Full Text of SB2238 93rd General Assembly
SB2238ham002 93RD GENERAL ASSEMBLY
|
Rep. Robert S. Molaro
Filed: 05/11/04
|
|
09300SB2238ham002 |
|
LRB093 15870 LCB 50652 a |
|
| 1 |
| AMENDMENT TO SENATE BILL 2238
| 2 |
| AMENDMENT NO. ______. Amend Senate Bill 2238 by replacing | 3 |
| the title with the following: | 4 |
| "AN ACT concerning transportation."; and
| 5 |
| by replacing everything after the enacting clause with the | 6 |
| following: | 7 |
| "Section 5. The Illinois Insurance Code is amended by | 8 |
| changing Section 143a-2 as follows:
| 9 |
| (215 ILCS 5/143a-2) (from Ch. 73, par. 755a-2)
| 10 |
| Sec. 143a-2. (1) Additional uninsured motor vehicle
| 11 |
| coverage. No policy insuring against loss resulting from | 12 |
| liability imposed
by law for bodily injury or death suffered by | 13 |
| any person arising out of the
ownership, maintenance or use of | 14 |
| a motor vehicle shall be renewed or
delivered or issued for | 15 |
| delivery in this State with respect to any motor
vehicle | 16 |
| designed for use on public highways and required to be | 17 |
| registered
in this State unless uninsured motorist coverage as | 18 |
| required in Section
143a of this Code is included in an amount | 19 |
| equal to the insured's bodily
injury liability limits unless | 20 |
| specifically rejected by the insured as provided in paragraph | 21 |
| (2) of this Section . Each
insurance company providing the | 22 |
| coverage must provide applicants with a
brief description of | 23 |
| the coverage and advise them of their right to reject
the |
|
|
|
09300SB2238ham002 |
- 2 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| coverage in excess of the limits set forth in Section 7-203 of | 2 |
| The
Illinois Vehicle Code. The provisions of this amendatory | 3 |
| Act of 1990 apply
to policies of insurance applied for after | 4 |
| June 30, 1991.
| 5 |
| (2) Right of rejection of additional uninsured motorist
| 6 |
| coverage. Any named insured or applicant
After June 30, 1991, | 7 |
| every application for motor vehicle
coverage must contain a | 8 |
| space for indicating the rejection of additional
uninsured | 9 |
| motorist coverage. No rejection of that coverage may be
| 10 |
| effective unless the applicant signs or initials the indication | 11 |
| of
rejection. The applicant may reject additional uninsured
| 12 |
| motorist coverage in excess of the limits set forth in Section | 13 |
| 7-203
of the Illinois Vehicle Code by making a written request | 14 |
| for limits of uninsured motorist coverage which are less than | 15 |
| bodily injury liability limits or a written rejection of limits | 16 |
| in excess of those required by law. This election or rejection | 17 |
| shall be binding on all persons insured under the policy . In | 18 |
| those cases , including policies first
issued before July 1, | 19 |
| 1991, where the insured has elected
to purchase limits of | 20 |
| uninsured motorist coverage which are less than
bodily injury | 21 |
| liability limits or to reject limits in excess of those
| 22 |
| required by law, the insurer need not provide in any renewal,
| 23 |
| reinstatement, reissuance, substitute, amended, replacement or
| 24 |
| supplementary policy, coverage in excess of that elected by the | 25 |
| insured in
connection with a policy previously issued to such | 26 |
| insured by the same
insurer unless the insured subsequently | 27 |
| makes a written request for
such coverage.
| 28 |
| (3) The original document
application indicating the | 29 |
| applicant's selection of
uninsured motorist coverage limits | 30 |
| shall constitute sufficient evidence of
the applicant's | 31 |
| selection of uninsured motorist coverage limits and shall
be | 32 |
| binding on all persons insured under the policy . For purposes | 33 |
| of this
Section any reproduction of the document
application by | 34 |
| means of photograph,
photostat, microfiche, computerized |
|
|
|
09300SB2238ham002 |
- 3 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| optical imaging process, or other
similar process or means of | 2 |
| reproduction shall be deemed the equivalent of
the original | 3 |
| document
application .
| 4 |
| (4) For the purpose of this Code the term "underinsured | 5 |
| motor vehicle"
means a motor vehicle whose ownership, | 6 |
| maintenance or use has resulted in
bodily injury or death of | 7 |
| the insured, as defined in the policy, and for
which the sum of | 8 |
| the limits of liability under all bodily injury liability
| 9 |
| insurance policies or under bonds or other security required to | 10 |
| be
maintained under Illinois law applicable to the driver or to | 11 |
| the person or
organization legally responsible for such vehicle | 12 |
| and applicable to the
vehicle, is less than the limits for | 13 |
| underinsured coverage provided the
insured as defined in the | 14 |
| policy at the time of the accident. The limits
of liability for | 15 |
| an insurer providing underinsured motorist coverage shall
be | 16 |
| the limits of such coverage, less those amounts actually | 17 |
| recovered under
the applicable bodily injury insurance | 18 |
| policies, bonds or other security
maintained on the | 19 |
| underinsured motor vehicle.
However, the maximum amount | 20 |
| payable by the underinsured motorist coverage
carrier shall not | 21 |
| exceed the amount by which the limits of the underinsured
| 22 |
| motorist coverage exceeds the limits of the bodily injury | 23 |
| liability insurance
of the owner or operator of the | 24 |
| underinsured motor vehicle.
| 25 |
| On or after July 1, 1983, no policy insuring against loss | 26 |
| resulting
from liability imposed by law for bodily injury or | 27 |
| death suffered by any
person arising out of the ownership, | 28 |
| maintenance or use of a motor vehicle
shall be renewed or | 29 |
| delivered or issued for delivery in this State with respect
to | 30 |
| any motor vehicle designed for use on public highways and | 31 |
| required to be
registered in this State unless underinsured | 32 |
| motorist coverage is included
in such policy in an amount equal | 33 |
| to the total amount of uninsured motorist
coverage provided in | 34 |
| that policy where such uninsured motorist coverage
exceeds the |
|
|
|
09300SB2238ham002 |
- 4 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| limits set forth in Section 7-203 of the Illinois Vehicle Code.
| 2 |
| The changes made to this subsection (4) by this amendatory | 3 |
| Act of the 93rd General Assembly apply to policies issued or | 4 |
| renewed on or after January 1, 2005.
| 5 |
| (5) Scope. Nothing herein shall prohibit an insurer from | 6 |
| setting forth
policy terms and conditions which provide that if | 7 |
| the insured has coverage
available under this Section under | 8 |
| more than one policy or provision of
coverage, any recovery or | 9 |
| benefits may be equal to, but may not exceed,
the higher of the | 10 |
| applicable limits of the respective coverage, and the
limits of | 11 |
| liability under this Section shall not be increased because
of | 12 |
| multiple motor vehicles covered under the same policy of | 13 |
| insurance.
Insurers providing liability coverage on an excess | 14 |
| or umbrella basis are
neither required to provide, nor are they | 15 |
| prohibited from offering or
making available coverages | 16 |
| conforming to this Section on a supplemental
basis. | 17 |
| Notwithstanding the provisions of this Section, an insurer | 18 |
| shall
not be prohibited from solely providing a combination of | 19 |
| uninsured and
underinsured motorist coverages where the limits | 20 |
| of liability under each
coverage is in the same amount.
| 21 |
| (6) Subrogation against underinsured motorists. No insurer | 22 |
| shall exercise
any right of subrogation under a policy | 23 |
| providing additional uninsured motorist
coverage against an | 24 |
| underinsured motorist where the insurer has been provided
with | 25 |
| written notice in advance of a settlement between its insured | 26 |
| and the
underinsured motorist and the insurer fails to advance | 27 |
| a payment to
the insured, in an amount equal to the tentative | 28 |
| settlement, within 30 days
following receipt of such notice.
| 29 |
| (7) A policy which provides underinsured motor vehicle | 30 |
| coverage may
include a clause which denies payment until the | 31 |
| limits of liability or
portion thereof under
all bodily injury | 32 |
| liability insurance policies applicable to the
underinsured | 33 |
| motor vehicle and its operators have been partially or fully
| 34 |
| exhausted
by payment
of judgment or settlement. A judgment or |
|
|
|
09300SB2238ham002 |
- 5 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| settlement of the bodily injury
claim in an amount less than | 2 |
| the limits of liability of the bodily injury
coverages | 3 |
| applicable to the claim shall not preclude the claimant from | 4 |
| making
an underinsured motorist claim against the underinsured | 5 |
| motorist coverage.
Any such provision in a policy of insurance
| 6 |
| shall be inapplicable if the insured, or the legal | 7 |
| representative of the
insured, and the insurer providing | 8 |
| underinsured motor vehicle coverage
agree that the insured has | 9 |
| suffered bodily injury or death as the result of
the negligent | 10 |
| operation, maintenance, or use of an underinsured motor
vehicle | 11 |
| and, without arbitration, agree also on the amount of damages | 12 |
| that
the insured is legally entitled to collect. The maximum | 13 |
| amount payable
pursuant to such an underinsured motor vehicle | 14 |
| insurance settlement
agreement shall not exceed the amount by | 15 |
| which the limits of the
underinsured motorist coverage exceed | 16 |
| the limits of the bodily injury
liability insurance of the | 17 |
| owner or operator of the underinsured motor
vehicle. Any such | 18 |
| agreement shall be final as to the amount due and shall
be | 19 |
| binding upon both the insured and the underinsured motorist | 20 |
| insurer
regardless of the amount of any judgment, or any | 21 |
| settlement reached between
any insured and the person or | 22 |
| persons responsible for the accident. No
such settlement | 23 |
| agreement shall be concluded unless: (i) the insured has
| 24 |
| complied with all other applicable policy terms and conditions; | 25 |
| and (ii)
before the conclusion of the settlement agreement, the | 26 |
| insured has filed
suit against the underinsured motor vehicle | 27 |
| owner or operator and has not
abandoned the suit, or settled | 28 |
| the suit without preserving the rights of
the insurer providing | 29 |
| underinsured motor vehicle coverage in the manner
described in | 30 |
| paragraph (6) of this Section.
| 31 |
| (Source: P.A. 89-658, eff. 1-1-97.)
| 32 |
| Section 10. The Illinois Vehicle Code is amended by | 33 |
| changing Sections 1-164.5, 7-203, 7-311, and 7-317 as follows:
|
|
|
|
09300SB2238ham002 |
- 6 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| (625 ILCS 5/1-164.5)
| 2 |
| Sec. 1-164.5. Proof of financial responsibility. | 3 |
| (a) Except as otherwise provided in subsection (b), proof
| 4 |
| Proof of ability to
respond in damages for any liability | 5 |
| thereafter incurred resulting from the
ownership, maintenance, | 6 |
| use or operation of a motor vehicle for bodily injury
to or | 7 |
| death of any person in the amount of $20,000, and subject to | 8 |
| this limit
for any one person injured or killed, in the amount | 9 |
| of $40,000 for bodily
injury to or death of 2 or more persons | 10 |
| in any one accident, and for damage to
property in the amount | 11 |
| of $15,000 resulting from any one accident. | 12 |
| (b) In any case in which the proof of financial | 13 |
| responsibility consists of (i) a motor vehicle liability | 14 |
| policy, as defined in Section 7-317 of this Code, issued or | 15 |
| renewed on or after December 1, 2004 or (ii) a bond issued or | 16 |
| renewed on or after December 1, 2004, proof of ability to
| 17 |
| respond in damages for any liability thereafter incurred | 18 |
| resulting from the
ownership, maintenance, use or operation of | 19 |
| a motor vehicle for bodily injury
to or death of any person in | 20 |
| the amount of $30,000, and subject to this limit
for any one | 21 |
| person injured or killed, in the amount of $60,000 for bodily
| 22 |
| injury to or death of 2 or more persons in any one accident, | 23 |
| and for damage to
property in the amount of $25,000 resulting | 24 |
| from any one accident.
| 25 |
| (c) This proof
in these amounts shall be furnished for each | 26 |
| motor vehicle registered by every
person required to furnish | 27 |
| this proof.
| 28 |
| (Source: P.A. 90-89, eff. 1-1-98.)
| 29 |
| (625 ILCS 5/7-203) (from Ch. 95 1/2, par. 7-203)
| 30 |
| Sec. 7-203. Requirements as to policy or bond. | 31 |
| (a) No such policy or bond referred to in Section 7-202 | 32 |
| shall
be effective under this Section unless issued by an |
|
|
|
09300SB2238ham002 |
- 7 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| insurance company or
surety company authorized to do business | 2 |
| in this State, except that if
such motor vehicle was not | 3 |
| registered in this State, or was a motor
vehicle which was | 4 |
| registered elsewhere than in this State at the
effective date | 5 |
| of the policy or bond, or the most recent renewal
thereof, such | 6 |
| policy or bond shall not be effective under this Section
unless | 7 |
| the insurance company or surety company, if not authorized to | 8 |
| do
business in this State, shall execute a power of attorney | 9 |
| authorizing
the Secretary of State to accept service on its | 10 |
| behalf of notice or
process in any action upon such policy or | 11 |
| bond arising out of such
motor vehicle accident. | 12 |
| (b) Except as provided in subsection (c)
However , every | 13 |
| such policy or bond is subject, if
the motor vehicle accident | 14 |
| has resulted in bodily injury or death, to
a limit, exclusive | 15 |
| of interest and costs, of not less than $20,000 because of
| 16 |
| bodily injury to or death of any one person in any one motor | 17 |
| vehicle
accident and, subject to said limit for one person, to | 18 |
| a limit of not less than
$40,000 because of bodily injury to or | 19 |
| death of 2 or more persons
in any one motor vehicle accident, | 20 |
| and, if the motor vehicle accident
has resulted in injury to or | 21 |
| destruction of property, to a limit of not
less than $15,000 | 22 |
| because of injury to or destruction of
property of others
in | 23 |
| any one motor vehicle accident.
| 24 |
| (c) Any policy or bond issued or renewed on or after | 25 |
| December 1, 2004 is subject, if
the motor vehicle accident has | 26 |
| resulted in bodily injury or death, to
a limit, exclusive of | 27 |
| interest and costs, of not less than $30,000 because of
bodily | 28 |
| injury to or death of any one person in any one motor vehicle
| 29 |
| accident and, subject to the limit for one person, to a limit | 30 |
| of not less than
$60,000 because of bodily injury to or death | 31 |
| of 2 or more persons
in any one motor vehicle accident, and, if | 32 |
| the motor vehicle accident
has resulted in injury to or | 33 |
| destruction of property, to a limit of not
less than $25,000 | 34 |
| because of injury to or destruction of
property of others
in |
|
|
|
09300SB2238ham002 |
- 8 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| any one motor vehicle accident.
| 2 |
| (d) Upon receipt of a written motor vehicle accident
report | 3 |
| from the Administrator the insurance company or surety company
| 4 |
| named in such notice shall notify the Administrator within such | 5 |
| time and
in such manner as the Administrator may require, in | 6 |
| case such policy or
bond was not in effect at the time of such | 7 |
| motor vehicle accident.
| 8 |
| (Source: P.A. 85-730.)
| 9 |
| (625 ILCS 5/7-311) (from Ch. 95 1/2, par. 7-311)
| 10 |
| Sec. 7-311. Payments sufficient to satisfy requirements.
| 11 |
| (a) Except as otherwise provided in subsection (a-1), judgments
| 12 |
| Judgments herein referred to arising out of motor vehicle | 13 |
| accidents
occurring on or after January 1, 1956, shall for the | 14 |
| purpose of this
Chapter be deemed satisfied:
| 15 |
| 1. When $20,000 has been credited upon any judgment or | 16 |
| judgments
rendered in excess of that amount for bodily injury | 17 |
| to or the death of
one person as the result of any one motor | 18 |
| vehicle accident; or
| 19 |
| 2. When, subject to said limit of $20,000 as to any one | 20 |
| person, the sum
of $40,000 has been credited upon any judgment | 21 |
| or judgments rendered
in excess of that amount for bodily | 22 |
| injury to or the death of more than
one person as the result of | 23 |
| any one motor vehicle accident; or
| 24 |
| 3. When $15,000 has been credited upon any judgment or | 25 |
| judgments,
rendered in excess of that amount for damages to | 26 |
| property of others as a
result of any one motor vehicle | 27 |
| accident.
| 28 |
| (a-1) A Judgment arising out of a motor vehicle accident
| 29 |
| occurring on or after December 1, 2004, if the judgment debtor | 30 |
| is covered by (i) a motor vehicle liability policy, as defined | 31 |
| in Section 7-317 of this Code, issued or renewed on or after | 32 |
| December 1, 2004 or (ii) a bond issued or renewed on or after | 33 |
| December 1, 2004, is satisfied for the purpose of this
Chapter:
|
|
|
|
09300SB2238ham002 |
- 9 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| 1. When $30,000 has been credited upon any judgment or | 2 |
| judgments
rendered in excess of that amount for bodily injury | 3 |
| to or the death of
one person as the result of any one motor | 4 |
| vehicle accident; or | 5 |
| 2. When, subject to the limit of $30,000 as to any one | 6 |
| person, the sum
of $60,000 has been credited upon any judgment | 7 |
| or judgments rendered
in excess of that amount for bodily | 8 |
| injury to or the death of more than
one person as the result of | 9 |
| any one motor vehicle accident; or | 10 |
| 3. When $25,000 has been credited upon any judgment or | 11 |
| judgments,
rendered in excess of that amount for damages to | 12 |
| property of others as a
result of any one motor vehicle | 13 |
| accident.
| 14 |
| (b) Credit for such amounts shall be deemed a satisfaction | 15 |
| of any such
judgment or judgments in excess of said amounts | 16 |
| only for the purposes of
this Chapter.
| 17 |
| (c) Whenever payment has been made in settlement of any | 18 |
| claim for bodily
injury, death or property damage arising from | 19 |
| a motor vehicle accident
resulting in injury, death or property | 20 |
| damage to two or more persons in
such accident, any such | 21 |
| payment shall be credited in reduction of the
amounts provided | 22 |
| for in this Section.
| 23 |
| (Source: P.A. 85-730.)
| 24 |
| (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
| 25 |
| Sec. 7-317. "Motor vehicle liability policy" defined. (a)
| 26 |
| Certification. -A "motor vehicle liability policy", as that | 27 |
| term is
used in this Act, means an "owner's policy" or an | 28 |
| "operator's policy" of
liability insurance, certified as | 29 |
| provided in Section 7-315 or Section
7-316 as proof of | 30 |
| financial responsibility for the future, and issued,
except as | 31 |
| otherwise provided in Section 7-316, by an insurance carrier
| 32 |
| duly authorized to transact business in this State, to or for | 33 |
| the
benefit of the person named therein as insured.
|
|
|
|
09300SB2238ham002 |
- 10 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| (b) Owner's Policy. --Such owner's policy of liability | 2 |
| insurance:
| 3 |
| 1. Shall designate by explicit description or by | 4 |
| appropriate
reference, all motor vehicles with respect to which | 5 |
| coverage is thereby
intended to be granted;
| 6 |
| 2. Shall insure the person named therein and any other | 7 |
| person using
or responsible for the use of such motor vehicle | 8 |
| or vehicles with the
express or implied permission of the | 9 |
| insured;
| 10 |
| 3. Shall , except as otherwise provided in paragraph 4 of | 11 |
| this subsection (b), insure every named insured and any other | 12 |
| person using or
responsible for the use of any motor vehicle | 13 |
| owned by the named insured
and used by such other person with | 14 |
| the express or implied permission of
the named insured on | 15 |
| account of the maintenance, use or operation of any
motor | 16 |
| vehicle owned by the named insured, within the continental | 17 |
| limits
of the United States or the Dominion of Canada against | 18 |
| loss from
liability imposed by law arising from such | 19 |
| maintenance, use or
operation, to the extent and aggregate | 20 |
| amount, exclusive of interest and
cost, with respect to each | 21 |
| motor vehicle, of $20,000 for bodily injury
to or death of one | 22 |
| person as a result of any one accident and, subject
to such | 23 |
| limit as to one person, the amount of $40,000 for bodily injury
| 24 |
| to or death of all persons as a result of any one accident and | 25 |
| the
amount of $15,000 for damage to property of others as a | 26 |
| result of any
one accident.
| 27 |
| 4. Shall, with regard to policies issued or renewed on or | 28 |
| after December 1, 2004, insure every named insured and any | 29 |
| other person using or
responsible for the use of any motor | 30 |
| vehicle owned by the named insured
and used by any other person | 31 |
| with 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 | 34 |
| limits
of the United States or the Dominion of Canada against |
|
|
|
09300SB2238ham002 |
- 11 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| loss from
liability imposed by law arising from that | 2 |
| maintenance, use, or
operation, to the extent and aggregate | 3 |
| amount, exclusive of interest and
cost, with respect to each | 4 |
| motor vehicle, of $30,000 for bodily injury
to or death of one | 5 |
| person as a result of any one accident and, subject
to that | 6 |
| limit as to one person, the amount of $60,000 for bodily injury
| 7 |
| to or death of all persons as a result of any one accident, and | 8 |
| the
amount of $25,000 for damage to property of others as a | 9 |
| result of any
one accident.
| 10 |
| (c) Operator's Policy. --When an operator's policy is | 11 |
| required, it
shall insure the person named therein as insured | 12 |
| against the liability
imposed by law upon the insured for | 13 |
| bodily injury to or death of any
person or damage to property | 14 |
| to the amounts and limits above set forth
and growing out of | 15 |
| the use or operation by the insured within the
continental | 16 |
| limits of the United States or the Dominion of Canada of any
| 17 |
| motor vehicle not owned by him.
| 18 |
| (d) Required Statements in Policies. --Every motor vehicle | 19 |
| liability
policy must specify the name and address of the | 20 |
| insured, the coverage
afforded by the policy, the premium | 21 |
| charged therefor, the policy period,
and the limits of | 22 |
| liability, and shall contain an agreement that the
insurance | 23 |
| thereunder is provided in accordance with the coverage defined
| 24 |
| in this Act, as respects bodily injury and death or property | 25 |
| damage or
both, and is subject to all the provisions of this | 26 |
| Act.
| 27 |
| (e) Policy Need Not Insure Workers' Compensation. --Any | 28 |
| liability
policy or policies issued hereunder need not cover | 29 |
| any liability of the
insured assumed by or imposed upon the | 30 |
| insured under any workers'
compensation law nor any liability | 31 |
| for damage to property in charge of
the insured or the | 32 |
| insured's employees.
| 33 |
| (f) Provisions Incorporated in Policy. --Every motor | 34 |
| vehicle
liability policy is subject to the following provisions |
|
|
|
09300SB2238ham002 |
- 12 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| which need not
be contained therein:
| 2 |
| 1. The liability of the insurance carrier under any such | 3 |
| policy
shall become absolute whenever loss or damage covered by | 4 |
| the policy
occurs and the satisfaction by the insured of a | 5 |
| final judgment for such
loss or damage shall not be a condition | 6 |
| precedent to the right or
obligation of the carrier to make | 7 |
| payment on account of such loss or
damage.
| 8 |
| 2. No such policy may be cancelled or annulled as respects | 9 |
| any loss
or damage, by any agreement between the carrier and | 10 |
| the insured after
the insured has become responsible for such | 11 |
| loss or damage, and any such
cancellation or annulment shall be | 12 |
| void.
| 13 |
| 3. The insurance carrier shall, however, have the right to | 14 |
| settle
any claim covered by the policy, and if such settlement | 15 |
| is made in good
faith, the amount thereof shall be deductible | 16 |
| from the limits of
liability specified in the policy.
| 17 |
| 4. The policy, the written application therefor, if any, | 18 |
| and any
rider or endorsement which shall not conflict with the | 19 |
| provisions of
this Act shall constitute the entire contract | 20 |
| between the parties.
| 21 |
| (g) Excess or Additional Coverage. --Any motor vehicle | 22 |
| liability
policy may, however, grant any lawful coverage in | 23 |
| excess of or in
addition to the coverage herein specified or | 24 |
| contain any agreements,
provisions, or stipulations not in | 25 |
| conflict with the provisions of this
Act and not otherwise | 26 |
| contrary to law.
| 27 |
| (h) Reimbursement Provision Permitted. --The policy may | 28 |
| provide that
the insured, or any other person covered by the | 29 |
| policy shall reimburse
the insurance carrier for payment made | 30 |
| on account of any loss or damage
claim or suit involving a | 31 |
| breach of the terms, provisions or conditions
of the policy; | 32 |
| and further, if the policy shall provide for limits in
excess | 33 |
| of the limits specified in this Act, the insurance carrier may
| 34 |
| plead against any plaintiff, with respect to the amount of such |
|
|
|
09300SB2238ham002 |
- 13 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| excess
limits of liability, any defense which it may be | 2 |
| entitled to plead
against the insured.
| 3 |
| (i) Proration of Insurance Permitted. --The policy may | 4 |
| provide for
the pro-rating of the insurance thereunder with | 5 |
| other applicable valid
and collectible insurance.
| 6 |
| (j) Binders. --Any binder pending the issuance of any | 7 |
| policy, which
binder contains or by reference includes the | 8 |
| provisions hereunder shall
be sufficient proof of ability to | 9 |
| respond in damages.
| 10 |
| (k) Copy of Policy to Be Filed with Department of
| 11 |
| Insurance--Approval. --A copy of the form of every motor | 12 |
| vehicle
liability policy which is to be used to meet the | 13 |
| requirements of this
Act must be filed, by the company offering | 14 |
| such policy, with the
Department of Insurance, which shall | 15 |
| approve or disapprove the policy
within 30 days of its filing. | 16 |
| If the Department approves the policy in
writing within such 30 | 17 |
| day period or fails to take action for 30 days,
the form of | 18 |
| policy shall be deemed approved as filed. If within the 30
days | 19 |
| the Department disapproves the form of policy filed upon the | 20 |
| ground
that it does not comply with the requirements of this | 21 |
| Act, the
Department shall give written notice of its decision | 22 |
| and its reasons
therefor to the carrier and the policy shall | 23 |
| not be accepted as proof of
financial responsibility under this | 24 |
| Act.
| 25 |
| (l) Insurance Carrier Required to File Certificate. --An | 26 |
| insurance
carrier who has issued a motor vehicle liability | 27 |
| policy or policies or
an operator's policy meeting the | 28 |
| requirements of this Act shall, upon
the request of the insured | 29 |
| therein, deliver to the insured for filing,
or at the request | 30 |
| of the insured, shall file direct, with the Secretary
of State | 31 |
| a certificate, as required by this Act, which shows that such
| 32 |
| policy or policies have been issued. No insurance carrier may | 33 |
| require
the payment of any extra fee or surcharge, in addition | 34 |
| to the insurance
premium, for the execution, delivery or filing |
|
|
|
09300SB2238ham002 |
- 14 - |
LRB093 15870 LCB 50652 a |
|
| 1 |
| of such certificate.
| 2 |
| (m) Proof When Made By Endorsement. --Any motor vehicle | 3 |
| liability
policy which by endorsement contains the provisions | 4 |
| required hereunder
shall be sufficient proof of ability to | 5 |
| respond in damages.
| 6 |
| (Source: P.A. 85-730.)
| 7 |
| Section 99. Effective date. This Act takes effect upon | 8 |
| becoming law.".
|
|