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91_HB0604enr HB0604 Enrolled 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 Enrolled -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 Enrolled -3- LRB9102408KSgc 1 provide liability coverage for the new vehicle dealer and 2 its officers, directors, and employees while acting 3 within the course and scope of their employment in the 4 minimum amounts of $100,000 for bodily injury to, or 5 death of, any person, $300,000 for bodily injury to, or 6 death of, two or more persons in any one accident, and 7 $50,000 for damage to property. Such policy shall expire 8 not sooner than December 31 of the year for which the 9 license was issued or renewed. 10 The liability insurance policy must provide 11 automobile liability coverage in the minimum amounts of 12 $100,000 for bodily injury to, or death of, any person, 13 $300,000 for bodily injury to, or death of, two or more 14 persons in any one accident, and $50,000 for damage to 15 property for any permitted user of the new vehicle 16 dealer's auto if the permitted user has no automobile 17 liability insurance of his or her own. The liability 18 insurance policy must provide automobile liability 19 coverage in the minimum amounts of $100,000 for bodily 20 injury to, or death of, any person, $300,000 for bodily 21 injury to, or death of, two or more persons in any one 22 accident, and $50,000 for damage to property for any 23 permitted user of the new vehicle dealer's auto if the 24 permitted user has automobile liability insurance of his 25 or her own but such insurance is less than the minimum 26 limits of subsection (a) of Section 7-601 and subsection 27 (b) of Section 7-317. If the permitted user of the new 28 vehicle dealer's auto has insurance of his own conforming 29 with or exceeding the minimum limits of subsection (a) of 30 Section 7-601 and subsection (b) of Section 7-317, the 31 permitted user's insurance shall be primary and the new 32 vehicle dealer's insurance shall apply only in excess of 33 the permitted user's insurance and any other insurance 34 including, but not limited to, underinsured motorists HB0604 Enrolled -4- LRB9102408KSgc 1 coverage applicable to the permitted user's liability. 2 Where the new vehicle dealer's insurance applies as 3 excess insurance, the limits shall be in the amounts of 4 $100,000 for bodily injury to, or death of, a person, 5 $300,000 for bodily injury to, or death of, 2 or more 6 persons in any one accident, and $50,000 for damage to 7 property. 8 As used in this paragraph 6, "permitted user" means 9 a person who is not an officer, director, or employee, or 10 a spouse of an officer, director, or employee of the new 11 vehicle dealer and is permitted or authorized to drive a 12 vehicle owned by the new vehicle dealer. 13 The expiration of the insurance policy shall not 14 terminate the liability under the policy arising during the 15 period for which the policy was filed. Trailer and mobile 16 home dealers are exempt from this requirement. 17 7. (A) An application for a new motor vehicle 18 dealer's license shall be accompanied by the 19 following license fees: 20 $100 for applicant's established place of 21 business, and $50 for each additional place of 22 business, if any, to which the application pertains; 23 but if the application is made after June 15 of any 24 year, the license fee shall be $50 for applicant's 25 established place of business plus $25 for each 26 additional place of business, if any, to which the 27 application pertains. License fees shall be 28 returnable only in the event that the application is 29 denied by the Secretary of State. All moneys 30 received by the Secretary of State as license fees 31 under this Section shall be deposited into the Motor 32 Vehicle Review Board Fund and shall be used to 33 administer the Motor Vehicle Review Board under the 34 Motor Vehicle Franchise Act. HB0604 Enrolled -5- LRB9102408KSgc 1 (B) An application for a new vehicle dealer's 2 license, other than for a new motor vehicle dealer's 3 license, shall be accompanied by the following 4 license fees: 5 $50 for applicant's established place of 6 business, and $25 for each additional place of 7 business, if any, to which the application pertains; 8 but if the application is made after June 15 of any 9 year, the license fee shall be $25 for applicant's 10 established place of business plus $12.50 for each 11 additional place of business, if any, to which the 12 application pertains. License fees shall be 13 returnable only in the event that the application is 14 denied by the Secretary of State. 15 8. A statement that the applicant's officers, 16 directors, shareholders having a 10% or greater ownership 17 interest therein, proprietor, a partner, member, officer, 18 director, trustee, manager or other principals in the 19 business have not committed in the past 3 years any one 20 violation as determined in any civil, criminal or 21 administrative proceedings of any one of the following 22 Acts: 23 (A) The Anti Theft Laws of the Illinois 24 Vehicle Code; 25 (B) The Certificate of Title Laws of the 26 Illinois Vehicle Code; 27 (C) The Offenses against Registration and 28 Certificates of Title Laws of the Illinois Vehicle 29 Code; 30 (D) The Dealers, Transporters, Wreckers and 31 Rebuilders Laws of the Illinois Vehicle Code; 32 (E) Section 21-2 of the Criminal Code of 1961, 33 Criminal Trespass to Vehicles; or 34 (F) The Retailers' Occupation Tax Act. HB0604 Enrolled -6- LRB9102408KSgc 1 9. A statement that the applicant's officers, 2 directors, shareholders having a 10% or greater ownership 3 interest therein, proprietor, partner, member, officer, 4 director, trustee, manager or other principals in the 5 business have not committed in any calendar year 3 or 6 more violations, as determined in any civil, criminal or 7 administrative proceedings, of any one or more of the 8 following Acts: 9 (A) The Consumer Finance Act; 10 (B) The Consumer Installment Loan Act; 11 (C) The Retail Installment Sales Act; 12 (D) The Motor Vehicle Retail Installment Sales 13 Act; 14 (E) The Interest Act; 15 (F) The Illinois Wage Assignment Act; 16 (G) Part 8 of Article XII of the Code of Civil 17 Procedure; or 18 (H) The Consumer Fraud Act. 19 10. A bond or certificate of deposit in the amount 20 of $20,000 for each location at which the applicant 21 intends to act as a new vehicle dealer. The bond shall 22 be for the term of the license, or its renewal, for which 23 application is made, and shall expire not sooner than 24 December 31 of the year for which the license was issued 25 or renewed. The bond shall run to the People of the 26 State of Illinois, with surety by a bonding or insurance 27 company authorized to do business in this State. It 28 shall be conditioned upon the proper transmittal of all 29 title and registration fees and taxes (excluding taxes 30 under the Retailers' Occupation Tax Act) accepted by the 31 applicant as a new vehicle dealer. 32 11. Such other information concerning the business 33 of the applicant as the Secretary of State may by rule or 34 regulation prescribe. HB0604 Enrolled -7- LRB9102408KSgc 1 12. A statement that the applicant understands 2 Chapter One through Chapter Five of this Code. 3 (c) Any change which renders no longer accurate any 4 information contained in any application for a new vehicle 5 dealer's license shall be amended within 30 days after the 6 occurrence of such change on such form as the Secretary of 7 State may prescribe by rule or regulation, accompanied by an 8 amendatory fee of $2. 9 (d) Anything in this Chapter 5 to the contrary 10 notwithstanding no person shall be licensed as a new vehicle 11 dealer unless: 12 1. He is authorized by contract in writing between 13 himself and the manufacturer or franchised distributor of 14 such make of vehicle to so sell the same in this State, 15 and 16 2. Such person shall maintain an established place 17 of business as defined in this Act. 18 (e) The Secretary of State shall, within a reasonable 19 time after receipt, examine an application submitted to him 20 under this Section and unless he makes a determination that 21 the application submitted to him does not conform with the 22 requirements of this Section or that grounds exist for a 23 denial of the application, under Section 5-501 of this 24 Chapter, grant the applicant an original new vehicle dealer's 25 license in writing for his established place of business and 26 a supplemental license in writing for each additional place 27 of business in such form as he may prescribe by rule or 28 regulation which shall include the following: 29 1. The name of the person licensed; 30 2. If a corporation, the name and address of its 31 officers or if a sole proprietorship, a partnership, an 32 unincorporated association or any similar form of 33 business organization, the name and address of the 34 proprietor or of each partner, member, officer, director, HB0604 Enrolled -8- LRB9102408KSgc 1 trustee or manager; 2 3. In the case of an original license, the 3 established place of business of the licensee; 4 4. In the case of a supplemental license, the 5 established place of business of the licensee and the 6 additional place of business to which such supplemental 7 license pertains; 8 5. The make or makes of new vehicles which the 9 licensee is licensed to sell. 10 (f) The appropriate instrument evidencing the license or 11 a certified copy thereof, provided by the Secretary of State, 12 shall be kept posted conspicuously in the established place 13 of business of the licensee and in each additional place of 14 business, if any, maintained by such licensee. 15 (g) Except as provided in subsection (h) hereof, all new 16 vehicle dealer's licenses granted under this Section shall 17 expire by operation of law on December 31 of the calendar 18 year for which they are granted unless sooner revoked or 19 cancelled under the provisions of Section 5-501 of this 20 Chapter. 21 (h) A new vehicle dealer's license may be renewed upon 22 application and payment of the fee required herein, and 23 submission of proof of coverage under an approved bond under 24 the "Retailers' Occupation Tax Act" or proof that applicant 25 is not subject to such bonding requirements, as in the case 26 of an original license, but in case an application for the 27 renewal of an effective license is made during the month of 28 December, the effective license shall remain in force until 29 the application is granted or denied by the Secretary of 30 State. 31 (i) All persons licensed as a new vehicle dealer are 32 required to furnish each purchaser of a motor vehicle: 33 1. In the case of a new vehicle a manufacturer's 34 statement of origin and in the case of a used motor HB0604 Enrolled -9- LRB9102408KSgc 1 vehicle a certificate of title, in either case properly 2 assigned to the purchaser; 3 2. A statement verified under oath that all 4 identifying numbers on the vehicle agree with those on 5 the certificate of title or manufacturer's statement of 6 origin; 7 3. A bill of sale properly executed on behalf of 8 such person; 9 4. A copy of the Uniform Invoice-transaction 10 reporting return referred to in Section 5-402 hereof; 11 5. In the case of a rebuilt vehicle, a copy of the 12 Disclosure of Rebuilt Vehicle Status; and 13 6. In the case of a vehicle for which the warranty 14 has been reinstated, a copy of the warranty. 15 This amendatory Act of 1983 shall be applicable to the 16 1984 registration year and thereafter. 17 (Source: P.A. 88-158; 89-145, eff. 7-14-95; 89-189, eff. 18 1-1-96; 89-433, eff. 12-15-95.) 19 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102) 20 Sec. 5-102. Used vehicle dealers must be licensed. 21 (a) No person, other than a licensed new vehicle dealer, 22 shall engage in the business of selling or dealing in, on 23 consignment or otherwise, 5 or more used vehicles of any make 24 during the year (except house trailers as authorized by 25 paragraph (j) of this Section and rebuilt salvage vehicles 26 sold by their rebuilders to persons licensed under this 27 Chapter), or act as an intermediary, agent or broker for any 28 licensed dealer or vehicle purchaser (other than as a 29 salesperson) or represent or advertise that he is so engaged 30 or intends to so engage in such business unless licensed to 31 do so by the Secretary of State under the provisions of this 32 Section. 33 (b) An application for a used vehicle dealer's license HB0604 Enrolled -10- LRB9102408KSgc 1 shall be filed with the Secretary of State, duly verified by 2 oath, in such form as the Secretary of State may by rule or 3 regulation prescribe and shall contain: 4 1. The name and type of business organization 5 established and additional places of business, if any, in 6 this State. 7 2. If the applicant is a corporation, a list of its 8 officers, directors, and shareholders having a ten 9 percent or greater ownership interest in the corporation, 10 setting forth the residence address of each; if the 11 applicant is a sole proprietorship, a partnership, an 12 unincorporated association, a trust, or any similar form 13 of business organization, the names and residence address 14 of the proprietor or of each partner, member, officer, 15 director, trustee or manager. 16 3. A statement that the applicant has been approved 17 for registration under the Retailers' Occupation Tax Act 18 by the Department of Revenue. However, this requirement 19 does not apply to a dealer who is already licensed 20 hereunder with the Secretary of State, and who is merely 21 applying for a renewal of his license. As evidence of 22 this fact, the application shall be accompanied by a 23 certification from the Department of Revenue showing that 24 the Department has approved the applicant for 25 registration under the Retailers' Occupation Tax Act. 26 4. A statement that the applicant has complied with 27 the appropriate liability insurance requirement. A 28 Certificate of Insurance in a solvent company authorized 29 to do business in the State of Illinois shall be included 30 with each application covering each location at which he 31 proposes to act as a used vehicle dealer. The policy must 32 provide liability coverage for the used vehicle dealer 33 and its officers, directors, and employees while acting 34 within the course and scope of their employment in the HB0604 Enrolled -11- LRB9102408KSgc 1 minimum amounts of $100,000 for bodily injury to, or 2 death of, any person, $300,000 for bodily injury to, or 3 death of, two or more persons in any one accident, and 4 $50,000 for damage to property. Such policy shall expire 5 not sooner than December 31 of the year for which the 6 license was issued or renewed. 7 The liability insurance policy must provide 8 automobile liability coverage in the minimum amounts of 9 $100,000 for bodily injury to, or death of, any person, 10 $300,000 for bodily injury to, or death of, two or more 11 persons in any one accident, and $50,000 for damage to 12 property for any permitted user of the used vehicle 13 dealer's auto if the permitted user has no automobile 14 liability insurance of his or her own. The liability 15 insurance policy must provide automobile liability 16 coverage in the minimum amounts of $100,000 for bodily 17 injury to, or death of, any person, $300,000 for bodily 18 injury to, or death of, two or more persons in any one 19 accident, and $50,000 for damage to property for any 20 permitted user of the used vehicle dealer's auto if the 21 permitted user has automobile liability insurance of his 22 or her own but the insurance is less than the minimum 23 limits of subsection (a) of Section 7-601 and subsection 24 (b) of Section 7-317. If the permitted user of the used 25 vehicle dealer's auto has insurance of his or her own 26 conforming with or exceeding the minimum limits of 27 subsection (a) of Section 7-601 and subsection (b) of 28 Section 7-317, the permitted user's insurance shall be 29 primary and the used vehicle dealer's insurance shall 30 apply only in excess of the permitted user's insurance 31 and any other insurance including, but not limited to, 32 underinsured motorists coverage applicable to the 33 permitted user's liability. Where the used vehicle 34 dealer's insurance applies as excess insurance, the HB0604 Enrolled -12- LRB9102408KSgc 1 limits shall be in the amounts of $100,000 for bodily 2 injury to, or death of, a person, $300,000 for bodily 3 injury to, or death of, 2 or more persons in any one 4 accident, and $50,000 for damage to property. 5 As used in this paragraph 4, "permitted user" means 6 a person who is not an officer, director, or employee or 7 a spouse of an officer, director, or employee of the used 8 vehicle dealer and is permitted or authorized to drive a 9 vehicle owned by the used vehicle dealer. 10 The expiration of the insurance policy shall not 11 terminate the liability under the policy arising during the 12 period for which the policy was filed. Trailer and mobile 13 home dealers are exempt from this requirement. 14 5. An application for a used vehicle dealer's 15 license shall be accompanied by the following license 16 fees: 17 $50 for applicant's established place of business, 18 and $25 for each additional place of business, if any, to 19 which the application pertains; however, if the 20 application is made after June 15 of any year, the 21 license fee shall be $25 for applicant's established 22 place of business plus $12.50 for each additional place 23 of business, if any, to which the application pertains. 24 License fees shall be returnable only in the event that 25 the application is denied by the Secretary of State. 26 6. A statement that the applicant's officers, 27 directors, shareholders having a 10% or greater ownership 28 interest therein, proprietor, partner, member, officer, 29 director, trustee, manager or other principals in the 30 business have not committed in the past 3 years any one 31 violation as determined in any civil, criminal or 32 administrative proceedings of any one of the following 33 Acts: 34 (A) The Anti Theft Laws of the Illinois HB0604 Enrolled -13- LRB9102408KSgc 1 Vehicle Code; 2 (B) The Certificate of Title Laws of the 3 Illinois Vehicle Code; 4 (C) The Offenses against Registration and 5 Certificates of Title Laws of the Illinois Vehicle 6 Code; 7 (D) The Dealers, Transporters, Wreckers and 8 Rebuilders Laws of the Illinois Vehicle Code; 9 (E) Section 21-2 of the Illinois Criminal Code 10 of 1961, Criminal Trespass to Vehicles; or 11 (F) The Retailers' Occupation Tax Act. 12 7. A statement that the applicant's officers, 13 directors, shareholders having a 10% or greater ownership 14 interest therein, proprietor, partner, member, officer, 15 director, trustee, manager or other principals in the 16 business have not committed in any calendar year 3 or 17 more violations, as determined in any civil or criminal 18 or administrative proceedings, of any one or more of the 19 following Acts: 20 (A) The Consumer Finance Act; 21 (B) The Consumer Installment Loan Act; 22 (C) The Retail Installment Sales Act; 23 (D) The Motor Vehicle Retail Installment Sales 24 Act; 25 (E) The Interest Act; 26 (F) The Illinois Wage Assignment Act; 27 (G) Part 8 of Article XII of the Code of Civil 28 Procedure; or 29 (H) The Consumer Fraud Act. 30 8. A bond or Certificate of Deposit in the amount 31 of $20,000 for each location at which the applicant 32 intends to act as a used vehicle dealer. The bond shall 33 be for the term of the license, or its renewal, for which 34 application is made, and shall expire not sooner than HB0604 Enrolled -14- LRB9102408KSgc 1 December 31 of the year for which the license was issued 2 or renewed. The bond shall run to the People of the 3 State of Illinois, with surety by a bonding or insurance 4 company authorized to do business in this State. It 5 shall be conditioned upon the proper transmittal of all 6 title and registration fees and taxes (excluding taxes 7 under the Retailers' Occupation Tax Act) accepted by the 8 applicant as a used vehicle dealer. 9 9. Such other information concerning the business 10 of the applicant as the Secretary of State may by rule or 11 regulation prescribe. 12 10. A statement that the applicant understands 13 Chapter 1 through Chapter 5 of this Code. 14 (c) Any change which renders no longer accurate any 15 information contained in any application for a used vehicle 16 dealer's license shall be amended within 30 days after the 17 occurrence of each change on such form as the Secretary of 18 State may prescribe by rule or regulation, accompanied by an 19 amendatory fee of $2. 20 (d) Anything in this Chapter to the contrary 21 notwithstanding, no person shall be licensed as a used 22 vehicle dealer unless such person maintains an established 23 place of business as defined in this Chapter. 24 (e) The Secretary of State shall, within a reasonable 25 time after receipt, examine an application submitted to him 26 under this Section. Unless the Secretary makes a 27 determination that the application submitted to him does not 28 conform to this Section or that grounds exist for a denial of 29 the application under Section 5-501 of this Chapter, he must 30 grant the applicant an original used vehicle dealer's license 31 in writing for his established place of business and a 32 supplemental license in writing for each additional place of 33 business in such form as he may prescribe by rule or 34 regulation which shall include the following: HB0604 Enrolled -15- LRB9102408KSgc 1 1. The name of the person licensed; 2 2. If a corporation, the name and address of its 3 officers or if a sole proprietorship, a partnership, an 4 unincorporated association or any similar form of 5 business organization, the name and address of the 6 proprietor or of each partner, member, officer, director, 7 trustee or manager; 8 3. In case of an original license, the established 9 place of business of the licensee; 10 4. In the case of a supplemental license, the 11 established place of business of the licensee and the 12 additional place of business to which such supplemental 13 license pertains. 14 (f) The appropriate instrument evidencing the license or 15 a certified copy thereof, provided by the Secretary of State 16 shall be kept posted, conspicuously, in the established place 17 of business of the licensee and in each additional place of 18 business, if any, maintained by such licensee. 19 (g) Except as provided in subsection (h) of this 20 Section, all used vehicle dealer's licenses granted under 21 this Section expire by operation of law on December 31 of the 22 calendar year for which they are granted unless sooner 23 revoked or cancelled under Section 5-501 of this Chapter. 24 (h) A used vehicle dealer's license may be renewed upon 25 application and payment of the fee required herein, and 26 submission of proof of coverage by an approved bond under the 27 "Retailers' Occupation Tax Act" or proof that applicant is 28 not subject to such bonding requirements, as in the case of 29 an original license, but in case an application for the 30 renewal of an effective license is made during the month of 31 December, the effective license shall remain in force until 32 the application for renewal is granted or denied by the 33 Secretary of State. 34 (i) All persons licensed as a used vehicle dealer are HB0604 Enrolled -16- LRB9102408KSgc 1 required to furnish each purchaser of a motor vehicle: 2 1. A certificate of title properly assigned to the 3 purchaser; 4 2. A statement verified under oath that all 5 identifying numbers on the vehicle agree with those on 6 the certificate of title; 7 3. A bill of sale properly executed on behalf of 8 such person; 9 4. A copy of the Uniform Invoice-transaction 10 reporting return referred to in Section 5-402 of this 11 Chapter; 12 5. In the case of a rebuilt vehicle, a copy of the 13 Disclosure of Rebuilt Vehicle Status; and 14 6. In the case of a vehicle for which the warranty 15 has been reinstated, a copy of the warranty. 16 (j) A real estate broker holding a valid certificate of 17 registration issued pursuant to "The Real Estate Brokers and 18 Salesmen License Act" may engage in the business of selling 19 or dealing in house trailers not his own without being 20 licensed as a used vehicle dealer under this Section; however 21 such broker shall maintain a record of the transaction 22 including the following: 23 (1) the name and address of the buyer and seller, 24 (2) the date of sale, 25 (3) a description of the mobile home, including the 26 vehicle identification number, make, model, and year, and 27 (4) the Illinois certificate of title number. 28 The foregoing records shall be available for inspection 29 by any officer of the Secretary of State's Office at any 30 reasonable hour. 31 (Source: P.A. 88-158; 89-189, eff. 1-1-96.) 32 (625 ILCS 5/7-202) (from Ch. 95 1/2, par. 7-202) 33 Sec. 7-202. Exceptions to requirements of security. (a) HB0604 Enrolled -17- LRB9102408KSgc 1 The requirements as to security and suspension as provided by 2 Sections 7-201 and 7-205 shall not apply: 3 1. To the driver or owner if such owner had in effect at 4 the time of such motor vehicle accident a liability policy 5 covering such driver and owner with respect to the vehicle 6 involved in such motor vehicle accident; 7 2. To the driver, if not the owner of such vehicle, if 8 there was in effect at the time of such motor vehicle 9 accident a liability policy or bond with respect to the 10 operation of motor vehicles not owned by the driver; 11 3. To the driver or owner if the liability of such 12 driver or owner for damages resulting from such motor vehicle 13 accident is covered by any other form of liability insurance 14 policy or bond; 15 4. To the driver or owner, if such owner is qualified as 16 a self-insurer as provided in Section 7-502; 17 5. To the owner if such owner at the time of such motor 18 vehicle accident was in compliance with Section 8-101 or 19 Section 9-101, or if the owner was a new or used vehicle 20 dealer in compliance with paragraph 6 of subsection (b) of 21 Section 5-101 or with paragraph 4 of subsection (b) of 22 Section 5-102; 23 6. To the driver or owner if such owner at the time of 24 such motor vehicle accident was in compliance with the 25 Federal Revised Interstate Commerce Act (P.L. 95-473), as now 26 or hereafter amended; 27 7. To the owner if the vehicle involved in such motor 28 vehicle accident was owned by the United States, this State 29 or any political sub-division of this State, any municipality 30 therein, or any local Mass Transit District; 31 8. To the driver or the owner of a vehicle involved in a 32 motor vehicle accident wherein no injury or damage was caused 33 to the person or property of any one other than such driver 34 or owner; HB0604 Enrolled -18- LRB9102408KSgc 1 9. To the driver or the owner of a vehicle which at the 2 time of the motor vehicle accident was parked, unless such 3 vehicle was parked at a place where parking was at the time 4 of the accident prohibited under any applicable law or 5 ordinance; 6 10. To the owner of a vehicle if at the time of the 7 motor vehicle accident the vehicle was being operated without 8 his permission, express or implied, or was parked by a person 9 who had been operating such motor vehicle without such 10 permission; 11 11. To the driver, if not the owner, of a commercial 12 motor vehicle on which there was no liability policy or bond 13 with respect to the operation of such vehicle in effect at 14 the time of the motor vehicle accident when the driver was 15 operating the vehicle in the course of the driver's 16 employment and had no actual knowledge of such lack of a 17 liability policy or bond prior to the motor vehicle accident. 18 (b) If at the time of the motor vehicle accident, an 19 owner or driver is covered by a motor vehicle liability 20 policy or bond meeting the requirements of this Code, such 21 owner or driver shall be exempt from suspension under Section 22 7-205 as to that motor vehicle accident, if the company 23 issuing the policy or bond has failed, and such policy or 24 bond was not effective at the time of the motor vehicle 25 accident or any time thereafter, provided, that the owner or 26 driver had no knowledge of the company's failure prior to the 27 motor vehicle accident, and such owner or driver has secured 28 within 30 days after learning of such failure another 29 liability policy or bond meeting the requirements of the Code 30 relating to future occurrences or motor vehicle accidents. 31 As used in this paragraph, the words "failed" or 32 "failure" mean that the company has suspended operations by 33 order of a court. 34 (Source: P.A. 85-293.) HB0604 Enrolled -19- LRB9102408KSgc 1 (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317) 2 Sec. 7-317. "Motor vehicle liability policy" defined. 3 (a) Certification. -A "motor vehicle liability policy", 4 as that term is used in this Act, means an "owner's policy" 5 or an "operator's policy" of liability insurance, certified 6 as provided in Section 7-315 or Section 7-316 as proof of 7 financial responsibility for the future, and issued, except 8 as otherwise provided in Section 7-316, by an insurance 9 carrier duly authorized to transact business in this State, 10 to or for the benefit of the person named therein as insured. 11 (b) Owner's Policy. --Such owner's policy of liability 12 insurance: 13 1. Shall designate by explicit description or by 14 appropriate reference, all motor vehicles with respect to 15 which coverage is thereby intended to be granted; 16 2. Shall insure the person named therein and any 17 other person using or responsible for the use of such 18 motor vehicle or vehicles with the express or implied 19 permission of the insured, except that with respect to 20 new vehicle dealers and used vehicle dealers, it shall 21 insure permitted users only to the extent provided in 22 paragraph 6 of subsection (b) of Section 5-101 and 23 paragraph 4 of subsection (b) of Section 5-102; 24 3. Shall insure every named insured and any other 25 person using or responsible for the use of any motor 26 vehicle owned by the named insured and used by such other 27 person with the express or implied permission of the 28 named insured on account of the maintenance, use or 29 operation of any motor vehicle owned by the named 30 insured, within the continental limits of the United 31 States or the Dominion of Canada against loss from 32 liability imposed by law arising from such maintenance, 33 use or operation, to the extent and aggregate amount, 34 exclusive of interest and cost, with respect to each HB0604 Enrolled -20- LRB9102408KSgc 1 motor vehicle, of $20,000 for bodily injury to or death 2 of one person as a result of any one accident and, 3 subject to such limit as to one person, the amount of 4 $40,000 for bodily injury to or death of all persons as a 5 result of any one accident and the amount of $15,000 for 6 damage to property of others as a result of any one 7 accident. 8 As used in this subsection (b), "permitted user" means a 9 person who is not an officer, director, or employee or a 10 spouse of an officer, director, or employee of a new or used 11 vehicle dealer and is permitted or authorized to drive a 12 vehicle owned by the new or used vehicle dealer. 13 (c) Operator's Policy. --When an operator's policy is 14 required, it shall insure the person named therein as insured 15 against the liability imposed by law upon the insured for 16 bodily injury to or death of any person or damage to property 17 to the amounts and limits above set forth and growing out of 18 the use or operation by the insured within the continental 19 limits of the United States or the Dominion of Canada of any 20 motor vehicle not owned by him. 21 (d) Required Statements in Policies. --Every motor 22 vehicle liability policy must specify the name and address of 23 the insured, the coverage afforded by the policy, the premium 24 charged therefor, the policy period, and the limits of 25 liability, and shall contain an agreement that the insurance 26 thereunder is provided in accordance with the coverage 27 defined in this Act, as respects bodily injury and death or 28 property damage or both, and is subject to all the provisions 29 of this Act. 30 (e) Policy Need Not Insure Workers' Compensation. --Any 31 liability policy or policies issued hereunder need not cover 32 any liability of the insured assumed by or imposed upon the 33 insured under any workers' compensation law nor any liability 34 for damage to property in charge of the insured or the HB0604 Enrolled -21- LRB9102408KSgc 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 such 6 policy shall become absolute whenever loss or damage covered 7 by the policy occurs and the satisfaction by the insured of a 8 final judgment for such loss or damage shall not be a 9 condition precedent to the right or obligation of the carrier 10 to make payment on account of such loss or damage. 11 2. No such policy may be cancelled or annulled as 12 respects any loss or damage, by any agreement between the 13 carrier and the insured after the insured has become 14 responsible for such loss or damage, and any such 15 cancellation or annulment shall be void. 16 3. The insurance carrier shall, however, have the right 17 to settle any claim covered by the policy, and if such 18 settlement is made in good faith, the amount thereof shall be 19 deductible from the limits of liability specified in the 20 policy. 21 4. The policy, the written application therefor, if any, 22 and any rider or endorsement which shall not conflict with 23 the provisions of this Act shall constitute the entire 24 contract between the parties. 25 (g) Excess or Additional Coverage. --Any motor vehicle 26 liability policy may, however, grant any lawful coverage in 27 excess of or in addition to the coverage herein specified or 28 contain any agreements, provisions, or stipulations not in 29 conflict with the provisions of this Act and not otherwise 30 contrary to law. 31 (h) Reimbursement Provision Permitted. --The policy may 32 provide that the insured, or any other person covered by the 33 policy shall reimburse the insurance carrier for payment made 34 on account of any loss or damage claim or suit involving a HB0604 Enrolled -22- LRB9102408KSgc 1 breach of the terms, provisions or conditions of the policy; 2 and further, if the policy shall provide for limits in excess 3 of the limits specified in this Act, the insurance carrier 4 may plead against any plaintiff, with respect to the amount 5 of such excess limits of liability, any defense which it may 6 be entitled to plead against the insured. 7 (i) Proration of Insurance Permitted. --The policy may 8 provide for the pro-rating of the insurance thereunder with 9 other applicable valid and collectible insurance. 10 (j) Binders. --Any binder pending the issuance of any 11 policy, which binder contains or by reference includes the 12 provisions hereunder shall be sufficient proof of ability to 13 respond in damages. 14 (k) Copy of Policy to Be Filed with Department of 15 Insurance--Approval. --A copy of the form of every motor 16 vehicle liability policy which is to be used to meet the 17 requirements of this Act must be filed, by the company 18 offering such policy, with the Department of Insurance, which 19 shall approve or disapprove the policy within 30 days of its 20 filing. If the Department approves the policy in writing 21 within such 30 day period or fails to take action for 30 22 days, the form of policy shall be deemed approved as filed. 23 If within the 30 days the Department disapproves the form of 24 policy filed upon the ground that it does not comply with the 25 requirements of this Act, the Department shall give written 26 notice of its decision and its reasons therefor to the 27 carrier and the policy shall not be accepted as proof of 28 financial responsibility under this Act. 29 (l) Insurance Carrier Required to File Certificate. --An 30 insurance carrier who has issued a motor vehicle liability 31 policy or policies or an operator's policy meeting the 32 requirements of this Act shall, upon the request of the 33 insured therein, deliver to the insured for filing, or at the 34 request of the insured, shall file direct, with the Secretary HB0604 Enrolled -23- LRB9102408KSgc 1 of State a certificate, as required by this Act, which shows 2 that such policy or policies have been issued. No insurance 3 carrier may require the payment of any extra fee or 4 surcharge, in addition to the insurance premium, for the 5 execution, delivery or filing of such certificate. 6 (m) Proof When Made By Endorsement. --Any motor vehicle 7 liability policy which by endorsement contains the provisions 8 required hereunder shall be sufficient proof of ability to 9 respond in damages. 10 (Source: P.A. 85-730.) 11 (625 ILCS 5/7-601) (from Ch. 95 1/2, par. 7-601) 12 Sec. 7-601. Required liability insurance policy. 13 (a) No person shall operate, register or maintain 14 registration of, and no owner shall permit another person to 15 operate, register or maintain registration of, a motor 16 vehicle designed to be used on a public highway unless the 17 motor vehicle is covered by a liability insurance policy. 18 The insurance policy shall be issued in amounts no less 19 than the minimum amounts set for bodily injury or death and 20 for destruction of property under Section 7-203 of this Code, 21 and shall be issued in accordance with the requirements of 22 Sections 143a and 143a-2 of the Illinois Insurance Code, as 23 amended. No insurer other than an insurer authorized to do 24 business in this State shall issue a policy pursuant to this 25 Section for any vehicle subject to registration under this 26 Code. Nothing herein shall deprive an insurer of any policy 27 defense available at common law. 28 (b) The following vehicles are exempt from the 29 requirements of this Section: 30 (1) vehicles subject to the provisions of Chapters 31 8 or 18a, Article III or Section 7-609 of Chapter 7, or 32 Sections 12-606 or 12-707.01 of Chapter 12 of this Code; 33 (2) vehicles required to file proof of liability HB0604 Enrolled -24- LRB9102408KSgc 1 insurance with the Illinois Commerce Commission; 2 (3) vehicles covered by a certificate of 3 self-insurance under Section 7-502 of this Code; 4 (4) vehicles owned by the United States, the State 5 of Illinois, or any political subdivision, municipality 6 or local mass transit district; 7 (5) implements of husbandry; 8 (6) other vehicles complying with laws which 9 require them to be insured in amounts meeting or 10 exceeding the minimum amounts required under this 11 Section;and12 (7) inoperable or stored vehicles that are not 13 operated, as defined by rules and regulations of the 14 Secretary; and.15 (8) vehicles of new vehicle dealers and used 16 vehicle dealers complying with the paragraph 6 of 17 subsection (b) of Section 5-501 or paragraph 4 of 18 subsection (b) of Section 5-102. 19 (Source: P.A. 88-315; 89-669, eff. 1-1-97.) 20 Section 98. Applicability. The changes made by this 21 amendatory Act of the 91st General Assembly are prospective 22 and apply only on or after the effective date of this 23 amendatory Act of the 91st General Assembly.