SB 28 — VEH CD-INSURE-REGISTER-CANCL

*LRB09406200DRH36270b* SB0028 94THEngrossed GENERALLRB094 ASSEMBLY06200 StateDRH of36270 Illinoisb andAN 2006ACT SB0028concerning Introducedtransportation. 1/26/2005, by Sen.

Ira I.

Silverstein SYNOPSIS AS INTRODUCED:

ILCS 5/7-601.1 new ILCS 5/7-601.2 new ILCS 5/7-601.3 new ILCS 5/7-601.4 new Amends the Illinois Vehicle Code.

Provides that a person’s vehicle registration and driving privileges may be suspended if he or she fails to provide and maintain satisfactory proof of insurance or financial security under the Code.

Provides that an insurance company is required to give a terminated.

Provides that the company must notify the Secretary of State of any termination of coverage.

Provides requirements for notice and prohibits termination of coverage under certain conditions.

Provides that suspension of registration and driving privileges will be terminated if the person provides proof of insurance or financial security that is satisfactory under the Code.

LRB094 06200 DRH 36270 b FISCAL NOTE ACT MAY APPLY A BILL FOR SB0028 LRB094 06200 DRH 36270 b AN ACT concerning transportation.

The Illinois Vehicle Code is amended by addingchanging SectionsSection 7-601.1,3-707 7-601.2, 7-601.3, and 7-601.4, as follows:

(625 ILCS 5/7-601.15/3-707) new)(from Sec.Ch.

7-601.1.95 1/2, par.

Registration3-707) application;Sec.

proof3-707. of insurance required.

(a)Operation Exceptof asuninsured provided in subsection (b), a motor vehicle may- notpenalty. be registered in this State unless the application for registration is accompanied by the proof of financial security required under Section 7-601 of this Code.

(b)(a) TheNo Secretaryperson ofshall Stateoperate maya providemotor byvehicle ruleunless thatthe uponmotor renewalvehicle ofis registration,covered an application accompanied by proofa ofliability properinsurance Illinoispolicy registration issued by the Secretary in forceaccordance immediately preceding the date of application for renewal, together with aSection statement7-601 in a form prescribed by the Secretary certifying that there is in effect proof of financial security, shall meet the requirements of this Section.Code.

(c)(b) UponAny theperson issuancewho orfails renewalto ofcomply with a privaterequest passengerby automobilea insurancelaw policyenforcement inofficer compliancefor withdisplay Sectionof 7-601evidence of thisinsurance, Code,as therequired insurance company shall provide the insured with an informational statement outlining the legal and financial consequences of convictions under Section 11-5017-602 of this Code, pertainingshall tobe operatingdeemed ato motorbe vehicleoperating whilean underuninsured themotor influencevehicle. of alcohol, other drug or drugs, intoxicating compound or compounds, or any combination thereof.

The(c) informationalAny statementoperator shallof specificallya includemotor thevehicle relationshipsubject betweento bodyregistration weight,under alcoholthis consumptionCode rate,who andis theconvicted amountof violating this Section is guilty of alcohola consumedpetty afterbusiness whichoffense personsand, areexcept deemedas toprovided in subsection (c-1), shall be required to pay a fine in violationexcess of Section$500, 11-501.but not more than $1,000.

ThatHowever, informationno person charged with violating this Section shall be suppliedconvicted toif thesuch companyperson byproduces in court satisfactory evidence that at the Departmenttime of Insurancethe SB0028arrest -the 2motor -vehicle LRB094was 06200covered DRHby 36270a bliability insurance policy in consultationaccordance with theSection Secretary.7-601 of this Code.

(d) The ownerchief judge of aeach motorcircuit vehiclemay mustdesignate maintainan proofofficer of financialthe securitycourt continuouslyto throughoutreview the registrationdocumentation period.demonstrating that at the time of arrest the motor vehicle was covered by a liability insurance policy in accordance with Section 7-601 of this Code.

(e)(c-1) WhenIf insurancethe withoperator respectof toa any motor vehicle is terminated,also theits ownerowner, mustand surrenderif, toon the Secretarydate hison orwhich herthe proofoperator of registrationa andmotor thevehicle licenseis platescharged with a violation of this Section, the vehicle,motor unlessvehicle proofhas been uninsured for a period in excess of financial180 securitydays, isthe otherwiseoperator maintainedof the motor vehicle shall be required to pay, in complianceaddition withto SectionSB0028 7-601.Engrossed - 2 - LRB094 06200 DRH 36270 b the $500 fine provided for in subsection (c), a fine of $7 for each day in excess of 180 days that the motor vehicle was uninsured.

(f) The Secretarytotal shallfine adopt rules for implementing this Section and Sections 7-601.2, 7-601.3, and 7-601.4, including but not limited to rules with regard to how registration plates and stickers issued by the Secretary under Section 3-412 shall indicate whether or not a vehiclesingle meetsviolation the proof of financialthis securitySection, requirementshowever, ofmay thisnot Code.exceed $1,000.

(625(d) ILCSA 5/7-601.2person new)convicted Sec.a third or subsequent time of violating this Section or a similar provision of a local ordinance must give proof to the Secretary of State of the person’s financial responsibility as defined in Section 7-315.

7-601.2.The person must maintain the proof in a manner satisfactory to the Secretary for a minimum period of one year after the date the proof is first filed.

InsuranceThe companies;Secretary must suspend the driver’s license of any person determined by the Secretary not to have provided adequate proof of financial responsibility as required by this subsection.

issuance(Source: and termination of coverage;

recordP.A. keeping.

(a)92-775, Uponeff. issuance of an owner’s policy of liability insurance or other financial security required by Section 7-601, an insurer shall issue proof of insurance in accordance with Section 7-602.

(b)7-1-03.) The Secretary shall make a record of all notices of termination received under Section 7-601.3.

After making the record, the Secretary is not required to retain the notices.

(625 ILCS 5/7-601.3 new) Sec.

7-601.3.

Notice of termination.

(a) Except as otherwise provided in this subsection (a), an insurer may not cancel or terminate a contract of insurance for which a certificate of insurance has been filed with the Secretary until at least 20 days after mailing to the named insured, at the address shown on the policy, a notice of termination by regular mail, with a certificate of mailing SB0028 - 3 - LRB094 06200 DRH 36270 b properly endorsed by the postal service.

If the cancellation is for non-payment of premium, however, 15 days notice of cancellation to the insured by the insurer is sufficient.

(b) An insurer may not nonrenew a contract of insurance for which a certificate of insurance has been filed with the Secretary, if a natural person is the named insured and the motor vehicle is used predominantly for non-business purposes, unless, at least 45 days but not more than 60 days in advance of the renewal date, the insurer mails or delivers to the named insured, at the address shown on the policy, a written notice of the insurer’s intention not to renew.

(c) An insurer may not nonrenew a contract of insurance for which a certificate of insurance has been filed with the Secretary, if the named insured is not a natural person or the motor vehicle is used predominantly for business purposes, unless, at least 20 days in advance of the renewal date, the insurer mails or delivers to the named insured, at the address shown on the policy, a written notice of the insurer’s intention not to renew.

(d) A notice of nonrenewal must be sent by regular mail, with a certificate of mailing properly endorsed by the postal service.

The time of the effective date and hour of termination stated in the notice shall become the end of the policy period.