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92_HB4975
LRB9215737LDtm
1 AN ACT regarding vehicles.
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,
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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
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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. The expiration of the
10 insurance policy shall not terminate the liability under
11 the policy arising during the period for which the policy
12 was filed. Trailer and mobile home dealers are exempt
13 from this requirement.
14 The liability insurance policy must provide
15 automobile liability coverage in the minimum amounts of
16 $100,000 for bodily injury to or the death of any person,
17 $300,000 for bodily injury to or the death of any 2 or
18 more persons in any one accident, and $50,000 for damage
19 to property for any permitted user of the new vehicle
20 dealer's vehicle.
21 As used in this paragraph 6, a "permitted user" is a
22 person who, for a period of less than 12 hours and with
23 the permission of the new vehicle dealer or an employee
24 of the new vehicle dealer, drives a vehicle owned and
25 held for sale or lease by a new vehicle dealer which the
26 person is considering to purchase or lease, in order to
27 evaluate the performance, reliability, or condition of
28 the vehicle.
29 7. (A) An application for a new motor vehicle
30 dealer's license shall be accompanied by the
31 following license fees:
32 $100 for applicant's established place of
33 business, and $50 for each additional place of
34 business, if any, to which the application pertains;
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1 but if the application is made after June 15 of any
2 year, the license fee shall be $50 for applicant's
3 established place of business plus $25 for each
4 additional place of business, if any, to which the
5 application pertains. License fees shall be
6 returnable only in the event that the application is
7 denied by the Secretary of State. All moneys
8 received by the Secretary of State as license fees
9 under this Section shall be deposited into the Motor
10 Vehicle Review Board Fund and shall be used to
11 administer the Motor Vehicle Review Board under the
12 Motor Vehicle Franchise Act.
13 (B) An application for a new vehicle dealer's
14 license, other than for a new motor vehicle dealer's
15 license, shall be accompanied by the following
16 license fees:
17 $50 for applicant's established place of
18 business, and $25 for each additional place of
19 business, if any, to which the application pertains;
20 but if the application is made after June 15 of any
21 year, the license fee shall be $25 for applicant's
22 established place of business plus $12.50 for each
23 additional place of business, if any, to which the
24 application pertains. License fees shall be
25 returnable only in the event that the application is
26 denied by the Secretary of State.
27 8. A statement that the applicant's officers,
28 directors, shareholders having a 10% or greater ownership
29 interest therein, proprietor, a partner, member, officer,
30 director, trustee, manager or other principals in the
31 business have not committed in the past 3 years any one
32 violation as determined in any civil, criminal or
33 administrative proceedings of any one of the following
34 Acts:
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1 (A) The Anti Theft Laws of the Illinois
2 Vehicle Code;
3 (B) The Certificate of Title Laws of the
4 Illinois Vehicle Code;
5 (C) The Offenses against Registration and
6 Certificates of Title Laws of the Illinois Vehicle
7 Code;
8 (D) The Dealers, Transporters, Wreckers and
9 Rebuilders Laws of the Illinois Vehicle Code;
10 (E) Section 21-2 of the Criminal Code of 1961,
11 Criminal Trespass to Vehicles; or
12 (F) The Retailers' Occupation Tax Act.
13 9. A statement that the applicant's officers,
14 directors, shareholders having a 10% or greater ownership
15 interest therein, proprietor, partner, member, officer,
16 director, trustee, manager or other principals in the
17 business have not committed in any calendar year 3 or
18 more violations, as determined in any civil, criminal or
19 administrative proceedings, of any one or more of the
20 following Acts:
21 (A) The Consumer Finance Act;
22 (B) The Consumer Installment Loan Act;
23 (C) The Retail Installment Sales Act;
24 (D) The Motor Vehicle Retail Installment Sales
25 Act;
26 (E) The Interest Act;
27 (F) The Illinois Wage Assignment Act;
28 (G) Part 8 of Article XII of the Code of Civil
29 Procedure; or
30 (H) The Consumer Fraud Act.
31 10. A bond or certificate of deposit in the amount
32 of $20,000 for each location at which the applicant
33 intends to act as a new vehicle dealer. The bond shall
34 be for the term of the license, or its renewal, for which
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1 application is made, and shall expire not sooner than
2 December 31 of the year for which the license was issued
3 or renewed. The bond shall run to the People of the
4 State of Illinois, with surety by a bonding or insurance
5 company authorized to do business in this State. It
6 shall be conditioned upon the proper transmittal of all
7 title and registration fees and taxes (excluding taxes
8 under the Retailers' Occupation Tax Act) accepted by the
9 applicant as a new vehicle dealer.
10 11. Such other information concerning the business
11 of the applicant as the Secretary of State may by rule or
12 regulation prescribe.
13 12. A statement that the applicant understands
14 Chapter One through Chapter Five of this Code.
15 (c) Any change which renders no longer accurate any
16 information contained in any application for a new vehicle
17 dealer's license shall be amended within 30 days after the
18 occurrence of such change on such form as the Secretary of
19 State may prescribe by rule or regulation, accompanied by an
20 amendatory fee of $2.
21 (d) Anything in this Chapter 5 to the contrary
22 notwithstanding no person shall be licensed as a new vehicle
23 dealer unless:
24 1. He is authorized by contract in writing between
25 himself and the manufacturer or franchised distributor of
26 such make of vehicle to so sell the same in this State,
27 and
28 2. Such person shall maintain an established place
29 of business as defined in this Act.
30 (e) The Secretary of State shall, within a reasonable
31 time after receipt, examine an application submitted to him
32 under this Section and unless he makes a determination that
33 the application submitted to him does not conform with the
34 requirements of this Section or that grounds exist for a
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1 denial of the application, under Section 5-501 of this
2 Chapter, grant the applicant an original new vehicle dealer's
3 license in writing for his established place of business and
4 a supplemental license in writing for each additional place
5 of business in such form as he may prescribe by rule or
6 regulation which shall include the following:
7 1. The name of the person licensed;
8 2. If a corporation, the name and address of its
9 officers or if a sole proprietorship, a partnership, an
10 unincorporated association or any similar form of
11 business organization, the name and address of the
12 proprietor or of each partner, member, officer, director,
13 trustee or manager;
14 3. In the case of an original license, the
15 established place of business of the licensee;
16 4. In the case of a supplemental license, the
17 established place of business of the licensee and the
18 additional place of business to which such supplemental
19 license pertains;
20 5. The make or makes of new vehicles which the
21 licensee is licensed to sell.
22 (f) The appropriate instrument evidencing the license or
23 a certified copy thereof, provided by the Secretary of State,
24 shall be kept posted conspicuously in the established place
25 of business of the licensee and in each additional place of
26 business, if any, maintained by such licensee.
27 (g) Except as provided in subsection (h) hereof, all new
28 vehicle dealer's licenses granted under this Section shall
29 expire by operation of law on December 31 of the calendar
30 year for which they are granted unless sooner revoked or
31 cancelled under the provisions of Section 5-501 of this
32 Chapter.
33 (h) A new vehicle dealer's license may be renewed upon
34 application and payment of the fee required herein, and
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1 submission of proof of coverage under an approved bond under
2 the "Retailers' Occupation Tax Act" or proof that applicant
3 is not subject to such bonding requirements, as in the case
4 of an original license, but in case an application for the
5 renewal of an effective license is made during the month of
6 December, the effective license shall remain in force until
7 the application is granted or denied by the Secretary of
8 State.
9 (i) All persons licensed as a new vehicle dealer are
10 required to furnish each purchaser of a motor vehicle:
11 1. In the case of a new vehicle a manufacturer's
12 statement of origin and in the case of a used motor
13 vehicle a certificate of title, in either case properly
14 assigned to the purchaser;
15 2. A statement verified under oath that all
16 identifying numbers on the vehicle agree with those on
17 the certificate of title or manufacturer's statement of
18 origin;
19 3. A bill of sale properly executed on behalf of
20 such person;
21 4. A copy of the Uniform Invoice-transaction
22 reporting return referred to in Section 5-402 hereof;
23 5. In the case of a rebuilt vehicle, a copy of the
24 Disclosure of Rebuilt Vehicle Status; and
25 6. In the case of a vehicle for which the warranty
26 has been reinstated, a copy of the warranty.
27 (j) Except at the time of sale or repossession of the
28 vehicle, no person licensed as a new vehicle dealer may issue
29 any other person a newly created key to a vehicle unless the
30 new vehicle dealer makes a copy of the driver's license or
31 State identification card of the person requesting or
32 obtaining the newly created key. The new vehicle dealer must
33 retain the copy for 30 days.
34 A new vehicle dealer who violates this subsection (j) is
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1 guilty of a petty offense. Violation of this subsection (j)
2 is not cause to suspend, revoke, cancel, or deny renewal of
3 the new vehicle dealer's license.
4 This amendatory Act of 1983 shall be applicable to the
5 1984 registration year and thereafter.
6 (Source: P.A. 92-391, eff. 8-16-01.)
7 (625 ILCS 5/5-102) (from Ch. 95 1/2, par. 5-102)
8 Sec. 5-102. Used vehicle dealers must be licensed.
9 (a) No person, other than a licensed new vehicle dealer,
10 shall engage in the business of selling or dealing in, on
11 consignment or otherwise, 5 or more used vehicles of any make
12 during the year (except house trailers as authorized by
13 paragraph (j) of this Section and rebuilt salvage vehicles
14 sold by their rebuilders to persons licensed under this
15 Chapter), or act as an intermediary, agent or broker for any
16 licensed dealer or vehicle purchaser (other than as a
17 salesperson) or represent or advertise that he is so engaged
18 or intends to so engage in such business unless licensed to
19 do so by the Secretary of State under the provisions of this
20 Section.
21 (b) An application for a used vehicle dealer's license
22 shall be filed with the Secretary of State, duly verified by
23 oath, in such form as the Secretary of State may by rule or
24 regulation prescribe and shall contain:
25 1. The name and type of business organization
26 established and additional places of business, if any, in
27 this State.
28 2. If the applicant is a corporation, a list of its
29 officers, directors, and shareholders having a ten
30 percent or greater ownership interest in the corporation,
31 setting forth the residence address of each; if the
32 applicant is a sole proprietorship, a partnership, an
33 unincorporated association, a trust, or any similar form
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1 of business organization, the names and residence address
2 of the proprietor or of each partner, member, officer,
3 director, trustee or manager.
4 3. A statement that the applicant has been approved
5 for registration under the Retailers' Occupation Tax Act
6 by the Department of Revenue. However, this requirement
7 does not apply to a dealer who is already licensed
8 hereunder with the Secretary of State, and who is merely
9 applying for a renewal of his license. As evidence of
10 this fact, the application shall be accompanied by a
11 certification from the Department of Revenue showing that
12 the Department has approved the applicant for
13 registration under the Retailers' Occupation Tax Act.
14 4. A statement that the applicant has complied with
15 the appropriate liability insurance requirement. A
16 Certificate of Insurance in a solvent company authorized
17 to do business in the State of Illinois shall be included
18 with each application covering each location at which he
19 proposes to act as a used vehicle dealer. The policy
20 must provide liability coverage for the used vehicle
21 dealer and its officers, directors, and employees while
22 acting within the course and scope of their employment in
23 the minimum amounts of $100,000 for bodily injury to, or
24 death of, any person, $300,000 for bodily injury to, or
25 death of, two or more persons in any one accident, and
26 $50,000 for damage to property. Such policy shall expire
27 not sooner than December 31 of the year for which the
28 license was issued or renewed. The expiration of the
29 insurance policy shall not terminate the liability under
30 the policy arising during the period for which the policy
31 was filed. Trailer and mobile home dealers are exempt
32 from this requirement.
33 The liability insurance policy must provide
34 automobile liability coverage in the minimum amounts of
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1 $100,000 for bodily injury to or the death of any person,
2 $300,000 for bodily injury to or the death of any 2 or
3 more persons in any one accident, and $50,000 for damage
4 to property for any permitted user of the used vehicle
5 dealer's vehicle.
6 As used in this paragraph 4, a "permitted user" is a
7 person who, for a period of less than 12 hours and with
8 the permission of the used vehicle dealer or an employee
9 of the used vehicle dealer, drives a vehicle owned and
10 held for sale or lease by a used vehicle dealer which the
11 person is considering to purchase or lease, in order to
12 evaluate the performance, reliability, or condition of
13 the vehicle.
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
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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
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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:
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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
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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 (k) Except at the time of sale or repossession of the
32 vehicle, no person licensed as a used vehicle dealer may
33 issue any other person a newly created key to a vehicle
34 unless the used vehicle dealer makes a copy of the driver's
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1 license or State identification card of the person requesting
2 or obtaining the newly created key. The used vehicle dealer
3 must retain the copy for 30 days.
4 A used vehicle dealer who violates this subsection (k) is
5 guilty of a petty offense. Violation of this subsection (k)
6 is not cause to suspend, revoke, cancel, or deny renewal of
7 the used vehicle dealer's license.
8 (Source: P.A. 92-391, eff. 8-16-01.)
9 (625 ILCS 5/7-202) (from Ch. 95 1/2, par. 7-202)
10 Sec. 7-202. Exceptions to requirements of security. (a)
11 The requirements as to security and suspension as provided by
12 Sections 7-201 and 7-205 shall not apply:
13 1. To the driver or owner if such owner had in effect at
14 the time of such motor vehicle accident a liability policy
15 covering such driver and owner with respect to the vehicle
16 involved in such motor vehicle accident;
17 2. To the driver, if not the owner of such vehicle, if
18 there was in effect at the time of such motor vehicle
19 accident a liability policy or bond with respect to the
20 operation of motor vehicles not owned by the driver;
21 3. To the driver or owner if the liability of such
22 driver or owner for damages resulting from such motor vehicle
23 accident is covered by any other form of liability insurance
24 policy or bond;
25 4. To the driver or owner, if such owner is qualified as
26 a self-insurer as provided in Section 7-502;
27 5. To the owner if such owner at the time of such motor
28 vehicle accident was in compliance with Section 8-101 or
29 Section 9-101, or if the owner was a new vehicle dealer in
30 compliance with paragraph 6 of subsection (b) of Section
31 5-101 or a used vehicle dealer in compliance with paragraph 4
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1 of subsection (b) of Section 5-102;
2 6. To the driver or owner if such owner at the time of
3 such motor vehicle accident was in compliance with the
4 Federal Revised Interstate Commerce Act (P.L. 95-473), as now
5 or hereafter amended;
6 7. To the owner if the vehicle involved in such motor
7 vehicle accident was owned by the United States, this State
8 or any political sub-division of this State, any municipality
9 therein, or any local Mass Transit District;
10 8. To the driver or the owner of a vehicle involved in a
11 motor vehicle accident wherein no injury or damage was caused
12 to the person or property of any one other than such driver
13 or owner;
14 9. To the driver or the owner of a vehicle which at the
15 time of the motor vehicle accident was parked, unless such
16 vehicle was parked at a place where parking was at the time
17 of the accident prohibited under any applicable law or
18 ordinance;
19 10. To the owner of a vehicle if at the time of the
20 motor vehicle accident the vehicle was being operated without
21 his permission, express or implied, or was parked by a person
22 who had been operating such motor vehicle without such
23 permission;
24 11. To the driver, if not the owner, of a commercial
25 motor vehicle on which there was no liability policy or bond
26 with respect to the operation of such vehicle in effect at
27 the time of the motor vehicle accident when the driver was
28 operating the vehicle in the course of the driver's
29 employment and had no actual knowledge of such lack of a
30 liability policy or bond prior to the motor vehicle accident.
31 (b) If at the time of the motor vehicle accident, an
32 owner or driver is covered by a motor vehicle liability
33 policy or bond meeting the requirements of this Code, such
34 owner or driver shall be exempt from suspension under Section
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1 7-205 as to that motor vehicle accident, if the company
2 issuing the policy or bond has failed, and such policy or
3 bond was not effective at the time of the motor vehicle
4 accident or any time thereafter, provided, that the owner or
5 driver had no knowledge of the company's failure prior to the
6 motor vehicle accident, and such owner or driver has secured
7 within 30 days after learning of such failure another
8 liability policy or bond meeting the requirements of the Code
9 relating to future occurrences or motor vehicle accidents.
10 As used in this paragraph, the words "failed" or
11 "failure" mean that the company has suspended operations by
12 order of a court.
13 (Source: P.A. 85-293.)
14 (625 ILCS 5/7-317) (from Ch. 95 1/2, par. 7-317)
15 Sec. 7-317. "Motor vehicle liability policy" defined. (a)
16 Certification. -A "motor vehicle liability policy", as that
17 term is used in this Act, means an "owner's policy" or an
18 "operator's policy" of liability insurance, certified as
19 provided in Section 7-315 or Section 7-316 as proof of
20 financial responsibility for the future, and issued, except
21 as otherwise provided in Section 7-316, by an insurance
22 carrier duly authorized to transact business in this State,
23 to or for the benefit of the person named therein as insured.
24 (b) Owner's Policy. --Such owner's policy of liability
25 insurance:
26 1. Shall designate by explicit description or by
27 appropriate reference, all motor vehicles with respect to
28 which coverage is thereby intended to be granted;
29 2. Shall insure the person named therein and any other
30 person using or responsible for the use of such motor vehicle
31 or vehicles with the express or implied permission of the
32 insured, except that with respect to new vehicle dealers it
33 shall insure permitted users only to the extent provided in
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1 paragraph 6 of subsection (b) of Section 5-101, and with
2 respect to used vehicle dealers it shall insure permitted
3 users only to the extent provided in paragraph 4 of
4 subsection (b) of Section 5-102;
5 3. Shall insure every named insured and any other person
6 using or responsible for the use of any motor vehicle owned
7 by the named insured and used by such other person with the
8 express or implied permission of the named insured on account
9 of the maintenance, use or operation of any motor vehicle
10 owned by the named insured, within the continental limits of
11 the United States or the Dominion of Canada against loss from
12 liability imposed by law arising from such maintenance, use
13 or operation, to the extent and aggregate amount, exclusive
14 of interest and cost, with respect to each motor vehicle, of
15 $20,000 for bodily injury to or death of one person as a
16 result of any one accident and, subject to such limit as to
17 one person, the amount of $40,000 for bodily injury to or
18 death of all persons as a result of any one accident and the
19 amount of $15,000 for damage to property of others as a
20 result of any one accident.
21 As used in this subsection (b), a "permitted user" is a
22 person who, for a period of less than 12 hours and with the
23 permission of the new or used vehicle dealer or an employee
24 of the new or used vehicle dealer, drives a vehicle owned and
25 held for sale or lease by the new or used vehicle dealer
26 which the person is considering to purchase or lease, in
27 order to evaluate the performance, reliability, or condition
28 of the vehicle.
29 (c) Operator's Policy. --When an operator's policy is
30 required, it shall insure the person named therein as insured
31 against the liability imposed by law upon the insured for
32 bodily injury to or death of any person or damage to property
33 to the amounts and limits above set forth and growing out of
34 the use or operation by the insured within the continental
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1 limits of the United States or the Dominion of Canada of any
2 motor vehicle not owned by him.
3 (d) Required Statements in Policies. --Every motor
4 vehicle liability policy must specify the name and address of
5 the insured, the coverage afforded by the policy, the premium
6 charged therefor, the policy period, and the limits of
7 liability, and shall contain an agreement that the insurance
8 thereunder is provided in accordance with the coverage
9 defined in this Act, as respects bodily injury and death or
10 property damage or both, and is subject to all the provisions
11 of this Act.
12 (e) Policy Need Not Insure Workers' Compensation. --Any
13 liability policy or policies issued hereunder need not cover
14 any liability of the insured assumed by or imposed upon the
15 insured under any workers' compensation law nor any liability
16 for damage to property in charge of the insured or the
17 insured's employees.
18 (f) Provisions Incorporated in Policy. --Every motor
19 vehicle liability policy is subject to the following
20 provisions which need not be contained therein:
21 1. The liability of the insurance carrier under any such
22 policy shall become absolute whenever loss or damage covered
23 by the policy occurs and the satisfaction by the insured of a
24 final judgment for such loss or damage shall not be a
25 condition precedent to the right or obligation of the carrier
26 to make payment on account of such loss or damage.
27 2. No such policy may be cancelled or annulled as
28 respects any loss or damage, by any agreement between the
29 carrier and the insured after the insured has become
30 responsible for such loss or damage, and any such
31 cancellation or annulment shall be void.
32 3. The insurance carrier shall, however, have the right
33 to settle any claim covered by the policy, and if such
34 settlement is made in good faith, the amount thereof shall be
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1 deductible from the limits of liability specified in the
2 policy.
3 4. The policy, the written application therefor, if any,
4 and any rider or endorsement which shall not conflict with
5 the provisions of this Act shall constitute the entire
6 contract between the parties.
7 (g) Excess or Additional Coverage. --Any motor vehicle
8 liability policy may, however, grant any lawful coverage in
9 excess of or in addition to the coverage herein specified or
10 contain any agreements, provisions, or stipulations not in
11 conflict with the provisions of this Act and not otherwise
12 contrary to law.
13 (h) Reimbursement Provision Permitted. --The policy may
14 provide that the insured, or any other person covered by the
15 policy shall reimburse the insurance carrier for payment made
16 on account of any loss or damage claim or suit involving a
17 breach of the terms, provisions or conditions of the policy;
18 and further, if the policy shall provide for limits in excess
19 of the limits specified in this Act, the insurance carrier
20 may plead against any plaintiff, with respect to the amount
21 of such excess limits of liability, any defense which it may
22 be entitled to plead against the insured.
23 (i) Proration of Insurance Permitted. --The policy may
24 provide for the pro-rating of the insurance thereunder with
25 other applicable valid and collectible insurance.
26 (j) Binders. --Any binder pending the issuance of any
27 policy, which binder contains or by reference includes the
28 provisions hereunder shall be sufficient proof of ability to
29 respond in damages.
30 (k) Copy of Policy to Be Filed with Department of
31 Insurance--Approval. --A copy of the form of every motor
32 vehicle liability policy which is to be used to meet the
33 requirements of this Act must be filed, by the company
34 offering such policy, with the Department of Insurance, which
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1 shall approve or disapprove the policy within 30 days of its
2 filing. If the Department approves the policy in writing
3 within such 30 day period or fails to take action for 30
4 days, the form of policy shall be deemed approved as filed.
5 If within the 30 days the Department disapproves the form of
6 policy filed upon the ground that it does not comply with the
7 requirements of this Act, the Department shall give written
8 notice of its decision and its reasons therefor to the
9 carrier and the policy shall not be accepted as proof of
10 financial responsibility under this Act.
11 (l) Insurance Carrier Required to File Certificate. --An
12 insurance carrier who has issued a motor vehicle liability
13 policy or policies or an operator's policy meeting the
14 requirements of this Act shall, upon the request of the
15 insured therein, deliver to the insured for filing, or at the
16 request of the insured, shall file direct, with the Secretary
17 of State a certificate, as required by this Act, which shows
18 that such policy or policies have been issued. No insurance
19 carrier may require the payment of any extra fee or
20 surcharge, in addition to the insurance premium, for the
21 execution, delivery or filing of such certificate.
22 (m) Proof When Made By Endorsement. --Any motor vehicle
23 liability policy which by endorsement contains the provisions
24 required hereunder shall be sufficient proof of ability to
25 respond in damages.
26 (Source: P.A. 85-730.)
27 (625 ILCS 5/7-601) (from Ch. 95 1/2, par. 7-601)
28 Sec. 7-601. Required liability insurance policy.
29 (a) No person shall operate, register or maintain
30 registration of, and no owner shall permit another person to
31 operate, register or maintain registration of, a motor
32 vehicle designed to be used on a public highway unless the
33 motor vehicle is covered by a liability insurance policy.
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1 The insurance policy shall be issued in amounts no less
2 than the minimum amounts set for bodily injury or death and
3 for destruction of property under Section 7-203 of this Code,
4 and shall be issued in accordance with the requirements of
5 Sections 143a and 143a-2 of the Illinois Insurance Code, as
6 amended. No insurer other than an insurer authorized to do
7 business in this State shall issue a policy pursuant to this
8 Section for any vehicle subject to registration under this
9 Code. Nothing herein shall deprive an insurer of any policy
10 defense available at common law.
11 (b) The following vehicles are exempt from the
12 requirements of this Section:
13 (1) vehicles subject to the provisions of Chapters
14 8 or 18a, Article III or Section 7-609 of Chapter 7, or
15 Sections 12-606 or 12-707.01 of Chapter 12 of this Code;
16 (2) vehicles required to file proof of liability
17 insurance with the Illinois Commerce Commission;
18 (3) vehicles covered by a certificate of
19 self-insurance under Section 7-502 of this Code;
20 (4) vehicles owned by the United States, the State
21 of Illinois, or any political subdivision, municipality
22 or local mass transit district;
23 (5) implements of husbandry;
24 (6) other vehicles complying with laws which
25 require them to be insured in amounts meeting or
26 exceeding the minimum amounts required under this
27 Section; and
28 (7) inoperable or stored vehicles that are not
29 operated, as defined by rules and regulations of the
30 Secretary; and.
31 (8) vehicles of new vehicle dealers complying with
32 paragraph 6 of subsection (b) of Section 5-101 and
33 vehicles of used vehicle dealers complying with paragraph
34 4 of subsection (b) of Section 5-102.
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1 (c) Every employee of a State agency, as that term is
2 defined in the Illinois State Auditing Act, who is assigned a
3 specific vehicle owned or leased by the State on an ongoing
4 basis shall provide the certification described in this
5 Section annually to the director or chief executive officer
6 of his or her agency.
7 The certification shall affirm that the employee is duly
8 licensed to drive the assigned vehicle and that (i) the
9 employee has liability insurance coverage extending to the
10 employee when the assigned vehicle is used for other than
11 official State business, or (ii) the employee has filed a
12 bond with the Secretary of State as proof of financial
13 responsibility, in an amount equal to, or in excess of the
14 requirements stated within this Section. Upon request of the
15 agency director or chief executive officer, the employee
16 shall present evidence to support the certification.
17 The certification shall be provided during the period
18 July 1 through July 31 of each calendar year, or within 30
19 days of any new assignment of a vehicle on an ongoing basis,
20 whichever is later.
21 The employee's authorization to use the assigned vehicle
22 shall automatically be rescinded upon:
23 (1) the revocation or suspension of the license
24 required to drive the assigned vehicle;
25 (2) the cancellation or termination for any reason
26 of the automobile liability insurance coverage as
27 required in item (c) (i); or
28 (3) the termination of the bond filed with the
29 Secretary of State.
30 All State employees providing the required certification
31 shall immediately notify the agency director or chief
32 executive officer in the event any of these actions occur.
33 All peace officers employed by a State agency who are
34 primarily responsible for prevention and detection of crime
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1 and the enforcement of the criminal, traffic, or highway laws
2 of this State, and prohibited by agency rule or policy to use
3 an assigned vehicle owned or leased by the State for regular
4 personal or off-duty use, are exempt from the requirements of
5 this Section.
6 (Source: P.A. 91-661, eff. 12-22-99.)
7 Section 98. Applicability. The changes made by this
8 amendatory Act of the 92nd General Assembly apply only to
9 actions commenced and complaints filed on or after the
10 effective date of this amendatory Act of the 92nd General
11 Assembly.
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