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
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1 | AN ACT concerning transportation.
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2 | Be it enacted by the People of the State of Illinois, | |||||||||||||||||||||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Vehicle Code is amended by | |||||||||||||||||||||||||
5 | changing Sections 1-164.5, 7-203, 7-311, and 7-317 as follows:
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6 | (625 ILCS 5/1-164.5) | |||||||||||||||||||||||||
7 | Sec. 1-164.5. Proof of financial responsibility. Proof of | |||||||||||||||||||||||||
8 | ability to respond in damages for any liability thereafter | |||||||||||||||||||||||||
9 | incurred resulting from the ownership, maintenance, use , or | |||||||||||||||||||||||||
10 | operation of a motor vehicle for bodily injury to or death of | |||||||||||||||||||||||||
11 | any person in the amount of $50,000 $25,000 , and subject to | |||||||||||||||||||||||||
12 | this limit for any one person injured or killed, in the amount | |||||||||||||||||||||||||
13 | of $100,000 $50,000 for bodily injury to or death of 2 or more | |||||||||||||||||||||||||
14 | persons in any one crash, and for damage to property in the | |||||||||||||||||||||||||
15 | amount of $40,000 $20,000 resulting from any one crash. This | |||||||||||||||||||||||||
16 | proof in these amounts shall be furnished for each motor | |||||||||||||||||||||||||
17 | vehicle registered by every person required to furnish this | |||||||||||||||||||||||||
18 | proof. The changes to this Section made by this amendatory Act | |||||||||||||||||||||||||
19 | of the 98th General Assembly apply only to policies issued or | |||||||||||||||||||||||||
20 | renewed on or after January 1, 2015. | |||||||||||||||||||||||||
21 | (Source: P.A. 102-982, eff. 7-1-23 .)
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22 | (625 ILCS 5/7-203) (from Ch. 95 1/2, par. 7-203) |
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1 | Sec. 7-203. Requirements as to policy or bond. No such | ||||||
2 | policy or bond referred to in Section 7-202 shall be effective | ||||||
3 | under this Section unless issued by an insurance company or | ||||||
4 | surety company authorized to do business in this State, except | ||||||
5 | that if such motor vehicle was not registered in this State, or | ||||||
6 | was a motor vehicle which was registered elsewhere than in | ||||||
7 | this State at the effective date of the policy or bond, or the | ||||||
8 | most recent renewal thereof, such policy or bond shall not be | ||||||
9 | effective under this Section unless the insurance company or | ||||||
10 | surety company, if not authorized to do business in this | ||||||
11 | State, shall execute a power of attorney authorizing the | ||||||
12 | Secretary of State to accept service on its behalf of notice or | ||||||
13 | process in any action upon such policy or bond arising out of | ||||||
14 | such motor vehicle crash. However, every such policy or bond | ||||||
15 | is subject, if the motor vehicle crash has resulted in bodily | ||||||
16 | injury or death, to a limit, exclusive of interest and costs, | ||||||
17 | of not less than $50,000 $25,000 because of bodily injury to or | ||||||
18 | death of any one person in any one motor vehicle crash and, | ||||||
19 | subject to said limit for one person, to a limit of not less | ||||||
20 | than $100,000 $50,000 because of bodily injury to or death of 2 | ||||||
21 | or more persons in any one motor vehicle crash, and, if the | ||||||
22 | motor vehicle crash has resulted in injury to or destruction | ||||||
23 | of property, to a limit of not less than $40,000 $20,000 | ||||||
24 | because of injury to or destruction of property of others in | ||||||
25 | any one motor vehicle crash. The changes to this Section made | ||||||
26 | by this amendatory Act of the 98th General Assembly apply only |
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1 | to policies issued or renewed on or after January 1, 2015. | ||||||
2 | Upon receipt of a written motor vehicle crash report from | ||||||
3 | the Administrator the insurance company or surety company | ||||||
4 | named in such notice shall notify the Administrator within | ||||||
5 | such time and in such manner as the Administrator may require, | ||||||
6 | in case such policy or bond was not in effect at the time of | ||||||
7 | such motor vehicle crash. | ||||||
8 | (Source: P.A. 102-982, eff. 7-1-23 .)
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9 | (625 ILCS 5/7-311) (from Ch. 95 1/2, par. 7-311) | ||||||
10 | Sec. 7-311. Payments sufficient to satisfy requirements. | ||||||
11 | (a) Judgments herein referred to arising out of motor | ||||||
12 | vehicle crashes occurring on or after January 1, 2015 (the | ||||||
13 | effective date of Public Act 98-519) shall for the purpose of | ||||||
14 | this Chapter be deemed satisfied: | ||||||
15 | 1. when $50,000 $25,000 has been credited upon any | ||||||
16 | judgment or judgments rendered in excess of that amount | ||||||
17 | for bodily injury to or the death of one person as the | ||||||
18 | result of any one motor vehicle crash; or | ||||||
19 | 2. when, subject to said limit of $50,000 $25,000 as | ||||||
20 | to any one person, the sum of $100,000 $50,000 has been | ||||||
21 | credited upon any judgment or judgments rendered in excess | ||||||
22 | of that amount for bodily injury to or the death of more | ||||||
23 | than one person as the result of any one motor vehicle | ||||||
24 | crash; or | ||||||
25 | 3. when $40,000 $20,000 has been credited upon any |
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1 | judgment or judgments, rendered in excess of that amount | ||||||
2 | for damages to property of others as a result of any one | ||||||
3 | motor vehicle crash. | ||||||
4 | The changes to this subsection made by Public Act 98-519 | ||||||
5 | apply only to policies issued or renewed on or after January 1, | ||||||
6 | 2015. | ||||||
7 | (b) Credit for such amounts shall be deemed a satisfaction | ||||||
8 | of any such judgment or judgments in excess of said amounts | ||||||
9 | only for the purposes of this Chapter. | ||||||
10 | (c) Whenever payment has been made in settlement of any | ||||||
11 | claim for bodily injury, death, or property damage arising | ||||||
12 | from a motor vehicle crash resulting in injury, death, or | ||||||
13 | property damage to 2 two or more persons in such crash, any | ||||||
14 | such payment shall be credited in reduction of the amounts | ||||||
15 | provided for in this Section. | ||||||
16 | (Source: P.A. 102-982, eff. 7-1-23 .)
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17 | (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317) | ||||||
18 | Sec. 7-317. "Motor vehicle liability policy" defined. | ||||||
19 | (a) Certification. -A "motor vehicle liability policy", as | ||||||
20 | that term is used in this Act, means an "owner's policy" or an | ||||||
21 | "operator's policy" of liability insurance, certified as | ||||||
22 | provided in Section 7-315 or Section 7-316 as proof of | ||||||
23 | financial responsibility for the future, and issued, except as | ||||||
24 | otherwise provided in Section 7-316, by an insurance carrier | ||||||
25 | duly authorized to transact business in this State, to or for |
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1 | the benefit of the person named therein as insured. | ||||||
2 | (b) Owner's Policy. --Such owner's policy of liability | ||||||
3 | insurance: | ||||||
4 | 1. Shall designate by explicit description or by | ||||||
5 | appropriate reference, all motor vehicles with respect to | ||||||
6 | which coverage is thereby intended to be granted; | ||||||
7 | 2. Shall insure the person named therein and any other | ||||||
8 | person using or responsible for the use of such motor | ||||||
9 | vehicle or vehicles with the express or implied permission | ||||||
10 | of the insured; | ||||||
11 | 3. Shall insure every named insured and any other | ||||||
12 | person using or responsible for the use of any motor | ||||||
13 | vehicle owned by the named insured and used by such other | ||||||
14 | person with the express or implied permission of the named | ||||||
15 | insured on account of the maintenance, use , or operation | ||||||
16 | of any motor vehicle owned by the named insured, within | ||||||
17 | the continental limits of the United States or the | ||||||
18 | Dominion of Canada against loss from liability imposed by | ||||||
19 | law arising from such maintenance, use , or operation, to | ||||||
20 | the extent and aggregate amount, exclusive of interest and | ||||||
21 | cost, with respect to each motor vehicle, of $50,000 | ||||||
22 | $25,000 for bodily injury to or death of one person as a | ||||||
23 | result of any one crash and, subject to such limit as to | ||||||
24 | one person, the amount of $100,000 $50,000 for bodily | ||||||
25 | injury to or death of all persons as a result of any one | ||||||
26 | crash and the amount of $40,000 $20,000 for damage to |
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1 | property of others as a result of any one crash. The | ||||||
2 | changes to this paragraph made by this amendatory Act of | ||||||
3 | the 98th General Assembly apply only to policies issued or | ||||||
4 | renewed on or after January 1, 2015. | ||||||
5 | (c) Operator's Policy. --When an operator's policy is | ||||||
6 | required, it shall insure the person named therein as insured | ||||||
7 | against the liability imposed by law upon the insured for | ||||||
8 | bodily injury to or death of any person or damage to property | ||||||
9 | to the amounts and limits above set forth and growing out of | ||||||
10 | the use or operation by the insured within the continental | ||||||
11 | limits of the United States or the Dominion of Canada of any | ||||||
12 | motor vehicle not owned by him. | ||||||
13 | (d) Required Statements in Policies. --Every motor vehicle | ||||||
14 | liability policy must specify the name and address of the | ||||||
15 | insured, the coverage afforded by the policy, the premium | ||||||
16 | charged therefor, the policy period, and the limits of | ||||||
17 | liability, and shall contain an agreement that the insurance | ||||||
18 | thereunder is provided in accordance with the coverage defined | ||||||
19 | in this Act, as respects bodily injury and death or property | ||||||
20 | damage or both, and is subject to all the provisions of this | ||||||
21 | Act. | ||||||
22 | (e) Policy Need Not Insure Workers' Compensation. --Any | ||||||
23 | liability policy or policies issued hereunder need not cover | ||||||
24 | any liability of the insured assumed by or imposed upon the | ||||||
25 | insured under any workers' compensation law nor any liability | ||||||
26 | for damage to property in charge of the insured or the |
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1 | insured's employees. | ||||||
2 | (f) Provisions Incorporated in Policy. --Every motor | ||||||
3 | vehicle liability policy is subject to the following | ||||||
4 | provisions which need not be contained therein: | ||||||
5 | 1. The liability of the insurance carrier under any | ||||||
6 | such policy shall become absolute whenever loss or damage | ||||||
7 | covered by the policy occurs and the satisfaction by the | ||||||
8 | insured of a final judgment for such loss or damage shall | ||||||
9 | not be a condition precedent to the right or obligation of | ||||||
10 | the carrier to make payment on account of such loss or | ||||||
11 | damage. | ||||||
12 | 2. No such policy may be cancelled or annulled as | ||||||
13 | respects any loss or damage, by any agreement between the | ||||||
14 | carrier and the insured after the insured has become | ||||||
15 | responsible for such loss or damage, and any such | ||||||
16 | cancellation or annulment shall be void. | ||||||
17 | 3. The insurance carrier shall, however, have the | ||||||
18 | right to settle any claim covered by the policy, and if | ||||||
19 | such settlement is made in good faith, the amount thereof | ||||||
20 | shall be deductible from the limits of liability specified | ||||||
21 | in the policy. | ||||||
22 | 4. The policy, the written application therefor, if | ||||||
23 | any, and any rider or endorsement which shall not conflict | ||||||
24 | with the provisions of this Act shall constitute the | ||||||
25 | entire contract between the parties. | ||||||
26 | (g) Excess or Additional Coverage. --Any motor vehicle |
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1 | liability policy may, however, grant any lawful coverage in | ||||||
2 | excess of or in addition to the coverage herein specified or | ||||||
3 | contain any agreements, provisions, or stipulations not in | ||||||
4 | conflict with the provisions of this Act and not otherwise | ||||||
5 | contrary to law. | ||||||
6 | (h) Reimbursement Provision Permitted. --The policy may | ||||||
7 | provide that the insured, or any other person covered by the | ||||||
8 | policy shall reimburse the insurance carrier for payment made | ||||||
9 | on account of any loss or damage claim or suit involving a | ||||||
10 | breach of the terms, provisions , | ||||||
or conditions of the policy; | |||||||
11 | and further, if the policy shall provide for limits in excess | ||||||
12 | of the limits specified in this Act, the insurance carrier may | ||||||
13 | plead against any plaintiff, with respect to the amount of | ||||||
14 | such excess limits of liability, any defense which it may be | ||||||
15 | entitled to plead against the insured. | ||||||
16 | (i) Proration of Insurance Permitted. --The policy may | ||||||
17 | provide for the pro-rating of the insurance thereunder with | ||||||
18 | other applicable valid and collectible insurance. | ||||||
19 | (j) Binders. --Any binder pending the issuance of any | ||||||
20 | policy, which binder contains or by reference includes the | ||||||
21 | provisions hereunder shall be sufficient proof of ability to | ||||||
22 | respond in damages. | ||||||
23 | (k) Copy of Policy to Be Filed with Department of | ||||||
24 | Insurance--Approval. --A copy of the form of every motor | ||||||
25 | vehicle liability policy which is to be used to meet the | ||||||
26 | requirements of this Act must be filed, by the company |
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1 | offering such policy, with the Department of Insurance, which | ||||||
2 | shall approve or disapprove the policy within 30 days of its | ||||||
3 | filing. If the Department approves the policy in writing | ||||||
4 | within such 30 day period or fails to take action for 30 days, | ||||||
5 | the form of policy shall be deemed approved as filed. If within | ||||||
6 | the 30 days the Department disapproves the form of policy | ||||||
7 | filed upon the ground that it does not comply with the | ||||||
8 | requirements of this Act, the Department shall give written | ||||||
9 | notice of its decision and its reasons therefor to the carrier | ||||||
10 | and the policy shall not be accepted as proof of financial | ||||||
11 | responsibility under this Act. | ||||||
12 | (l) Insurance Carrier Required to File Certificate. --An | ||||||
13 | insurance carrier who has issued a motor vehicle liability | ||||||
14 | policy or policies or an operator's policy meeting the | ||||||
15 | requirements of this Act shall, upon the request of the | ||||||
16 | insured therein, deliver to the insured for filing, or at the | ||||||
17 | request of the insured, shall file direct, with the Secretary | ||||||
18 | of State a certificate, as required by this Act, which shows | ||||||
19 | that such policy or policies have been issued. No insurance | ||||||
20 | carrier may require the payment of any extra fee or surcharge, | ||||||
21 | in addition to the insurance premium, for the execution, | ||||||
22 | delivery or filing of such certificate. | ||||||
23 | (m) Proof When Made By Endorsement. --Any motor vehicle | ||||||
24 | liability policy which by endorsement contains the provisions | ||||||
25 | required hereunder shall be sufficient proof of ability to | ||||||
26 | respond in damages. |
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1 | (Source: P.A. 102-982, eff. 7-1-23 .)
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