093_HB2198

 
                                     LRB093 10206 DRH 10460 b

 1        AN ACT in relation to vehicles.

 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    adding Section 7-601.1 as follows:

 6        (625 ILCS 5/7-601.1 new)
 7        Sec. 7-601.1.  Notice of cancellation or  termination  of
 8    liability insurance; cancellation of registration.
 9        (a)  An  insurance  carrier may not cancel or terminate a
10    motor vehicle liability policy  until  it  has  notified  the
11    owner  of  the  vehicle  of  the  impending  cancellation  or
12    termination. The insurance carrier also must notify the owner
13    that   the  Secretary  of  State  will  be  notified  of  the
14    cancellation or termination  of  the  policy,  and  that  the
15    owner's  registration  certificate,  registration plates, and
16    registration sticker will be revoked.
17        (b)  The insurance carrier must notify the  Secretary  of
18    State  in  writing  of the cancellation or termination of the
19    motor vehicle liability policy within 10 days of the date  on
20    which the cancellation or termination occurs.
21        (c)  Upon  receiving a written notice of the cancellation
22    or termination of a motor vehicle liability policy under this
23    Section, the Secretary of State must immediately suspend  the
24    registration    certificate,    registration    plates,   and
25    registration sticker of the owner, with respect to his or her
26    motor vehicle.
27        (d)  The Secretary of State may not issue a  registration
28    certificate,   plates,   or   sticker   to   a  person  whose
29    registration has been revoked under this Section, unless  the
30    person   has   furnished  proof  of  insurance  in  the  form
31    prescribed by the Secretary.