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

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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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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.
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A BILL FOR
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AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Vehicle Code is amended by
changing Sections 1-164.5, 7-203, 7-311, and 7-317 as follows:
(625 ILCS 5/1-164.5)
Sec. 1-164.5. Proof of financial responsibility. Proof of
ability to respond in damages for any liability thereafter
incurred resulting from the ownership, maintenance, use, or
operation of a motor vehicle for bodily injury to or death of
any person in the amount of $50,000 $25,000, and subject to
this limit for any one person injured or killed, in the amount
of $100,000 $50,000 for bodily injury to or death of 2 or more
persons in any one crash, and for damage to property in the
amount of $40,000 $20,000 resulting from any one crash. This
proof in these amounts shall be furnished for each motor
vehicle registered by every person required to furnish this
proof. The changes to this Section made by this amendatory Act
of the 98th General Assembly apply only to policies issued or
renewed on or after January 1, 2015.
(Source: P.A. 102-982, eff. 7-1-23.)
(625 ILCS 5/7-203) (from Ch. 95 1/2, par. 7-203)

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Sec. 7-203. Requirements as to policy or bond. No such
policy or bond referred to in Section 7-202 shall be effective
under this Section unless issued by an insurance company or
surety company authorized to do business in this State, except
that if such motor vehicle was not registered in this State, or
was a motor vehicle which was registered elsewhere than in
this State at the effective date of the policy or bond, or the
most recent renewal thereof, such policy or bond shall not be
effective under this Section unless the insurance company or
surety company, if not authorized to do business in this
State, shall execute a power of attorney authorizing the
Secretary of State to accept service on its behalf of notice or
process in any action upon such policy or bond arising out of
such motor vehicle crash. However, 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 $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 $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 $20,000
because of injury to or destruction of property of others in
any one motor vehicle crash. The changes to this Section made
by this amendatory Act of the 98th General Assembly apply only

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to policies issued or renewed on or after January 1, 2015.
Upon receipt of a written motor vehicle crash report from
the Administrator the insurance company or surety company
named in such notice shall notify the Administrator within
such time and in such manner as the Administrator may require,
in case such policy or bond was not in effect at the time of
such motor vehicle crash.
(Source: P.A. 102-982, eff. 7-1-23.)
(625 ILCS 5/7-311) (from Ch. 95 1/2, par. 7-311)
Sec. 7-311. Payments sufficient to satisfy requirements.
(a) Judgments herein referred to arising out of motor
vehicle crashes occurring on or after January 1, 2015 (the
effective date of Public Act 98-519) shall for the purpose of
this Chapter be deemed satisfied:
1. when $50,000 $25,000 has been credited upon any
judgment or judgments rendered in excess of that amount
for bodily injury to or the death of one person as the
result of any one motor vehicle crash; or
2. when, subject to said limit of $50,000 $25,000 as
to any one person, the sum of $100,000 $50,000 has been
credited upon any judgment or judgments rendered in excess
of that amount for bodily injury to or the death of more
than one person as the result of any one motor vehicle
crash; or
3. when $40,000 $20,000 has been credited upon any

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judgment or judgments, rendered in excess of that amount
for damages to property of others as a result of any one
motor vehicle crash.
The changes to this subsection made by Public Act 98-519
apply only to policies issued or renewed on or after January 1,
2015.
(b) Credit for such amounts shall be deemed a satisfaction
of any such judgment or judgments in excess of said amounts
only for the purposes of this Chapter.
(c) Whenever payment has been made in settlement of any
claim for bodily injury, death, or property damage arising
from a motor vehicle crash resulting in injury, death, or
property damage to 2 two or more persons in such crash, any
such payment shall be credited in reduction of the amounts
provided for in this Section.
(Source: P.A. 102-982, eff. 7-1-23.)
(625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
Sec. 7-317. "Motor vehicle liability policy" defined.
(a) Certification. -A "motor vehicle liability policy", as
that term is used in this Act, means an "owner's policy" or an
"operator's policy" of liability insurance, certified as
provided in Section 7-315 or Section 7-316 as proof of
financial responsibility for the future, and issued, except as
otherwise provided in Section 7-316, by an insurance carrier
duly authorized to transact business in this State, to or for

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the benefit of the person named therein as insured.
(b) Owner's Policy. --Such owner's policy of liability
insurance:
1. Shall designate by explicit description or by
appropriate reference, all motor vehicles with respect to
which coverage is thereby intended to be granted;
2. Shall insure the person named therein and any other
person using or responsible for the use of such motor
vehicle or vehicles with the express or implied permission
of the insured;
3. Shall insure every named insured and any other
person using or responsible for the use of any motor
vehicle owned by the named insured and used by such other
person with the express or implied permission of the named
insured on account of the maintenance, use, or operation
of any motor vehicle owned by the named insured, within
the continental limits of the United States or the
Dominion of Canada against loss from liability imposed by
law arising from such maintenance, use, or operation, to
the extent and aggregate amount, exclusive of interest and
cost, with respect to each motor vehicle, of $50,000
$25,000 for bodily injury to or death of one person as a
result of any one crash and, subject to such limit as to
one person, the amount of $100,000 $50,000 for bodily
injury to or death of all persons as a result of any one
crash and the amount of $40,000 $20,000 for damage to

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property of others as a result of any one crash. The
changes to this paragraph made by this amendatory Act of
the 98th General Assembly apply only to policies issued or
renewed on or after January 1, 2015.
(c) Operator's Policy. --When an operator's policy is
required, it shall insure the person named therein as insured
against the liability imposed by law upon the insured for
bodily injury to or death of any person or damage to property
to the amounts and limits above set forth and growing out of
the use or operation by the insured within the continental
limits of the United States or the Dominion of Canada of any
motor vehicle not owned by him.
(d) Required Statements in Policies. --Every motor vehicle
liability policy must specify the name and address of the
insured, the coverage afforded by the policy, the premium
charged therefor, the policy period, and the limits of
liability, and shall contain an agreement that the insurance
thereunder is provided in accordance with the coverage defined
in this Act, as respects bodily injury and death or property
damage or both, and is subject to all the provisions of this
Act.
(e) Policy Need Not Insure Workers' Compensation. --Any
liability policy or policies issued hereunder need not cover
any liability of the insured assumed by or imposed upon the
insured under any workers' compensation law nor any liability
for damage to property in charge of the insured or the

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insured's employees.
(f) Provisions Incorporated in Policy. --Every motor
vehicle liability policy is subject to the following
provisions which need not be contained therein:
1. The liability of the insurance carrier under any
such policy shall become absolute whenever loss or damage
covered by the policy occurs and the satisfaction by the
insured of a final judgment for such loss or damage shall
not be a condition precedent to the right or obligation of
the carrier to make payment on account of such loss or
damage.
2. No such policy may be cancelled or annulled as
respects any loss or damage, by any agreement between the
carrier and the insured after the insured has become
responsible for such loss or damage, and any such
cancellation or annulment shall be void.
3. The insurance carrier shall, however, have the
right to settle any claim covered by the policy, and if
such settlement is made in good faith, the amount thereof
shall be deductible from the limits of liability specified
in the policy.
4. The policy, the written application therefor, if
any, and any rider or endorsement which shall not conflict
with the provisions of this Act shall constitute the
entire contract between the parties.
(g) Excess or Additional Coverage. --Any motor vehicle

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liability policy may, however, grant any lawful coverage in
excess of or in addition to the coverage herein specified or
contain any agreements, provisions, or stipulations not in
conflict with the provisions of this Act and not otherwise
contrary to law.
(h) Reimbursement Provision Permitted. --The policy may
provide that the insured, or any other person covered by the
policy shall reimburse the insurance carrier for payment made
on account of any loss or damage claim or suit involving a
breach of the terms, provisions,
or conditions of the policy;
and further, if the policy shall provide for limits in excess
of the limits specified in this Act, the insurance carrier may
plead against any plaintiff, with respect to the amount of
such excess limits of liability, any defense which it may be
entitled to plead against the insured.
(i) Proration of Insurance Permitted. --The policy may
provide for the pro-rating of the insurance thereunder with
other applicable valid and collectible insurance.
(j) Binders. --Any binder pending the issuance of any
policy, which binder contains or by reference includes the
provisions hereunder shall be sufficient proof of ability to
respond in damages.
(k) Copy of Policy to Be Filed with Department of
Insurance--Approval. --A copy of the form of every motor
vehicle liability policy which is to be used to meet the
requirements of this Act must be filed, by the company

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offering such policy, with the Department of Insurance, which
shall approve or disapprove the policy within 30 days of its
filing. If the Department approves the policy in writing
within such 30 day period or fails to take action for 30 days,
the form of policy shall be deemed approved as filed. If within
the 30 days the Department disapproves the form of policy
filed upon the ground that it does not comply with the
requirements of this Act, the Department shall give written
notice of its decision and its reasons therefor to the carrier
and the policy shall not be accepted as proof of financial
responsibility under this Act.
(l) Insurance Carrier Required to File Certificate. --An
insurance carrier who has issued a motor vehicle liability
policy or policies or an operator's policy meeting the
requirements of this Act shall, upon the request of the
insured therein, deliver to the insured for filing, or at the
request of the insured, shall file direct, with the Secretary
of State a certificate, as required by this Act, which shows
that such policy or policies have been issued. No insurance
carrier may require the payment of any extra fee or surcharge,
in addition to the insurance premium, for the execution,
delivery or filing of such certificate.
(m) Proof When Made By Endorsement. --Any motor vehicle
liability policy which by endorsement contains the provisions
required hereunder shall be sufficient proof of ability to
respond in damages.

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(Source: P.A. 102-982, eff. 7-1-23.)