Full Text of HB5657 103rd General Assembly
HB5657 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB5657 Introduced 2/9/2024, by Rep. Diane Blair-Sherlock SYNOPSIS AS INTRODUCED: | | 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. 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 $50,000 (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 $100,000 (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 $40,000 (rather than $20,000). Requires a motor vehicle owner or any person that maintains, uses, or operates a motor vehicle to furnish proof of financial responsibility in the amounts provided. Establishes that a judgment arising out of a motor vehicle crash is deemed satisfied once the specified policy amount is credited toward the judgment. Effective immediately. |
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| | A BILL FOR |
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| 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 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 | 8 | | ability to respond in damages for any liability thereafter | 9 | | incurred resulting from the ownership, maintenance, use , or | 10 | | operation of a motor vehicle for bodily injury to or death of | 11 | | any person in the amount of $50,000 $25,000 , and subject to | 12 | | this limit for any one person injured or killed, in the amount | 13 | | of $100,000 $50,000 for bodily injury to or death of 2 or more | 14 | | persons in any one crash, and for damage to property in the | 15 | | amount of $40,000 $20,000 resulting from any one crash. This | 16 | | proof in these amounts shall be furnished for each motor | 17 | | vehicle registered by every person required to furnish this | 18 | | proof. The changes to this Section made by this amendatory Act | 19 | | of the 98th General Assembly apply only to policies issued or | 20 | | renewed on or after January 1, 2015. | 21 | | (Source: P.A. 102-982, eff. 7-1-23 .) | 22 | | (625 ILCS 5/7-203) (from Ch. 95 1/2, par. 7-203) |
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| 1 | | Sec. 7-203. Requirements as to policy or bond. No such | 2 | | policy or bond referred to in Section 7-202 shall be effective | 3 | | under this Section unless issued by an insurance company or | 4 | | surety company authorized to do business in this State, except | 5 | | that if such motor vehicle was not registered in this State, or | 6 | | was a motor vehicle which was registered elsewhere than in | 7 | | this State at the effective date of the policy or bond, or the | 8 | | most recent renewal thereof, such policy or bond shall not be | 9 | | effective under this Section unless the insurance company or | 10 | | surety company, if not authorized to do business in this | 11 | | State, shall execute a power of attorney authorizing the | 12 | | Secretary of State to accept service on its behalf of notice or | 13 | | process in any action upon such policy or bond arising out of | 14 | | such motor vehicle crash. However, every such policy or bond | 15 | | is subject, if the motor vehicle crash has resulted in bodily | 16 | | injury or death, to a limit, exclusive of interest and costs, | 17 | | of not less than $50,000 $25,000 because of bodily injury to or | 18 | | death of any one person in any one motor vehicle crash and, | 19 | | subject to said limit for one person, to a limit of not less | 20 | | than $100,000 $50,000 because of bodily injury to or death of 2 | 21 | | or more persons in any one motor vehicle crash, and, if the | 22 | | motor vehicle crash has resulted in injury to or destruction | 23 | | of property, to a limit of not less than $40,000 $20,000 | 24 | | because of injury to or destruction of property of others in | 25 | | any one motor vehicle crash. The changes to this Section made | 26 | | by this amendatory Act of the 98th General Assembly apply only |
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| 1 | | to policies issued or renewed on or after January 1, 2015. | 2 | | Upon receipt of a written motor vehicle crash report from | 3 | | the Administrator the insurance company or surety company | 4 | | named in such notice shall notify the Administrator within | 5 | | such time and in such manner as the Administrator may require, | 6 | | in case such policy or bond was not in effect at the time of | 7 | | such motor vehicle crash. | 8 | | (Source: P.A. 102-982, eff. 7-1-23 .) | 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) Judgments herein referred to arising out of motor | 12 | | vehicle crashes occurring on or after January 1, 2015 (the | 13 | | effective date of Public Act 98-519) shall for the purpose of | 14 | | this Chapter be deemed satisfied: | 15 | | 1. when $50,000 $25,000 has been credited upon any | 16 | | judgment or judgments rendered in excess of that amount | 17 | | for bodily injury to or the death of one person as the | 18 | | result of any one motor vehicle crash; or | 19 | | 2. when, subject to said limit of $50,000 $25,000 as | 20 | | to any one person, the sum of $100,000 $50,000 has been | 21 | | credited upon any judgment or judgments rendered in excess | 22 | | of that amount for bodily injury to or the death of more | 23 | | than one person as the result of any one motor vehicle | 24 | | crash; or | 25 | | 3. when $40,000 $20,000 has been credited upon any |
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| 1 | | judgment or judgments, rendered in excess of that amount | 2 | | for damages to property of others as a result of any one | 3 | | motor vehicle crash. | 4 | | The changes to this subsection made by Public Act 98-519 | 5 | | apply only to policies issued or renewed on or after January 1, | 6 | | 2015. | 7 | | (b) Credit for such amounts shall be deemed a satisfaction | 8 | | of any such judgment or judgments in excess of said amounts | 9 | | only for the purposes of this Chapter. | 10 | | (c) Whenever payment has been made in settlement of any | 11 | | claim for bodily injury, death, or property damage arising | 12 | | from a motor vehicle crash resulting in injury, death, or | 13 | | property damage to 2 two or more persons in such crash, any | 14 | | such payment shall be credited in reduction of the amounts | 15 | | provided for in this Section. | 16 | | (Source: P.A. 102-982, eff. 7-1-23 .) | 17 | | (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317) | 18 | | Sec. 7-317. "Motor vehicle liability policy" defined. | 19 | | (a) Certification. -A "motor vehicle liability policy", as | 20 | | that term is used in this Act, means an "owner's policy" or an | 21 | | "operator's policy" of liability insurance, certified as | 22 | | provided in Section 7-315 or Section 7-316 as proof of | 23 | | financial responsibility for the future, and issued, except as | 24 | | otherwise provided in Section 7-316, by an insurance carrier | 25 | | duly authorized to transact business in this State, to or for |
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| 1 | | the benefit of the person named therein as insured. | 2 | | (b) Owner's Policy. --Such owner's policy of liability | 3 | | insurance: | 4 | | 1. Shall designate by explicit description or by | 5 | | appropriate reference, all motor vehicles with respect to | 6 | | which coverage is thereby intended to be granted; | 7 | | 2. Shall insure the person named therein and any other | 8 | | person using or responsible for the use of such motor | 9 | | vehicle or vehicles with the express or implied permission | 10 | | of the insured; | 11 | | 3. Shall insure every named insured and any other | 12 | | person using or responsible for the use of any motor | 13 | | vehicle owned by the named insured and used by such other | 14 | | person with the express or implied permission of the named | 15 | | insured on account of the maintenance, use , or operation | 16 | | of any motor vehicle owned by the named insured, within | 17 | | the continental limits of the United States or the | 18 | | Dominion of Canada against loss from liability imposed by | 19 | | law arising from such maintenance, use , or operation, to | 20 | | the extent and aggregate amount, exclusive of interest and | 21 | | cost, with respect to each motor vehicle, of $50,000 | 22 | | $25,000 for bodily injury to or death of one person as a | 23 | | result of any one crash and, subject to such limit as to | 24 | | one person, the amount of $100,000 $50,000 for bodily | 25 | | injury to or death of all persons as a result of any one | 26 | | crash and the amount of $40,000 $20,000 for damage to |
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| 1 | | property of others as a result of any one crash. The | 2 | | changes to this paragraph made by this amendatory Act of | 3 | | the 98th General Assembly apply only to policies issued or | 4 | | renewed on or after January 1, 2015. | 5 | | (c) Operator's Policy. --When an operator's policy is | 6 | | required, it shall insure the person named therein as insured | 7 | | against the liability imposed by law upon the insured for | 8 | | bodily injury to or death of any person or damage to property | 9 | | to the amounts and limits above set forth and growing out of | 10 | | the use or operation by the insured within the continental | 11 | | limits of the United States or the Dominion of Canada of any | 12 | | motor vehicle not owned by him. | 13 | | (d) Required Statements in Policies. --Every motor vehicle | 14 | | liability policy must specify the name and address of the | 15 | | insured, the coverage afforded by the policy, the premium | 16 | | charged therefor, the policy period, and the limits of | 17 | | liability, and shall contain an agreement that the insurance | 18 | | thereunder is provided in accordance with the coverage defined | 19 | | in this Act, as respects bodily injury and death or property | 20 | | damage or both, and is subject to all the provisions of this | 21 | | Act. | 22 | | (e) Policy Need Not Insure Workers' Compensation. --Any | 23 | | liability policy or policies issued hereunder need not cover | 24 | | any liability of the insured assumed by or imposed upon the | 25 | | insured under any workers' compensation law nor any liability | 26 | | for damage to property in charge of the insured or the |
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| 1 | | insured's employees. | 2 | | (f) Provisions Incorporated in Policy. --Every motor | 3 | | vehicle liability policy is subject to the following | 4 | | provisions which need not be contained therein: | 5 | | 1. The liability of the insurance carrier under any | 6 | | such policy shall become absolute whenever loss or damage | 7 | | covered by the policy occurs and the satisfaction by the | 8 | | insured of a final judgment for such loss or damage shall | 9 | | not be a condition precedent to the right or obligation of | 10 | | the carrier to make payment on account of such loss or | 11 | | damage. | 12 | | 2. No such policy may be cancelled or annulled as | 13 | | respects any loss or damage, by any agreement between the | 14 | | carrier and the insured after the insured has become | 15 | | responsible for such loss or damage, and any such | 16 | | cancellation or annulment shall be void. | 17 | | 3. The insurance carrier shall, however, have the | 18 | | right to settle any claim covered by the policy, and if | 19 | | such settlement is made in good faith, the amount thereof | 20 | | shall be deductible from the limits of liability specified | 21 | | in the policy. | 22 | | 4. The policy, the written application therefor, if | 23 | | any, and any rider or endorsement which shall not conflict | 24 | | with the provisions of this Act shall constitute the | 25 | | entire contract between the parties. | 26 | | (g) Excess or Additional Coverage. --Any motor vehicle |
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| 1 | | liability policy may, however, grant any lawful coverage in | 2 | | excess of or in addition to the coverage herein specified or | 3 | | contain any agreements, provisions, or stipulations not in | 4 | | conflict with the provisions of this Act and not otherwise | 5 | | contrary to law. | 6 | | (h) Reimbursement Provision Permitted. --The policy may | 7 | | provide that the insured, or any other person covered by the | 8 | | policy shall reimburse the insurance carrier for payment made | 9 | | on account of any loss or damage claim or suit involving a | 10 | | breach of the terms, provisions , | | | or conditions of the policy; | 11 | | and further, if the policy shall provide for limits in excess | 12 | | of the limits specified in this Act, the insurance carrier may | 13 | | plead against any plaintiff, with respect to the amount of | 14 | | such excess limits of liability, any defense which it may be | 15 | | entitled to plead against the insured. | 16 | | (i) Proration of Insurance Permitted. --The policy may | 17 | | provide for the pro-rating of the insurance thereunder with | 18 | | other applicable valid and collectible insurance. | 19 | | (j) Binders. --Any binder pending the issuance of any | 20 | | policy, which binder contains or by reference includes the | 21 | | provisions hereunder shall be sufficient proof of ability to | 22 | | respond in damages. | 23 | | (k) Copy of Policy to Be Filed with Department of | 24 | | Insurance--Approval. --A copy of the form of every motor | 25 | | vehicle liability policy which is to be used to meet the | 26 | | requirements of this Act must be filed, by the company |
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| 1 | | offering such policy, with the Department of Insurance, which | 2 | | shall approve or disapprove the policy within 30 days of its | 3 | | filing. If the Department approves the policy in writing | 4 | | within such 30 day period or fails to take action for 30 days, | 5 | | the form of policy shall be deemed approved as filed. If within | 6 | | the 30 days the Department disapproves the form of policy | 7 | | filed upon the ground that it does not comply with the | 8 | | requirements of this Act, the Department shall give written | 9 | | notice of its decision and its reasons therefor to the carrier | 10 | | and the policy shall not be accepted as proof of financial | 11 | | responsibility under this Act. | 12 | | (l) Insurance Carrier Required to File Certificate. --An | 13 | | insurance carrier who has issued a motor vehicle liability | 14 | | policy or policies or an operator's policy meeting the | 15 | | requirements of this Act shall, upon the request of the | 16 | | insured therein, deliver to the insured for filing, or at the | 17 | | request of the insured, shall file direct, with the Secretary | 18 | | of State a certificate, as required by this Act, which shows | 19 | | that such policy or policies have been issued. No insurance | 20 | | carrier may require the payment of any extra fee or surcharge, | 21 | | in addition to the insurance premium, for the execution, | 22 | | delivery or filing of such certificate. | 23 | | (m) Proof When Made By Endorsement. --Any motor vehicle | 24 | | liability policy which by endorsement contains the provisions | 25 | | required hereunder shall be sufficient proof of ability to | 26 | | respond in damages. |
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| 1 | | (Source: P.A. 102-982, eff. 7-1-23 .) | 2 | | Section 99. Effective date. This Act takes effect upon | 3 | | becoming law. |
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