Illinois General Assembly - Full Text of HB3064
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Full Text of HB3064  97th General Assembly




State of Illinois
2011 and 2012


Introduced 2/23/2011, by Rep. Lou Lang - Jim Sacia


625 ILCS 5/1-164.5
625 ILCS 5/7-203  from Ch. 95 1/2, par. 7-203
625 ILCS 5/7-311  from Ch. 95 1/2, par. 7-311
625 ILCS 5/7-317  from Ch. 95 1/2, par. 7-317

    Amends the Illinois Vehicle Code. Increases the minimum mandatory coverage amounts for liability insurance policies in this State and increases the amounts sufficient to satisfy a judgment following a motor vehicle accident as follows: bodily injury or death to any one person from $20,000 to $50,000; bodily injury or death to more than one person from $40,000 to $100,000; and injury or destruction of property of others from $15,000 to $40,000.

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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 Illinois Vehicle Code is amended by changing
5Sections 1-164.5, 7-203, 7-311, and 7-317 as follows:
6    (625 ILCS 5/1-164.5)
7    Sec. 1-164.5. Proof of financial responsibility. Proof of
8ability to respond in damages for any liability thereafter
9incurred resulting from the ownership, maintenance, use or
10operation of a motor vehicle for bodily injury to or death of
11any person in the amount of $50,000 $20,000, and subject to
12this limit for any one person injured or killed, in the amount
13of $100,000 $40,000 for bodily injury to or death of 2 or more
14persons in any one accident, and for damage to property in the
15amount of $40,000 $15,000 resulting from any one accident. This
16proof in these amounts shall be furnished for each motor
17vehicle registered by every person required to furnish this
19(Source: P.A. 90-89, eff. 1-1-98.)
20    (625 ILCS 5/7-203)  (from Ch. 95 1/2, par. 7-203)
21    Sec. 7-203. Requirements as to policy or bond. No such
22policy or bond referred to in Section 7-202 shall be effective



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1under this Section unless issued by an insurance company or
2surety company authorized to do business in this State, except
3that if such motor vehicle was not registered in this State, or
4was a motor vehicle which was registered elsewhere than in this
5State at the effective date of the policy or bond, or the most
6recent renewal thereof, such policy or bond shall not be
7effective under this Section unless the insurance company or
8surety company, if not authorized to do business in this State,
9shall execute a power of attorney authorizing the Secretary of
10State to accept service on its behalf of notice or process in
11any action upon such policy or bond arising out of such motor
12vehicle accident. However, every such policy or bond is
13subject, if the motor vehicle accident has resulted in bodily
14injury or death, to a limit, exclusive of interest and costs,
15of not less than $50,000 $20,000 because of bodily injury to or
16death of any one person in any one motor vehicle accident and,
17subject to said limit for one person, to a limit of not less
18than $100,000 $40,000 because of bodily injury to or death of 2
19or more persons in any one motor vehicle accident, and, if the
20motor vehicle accident has resulted in injury to or destruction
21of property, to a limit of not less than $40,000 $15,000
22because of injury to or destruction of property of others in
23any one motor vehicle accident.
24    Upon receipt of a written motor vehicle accident report
25from the Administrator the insurance company or surety company
26named in such notice shall notify the Administrator within such



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1time and in such manner as the Administrator may require, in
2case such policy or bond was not in effect at the time of such
3motor vehicle accident.
4(Source: P.A. 85-730.)
5    (625 ILCS 5/7-311)  (from Ch. 95 1/2, par. 7-311)
6    Sec. 7-311. Payments sufficient to satisfy requirements.
7(a) Judgments herein referred to arising out of motor vehicle
8accidents occurring on or after the effective date of this
9amendatory Act of the 97th General Assembly January 1, 1956,
10shall for the purpose of this Chapter be deemed satisfied:
11    1. When $50,000 $20,000 has been credited upon any judgment
12or judgments rendered in excess of that amount for bodily
13injury to or the death of one person as the result of any one
14motor vehicle accident; or
15    2. When, subject to said limit of $50,000 $20,000 as to any
16one person, the sum of $100,000 $40,000 has been credited upon
17any judgment or judgments rendered in excess of that amount for
18bodily injury to or the death of more than one person as the
19result of any one motor vehicle accident; or
20    3. When $40,000 $15,000 has been credited upon any judgment
21or judgments, rendered in excess of that amount for damages to
22property of others as a result of any one motor vehicle
24    (b) Credit for such amounts shall be deemed a satisfaction
25of any such judgment or judgments in excess of said amounts



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1only for the purposes of this Chapter.
2    (c) Whenever payment has been made in settlement of any
3claim for bodily injury, death or property damage arising from
4a motor vehicle accident resulting in injury, death or property
5damage to two or more persons in such accident, any such
6payment shall be credited in reduction of the amounts provided
7for in this Section.
8(Source: P.A. 85-730.)
9    (625 ILCS 5/7-317)  (from Ch. 95 1/2, par. 7-317)
10    Sec. 7-317. "Motor vehicle liability policy" defined. (a)
11Certification. -A "motor vehicle liability policy", as that
12term is used in this Act, means an "owner's policy" or an
13"operator's policy" of liability insurance, certified as
14provided in Section 7-315 or Section 7-316 as proof of
15financial responsibility for the future, and issued, except as
16otherwise provided in Section 7-316, by an insurance carrier
17duly authorized to transact business in this State, to or for
18the benefit of the person named therein as insured.
19    (b) Owner's Policy. --Such owner's policy of liability
21    1. Shall designate by explicit description or by
22appropriate reference, all motor vehicles with respect to which
23coverage is thereby intended to be granted;
24    2. Shall insure the person named therein and any other
25person using or responsible for the use of such motor vehicle



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1or vehicles with the express or implied permission of the
3    3. Shall insure every named insured and any other person
4using or responsible for the use of any motor vehicle owned by
5the named insured and used by such other person with the
6express or implied permission of the named insured on account
7of the maintenance, use or operation of any motor vehicle owned
8by the named insured, within the continental limits of the
9United States or the Dominion of Canada against loss from
10liability imposed by law arising from such maintenance, use or
11operation, to the extent and aggregate amount, exclusive of
12interest and cost, with respect to each motor vehicle, of
13$50,000 $20,000 for bodily injury to or death of one person as
14a result of any one accident and, subject to such limit as to
15one person, the amount of $100,000 $40,000 for bodily injury to
16or death of all persons as a result of any one accident and the
17amount of $40,000 $15,000 for damage to property of others as a
18result of any one accident.
19    (c) Operator's Policy. --When an operator's policy is
20required, it shall insure the person named therein as insured
21against the liability imposed by law upon the insured for
22bodily injury to or death of any person or damage to property
23to the amounts and limits above set forth and growing out of
24the use or operation by the insured within the continental
25limits of the United States or the Dominion of Canada of any
26motor vehicle not owned by him.



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1    (d) Required Statements in Policies. --Every motor vehicle
2liability policy must specify the name and address of the
3insured, the coverage afforded by the policy, the premium
4charged therefor, the policy period, and the limits of
5liability, and shall contain an agreement that the insurance
6thereunder is provided in accordance with the coverage defined
7in this Act, as respects bodily injury and death or property
8damage or both, and is subject to all the provisions of this
10    (e) Policy Need Not Insure Workers' Compensation. --Any
11liability policy or policies issued hereunder need not cover
12any liability of the insured assumed by or imposed upon the
13insured under any workers' compensation law nor any liability
14for damage to property in charge of the insured or the
15insured's employees.
16    (f) Provisions Incorporated in Policy. --Every motor
17vehicle liability policy is subject to the following provisions
18which need not be contained therein:
19    1. The liability of the insurance carrier under any such
20policy shall become absolute whenever loss or damage covered by
21the policy occurs and the satisfaction by the insured of a
22final judgment for such loss or damage shall not be a condition
23precedent to the right or obligation of the carrier to make
24payment on account of such loss or damage.
25    2. No such policy may be cancelled or annulled as respects
26any loss or damage, by any agreement between the carrier and



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1the insured after the insured has become responsible for such
2loss or damage, and any such cancellation or annulment shall be
4    3. The insurance carrier shall, however, have the right to
5settle any claim covered by the policy, and if such settlement
6is made in good faith, the amount thereof shall be deductible
7from the limits of liability specified in the policy.
8    4. The policy, the written application therefor, if any,
9and any rider or endorsement which shall not conflict with the
10provisions of this Act shall constitute the entire contract
11between the parties.
12    (g) Excess or Additional Coverage. --Any motor vehicle
13liability policy may, however, grant any lawful coverage in
14excess of or in addition to the coverage herein specified or
15contain any agreements, provisions, or stipulations not in
16conflict with the provisions of this Act and not otherwise
17contrary to law.
18    (h) Reimbursement Provision Permitted. --The policy may
19provide that the insured, or any other person covered by the
20policy shall reimburse the insurance carrier for payment made
21on account of any loss or damage claim or suit involving a
22breach of the terms, provisions or conditions of the policy;
23and further, if the policy shall provide for limits in excess
24of the limits specified in this Act, the insurance carrier may
25plead against any plaintiff, with respect to the amount of such
26excess limits of liability, any defense which it may be



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1entitled to plead against the insured.
2    (i) Proration of Insurance Permitted. --The policy may
3provide for the pro-rating of the insurance thereunder with
4other applicable valid and collectible insurance.
5    (j) Binders. --Any binder pending the issuance of any
6policy, which binder contains or by reference includes the
7provisions hereunder shall be sufficient proof of ability to
8respond in damages.
9    (k) Copy of Policy to Be Filed with Department of
10Insurance--Approval. --A copy of the form of every motor
11vehicle liability policy which is to be used to meet the
12requirements of this Act must be filed, by the company offering
13such policy, with the Department of Insurance, which shall
14approve or disapprove the policy within 30 days of its filing.
15If the Department approves the policy in writing within such 30
16day period or fails to take action for 30 days, the form of
17policy shall be deemed approved as filed. If within the 30 days
18the Department disapproves the form of policy filed upon the
19ground that it does not comply with the requirements of this
20Act, the Department shall give written notice of its decision
21and its reasons therefor to the carrier and the policy shall
22not be accepted as proof of financial responsibility under this
24    (l) Insurance Carrier Required to File Certificate. --An
25insurance carrier who has issued a motor vehicle liability
26policy or policies or an operator's policy meeting the



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1requirements of this Act shall, upon the request of the insured
2therein, deliver to the insured for filing, or at the request
3of the insured, shall file direct, with the Secretary of State
4a certificate, as required by this Act, which shows that such
5policy or policies have been issued. No insurance carrier may
6require the payment of any extra fee or surcharge, in addition
7to the insurance premium, for the execution, delivery or filing
8of such certificate.
9    (m) Proof When Made By Endorsement. --Any motor vehicle
10liability policy which by endorsement contains the provisions
11required hereunder shall be sufficient proof of ability to
12respond in damages.
13(Source: P.A. 85-730.)