 5/7-605)  (from Ch. 95 1/2, par. 7-605)
11    Sec. 7-605. Uninsured motor vehicles - notice. If the
12Secretary determines that an owner has registered or maintained
13the registration of a motor vehicle without a liability
14insurance policy in accordance with Section 7-601 of this Code,
15the Secretary shall notify the owner that such owner's vehicle
16registration and driver's license shall be suspended 45 days
17after the date of the mailing of the notice unless the owner
18within 30 days furnishes proof of insurance in effect on the
19verification date, as prescribed by the Secretary.
20(Source: P.A. 86-149.)
 
21    (625 ILCS 5/7-606)  (from Ch. 95 1/2, par. 7-606)
22    Sec. 7-606. Uninsured motor vehicles - suspension and
23reinstatement of vehicle registration and driver's license.
24    (a) Suspension and reinstatement of vehicle registration.

 

 

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1    The Secretary shall suspend the vehicle registration of any
2motor vehicle determined by the Secretary to be in violation of
3Section 7-601 of this Code, including any motor vehicle
4operated in violation of Section 3-707, 3-708 or 3-710 of this
5Code by an operator other than the owner of the vehicle.
6Neither the fact that, subsequent to the date of verification
7or conviction, the owner acquired the required liability
8insurance policy nor the fact that the owner terminated
9ownership of the motor vehicle shall have any bearing upon the
10Secretary's decision to suspend.
11    The Secretary is authorized to suspend the registration of
12any motor vehicle registered in this State upon receiving
13notice of the conviction of the operator of the motor vehicle
14in another State of an offense which, if committed in this
15State, would constitute a violation of Section 7-601 of this
16Code.
17    Until it is terminated, the suspension shall remain in
18force after the registration is renewed or a new registration
19is acquired for the motor vehicle. The suspension also shall
20apply to any motor vehicle to which the owner transfers the
21registration.
22    In the case of a first violation, the Secretary shall
23terminate the suspension upon payment by the owner of a
24reinstatement fee of $100 and submission of proof of insurance
25as prescribed by the Secretary.
26    In the case of a second or subsequent violation by a person

 

 

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1having ownership interest in a motor vehicle or vehicles within
2the preceding 4 years, or a violation of Section 3-708 of this
3Code, the Secretary shall terminate the suspension 4 months
4after its effective date upon payment by the owner of a
5reinstatement fee of $100 and submission of proof of insurance
6as prescribed by the Secretary.
7    All fees collected under this Section shall be deposited
8into the Road Fund of the State treasury.
9    (b) Suspension and reinstatement of driver's license.
10    The Secretary shall suspend the driver's license of any
11owner of any vehicle determined by the Secretary to be in
12violation of Section 7-601 of this Code, including any motor
13vehicle operated in violation of Section 3-707, 3-708, or 3-710
14of this Code by an operator other than the owner of the
15vehicle. Neither the fact that, subsequent to the date of
16verification or conviction, the owner acquired the required
17liability insurance policy nor the fact that the owner
18terminated ownership of the motor vehicle shall affect the
19Secretary's suspension.
20    The Secretary may suspend the driver's license of any owner
21of any motor vehicle registered in this State upon receiving
22notice of the conviction of the operator of the motor vehicle
23in another state of an offense which, if committed in this
24State, would constitute a violation of Section 7-601 of this
25Code.
26    In the case of a first violation, the Secretary shall

 

 

SB1353- 27 -LRB099 08112 RJF 28260 b

1terminate the suspension upon payment by the owner of a
2reinstatement fee of $100 and submission of proof of insurance
3as set forth below.
4    In the case of a second or subsequent violation by a person
5having ownership interest in a motor vehicle or vehicles within
6the preceding 4 years, or a violation of Section 3-708 of this
7Code, the Secretary shall terminate the suspension 4 months
8after its effective date upon payment by the owner of a
9reinstatement fee of $100 and submission of proof of insurance
10as set forth below.
11    A person whose license is suspended under this subsection
12must give proof to the Secretary of State of the person's
13financial responsibility as defined in Section 7-315. The
14person must maintain the proof in a manner satisfactory to the
15Secretary for a minimum period of 3 years after the date the
16proof is first filed.
17    All fees collected under this Section shall be deposited
18into the Road Fund.
19(Source: P.A. 88-315.)

 

 

SB1353- 28 -LRB099 08112 RJF 28260 b

1 INDEX
2 Statutes amended in order of appearance
3    30 ILCS 105/5.866 new
4    625 ILCS 5/1-154.01 new
5    625 ILCS 5/3-405from Ch. 95 1/2, par. 3-405
6    625 ILCS 5/3-707from Ch. 95 1/2, par. 3-707
7    625 ILCS 5/7-201.2from Ch. 95 1/2, par. 7-201.2
8    625 ILCS 5/7-314from Ch. 95 1/2, par. 7-314
9    625 ILCS 5/7-315from Ch. 95 1/2, par. 7-315
10    625 ILCS 5/7-318from Ch. 95 1/2, par. 7-318
11    625 ILCS 5/7-602from Ch. 95 1/2, par. 7-602
12    625 ILCS 5/7-604from Ch. 95 1/2, par. 7-604
13    625 ILCS 5/7-604.5 new
14    625 ILCS 5/7-605from Ch. 95 1/2, par. 7-605
15    625 ILCS 5/7-606from Ch. 95 1/2, par. 7-606