Bill Text: IL HB5657 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB5657 Detail]

Download: Illinois-2023-HB5657-Introduced.html

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.
LRB103 35840 MXP 65925 b

A BILL FOR

HB5657LRB103 35840 MXP 65925 b
1 AN ACT concerning transportation.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Illinois Vehicle Code is amended by
5changing 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
8ability to respond in damages for any liability thereafter
9incurred resulting from the ownership, maintenance, use, or
10operation of a motor vehicle for bodily injury to or death of
11any person in the amount of $50,000 $25,000, and subject to
12this limit for any one person injured or killed, in the amount
13of $100,000 $50,000 for bodily injury to or death of 2 or more
14persons in any one crash, and for damage to property in the
15amount of $40,000 $20,000 resulting from any one crash. This
16proof in these amounts shall be furnished for each motor
17vehicle registered by every person required to furnish this
18proof. The changes to this Section made by this amendatory Act
19of the 98th General Assembly apply only to policies issued or
20renewed 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)

HB5657- 2 -LRB103 35840 MXP 65925 b
1 Sec. 7-203. Requirements as to policy or bond. No such
2policy or bond referred to in Section 7-202 shall be effective
3under this Section unless issued by an insurance company or
4surety company authorized to do business in this State, except
5that if such motor vehicle was not registered in this State, or
6was a motor vehicle which was registered elsewhere than in
7this State at the effective date of the policy or bond, or the
8most recent renewal thereof, such policy or bond shall not be
9effective under this Section unless the insurance company or
10surety company, if not authorized to do business in this
11State, shall execute a power of attorney authorizing the
12Secretary of State to accept service on its behalf of notice or
13process in any action upon such policy or bond arising out of
14such motor vehicle crash. However, every such policy or bond
15is subject, if the motor vehicle crash has resulted in bodily
16injury or death, to a limit, exclusive of interest and costs,
17of not less than $50,000 $25,000 because of bodily injury to or
18death of any one person in any one motor vehicle crash and,
19subject to said limit for one person, to a limit of not less
20than $100,000 $50,000 because of bodily injury to or death of 2
21or more persons in any one motor vehicle crash, and, if the
22motor vehicle crash has resulted in injury to or destruction
23of property, to a limit of not less than $40,000 $20,000
24because of injury to or destruction of property of others in
25any one motor vehicle crash. The changes to this Section made
26by this amendatory Act of the 98th General Assembly apply only

HB5657- 3 -LRB103 35840 MXP 65925 b
1to policies issued or renewed on or after January 1, 2015.
2 Upon receipt of a written motor vehicle crash report from
3the Administrator the insurance company or surety company
4named in such notice shall notify the Administrator within
5such time and in such manner as the Administrator may require,
6in case such policy or bond was not in effect at the time of
7such 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
12vehicle crashes occurring on or after January 1, 2015 (the
13effective date of Public Act 98-519) shall for the purpose of
14this 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

HB5657- 4 -LRB103 35840 MXP 65925 b
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
5apply only to policies issued or renewed on or after January 1,
62015.
7 (b) Credit for such amounts shall be deemed a satisfaction
8of any such judgment or judgments in excess of said amounts
9only for the purposes of this Chapter.
10 (c) Whenever payment has been made in settlement of any
11claim for bodily injury, death, or property damage arising
12from a motor vehicle crash resulting in injury, death, or
13property damage to 2 two or more persons in such crash, any
14such payment shall be credited in reduction of the amounts
15provided 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
20that term is used in this Act, means an "owner's policy" or an
21"operator's policy" of liability insurance, certified as
22provided in Section 7-315 or Section 7-316 as proof of
23financial responsibility for the future, and issued, except as
24otherwise provided in Section 7-316, by an insurance carrier
25duly authorized to transact business in this State, to or for

HB5657- 5 -LRB103 35840 MXP 65925 b
1the benefit of the person named therein as insured.
2 (b) Owner's Policy. --Such owner's policy of liability
3insurance:
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

HB5657- 6 -LRB103 35840 MXP 65925 b
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
6required, it shall insure the person named therein as insured
7against the liability imposed by law upon the insured for
8bodily injury to or death of any person or damage to property
9to the amounts and limits above set forth and growing out of
10the use or operation by the insured within the continental
11limits of the United States or the Dominion of Canada of any
12motor vehicle not owned by him.
13 (d) Required Statements in Policies. --Every motor vehicle
14liability policy must specify the name and address of the
15insured, the coverage afforded by the policy, the premium
16charged therefor, the policy period, and the limits of
17liability, and shall contain an agreement that the insurance
18thereunder is provided in accordance with the coverage defined
19in this Act, as respects bodily injury and death or property
20damage or both, and is subject to all the provisions of this
21Act.
22 (e) Policy Need Not Insure Workers' Compensation. --Any
23liability policy or policies issued hereunder need not cover
24any liability of the insured assumed by or imposed upon the
25insured under any workers' compensation law nor any liability
26for damage to property in charge of the insured or the

HB5657- 7 -LRB103 35840 MXP 65925 b
1insured's employees.
2 (f) Provisions Incorporated in Policy. --Every motor
3vehicle liability policy is subject to the following
4provisions 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

HB5657- 8 -LRB103 35840 MXP 65925 b
1liability policy may, however, grant any lawful coverage in
2excess of or in addition to the coverage herein specified or
3contain any agreements, provisions, or stipulations not in
4conflict with the provisions of this Act and not otherwise
5contrary to law.
6 (h) Reimbursement Provision Permitted. --The policy may
7provide that the insured, or any other person covered by the
8policy shall reimburse the insurance carrier for payment made
9on account of any loss or damage claim or suit involving a
10breach of the terms, provisions,
or conditions of the policy;
11and further, if the policy shall provide for limits in excess
12of the limits specified in this Act, the insurance carrier may
13plead against any plaintiff, with respect to the amount of
14such excess limits of liability, any defense which it may be
15entitled to plead against the insured.
16 (i) Proration of Insurance Permitted. --The policy may
17provide for the pro-rating of the insurance thereunder with
18other applicable valid and collectible insurance.
19 (j) Binders. --Any binder pending the issuance of any
20policy, which binder contains or by reference includes the
21provisions hereunder shall be sufficient proof of ability to
22respond in damages.
23 (k) Copy of Policy to Be Filed with Department of
24Insurance--Approval. --A copy of the form of every motor
25vehicle liability policy which is to be used to meet the
26requirements of this Act must be filed, by the company

HB5657- 9 -LRB103 35840 MXP 65925 b
1offering such policy, with the Department of Insurance, which
2shall approve or disapprove the policy within 30 days of its
3filing. If the Department approves the policy in writing
4within such 30 day period or fails to take action for 30 days,
5the form of policy shall be deemed approved as filed. If within
6the 30 days the Department disapproves the form of policy
7filed upon the ground that it does not comply with the
8requirements of this Act, the Department shall give written
9notice of its decision and its reasons therefor to the carrier
10and the policy shall not be accepted as proof of financial
11responsibility under this Act.
12 (l) Insurance Carrier Required to File Certificate. --An
13insurance carrier who has issued a motor vehicle liability
14policy or policies or an operator's policy meeting the
15requirements of this Act shall, upon the request of the
16insured therein, deliver to the insured for filing, or at the
17request of the insured, shall file direct, with the Secretary
18of State a certificate, as required by this Act, which shows
19that such policy or policies have been issued. No insurance
20carrier may require the payment of any extra fee or surcharge,
21in addition to the insurance premium, for the execution,
22delivery or filing of such certificate.
23 (m) Proof When Made By Endorsement. --Any motor vehicle
24liability policy which by endorsement contains the provisions
25required hereunder shall be sufficient proof of ability to
26respond in damages.

HB5657- 10 -LRB103 35840 MXP 65925 b
1(Source: P.A. 102-982, eff. 7-1-23.)
feedback