Full Text of HB5520 103rd General Assembly
HB5520 103RD GENERAL ASSEMBLY |
| | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB5520 Introduced 2/9/2024, by Rep. Diane Blair-Sherlock SYNOPSIS AS INTRODUCED: |
|
625 ILCS 5/7-203 | from Ch. 95 1/2, par. 7-203 |
625 ILCS 5/7-317 | from Ch. 95 1/2, par. 7-317 |
625 ILCS 5/7-330 new | |
|
Amends the Illinois Vehicle Code. Establishes that a motor vehicle owner shall provide a liability policy and every such policy or bond is subject, if the motor vehicle crash has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than $30,000 (rather than $25,000) because of bodily injury to or death of any one person in any one motor vehicle crash and, subject to said limit for one person, to a limit of not less than $60,000 (rather $50,000) because of bodily injury to or death of 2 or more persons in any one motor vehicle crash, and, if the motor vehicle crash has resulted in injury to or destruction of property, to a limit of not less than $25,000 (rather than $20,000). Provides that a commercial vehicle must be insured of not less than $50,000 because of bodily injury to or death of any one person in any one motor vehicle crash and, subject to said limit for one person, to a limit of not less than $100,000 because of bodily injury to or death of 2 or more persons in any one motor vehicle crash, and, if the motor vehicle crash has resulted in injury to or destruction of property, to a limit of not less than $50,000 because of injury to or destruction of property of others in any one motor vehicle crash.
|
| |
| | A BILL FOR |
|
| | | HB5520 | | LRB103 33409 MXP 63221 b |
|
| 1 | | AN ACT concerning transportation.
| 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 | | changing Sections 7-203 and 7-317 and by adding Section 7-330 | 6 | | as follows:
| 7 | | (625 ILCS 5/7-203) (from Ch. 95 1/2, par. 7-203)
| 8 | | Sec. 7-203. Requirements as to policy or bond. No such | 9 | | policy or bond referred to in Section 7-202 shall
be effective | 10 | | under this Section unless issued by an insurance company or
| 11 | | surety company authorized to do business in this State, except | 12 | | that if
such motor vehicle was not registered in this State, or | 13 | | was a motor
vehicle which was registered elsewhere than in | 14 | | this State at the
effective date of the policy or bond, or the | 15 | | most recent renewal
thereof, such policy or bond shall not be | 16 | | effective under this Section
unless the insurance company or | 17 | | surety company, if not authorized to do
business in this | 18 | | State, shall execute a power of attorney authorizing
the | 19 | | Secretary of State to accept service on its behalf of notice or
| 20 | | process in any action upon such policy or bond arising out of | 21 | | such
motor vehicle crash. However, every such policy or bond | 22 | | is subject, if
the motor vehicle crash has resulted in bodily | 23 | | injury or death, to
a limit, exclusive of interest and costs, |
| | | HB5520 | - 2 - | LRB103 33409 MXP 63221 b |
|
| 1 | | of not less than $30,000 $25,000 because of
bodily injury to or | 2 | | death of any one person in any one motor vehicle
crash and, | 3 | | subject to said limit for one person, to a limit of not less | 4 | | than
$60,000 $50,000 because of bodily injury to or death of 2 | 5 | | or more persons
in any one motor vehicle crash, and, if the | 6 | | motor vehicle crash
has resulted in injury to or destruction | 7 | | of property, to a limit of not
less than $25,000 $20,000 | 8 | | because of injury to or destruction of
property of others
in | 9 | | any one motor vehicle crash. The changes to this Section made | 10 | | by this amendatory Act of the 98th General Assembly apply only | 11 | | to policies issued or renewed on or after January 1, 2015.
| 12 | | Upon receipt of a written motor vehicle crash
report from | 13 | | the Administrator the insurance company or surety company
| 14 | | named in such notice shall notify the Administrator within | 15 | | such time and
in such manner as the Administrator may require, | 16 | | in case such policy or
bond was not in effect at the time of | 17 | | such motor vehicle crash.
| 18 | | (Source: P.A. 102-982, eff. 7-1-23.)
| 19 | | (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
| 20 | | Sec. 7-317. "Motor vehicle liability policy" defined. | 21 | | (a)
Certification. -A "motor vehicle liability policy", as | 22 | | that term is
used in this Act, means an "owner's policy" or an | 23 | | "operator's policy" of
liability insurance, certified as | 24 | | provided in Section 7-315 or Section
7-316 as proof of | 25 | | financial responsibility for the future, and issued,
except as |
| | | HB5520 | - 3 - | LRB103 33409 MXP 63221 b |
|
| 1 | | otherwise provided in Section 7-316, by an insurance carrier
| 2 | | duly authorized to transact business in this State, to or for | 3 | | the
benefit of the person named therein as insured.
| 4 | | (b) Owner's Policy. --Such owner's policy of liability | 5 | | insurance:
| 6 | | 1. Shall designate by explicit description or by | 7 | | appropriate
reference, all motor vehicles with respect to | 8 | | which coverage is thereby
intended to be granted;
| 9 | | 2. Shall insure the person named therein and any other | 10 | | person using
or responsible for the use of such motor | 11 | | vehicle or vehicles with the
express or implied permission | 12 | | of the insured;
| 13 | | 3. Shall insure every named insured and any other | 14 | | person using or
responsible for the use of any motor | 15 | | vehicle owned by the named insured
and used by such other | 16 | | person with the express or implied permission of
the named | 17 | | insured on account of the maintenance, use or operation of | 18 | | any
motor vehicle owned by the named insured, within the | 19 | | continental limits
of the United States or the Dominion of | 20 | | Canada against loss from
liability imposed by law arising | 21 | | from such maintenance, use or
operation, to the extent and | 22 | | aggregate amount, exclusive of interest and
cost, with | 23 | | respect to each motor vehicle, of $30,000 $25,000 for | 24 | | bodily injury
to or death of one person as a result of any | 25 | | one crash and, subject
to such limit as to one person, the | 26 | | amount of $60,000 $50,000 for bodily injury
to or death of |
| | | HB5520 | - 4 - | LRB103 33409 MXP 63221 b |
|
| 1 | | all persons as a result of any one crash and the
amount of | 2 | | $25,000 $20,000 for damage to property of others as a | 3 | | result of any
one crash. The changes to this paragraph | 4 | | made by this amendatory Act of the 98th General Assembly | 5 | | apply only to policies issued or renewed on or after | 6 | | January 1, 2015.
| 7 | | (c) Operator's Policy. --When an operator's policy is | 8 | | required, it
shall insure the person named therein as insured | 9 | | against the liability
imposed by law upon the insured for | 10 | | bodily injury to or death of any
person or damage to property | 11 | | to the amounts and limits above set forth
and growing out of | 12 | | the use or operation by the insured within the
continental | 13 | | limits of the United States or the Dominion of Canada of any
| 14 | | motor vehicle not owned by him.
| 15 | | (d) Required Statements in Policies. --Every motor vehicle | 16 | | liability
policy must specify the name and address of the | 17 | | insured, the coverage
afforded by the policy, the premium | 18 | | charged therefor, the policy period,
and the limits of | 19 | | liability, and shall contain an agreement that the
insurance | 20 | | thereunder is provided in accordance with the coverage defined
| 21 | | in this Act, as respects bodily injury and death or property | 22 | | damage or
both, and is subject to all the provisions of this | 23 | | Act.
| 24 | | (e) Policy Need Not Insure Workers' Compensation. --Any | 25 | | liability
policy or policies issued hereunder need not cover | 26 | | any liability of the
insured assumed by or imposed upon the |
| | | HB5520 | - 5 - | LRB103 33409 MXP 63221 b |
|
| 1 | | insured under any workers'
compensation law nor any liability | 2 | | for damage to property in charge of
the insured or the | 3 | | insured's employees.
| 4 | | (f) Provisions Incorporated in Policy. --Every motor | 5 | | vehicle
liability policy is subject to the following | 6 | | provisions which need not
be contained therein:
| 7 | | 1. The liability of the insurance carrier under any | 8 | | such policy
shall become absolute whenever loss or damage | 9 | | covered by the policy
occurs and the satisfaction by the | 10 | | insured of a final judgment for such
loss or damage shall | 11 | | not be a condition precedent to the right or
obligation of | 12 | | the carrier to make payment on account of such loss or
| 13 | | damage.
| 14 | | 2. No such policy may be cancelled or annulled as | 15 | | respects any loss
or damage, by any agreement between the | 16 | | carrier and the insured after
the insured has become | 17 | | responsible for such loss or damage, and any such
| 18 | | cancellation or annulment shall be void.
| 19 | | 3. The insurance carrier shall, however, have the | 20 | | right to settle
any claim covered by the policy, and if | 21 | | such settlement is made in good
faith, the amount thereof | 22 | | shall be deductible from the limits of
liability specified | 23 | | in the policy.
| 24 | | 4. The policy, the written application therefor, if | 25 | | any, and any
rider or endorsement which shall not conflict | 26 | | with the provisions of
this Act shall constitute the |
| | | HB5520 | - 6 - | LRB103 33409 MXP 63221 b |
|
| 1 | | entire contract between the parties.
| 2 | | (g) Excess or Additional Coverage. --Any motor vehicle | 3 | | liability
policy may, however, grant any lawful coverage in | 4 | | excess of or in
addition to the coverage herein specified or | 5 | | contain any agreements,
provisions, or stipulations not in | 6 | | conflict with the provisions of this
Act and not otherwise | 7 | | contrary to law.
| 8 | | (h) Reimbursement Provision Permitted. --The policy may | 9 | | provide that
the insured, or any other person covered by the | 10 | | policy shall reimburse
the insurance carrier for payment made | 11 | | on account of any loss or damage
claim or suit involving a | 12 | | breach of the terms, provisions or conditions
of the policy; | 13 | | and further, if the policy shall provide for limits in
excess | 14 | | of the limits specified in this Act, the insurance carrier may
| 15 | | plead against any plaintiff, with respect to the amount of | 16 | | such excess
limits of liability, any defense which it may be | 17 | | entitled to plead
against the insured.
| 18 | | (i) Proration of Insurance Permitted. --The policy may | 19 | | provide for
the pro-rating of the insurance thereunder with | 20 | | other applicable valid
and collectible insurance.
| 21 | | (j) Binders. --Any binder pending the issuance of any | 22 | | policy, which
binder contains or by reference includes the | 23 | | provisions hereunder shall
be sufficient proof of ability to | 24 | | respond in damages.
| 25 | | (k) Copy of Policy to Be Filed with Department of
| 26 | | Insurance--Approval. --A copy of the form of every motor |
| | | HB5520 | - 7 - | LRB103 33409 MXP 63221 b |
|
| 1 | | vehicle
liability policy which is to be used to meet the | 2 | | requirements of this
Act must be filed, by the company | 3 | | offering such policy, with the
Department of Insurance, which | 4 | | shall approve or disapprove the policy
within 30 days of its | 5 | | filing. If the Department approves the policy in
writing | 6 | | within such 30 day period or fails to take action for 30 days,
| 7 | | the form of policy shall be deemed approved as filed. If within | 8 | | the 30
days the Department disapproves the form of policy | 9 | | filed upon the ground
that it does not comply with the | 10 | | requirements of this Act, the
Department shall give written | 11 | | notice of its decision and its reasons
therefor to the carrier | 12 | | and the policy shall not be accepted as proof of
financial | 13 | | responsibility under this Act.
| 14 | | (l) Insurance Carrier Required to File Certificate. --An | 15 | | insurance
carrier who has issued a motor vehicle liability | 16 | | policy or policies or
an operator's policy meeting the | 17 | | requirements of this Act shall, upon
the request of the | 18 | | insured therein, deliver to the insured for filing,
or at the | 19 | | request of the insured, shall file direct, with the Secretary
| 20 | | of State a certificate, as required by this Act, which shows | 21 | | that such
policy or policies have been issued. No insurance | 22 | | carrier may require
the payment of any extra fee or surcharge, | 23 | | in addition to the insurance
premium, for the execution, | 24 | | delivery or filing of such certificate.
| 25 | | (m) Proof When Made By Endorsement. --Any motor vehicle | 26 | | liability
policy which by endorsement contains the provisions |
| | | HB5520 | - 8 - | LRB103 33409 MXP 63221 b |
|
| 1 | | required hereunder
shall be sufficient proof of ability to | 2 | | respond in damages.
| 3 | | (Source: P.A. 102-982, eff. 7-1-23.)
| 4 | | (625 ILCS 5/7-330 new) | 5 | | Sec. 7-330. Proof of financial responsibility; persons who | 6 | | own and operate commercial vehicles. Except as otherwise | 7 | | provided, commercial vehicles must be insured of not less than | 8 | | $50,000 because of bodily injury to or death of any one person | 9 | | in any one motor vehicle crash and, subject to said limit for | 10 | | one person, to a limit of not less than $100,000 because of | 11 | | bodily injury to or death of 2 or more persons in any one motor | 12 | | vehicle crash, and, if the motor vehicle crash has resulted in | 13 | | injury to or destruction of property, to a limit of not less | 14 | | than $50,000 because of injury to or destruction of property | 15 | | of others in any one motor vehicle crash.
|
|