815 ILCS 312/10

(815 ILCS 312/10)

Sec. 10. Insurance coverage during car-sharing period.

(a) Except as provided in subsection (b), a car-sharing program shall assume liability of a shared-vehicle owner for bodily injury or property damage to third parties or uninsured and underinsured motorist or personal injury protection losses during the car-sharing period in an amount stated in the car-sharing agreement, which amount may not be less than 4 times the minimum amounts required under Section 7-601 of the Illinois Vehicle Code.

(b) Notwithstanding the definition of "car-sharing termination time" set forth in Section 5, the assumption of liability under subsection (a) does not apply to any shared-vehicle owner when:

(1) the shared-vehicle owner makes an intentional or fraudulent material misrepresentation or omission to the car-sharing program before the car-sharing period in which the loss occurred; or

(2) the shared-vehicle owner acts in concert with a shared-vehicle driver who fails to return the shared vehicle pursuant to the terms of car-sharing agreement.

(c) Notwithstanding the definition of "car-sharing termination time" set forth in Section 5, the assumption of liability under subsection (a) applies to bodily injury, property damage, and uninsured and underinsured motorist or personal injury protection losses by damaged third parties required by Section 7-601 of the Illinois Vehicle Code.

(d) A car-sharing program shall ensure that, during each car-sharing period, the shared-vehicle owner and the shared-vehicle driver are insured under a motor vehicle liability insurance policy that provides insurance coverage in amounts that, for the shared-vehicle driver, are equal to 2 times the minimum amounts set forth in Section 7-601 of the Illinois Vehicle Code and:

(1) recognizes that the shared vehicle insured under the policy is made available and used through a car-sharing program; or

(2) does not exclude use of a shared vehicle by a shared-vehicle driver.

(e) The insurance described under subsection (d) may be satisfied by motor vehicle liability insurance maintained by:

(1) a shared-vehicle owner;

(2) a shared-vehicle driver;

(3) a car-sharing program; or

(4) a combination of a shared-vehicle owner, a shared-vehicle driver, and a car-sharing program.

(f) The insurance described in subsection (e) that is satisfying the insurance requirement of subsection (d) shall be primary during each car-sharing period, and if a claim occurs in another state with minimum financial responsibility limits higher than those set forth in Section 7-601 of the Illinois Vehicle Code during the car-sharing period, the coverage maintained under subsection (e) shall satisfy the difference in minimum coverage amounts up to the applicable policy limits.

(g) The insurer, insurers, or car-sharing program shall assume primary liability for a claim if it is in whole or in part providing the insurance required under subsections (d) and (e) and:

(1) a dispute exists regarding who was in control of the shared vehicle at the time of the loss and the car-sharing program does not have available, did not retain, or fails to provide the information required by Section 25; or

(2) a dispute exists as to whether the shared vehicle was returned to the alternatively agreed-upon location referenced in Section 5.

(h) If insurance maintained by a shared-vehicle owner or shared-vehicle driver in accordance with subsection (e) has lapsed or does not provide the required coverage, insurance maintained by a car-sharing program shall provide the coverage required by subsection (d) beginning with the first dollar of a claim and shall have the duty to defend the claim except under circumstances as set forth in subsection (b).

(i) An insurance policy maintained by the car-sharing program shall not make the coverage dependent on another automobile insurer or policy first denying a claim.

(j) Nothing in this Section:

(1) limits the liability of the car-sharing program for any act or omission of the car-sharing program itself that results in injury to any person as a result of the use of a shared vehicle through a car-sharing program; or

(2) limits the ability of the car-sharing program to, by contract, seek indemnification from the shared-vehicle owner or the shared-vehicle driver for economic loss sustained by the car-sharing program resulting from a breach of the terms and conditions of the car-sharing agreement.

(Source: P.A. 102-497, eff. 1-1-22.)