Full Text of SB2238 93rd General Assembly
SB2238ham001 93RD GENERAL ASSEMBLY
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Insurance Committee
Filed: 5/5/2004
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| AMENDMENT TO SENATE BILL 2238
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| AMENDMENT NO. ______. Amend Senate Bill 2238 by replacing | 3 |
| the title with the following: | 4 |
| "AN ACT concerning transportation."; and
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| by replacing everything after the enacting clause with the | 6 |
| following: | 7 |
| "Section 5. The Illinois Vehicle Code is amended by | 8 |
| changing Sections 1-164.5, 7-203, 7-311, and 7-317 as follows:
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| (625 ILCS 5/1-164.5)
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| Sec. 1-164.5. Proof of financial responsibility. | 11 |
| (a) Except as otherwise provided in subsection (b), proof
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| Proof of ability to
respond in damages for any liability | 13 |
| thereafter incurred resulting from the
ownership, maintenance, | 14 |
| use or operation of a motor vehicle for bodily injury
to or | 15 |
| death of any person in the amount of $20,000, and subject to | 16 |
| this limit
for any one person injured or killed, in the amount | 17 |
| of $40,000 for bodily
injury to or death of 2 or more persons | 18 |
| in any one accident, and for damage to
property in the amount | 19 |
| of $15,000 resulting from any one accident. | 20 |
| (b) In any case in which the proof of financial | 21 |
| responsibility consists of (i) a motor vehicle liability | 22 |
| policy, as defined in Section 7-317 of this Code, issued or | 23 |
| renewed on or after December 1, 2004 or (ii) a bond issued or |
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| renewed on or after December 1, 2004, proof of ability to
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| respond in damages for any liability thereafter incurred | 3 |
| resulting from the
ownership, maintenance, use or operation of | 4 |
| a motor vehicle for bodily injury
to or death of any person in | 5 |
| the amount of $30,000, and subject to this limit
for any one | 6 |
| person injured or killed, in the amount of $60,000 for bodily
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| injury to or death of 2 or more persons in any one accident, | 8 |
| and for damage to
property in the amount of $25,000 resulting | 9 |
| from any one accident.
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| (c) This proof
in these amounts shall be furnished for each | 11 |
| motor vehicle registered by every
person required to furnish | 12 |
| this proof.
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| (Source: P.A. 90-89, eff. 1-1-98.)
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| (625 ILCS 5/7-203) (from Ch. 95 1/2, par. 7-203)
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| Sec. 7-203. Requirements as to policy or bond. | 16 |
| (a) No such policy or bond referred to in Section 7-202 | 17 |
| shall
be effective under this Section unless issued by an | 18 |
| insurance company or
surety company authorized to do business | 19 |
| in this State, except that if
such motor vehicle was not | 20 |
| registered in this State, or was a motor
vehicle which was | 21 |
| registered elsewhere than in this State at the
effective date | 22 |
| of the policy or bond, or the most recent renewal
thereof, such | 23 |
| policy or bond shall not be effective under this Section
unless | 24 |
| the insurance company or surety company, if not authorized to | 25 |
| do
business in this State, shall execute a power of attorney | 26 |
| authorizing
the Secretary of State to accept service on its | 27 |
| behalf of notice or
process in any action upon such policy or | 28 |
| bond arising out of such
motor vehicle accident. | 29 |
| (b) Except as provided in subsection (c)
However , every | 30 |
| such policy or bond is subject, if
the motor vehicle accident | 31 |
| has resulted in bodily injury or death, to
a limit, exclusive | 32 |
| of interest and costs, of not less than $20,000 because of
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| bodily injury to or death of any one person in any one motor |
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| vehicle
accident and, subject to said limit for one person, to | 2 |
| a limit of not less than
$40,000 because of bodily injury to or | 3 |
| death of 2 or more persons
in any one motor vehicle accident, | 4 |
| and, if the motor vehicle accident
has resulted in injury to or | 5 |
| destruction of property, to a limit of not
less than $15,000 | 6 |
| because of injury to or destruction of
property of others
in | 7 |
| any one motor vehicle accident.
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| (c) Any policy or bond issued or renewed on or after | 9 |
| December 1, 2004 is subject, if
the motor vehicle accident has | 10 |
| resulted in bodily injury or death, to
a limit, exclusive of | 11 |
| interest and costs, of not less than $30,000 because of
bodily | 12 |
| injury to or death of any one person in any one motor vehicle
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| accident and, subject to the limit for one person, to a limit | 14 |
| of not less than
$60,000 because of bodily injury to or death | 15 |
| of 2 or more persons
in any one motor vehicle accident, and, if | 16 |
| the motor vehicle accident
has resulted in injury to or | 17 |
| destruction of property, to a limit of not
less than $25,000 | 18 |
| because of injury to or destruction of
property of others
in | 19 |
| any one motor vehicle accident.
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| (d) Upon receipt of a written motor vehicle accident
report | 21 |
| from the Administrator the insurance company or surety company
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| named in such notice shall notify the Administrator within such | 23 |
| time and
in such manner as the Administrator may require, in | 24 |
| case such policy or
bond was not in effect at the time of such | 25 |
| motor vehicle accident.
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| (Source: P.A. 85-730.)
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| (625 ILCS 5/7-311) (from Ch. 95 1/2, par. 7-311)
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| Sec. 7-311. Payments sufficient to satisfy requirements.
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| (a) Except as otherwise provided in subsection (a-1), judgments
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| Judgments herein referred to arising out of motor vehicle | 31 |
| accidents
occurring on or after January 1, 1956, shall for the | 32 |
| purpose of this
Chapter be deemed satisfied:
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| 1. When $20,000 has been credited upon any judgment or |
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| judgments
rendered in excess of that amount for bodily injury | 2 |
| to or the death of
one person as the result of any one motor | 3 |
| vehicle accident; or
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| 2. When, subject to said limit of $20,000 as to any one | 5 |
| person, the sum
of $40,000 has been credited upon any judgment | 6 |
| or judgments rendered
in excess of that amount for bodily | 7 |
| injury to or the death of more than
one person as the result of | 8 |
| any one motor vehicle accident; or
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| 3. When $15,000 has been credited upon any judgment or | 10 |
| judgments,
rendered in excess of that amount for damages to | 11 |
| property of others as a
result of any one motor vehicle | 12 |
| accident.
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| (a-1) A Judgment arising out of a motor vehicle accident
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| occurring on or after December 1, 2004, if the judgment debtor | 15 |
| is covered by (i) a motor vehicle liability policy, as defined | 16 |
| in Section 7-317 of this Code, issued or renewed on or after | 17 |
| December 1, 2004 or (ii) a bond issued or renewed on or after | 18 |
| December 1, 2004, is satisfied for the purpose of this
Chapter:
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| 1. When $30,000 has been credited upon any judgment or | 20 |
| judgments
rendered in excess of that amount for bodily injury | 21 |
| to or the death of
one person as the result of any one motor | 22 |
| vehicle accident; or | 23 |
| 2. When, subject to the limit of $30,000 as to any one | 24 |
| person, the sum
of $60,000 has been credited upon any judgment | 25 |
| or judgments rendered
in excess of that amount for bodily | 26 |
| injury to or the death of more than
one person as the result of | 27 |
| any one motor vehicle accident; or | 28 |
| 3. When $25,000 has been credited upon any judgment or | 29 |
| judgments,
rendered in excess of that amount for damages to | 30 |
| property of others as a
result of any one motor vehicle | 31 |
| accident.
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| (b) Credit for such amounts shall be deemed a satisfaction | 33 |
| of any such
judgment or judgments in excess of said amounts | 34 |
| only for the purposes of
this Chapter.
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| (c) Whenever payment has been made in settlement of any | 2 |
| claim for bodily
injury, death or property damage arising from | 3 |
| a motor vehicle accident
resulting in injury, death or property | 4 |
| damage to two or more persons in
such accident, any such | 5 |
| payment shall be credited in reduction of the
amounts provided | 6 |
| for in this Section.
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| (Source: P.A. 85-730.)
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| (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
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| Sec. 7-317. "Motor vehicle liability policy" defined. (a)
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| Certification. -A "motor vehicle liability policy", as that | 11 |
| term is
used in this Act, means an "owner's policy" or an | 12 |
| "operator's policy" of
liability insurance, certified as | 13 |
| provided in Section 7-315 or Section
7-316 as proof of | 14 |
| financial responsibility for the future, and issued,
except as | 15 |
| otherwise provided in Section 7-316, by an insurance carrier
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| duly authorized to transact business in this State, to or for | 17 |
| the
benefit of the person named therein as insured.
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| (b) Owner's Policy. --Such owner's policy of liability | 19 |
| insurance:
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| 1. Shall designate by explicit description or by | 21 |
| appropriate
reference, all motor vehicles with respect to which | 22 |
| coverage is thereby
intended to be granted;
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| 2. Shall insure the person named therein and any other | 24 |
| person using
or responsible for the use of such motor vehicle | 25 |
| or vehicles with the
express or implied permission of the | 26 |
| insured;
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| 3. Shall , except as otherwise provided in paragraph 4 of | 28 |
| this subsection (b), insure every named insured and any other | 29 |
| person using or
responsible for the use of any motor vehicle | 30 |
| owned by the named insured
and used by such other person with | 31 |
| the express or implied permission of
the named insured on | 32 |
| account of the maintenance, use or operation of any
motor | 33 |
| vehicle owned by the named insured, within the continental |
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| limits
of the United States or the Dominion of Canada against | 2 |
| loss from
liability imposed by law arising from such | 3 |
| maintenance, use or
operation, to the extent and aggregate | 4 |
| amount, exclusive of interest and
cost, with respect to each | 5 |
| motor vehicle, of $20,000 for bodily injury
to or death of one | 6 |
| person as a result of any one accident and, subject
to such | 7 |
| limit as to one person, the amount of $40,000 for bodily injury
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| to or death of all persons as a result of any one accident and | 9 |
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amount of $15,000 for damage to property of others as a | 10 |
| result of any
one accident.
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| 4. Shall, with regard to policies issued or renewed on or | 12 |
| after December 1, 2004, insure every named insured and any | 13 |
| other person using or
responsible for the use of any motor | 14 |
| vehicle owned by the named insured
and used by any other person | 15 |
| with the express or implied permission of
the named insured on | 16 |
| account of the maintenance, use, or operation of any
motor | 17 |
| vehicle owned by the named insured, within the continental | 18 |
| limits
of the United States or the Dominion of Canada against | 19 |
| loss from
liability imposed by law arising from that | 20 |
| maintenance, use, or
operation, to the extent and aggregate | 21 |
| amount, exclusive of interest and
cost, with respect to each | 22 |
| motor vehicle, of $30,000 for bodily injury
to or death of one | 23 |
| person as a result of any one accident and, subject
to that | 24 |
| limit as to one person, the amount of $60,000 for bodily injury
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| to or death of all persons as a result of any one accident, and | 26 |
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amount of $25,000 for damage to property of others as a | 27 |
| result of any
one accident.
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| (c) Operator's Policy. --When an operator's policy is | 29 |
| required, it
shall insure the person named therein as insured | 30 |
| against the liability
imposed by law upon the insured for | 31 |
| bodily injury to or death of any
person or damage to property | 32 |
| to the amounts and limits above set forth
and growing out of | 33 |
| the use or operation by the insured within the
continental | 34 |
| limits of the United States or the Dominion of Canada of any
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| motor vehicle not owned by him.
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| (d) Required Statements in Policies. --Every motor vehicle | 3 |
| liability
policy must specify the name and address of the | 4 |
| insured, the coverage
afforded by the policy, the premium | 5 |
| charged therefor, the policy period,
and the limits of | 6 |
| liability, and shall contain an agreement that the
insurance | 7 |
| thereunder is provided in accordance with the coverage defined
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| in this Act, as respects bodily injury and death or property | 9 |
| damage or
both, and is subject to all the provisions of this | 10 |
| Act.
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| (e) Policy Need Not Insure Workers' Compensation. --Any | 12 |
| liability
policy or policies issued hereunder need not cover | 13 |
| any liability of the
insured assumed by or imposed upon the | 14 |
| insured under any workers'
compensation law nor any liability | 15 |
| for damage to property in charge of
the insured or the | 16 |
| insured's employees.
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| (f) Provisions Incorporated in Policy. --Every motor | 18 |
| vehicle
liability policy is subject to the following provisions | 19 |
| which need not
be contained therein:
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| 1. The liability of the insurance carrier under any such | 21 |
| policy
shall become absolute whenever loss or damage covered by | 22 |
| the policy
occurs and the satisfaction by the insured of a | 23 |
| final judgment for such
loss or damage shall not be a condition | 24 |
| precedent to the right or
obligation of the carrier to make | 25 |
| payment on account of such loss or
damage.
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| 2. No such policy may be cancelled or annulled as respects | 27 |
| any loss
or damage, by any agreement between the carrier and | 28 |
| the insured after
the insured has become responsible for such | 29 |
| loss or damage, and any such
cancellation or annulment shall be | 30 |
| void.
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| 3. The insurance carrier shall, however, have the right to | 32 |
| settle
any claim covered by the policy, and if such settlement | 33 |
| is made in good
faith, the amount thereof shall be deductible | 34 |
| from the limits of
liability specified in the policy.
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| 4. The policy, the written application therefor, if any, | 2 |
| and any
rider or endorsement which shall not conflict with the | 3 |
| provisions of
this Act shall constitute the entire contract | 4 |
| between the parties.
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| (g) Excess or Additional Coverage. --Any motor vehicle | 6 |
| liability
policy may, however, grant any lawful coverage in | 7 |
| excess of or in
addition to the coverage herein specified or | 8 |
| contain any agreements,
provisions, or stipulations not in | 9 |
| conflict with the provisions of this
Act and not otherwise | 10 |
| contrary to law.
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| (h) Reimbursement Provision Permitted. --The policy may | 12 |
| provide that
the insured, or any other person covered by the | 13 |
| policy shall reimburse
the insurance carrier for payment made | 14 |
| on account of any loss or damage
claim or suit involving a | 15 |
| breach of the terms, provisions or conditions
of the policy; | 16 |
| and further, if the policy shall provide for limits in
excess | 17 |
| of the limits specified in this Act, the insurance carrier may
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| plead against any plaintiff, with respect to the amount of such | 19 |
| excess
limits of liability, any defense which it may be | 20 |
| entitled to plead
against the insured.
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| (i) Proration of Insurance Permitted. --The policy may | 22 |
| provide for
the pro-rating of the insurance thereunder with | 23 |
| other applicable valid
and collectible insurance.
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| (j) Binders. --Any binder pending the issuance of any | 25 |
| policy, which
binder contains or by reference includes the | 26 |
| provisions hereunder shall
be sufficient proof of ability to | 27 |
| respond in damages.
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| (k) Copy of Policy to Be Filed with Department of
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| Insurance--Approval. --A copy of the form of every motor | 30 |
| vehicle
liability policy which is to be used to meet the | 31 |
| requirements of this
Act must be filed, by the company offering | 32 |
| such policy, with the
Department of Insurance, which shall | 33 |
| approve or disapprove the policy
within 30 days of its filing. | 34 |
| If the Department approves the policy in
writing within such 30 |
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| day period or fails to take action for 30 days,
the form of | 2 |
| policy shall be deemed approved as filed. If within the 30
days | 3 |
| the Department disapproves the form of policy filed upon the | 4 |
| ground
that it does not comply with the requirements of this | 5 |
| Act, the
Department shall give written notice of its decision | 6 |
| and its reasons
therefor to the carrier and the policy shall | 7 |
| not be accepted as proof of
financial responsibility under this | 8 |
| Act.
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| (l) Insurance Carrier Required to File Certificate. --An | 10 |
| insurance
carrier who has issued a motor vehicle liability | 11 |
| policy or policies or
an operator's policy meeting the | 12 |
| requirements of this Act shall, upon
the request of the insured | 13 |
| therein, deliver to the insured for filing,
or at the request | 14 |
| of the insured, shall file direct, with the Secretary
of State | 15 |
| a certificate, as required by this Act, which shows that such
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| policy or policies have been issued. No insurance carrier may | 17 |
| require
the payment of any extra fee or surcharge, in addition | 18 |
| to the insurance
premium, for the execution, delivery or filing | 19 |
| of such certificate.
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| (m) Proof When Made By Endorsement. --Any motor vehicle | 21 |
| liability
policy which by endorsement contains the provisions | 22 |
| required hereunder
shall be sufficient proof of ability to | 23 |
| respond in damages.
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| (Source: P.A. 85-730.)
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| Section 99. Effective date. This Act takes effect upon | 26 |
| becoming law.".
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