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91_HB0604eng HB0604 Engrossed LRB9102408KSgc 1 AN ACT to amend the Illinois Vehicle Code. 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 5-101, 5-102, 7-202, 7-317, and 7-601 as 6 follows: 7 (625 ILCS 5/5-101) (from Ch. 95 1/2, par. 5-101) 8 Sec. 5-101. New vehicle dealers must be licensed. 9 (a) No person shall engage in this State in the business 10 of selling or dealing in, on consignment or otherwise, new 11 vehicles of any make, or act as an intermediary or agent or 12 broker for any licensed dealer or vehicle purchaser other 13 than as a salesperson, or represent or advertise that he is 14 so engaged or intends to so engage in such business unless 15 licensed to do so in writing by the Secretary of State under 16 the provisions of this Section. 17 (b) An application for a new vehicle dealer's license 18 shall be filed with the Secretary of State, duly verified by 19 oath, on such form as the Secretary of State may by rule or 20 regulation prescribe and shall contain: 21 1. The name and type of business organization of 22 the applicant and his established and additional places 23 of business, if any, in this State. 24 2. If the applicant is a corporation, a list of its 25 officers, directors, and shareholders having a ten 26 percent or greater ownership interest in the corporation, 27 setting forth the residence address of each; if the 28 applicant is a sole proprietorship, a partnership, an 29 unincorporated association, a trust, or any similar form 30 of business organization, the name and residence address 31 of the proprietor or of each partner, member, officer, HB0604 Engrossed -2- LRB9102408KSgc 1 director, trustee, or manager. 2 3. The make or makes of new vehicles which the 3 applicant will offer for sale at retail in this State. 4 4. The name of each manufacturer or franchised 5 distributor, if any, of new vehicles with whom the 6 applicant has contracted for the sale of such new 7 vehicles. As evidence of this fact, the application shall 8 be accompanied by a signed statement from each such 9 manufacturer or franchised distributor. If the applicant 10 is in the business of offering for sale new conversion 11 vehicles, trucks or vans, except for trucks modified to 12 serve a special purpose which includes but is not limited 13 to the following vehicles: street sweepers, fertilizer 14 spreaders, emergency vehicles, implements of husbandry or 15 maintenance type vehicles, he must furnish evidence of a 16 sales and service agreement from both the chassis 17 manufacturer and second stage manufacturer. 18 5. A statement that the applicant has been approved 19 for registration under the Retailers' Occupation Tax Act 20 by the Department of Revenue: Provided that this 21 requirement does not apply to a dealer who is already 22 licensed hereunder with the Secretary of State, and who 23 is merely applying for a renewal of his license. As 24 evidence of this fact, the application shall be 25 accompanied by a certification from the Department of 26 Revenue showing that that Department has approved the 27 applicant for registration under the Retailers' 28 Occupation Tax Act. 29 6. A statement that the applicant has complied with 30 the appropriate liability insurance requirement. A 31 Certificate of Insurance in a solvent company authorized 32 to do business in the State of Illinois shall be included 33 with each application covering each location at which he 34 proposes to act as a new vehicle dealer. The policy must HB0604 Engrossed -3- LRB9102408KSgc 1 provide liability coverage for the new vehicle dealer in 2 the minimum amounts of $100,000 for bodily injury to, or 3 death of, any person, $300,000 for bodily injury to, or 4 death of, two or more persons in any one accident, and 5 $50,000 for damage to property. Such policy shall expire 6 not sooner than December 31 of the year for which the 7 license was issued or renewed. 8 The liability insurance policy must provide 9 automobile liability coverage in the minimum amounts of 10 $100,000 for bodily injury to, or death of, any person, 11 $300,000 for bodily injury to, or death of, two or more 12 persons in any one accident, and $50,000 for damage to 13 property for any permitted user of the new vehicle 14 dealer's auto if the permitted user has no automobile 15 liability insurance of his or her own. The liability 16 insurance policy must provide automobile liability 17 coverage in the minimum amounts of $100,000 for bodily 18 injury to, or death of, any person, $300,000 for bodily 19 injury to, or death of, two or more persons in any one 20 accident, and $50,000 for damage to property for any 21 permitted user of the new vehicle dealer's auto if the 22 permitted user has automobile liability insurance of his 23 or her own but such insurance is less than the minimum 24 limits of subsection (a) of Section 7-601 and subsection 25 (b) of Section 7-317. If the permitted user of the new 26 vehicle dealer's auto has insurance of his own conforming 27 with or exceeding the minimum limits of subsection (a) of 28 Section 7-601 and subsection (b) of Section 7-317, the 29 new vehicle dealer's insurance does not provide any 30 insurance for the permitted user. 31 The expiration of the insurance policy shall not 32 terminate the liability under the policy arising during the 33 period for which the policy was filed. Trailer and mobile 34 home dealers are exempt from this requirement. HB0604 Engrossed -4- LRB9102408KSgc 1 7. (A) An application for a new motor vehicle 2 dealer's license shall be accompanied by the 3 following license fees: 4 $100 for applicant's established place of 5 business, and $50 for each additional place of 6 business, if any, to which the application pertains; 7 but if the application is made after June 15 of any 8 year, the license fee shall be $50 for applicant's 9 established place of business plus $25 for each 10 additional place of business, if any, to which the 11 application pertains. License fees shall be 12 returnable only in the event that the application is 13 denied by the Secretary of State. All moneys 14 received by the Secretary of State as license fees 15 under this Section shall be deposited into the Motor 16 Vehicle Review Board Fund and shall be used to 17 administer the Motor Vehicle Review Board under the 18 Motor Vehicle Franchise Act. 19 (B) An application for a new vehicle dealer's 20 license, other than for a new motor vehicle dealer's 21 license, shall be accompanied by the following 22 license fees: 23 $50 for applicant's established place of 24 business, and $25 for each additional place of 25 business, if any, to which the application pertains; 26 but if the application is made after June 15 of any 27 year, the license fee shall be $25 for applicant's 28 established place of business plus $12.50 for each 29 additional place of business, if any, to which the 30 application pertains. License fees shall be 31 returnable only in the event that the application is 32 denied by the Secretary of State. 33 8. A statement that the applicant's officers, 34 directors, shareholders having a 10% or greater ownership HB0604 Engrossed -5- LRB9102408KSgc 1 interest therein, proprietor, a partner, member, officer, 2 director, trustee, manager or other principals in the 3 business have not committed in the past 3 years any one 4 violation as determined in any civil, criminal or 5 administrative proceedings of any one of the following 6 Acts: 7 (A) The Anti Theft Laws of the Illinois 8 Vehicle Code; 9 (B) The Certificate of Title Laws of the 10 Illinois Vehicle Code; 11 (C) The Offenses against Registration and 12 Certificates of Title Laws of the Illinois Vehicle 13 Code; 14 (D) The Dealers, Transporters, Wreckers and 15 Rebuilders Laws of the Illinois Vehicle Code; 16 (E) Section 21-2 of the Criminal Code of 1961, 17 Criminal Trespass to Vehicles; or 18 (F) The Retailers' Occupation Tax Act. 19 9. A statement that the applicant's officers, 20 directors, shareholders having a 10% or greater ownership 21 interest therein, proprietor, partner, member, officer, 22 director, trustee, manager or other principals in the 23 business have not committed in any calendar year 3 or 24 more violations, as determined in any civil, criminal or 25 administrative proceedings, of any one or more of the 26 following Acts: 27 (A) The Consumer Finance Act; 28 (B) The Consumer Installment Loan Act; 29 (C) The Retail Installment Sales Act; 30 (D) The Motor Vehicle Retail Installment Sales 31 Act; 32 (E) The Interest Act; 33 (F) The Illinois Wage Assignment Act; 34 (G) Part 8 of Article XII of the Code of Civil HB0604 Engrossed -6- LRB9102408KSgc 1 Procedure; or 2 (H) The Consumer Fraud Act. 3 10. A bond or certificate of deposit in the amount 4 of $20,000 for each location at which the applicant 5 intends to act as a new vehicle dealer. The bond shall 6 be for the term of the license, or its renewal, for which 7 application is made, and shall expire not sooner than 8 December 31 of the year for which the license was issued 9 or renewed. The bond shall run to the People of the 10 State of Illinois, with surety by a bonding or insurance 11 company authorized to do business in this State. It 12 shall be conditioned upon the proper transmittal of all 13 title and registration fees and taxes (excluding taxes 14 under the Retailers' Occupation Tax Act) accepted by the 15 applicant as a new vehicle dealer. 16 11. Such other information concerning the business 17 of the applicant as the Secretary of State may by rule or 18 regulation prescribe. 19 12. A statement that the applicant understands 20 Chapter One through Chapter Five of this Code. 21 (c) Any change which renders no longer accurate any 22 information contained in any application for a new vehicle 23 dealer's license shall be amended within 30 days after the 24 occurrence of such change on such form as the Secretary of 25 State may prescribe by rule or regulation, accompanied by an 26 amendatory fee of $2. 27 (d) Anything in this Chapter 5 to the contrary 28 notwithstanding no person shall be licensed as a new vehicle 29 dealer unless: 30 1. He is authorized by contract in writing between 31 himself and the manufacturer or franchised distributor of 32 such make of vehicle to so sell the same in this State, 33 and 34 2. Such person shall maintain an established place HB0604 Engrossed -7- LRB9102408KSgc 1 of business as defined in this Act. 2 (e) The Secretary of State shall, within a reasonable 3 time after receipt, examine an application submitted to him 4 under this Section and unless he makes a determination that 5 the application submitted to him does not conform with the 6 requirements of this Section or that grounds exist for a 7 denial of the application, under Section 5-501 of this 8 Chapter, grant the applicant an original new vehicle dealer's 9 license in writing for his established place of business and 10 a supplemental license in writing for each additional place 11 of business in such form as he may prescribe by rule or 12 regulation which shall include the following: 13 1. The name of the person licensed; 14 2. If a corporation, the name and address of its 15 officers or if a sole proprietorship, a partnership, an 16 unincorporated association or any similar form of 17 business organization, the name and address of the 18 proprietor or of each partner, member, officer, director, 19 trustee or manager; 20 3. In the case of an original license, the 21 established place of business of the licensee; 22 4. In the case of a supplemental license, the 23 established place of business of the licensee and the 24 additional place of business to which such supplemental 25 license pertains; 26 5. The make or makes of new vehicles which the 27 licensee is licensed to sell. 28 (f) The appropriate instrument evidencing the license or 29 a certified copy thereof, provided by the Secretary of State, 30 shall be kept posted conspicuously in the established place 31 of business of the licensee and in each additional place of 32 business, if any, maintained by such licensee. 33 (g) Except as provided in subsection (h) hereof, all new 34 vehicle dealer's licenses granted under this Section shall HB0604 Engrossed -8- LRB9102408KSgc 1 expire by operation of law on December 31 of the calendar 2 year for which they are granted unless sooner revoked or 3 cancelled under the provisions of Section 5-501 of this 4 Chapter. 5 (h) A new vehicle dealer's license may be renewed upon 6 application and payment of the fee required herein, and 7 submission of proof of coverage under an approved bond under 8 the "Retailers' Occupation Tax Act" or proof that applicant 9 is not subject to such bonding requirements, as in the case 10 of an original license, but in case an application for the 11 renewal of an effective license is made during the month of 12 December, the effective license shall remain in force until 13 the application is granted or denied by the Secretary of 14 State. 15 (i) All persons licensed as a new vehicle dealer are 16 required to furnish each purchaser of a motor vehicle: 17 1. In the case of a new vehicle a manufacturer's 18 statement of origin and in the case of a used motor 19 vehicle a certificate of title, in either case properly 20 assigned to the purchaser; 21 2. A statement verified under oath that all 22 identifying numbers on the vehicle agree with those on 23 the certificate of title or manufacturer's statement of 24 origin; 25 3. A bill of sale properly executed on behalf of 26 such person; 27 4. A copy of the Uniform Invoice-transaction 28 reporting return referred to in Section 5-402 hereof; 29 5. In the case of a rebuilt vehicle, a copy of the 30 Disclosure of Rebuilt Vehicle Status; and 31 6. In the case of a vehicle for which the warranty 32 has been reinstated, a copy of the warranty. 33 This amendatory Act of 1983 shall be applicable to the 34 1984 registration year and thereafter. HB0604 Engrossed -9- LRB9102408KSgc 1 (Source: P.A. 88-158; 89-145, eff. 7-14-95; 89-189, eff. 2 1-1-96; 89-433, eff. 12-15-95.) 3 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102) 4 Sec. 5-102. Used vehicle dealers must be licensed. 5 (a) No person, other than a licensed new vehicle dealer, 6 shall engage in the business of selling or dealing in, on 7 consignment or otherwise, 5 or more used vehicles of any make 8 during the year (except house trailers as authorized by 9 paragraph (j) of this Section and rebuilt salvage vehicles 10 sold by their rebuilders to persons licensed under this 11 Chapter), or act as an intermediary, agent or broker for any 12 licensed dealer or vehicle purchaser (other than as a 13 salesperson) or represent or advertise that he is so engaged 14 or intends to so engage in such business unless licensed to 15 do so by the Secretary of State under the provisions of this 16 Section. 17 (b) An application for a used vehicle dealer's license 18 shall be filed with the Secretary of State, duly verified by 19 oath, in such form as the Secretary of State may by rule or 20 regulation prescribe and shall contain: 21 1. The name and type of business organization 22 established and additional places of business, if any, in 23 this State. 24 2. If the applicant is a corporation, a list of its 25 officers, directors, and shareholders having a ten 26 percent or greater ownership interest in the corporation, 27 setting forth the residence address of each; if the 28 applicant is a sole proprietorship, a partnership, an 29 unincorporated association, a trust, or any similar form 30 of business organization, the names and residence address 31 of the proprietor or of each partner, member, officer, 32 director, trustee or manager. 33 3. A statement that the applicant has been approved HB0604 Engrossed -10- LRB9102408KSgc 1 for registration under the Retailers' Occupation Tax Act 2 by the Department of Revenue. However, this requirement 3 does not apply to a dealer who is already licensed 4 hereunder with the Secretary of State, and who is merely 5 applying for a renewal of his license. As evidence of 6 this fact, the application shall be accompanied by a 7 certification from the Department of Revenue showing that 8 the Department has approved the applicant for 9 registration under the Retailers' Occupation Tax Act. 10 4. A statement that the applicant has complied with 11 the appropriate liability insurance requirement. A 12 Certificate of Insurance in a solvent company authorized 13 to do business in the State of Illinois shall be included 14 with each application covering each location at which he 15 proposes to act as a used vehicle dealer. The policy must 16 provide liability coverage for the used vehicle dealer in 17 the minimum amounts of $100,000 for bodily injury to, or 18 death of, any person, $300,000 for bodily injury to, or 19 death of, two or more persons in any one accident, and 20 $50,000 for damage to property. Such policy shall expire 21 not sooner than December 31 of the year for which the 22 license was issued or renewed. 23 The liability insurance policy must provide 24 automobile liability coverage in the minimum amounts of 25 $100,000 for bodily injury to, or death of, any person, 26 $300,000 for bodily injury to, or death of, two or more 27 persons in any one accident, and $50,000 for damage to 28 property for any permitted user of the used vehicle 29 dealer's auto if the permitted user has no automobile 30 liability insurance of his or her own. The liability 31 insurance policy must provide automobile liability 32 coverage in the minimum amounts of $100,000 for bodily 33 injury to, or death of, any person, $300,000 for bodily 34 injury to, or death of, two or more persons in any one HB0604 Engrossed -11- LRB9102408KSgc 1 accident, and $50,000 for damage to property for any 2 permitted user of the used vehicle dealer's auto if the 3 permitted user has automobile liability insurance of his 4 or her own but the insurance is less than the minimum 5 limits of subsection (a) of Section 7-601 and subsection 6 (b) of Section 7-317. If the permitted user of the used 7 vehicle dealer's auto has insurance of his or her own 8 conforming with or exceeding the minimum limits of 9 subsection (a) of Section 7-601 and subsection (b) of 10 Section 7-317, the used vehicle dealer's insurance does 11 not provide any insurance for the permitted user. 12 The expiration of the insurance policy shall not 13 terminate the liability under the policy arising during the 14 period for which the policy was filed. Trailer and mobile 15 home dealers are exempt from this requirement. 16 5. An application for a used vehicle dealer's 17 license shall be accompanied by the following license 18 fees: 19 $50 for applicant's established place of business, 20 and $25 for each additional place of business, if any, to 21 which the application pertains; however, if the 22 application is made after June 15 of any year, the 23 license fee shall be $25 for applicant's established 24 place of business plus $12.50 for each additional place 25 of business, if any, to which the application pertains. 26 License fees shall be returnable only in the event that 27 the application is denied by the Secretary of State. 28 6. A statement that the applicant's officers, 29 directors, shareholders having a 10% or greater ownership 30 interest therein, proprietor, partner, member, officer, 31 director, trustee, manager or other principals in the 32 business have not committed in the past 3 years any one 33 violation as determined in any civil, criminal or 34 administrative proceedings of any one of the following HB0604 Engrossed -12- LRB9102408KSgc 1 Acts: 2 (A) The Anti Theft Laws of the Illinois 3 Vehicle Code; 4 (B) The Certificate of Title Laws of the 5 Illinois Vehicle Code; 6 (C) The Offenses against Registration and 7 Certificates of Title Laws of the Illinois Vehicle 8 Code; 9 (D) The Dealers, Transporters, Wreckers and 10 Rebuilders Laws of the Illinois Vehicle Code; 11 (E) Section 21-2 of the Illinois Criminal Code 12 of 1961, Criminal Trespass to Vehicles; or 13 (F) The Retailers' Occupation Tax Act. 14 7. A statement that the applicant's officers, 15 directors, shareholders having a 10% or greater ownership 16 interest therein, proprietor, partner, member, officer, 17 director, trustee, manager or other principals in the 18 business have not committed in any calendar year 3 or 19 more violations, as determined in any civil or criminal 20 or administrative proceedings, of any one or more of the 21 following Acts: 22 (A) The Consumer Finance Act; 23 (B) The Consumer Installment Loan Act; 24 (C) The Retail Installment Sales Act; 25 (D) The Motor Vehicle Retail Installment Sales 26 Act; 27 (E) The Interest Act; 28 (F) The Illinois Wage Assignment Act; 29 (G) Part 8 of Article XII of the Code of Civil 30 Procedure; or 31 (H) The Consumer Fraud Act. 32 8. A bond or Certificate of Deposit in the amount 33 of $20,000 for each location at which the applicant 34 intends to act as a used vehicle dealer. The bond shall HB0604 Engrossed -13- LRB9102408KSgc 1 be for the term of the license, or its renewal, for which 2 application is made, and shall expire not sooner than 3 December 31 of the year for which the license was issued 4 or renewed. The bond shall run to the People of the 5 State of Illinois, with surety by a bonding or insurance 6 company authorized to do business in this State. It 7 shall be conditioned upon the proper transmittal of all 8 title and registration fees and taxes (excluding taxes 9 under the Retailers' Occupation Tax Act) accepted by the 10 applicant as a used vehicle dealer. 11 9. Such other information concerning the business 12 of the applicant as the Secretary of State may by rule or 13 regulation prescribe. 14 10. A statement that the applicant understands 15 Chapter 1 through Chapter 5 of this Code. 16 (c) Any change which renders no longer accurate any 17 information contained in any application for a used vehicle 18 dealer's license shall be amended within 30 days after the 19 occurrence of each change on such form as the Secretary of 20 State may prescribe by rule or regulation, accompanied by an 21 amendatory fee of $2. 22 (d) Anything in this Chapter to the contrary 23 notwithstanding, no person shall be licensed as a used 24 vehicle dealer unless such person maintains an established 25 place of business as defined in this Chapter. 26 (e) The Secretary of State shall, within a reasonable 27 time after receipt, examine an application submitted to him 28 under this Section. Unless the Secretary makes a 29 determination that the application submitted to him does not 30 conform to this Section or that grounds exist for a denial of 31 the application under Section 5-501 of this Chapter, he must 32 grant the applicant an original used vehicle dealer's license 33 in writing for his established place of business and a 34 supplemental license in writing for each additional place of HB0604 Engrossed -14- LRB9102408KSgc 1 business in such form as he may prescribe by rule or 2 regulation which shall include the following: 3 1. The name of the person licensed; 4 2. If a corporation, the name and address of its 5 officers or if a sole proprietorship, a partnership, an 6 unincorporated association or any similar form of 7 business organization, the name and address of the 8 proprietor or of each partner, member, officer, director, 9 trustee or manager; 10 3. In case of an original license, the established 11 place of business of the licensee; 12 4. In the case of a supplemental license, the 13 established place of business of the licensee and the 14 additional place of business to which such supplemental 15 license pertains. 16 (f) The appropriate instrument evidencing the license or 17 a certified copy thereof, provided by the Secretary of State 18 shall be kept posted, conspicuously, in the established place 19 of business of the licensee and in each additional place of 20 business, if any, maintained by such licensee. 21 (g) Except as provided in subsection (h) of this 22 Section, all used vehicle dealer's licenses granted under 23 this Section expire by operation of law on December 31 of the 24 calendar year for which they are granted unless sooner 25 revoked or cancelled under Section 5-501 of this Chapter. 26 (h) A used vehicle dealer's license may be renewed upon 27 application and payment of the fee required herein, and 28 submission of proof of coverage by an approved bond under the 29 "Retailers' Occupation Tax Act" or proof that applicant is 30 not subject to such bonding requirements, as in the case of 31 an original license, but in case an application for the 32 renewal of an effective license is made during the month of 33 December, the effective license shall remain in force until 34 the application for renewal is granted or denied by the HB0604 Engrossed -15- LRB9102408KSgc 1 Secretary of State. 2 (i) All persons licensed as a used vehicle dealer are 3 required to furnish each purchaser of a motor vehicle: 4 1. A certificate of title properly assigned to the 5 purchaser; 6 2. A statement verified under oath that all 7 identifying numbers on the vehicle agree with those on 8 the certificate of title; 9 3. A bill of sale properly executed on behalf of 10 such person; 11 4. A copy of the Uniform Invoice-transaction 12 reporting return referred to in Section 5-402 of this 13 Chapter; 14 5. In the case of a rebuilt vehicle, a copy of the 15 Disclosure of Rebuilt Vehicle Status; and 16 6. In the case of a vehicle for which the warranty 17 has been reinstated, a copy of the warranty. 18 (j) A real estate broker holding a valid certificate of 19 registration issued pursuant to "The Real Estate Brokers and 20 Salesmen License Act" may engage in the business of selling 21 or dealing in house trailers not his own without being 22 licensed as a used vehicle dealer under this Section; however 23 such broker shall maintain a record of the transaction 24 including the following: 25 (1) the name and address of the buyer and seller, 26 (2) the date of sale, 27 (3) a description of the mobile home, including the 28 vehicle identification number, make, model, and year, and 29 (4) the Illinois certificate of title number. 30 The foregoing records shall be available for inspection 31 by any officer of the Secretary of State's Office at any 32 reasonable hour. 33 (Source: P.A. 88-158; 89-189, eff. 1-1-96.) HB0604 Engrossed -16- LRB9102408KSgc 1 (625 ILCS 5/7-202) (from Ch. 95 1/2, par. 7-202) 2 Sec. 7-202. Exceptions to requirements of security. (a) 3 The requirements as to security and suspension as provided by 4 Sections 7-201 and 7-205 shall not apply: 5 1. To the driver or owner if such owner had in effect at 6 the time of such motor vehicle accident a liability policy 7 covering such driver and owner with respect to the vehicle 8 involved in such motor vehicle accident; 9 2. To the driver, if not the owner of such vehicle, if 10 there was in effect at the time of such motor vehicle 11 accident a liability policy or bond with respect to the 12 operation of motor vehicles not owned by the driver; 13 3. To the driver or owner if the liability of such 14 driver or owner for damages resulting from such motor vehicle 15 accident is covered by any other form of liability insurance 16 policy or bond; 17 4. To the driver or owner, if such owner is qualified as 18 a self-insurer as provided in Section 7-502; 19 5. To the owner if such owner at the time of such motor 20 vehicle accident was in compliance with Section 8-101 or 21 Section 9-101, or if the owner was a new or used vehicle 22 dealer in compliance with paragraph 6 of subsection (b) of 23 Section 5-101 or with paragraph 4 of subsection (b) of 24 Section 5-102; 25 6. To the driver or owner if such owner at the time of 26 such motor vehicle accident was in compliance with the 27 Federal Revised Interstate Commerce Act (P.L. 95-473), as now 28 or hereafter amended; 29 7. To the owner if the vehicle involved in such motor 30 vehicle accident was owned by the United States, this State 31 or any political sub-division of this State, any municipality 32 therein, or any local Mass Transit District; 33 8. To the driver or the owner of a vehicle involved in a 34 motor vehicle accident wherein no injury or damage was caused HB0604 Engrossed -17- LRB9102408KSgc 1 to the person or property of any one other than such driver 2 or owner; 3 9. To the driver or the owner of a vehicle which at the 4 time of the motor vehicle accident was parked, unless such 5 vehicle was parked at a place where parking was at the time 6 of the accident prohibited under any applicable law or 7 ordinance; 8 10. To the owner of a vehicle if at the time of the 9 motor vehicle accident the vehicle was being operated without 10 his permission, express or implied, or was parked by a person 11 who had been operating such motor vehicle without such 12 permission; 13 11. To the driver, if not the owner, of a commercial 14 motor vehicle on which there was no liability policy or bond 15 with respect to the operation of such vehicle in effect at 16 the time of the motor vehicle accident when the driver was 17 operating the vehicle in the course of the driver's 18 employment and had no actual knowledge of such lack of a 19 liability policy or bond prior to the motor vehicle accident. 20 (b) If at the time of the motor vehicle accident, an 21 owner or driver is covered by a motor vehicle liability 22 policy or bond meeting the requirements of this Code, such 23 owner or driver shall be exempt from suspension under Section 24 7-205 as to that motor vehicle accident, if the company 25 issuing the policy or bond has failed, and such policy or 26 bond was not effective at the time of the motor vehicle 27 accident or any time thereafter, provided, that the owner or 28 driver had no knowledge of the company's failure prior to the 29 motor vehicle accident, and such owner or driver has secured 30 within 30 days after learning of such failure another 31 liability policy or bond meeting the requirements of the Code 32 relating to future occurrences or motor vehicle accidents. 33 As used in this paragraph, the words "failed" or 34 "failure" mean that the company has suspended operations by HB0604 Engrossed -18- LRB9102408KSgc 1 order of a court. 2 (Source: P.A. 85-293.) 3 (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317) 4 Sec. 7-317. "Motor vehicle liability policy" defined. 5 (a) Certification. -A "motor vehicle liability policy", 6 as that term is used in this Act, means an "owner's policy" 7 or an "operator's policy" of liability insurance, certified 8 as provided in Section 7-315 or Section 7-316 as proof of 9 financial responsibility for the future, and issued, except 10 as otherwise provided in Section 7-316, by an insurance 11 carrier duly authorized to transact business in this State, 12 to or for the benefit of the person named therein as insured. 13 (b) Owner's Policy. --Such owner's policy of liability 14 insurance: 15 1. Shall designate by explicit description or by 16 appropriate reference, all motor vehicles with respect to 17 which coverage is thereby intended to be granted; 18 2. Shall insure the person named therein and any 19 other person using or responsible for the use of such 20 motor vehicle or vehicles with the express or implied 21 permission of the insured, except that with respect to 22 new vehicle dealers and used vehicle dealers, it shall 23 insure permitted users only if the permitted users do not 24 have any insurance coverage or have less than the 25 required minimum limits of $20,000 for bodily injury to, 26 or death of, any person, $40,000 for bodily injury to, or 27 death of, 2 or more persons in any one accident, and 28 $15,000 for damage to property, in which case the limits 29 of coverage owed by the owner to the permitted user are 30 the minimum limits set out in paragraph 4; 31 3. Shall insure every named insured and any other 32 person using or responsible for the use of any motor 33 vehicle owned by the named insured and used by such other HB0604 Engrossed -19- LRB9102408KSgc 1 person with the express or implied permission of the 2 named insured on account of the maintenance, use or 3 operation of any motor vehicle owned by the named 4 insured, within the continental limits of the United 5 States or the Dominion of Canada against loss from 6 liability imposed by law arising from such maintenance, 7 use or operation, to the extent and aggregate amount, 8 exclusive of interest and cost, with respect to each 9 motor vehicle, of $20,000 for bodily injury to or death 10 of one person as a result of any one accident and, 11 subject to such limit as to one person, the amount of 12 $40,000 for bodily injury to or death of all persons as a 13 result of any one accident and the amount of $15,000 for 14 damage to property of others as a result of any one 15 accident; and.16 4. Shall insure a permitted user of a new vehicle 17 dealer's or used vehicle dealer's auto only if the 18 permitted user has no insurance coverage or has insurance 19 coverage with the limits less than the minimum required 20 limits of $20,000 for bodily injury to, or death of, any 21 person, $40,000 for bodily injury to, or death of, 2 or 22 more persons in any one accident, and $15,000 for damage 23 to property, in which case the dealer's policy shall 24 provide automobile liability coverage in the minimum 25 amounts of $100,000 for bodily injury to, or death of, 26 any person, $300,000 for bodily injury to, or death of, 27 two or more persons in any one accident, and $50,000 for 28 damage to property. 29 (c) Operator's Policy. --When an operator's policy is 30 required, it shall insure the person named therein as insured 31 against the liability imposed by law upon the insured for 32 bodily injury to or death of any person or damage to property 33 to the amounts and limits above set forth and growing out of 34 the use or operation by the insured within the continental HB0604 Engrossed -20- LRB9102408KSgc 1 limits of the United States or the Dominion of Canada of any 2 motor vehicle not owned by him. 3 (d) Required Statements in Policies. --Every motor 4 vehicle liability policy must specify the name and address of 5 the insured, the coverage afforded by the policy, the premium 6 charged therefor, the policy period, and the limits of 7 liability, and shall contain an agreement that the insurance 8 thereunder is provided in accordance with the coverage 9 defined in this Act, as respects bodily injury and death or 10 property damage or both, and is subject to all the provisions 11 of this Act. 12 (e) Policy Need Not Insure Workers' Compensation. --Any 13 liability policy or policies issued hereunder need not cover 14 any liability of the insured assumed by or imposed upon the 15 insured under any workers' compensation law nor any liability 16 for damage to property in charge of the insured or the 17 insured's employees. 18 (f) Provisions Incorporated in Policy. --Every motor 19 vehicle liability policy is subject to the following 20 provisions which need not be contained therein: 21 1. The liability of the insurance carrier under any such 22 policy shall become absolute whenever loss or damage covered 23 by the policy occurs and the satisfaction by the insured of a 24 final judgment for such loss or damage shall not be a 25 condition precedent to the right or obligation of the carrier 26 to make payment on account of such loss or damage. 27 2. No such policy may be cancelled or annulled as 28 respects any loss or damage, by any agreement between the 29 carrier and the insured after the insured has become 30 responsible for such loss or damage, and any such 31 cancellation or annulment shall be void. 32 3. The insurance carrier shall, however, have the right 33 to settle any claim covered by the policy, and if such 34 settlement is made in good faith, the amount thereof shall be HB0604 Engrossed -21- LRB9102408KSgc 1 deductible from the limits of liability specified in the 2 policy. 3 4. The policy, the written application therefor, if any, 4 and any rider or endorsement which shall not conflict with 5 the provisions of this Act shall constitute the entire 6 contract between the parties. 7 (g) Excess or Additional Coverage. --Any motor vehicle 8 liability policy may, however, grant any lawful coverage in 9 excess of or in addition to the coverage herein specified or 10 contain any agreements, provisions, or stipulations not in 11 conflict with the provisions of this Act and not otherwise 12 contrary to law. 13 (h) Reimbursement Provision Permitted. --The policy may 14 provide that the insured, or any other person covered by the 15 policy shall reimburse the insurance carrier for payment made 16 on account of any loss or damage claim or suit involving a 17 breach of the terms, provisions or conditions of the policy; 18 and further, if the policy shall provide for limits in excess 19 of the limits specified in this Act, the insurance carrier 20 may plead against any plaintiff, with respect to the amount 21 of such excess limits of liability, any defense which it may 22 be entitled to plead against the insured. 23 (i) Proration of Insurance Permitted. --The policy may 24 provide for the pro-rating of the insurance thereunder with 25 other applicable valid and collectible insurance. 26 (j) Binders. --Any binder pending the issuance of any 27 policy, which binder contains or by reference includes the 28 provisions hereunder shall be sufficient proof of ability to 29 respond in damages. 30 (k) Copy of Policy to Be Filed with Department of 31 Insurance--Approval. --A copy of the form of every motor 32 vehicle liability policy which is to be used to meet the 33 requirements of this Act must be filed, by the company 34 offering such policy, with the Department of Insurance, which HB0604 Engrossed -22- LRB9102408KSgc 1 shall approve or disapprove the policy within 30 days of its 2 filing. If the Department approves the policy in writing 3 within such 30 day period or fails to take action for 30 4 days, the form of policy shall be deemed approved as filed. 5 If within the 30 days the Department disapproves the form of 6 policy filed upon the ground that it does not comply with the 7 requirements of this Act, the Department shall give written 8 notice of its decision and its reasons therefor to the 9 carrier and the policy shall not be accepted as proof of 10 financial responsibility under this Act. 11 (l) Insurance Carrier Required to File Certificate. --An 12 insurance carrier who has issued a motor vehicle liability 13 policy or policies or an operator's policy meeting the 14 requirements of this Act shall, upon the request of the 15 insured therein, deliver to the insured for filing, or at the 16 request of the insured, shall file direct, with the Secretary 17 of State a certificate, as required by this Act, which shows 18 that such policy or policies have been issued. No insurance 19 carrier may require the payment of any extra fee or 20 surcharge, in addition to the insurance premium, for the 21 execution, delivery or filing of such certificate. 22 (m) Proof When Made By Endorsement. --Any motor vehicle 23 liability policy which by endorsement contains the provisions 24 required hereunder shall be sufficient proof of ability to 25 respond in damages. 26 (Source: P.A. 85-730.) 27 (625 ILCS 5/7-601) (from Ch. 95 1/2, par. 7-601) 28 Sec. 7-601. Required liability insurance policy. 29 (a) No person shall operate, register or maintain 30 registration of, and no owner shall permit another person to 31 operate, register or maintain registration of, a motor 32 vehicle designed to be used on a public highway unless the 33 motor vehicle is covered by a liability insurance policy. HB0604 Engrossed -23- LRB9102408KSgc 1 The insurance policy shall be issued in amounts no less 2 than the minimum amounts set for bodily injury or death and 3 for destruction of property under Section 7-203 of this Code, 4 and shall be issued in accordance with the requirements of 5 Sections 143a and 143a-2 of the Illinois Insurance Code, as 6 amended. No insurer other than an insurer authorized to do 7 business in this State shall issue a policy pursuant to this 8 Section for any vehicle subject to registration under this 9 Code. Nothing herein shall deprive an insurer of any policy 10 defense available at common law. 11 (b) The following vehicles are exempt from the 12 requirements of this Section: 13 (1) vehicles subject to the provisions of Chapters 14 8 or 18a, Article III or Section 7-609 of Chapter 7, or 15 Sections 12-606 or 12-707.01 of Chapter 12 of this Code; 16 (2) vehicles required to file proof of liability 17 insurance with the Illinois Commerce Commission; 18 (3) vehicles covered by a certificate of 19 self-insurance under Section 7-502 of this Code; 20 (4) vehicles owned by the United States, the State 21 of Illinois, or any political subdivision, municipality 22 or local mass transit district; 23 (5) implements of husbandry; 24 (6) other vehicles complying with laws which 25 require them to be insured in amounts meeting or 26 exceeding the minimum amounts required under this 27 Section;and28 (7) inoperable or stored vehicles that are not 29 operated, as defined by rules and regulations of the 30 Secretary; and.31 (8) vehicles of new vehicle dealers and used 32 vehicle dealers complying with the paragraph 6 of 33 subsection (b) of Section 5-501 or paragraph 4 of 34 subsection (b) of Section 5-102. HB0604 Engrossed -24- LRB9102408KSgc 1 (Source: P.A. 88-315; 89-669, eff. 1-1-97.) 2 Section 98. Applicability. The changes made by this 3 amendatory Act of the 91st General Assembly are prospective 4 and apply only on or after the effective date of this 5 amendatory Act of the 91st General Assembly.