Bill Text: IL HB5692 | 2013-2014 | 98th General Assembly | Chaptered


Bill Title: Creates the Uninsured Motorist Verification Advisory Committee Act. Provides that the Secretary of State shall establish and appoint an Uninsured Motorist Verification Advisory Committee consisting of representatives of the Department of Insurance and the insurance industry for the purpose of designing an electronic motor vehicle liability insurance verification program, including methods of funding, implementing, and operating the program. Provides that the program must: (1) require insurance companies to make relevant insurance information available to the Secretary; (2) provide a means of electronically verifying motor vehicle liability insurance policies; (3) require the Secretary to verify the existence of a liability insurance policy for every motor vehicle registered in Illinois once every 12 months; (4) allow the Secretary to request information from motor vehicle owners whose liability insurance cannot be verified; (5) suspend the registration of any motor vehicle owner that fails to respond or whose response shows the motor vehicle is not covered; (6) require insurance companies to assist the Secretary in verifying insurance information submitted in response to an information request; (7) authorize the Secretary to perform additional insurance verifications. Provides that this proposed legislation must not give the Secretary regulatory authority over insurance companies. Requires the Secretary to adopt rules for the electronic motor vehicle liability insurance verification system by January 1, 2016, subject to appropriation. Repeals the Act on July 1, 2016. Amends the Illinois Vehicle Code. Removes the requirement that applicants for vehicle registration provide insurance information for the vehicle for which registration issuance or renewal is being sought. Removes the provision that submission of false insurance information with a vehicle registration application is a Class C misdemeanor. Repeals the Section requiring remittance agents remitting vehicle registration applications to ask customers for the vehicle's insurance information. Provides that current procedures for insurance verification is repealed on December 31, 2015. Effective immediately.

Spectrum: Moderate Partisan Bill (Democrat 8-2)

Status: (Passed) 2014-07-25 - Public Act . . . . . . . . . 98-0787 [HB5692 Detail]

Download: Illinois-2013-HB5692-Chaptered.html



Public Act 098-0787
HB5692 EnrolledLRB098 18851 MLW 53996 b
AN ACT concerning transportation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be referred to as the
Uninsured Motorist Verification Advisory Committee Act.
Section 5. Uninsured Motorist Verification Advisory
Committee.
(a) The Secretary shall establish and appoint an Uninsured
Motorist Verification Advisory Committee consisting of
representatives of the Department of Insurance, insurance
companies authorized to sell motor vehicle liability insurance
policies in this State, insurance producers, and other
interested parties as designated by the Secretary, to assist in
the design and implementation of a program for the electronic
verification of motor vehicle liability insurance for motor
vehicles that are subject to Section 7-601 of the Illinois
Vehicle Code.
(b) The Uninsured Motorist Verification Advisory Committee
shall report to the General Assembly, on or before January 31,
2015, with recommendations for the design and funding of a
program for the electronic verification of motor vehicle
liability insurance policies issued and in effect in the State
and legislation to implement the program that includes at a
minimum the elements in subsection (d) of this Section.
(c) Based on the recommendations of the Uninsured Motorist
Verification Advisory Committee, the Secretary shall adopt
rules to implement a program for the electronic verification of
motor vehicle liability insurance by January 1, 2016 if and
only if appropriations are made funding the electronic
verification database as recommended by the Uninsured Motorist
Advisory Committee.
(d) The electronic motor vehicle liability insurance
verification program shall have the following elements:
(1) a requirement that insurance companies authorized
to sell motor vehicle liability insurance in the State make
available, in a format designated by the Secretary, the
following information for each motor vehicle liability
insurance policy issued by the company:
(A) the name of policy holder;
(B) the make, model, year and vehicle
identification number of the covered vehicle;
(C) the policy number;
(D) the effective date of the policy; and
(E) the company's National Association of
Insurance Commissioners number;
(2) a method of searching for motor vehicle liability
insurance policies issued and in effect in the State by the
keys indicated in paragraph (1) of this subsection;
(3) a requirement that the Secretary verify the
existence of a liability insurance policy as required by
Section 7-601 of the Illinois Vehicle Code for every motor
vehicle registered in the Secretary's office at least once
every 12 months;
(4) a provision that if the Secretary is unable to
verify the existence of a liability insurance policy, then
the vehicle owner shall be sent a written notice giving the
owner 30 calendar days to provide evidence that the vehicle
was insured on the date of the attempted verification of
insurance, or evidence that the vehicle is no longer
operable;
(5) a provision that any vehicle owner who fails to
respond, or whose response indicates that his or her
operable vehicle was not covered by a liability insurance
policy in accordance with Section 7-601 of the Illinois
Vehicle Code, shall be deemed to have registered or
maintained registration of a motor vehicle in violation of
that Section, and the Secretary shall suspend the
registration of the vehicle; the vehicle owner shall be
required to pay a reinstatement fee of $100 and provide
proof of current insurance before the registration may be
reinstated under Section 7-606 of the Illinois Vehicle
Code; and
(6) a provision that if the owner responds to the
request for information by asserting that his or her
vehicle was covered by a liability insurance policy on the
date of verification stated in the Secretary's request,
then the Secretary may conduct a verification of the
response by furnishing the necessary information to the
insurer named in the response; the insurer shall within 7
calendar days inform the Secretary whether or not on the
date of verification the motor vehicle was insured by the
insurer in accordance with Section 7-601 of the Illinois
Vehicle Code; if the insurer does not confirm insurance was
in effect on the verification date, then the Secretary
shall suspend the owner's registration of the vehicle; the
vehicle owner shall be required to pay a reinstatement fee
of $100 and provide proof of current insurance before the
registration may be reinstated under Section 7-606 of the
Illinois Vehicle Code.
(e) In addition to the annual verification of liability
insurance the Secretary may select for verification other
vehicles, including, but not limited to, motor vehicles owned
or registered by persons:
(1) whose motor vehicle registrations during the
preceding 4 years have been suspended under Section 7-606
or 7-607 of the Illinois Vehicle Code;
(2) who during the preceding 4 years have been
convicted of violating Section 3-707, 3-708, or 3-710 of
the Illinois Vehicle Code while operating vehicles owned by
other persons;
(3) whose driving privileges have been suspended
during the preceding 4 years;
(4) who during the preceding 4 years acquired ownership
of motor vehicles while the registrations of those vehicles
under the previous owners were suspended under Section
7-606 or 7-607 of the Illinois Vehicle Code; or
(5) who during the preceding 4 years have received a
disposition of supervision under subsection (c) of Section
5-6-1 of the Unified Code of Corrections for a violation of
Section 3-707, 3-708, or 3-710 of the Illinois Vehicle
Code.
(f) The Secretary shall not have regulatory authority over
insurance companies. Regulatory authority over insurance
companies shall remain with the Department of Insurance.
Section 10. Expiration. This Act is repealed on July 1,
2016.
Section 900. The Illinois Vehicle Code is amended by
changing Sections 3-405, 3-415, and 7-604 as follows:
(625 ILCS 5/3-405) (from Ch. 95 1/2, par. 3-405)
Sec. 3-405. Application for registration.
(a) Every owner of a vehicle subject to registration under
this Code shall make application to the Secretary of State for
the registration of such vehicle upon the appropriate form or
forms furnished by the Secretary. Every such application shall
bear the signature of the owner written with pen and ink and
contain:
1. The name, domicile address, as defined in Section
1-115.5 of this Code, (except as otherwise provided in this
paragraph 1) and mail address of the owner or business
address of the owner if a firm, association or corporation.
If the mailing address is a post office box number, the
address listed on the driver license record may be used to
verify residence. A police officer, a deputy sheriff, an
elected sheriff, a law enforcement officer for the
Department of State Police, a fire investigator, a state's
attorney, an assistant state's attorney, a state's
attorney special investigator, or a judicial officer may
elect to furnish the address of the headquarters of the
governmental entity, police district, or business address
where he or she works instead of his or her domicile
address, in which case that address shall be deemed to be
his or her domicile address for all purposes under this
Chapter 3. The spouse and children of a person who may
elect under this paragraph 1 to furnish the address of the
headquarters of the government entity, police district, or
business address where the person works instead of the
person's domicile address may, if they reside with that
person, also elect to furnish the address of the
headquarters of the government entity, police district, or
business address where the person works as their domicile
address, in which case that address shall be deemed to be
their domicile address for all purposes under this Chapter
3. In this paragraph 1: (A) "police officer" has the
meaning ascribed to "policeman" in Section 10-3-1 of the
Illinois Municipal Code; (B) "deputy sheriff" means a
deputy sheriff appointed under Section 3-6008 of the
Counties Code; (C) "elected sheriff" means a sheriff
commissioned pursuant to Section 3-6001 of the Counties
Code; (D) "fire investigator" means a person classified as
a peace officer under the Peace Officer Fire Investigation
Act; (E) "state's attorney", "assistant state's attorney",
and "state's attorney special investigator" mean a state's
attorney, assistant state's attorney, and state's attorney
special investigator commissioned or appointed under
Division 3-9 of the Counties Code; and (F) "judicial
officer" has the meaning ascribed to it in Section 1-10 of
the Judicial Privacy Act.
2. A description of the vehicle, including such
information as is required in an application for a
certificate of title, determined under such standard
rating as may be prescribed by the Secretary.
3. (Blank). Information relating to the insurance
policy for the motor vehicle, including the name of the
insurer which issued the policy, the policy number, and the
expiration date of the policy. Beginning with the 2016
registration year, registration shall not be issued to
persons that submit an application that does not contain
this information.
4. Such further information as may reasonably be
required by the Secretary to enable him to determine
whether the vehicle is lawfully entitled to registration
and the owner entitled to a certificate of title.
5. An affirmation by the applicant that all information
set forth is true and correct. If the application is for
the registration of a motor vehicle, the applicant also
shall affirm that the motor vehicle is insured as required
by this Code, that such insurance will be maintained
throughout the period for which the motor vehicle shall be
registered, and that neither the owner, nor any person
operating the motor vehicle with the owner's permission,
shall operate the motor vehicle unless the required
insurance is in effect. If the person signing the
affirmation is not the sole owner of the vehicle, such
person shall be deemed to have affirmed on behalf of all
the owners of the vehicle. If the person signing the
affirmation is not an owner of the vehicle, such person
shall be deemed to have affirmed on behalf of the owner or
owners of the vehicle. The lack of signature on the
application shall not in any manner exempt the owner or
owners from any provisions, requirements or penalties of
this Code. Beginning with the 2016 registration year, any
person that knowingly submits false insurance information
shall be guilty of a Class C misdemeanor.
(b) When such application refers to a new vehicle purchased
from a dealer the application shall be accompanied by a
Manufacturer's Statement of Origin from the dealer, and a
statement showing any lien retained by the dealer.
(Source: P.A. 97-847, eff. 1-1-13; 98-539, eff. 1-1-14.)
(625 ILCS 5/3-415) (from Ch. 95 1/2, par. 3-415)
Sec. 3-415. Application for and renewal of registration.
(a) Calendar year. Application for renewal of a vehicle
registration shall be made by the owner, as to those vehicles
required to be registered on a calendar registration year, not
later than December 1 of each year, upon proper application and
by payment of the registration fee and tax for such vehicle, as
provided by law except that application for renewal of a
vehicle registration, as to those vehicles required to be
registered on a staggered calendar year basis, shall be made by
the owner in the form and manner prescribed by the Secretary of
State.
(b) Fiscal year. Application for renewal of a vehicle
registration shall be made by the owner, as to those vehicles
required to be registered on a fiscal registration year, not
later than June 1 of each year, upon proper application and by
payment of the registration fee and tax for such vehicle as
provided by law, except that application for renewal of a
vehicle registration, as to those vehicles required to be
registered on a staggered fiscal year basis, shall be made by
the owner in the form and manner prescribed by the Secretary of
State.
(c) Two calendar years. Application for renewal of a
vehicle registration shall be made by the owner, as to those
vehicles required to be registered for 2 calendar years, not
later than December 1 of the year preceding commencement of the
2-year registration period, except that application for
renewal of a vehicle registration, as to those vehicles
required to be registered for 2 years on a staggered
registration basis, shall be made by the owner in the form and
manner prescribed by the Secretary of State.
(d) Two fiscal years. Application for renewal of a vehicle
registration shall be made by the owner, as to those vehicles
required to be registered for 2 fiscal years, not later than
June 1 immediately preceding commencement of the 2-year
registration period, except that application for renewal of a
vehicle registration, as to those vehicles required to be
registered for 2 fiscal years on a staggered registration
basis, shall be made by the owner in the form and manner
prescribed by the Secretary of State.
(d-5) Three calendar years. Application for renewal of a
vehicle registration shall be made by the owner, as to those
vehicles required to be registered for 3 calendar years, not
later than December 1 of the year preceding commencement of the
3-year registration period.
(e) Time of application. The Secretary of State may receive
applications for renewal of registration and grant the same and
issue new registration cards and plates or registration
stickers at any time prior to expiration of registration. No
person shall display upon a vehicle, the new registration
plates or registration stickers prior to the dates the
Secretary of State in his discretion may select.
(f) Verification. The Secretary of State may further
require, as to vehicles for-hire, that applications be
accompanied by verification that fees due under the Illinois
Motor Carrier of Property Law, as amended, have been paid.
(g) (Blank). Applications for registration renewal shall
include information relating to the insurance policy for the
motor vehicle, including the name of the insurer that issued
the policy, the policy number, and the expiration date of the
policy. Registration shall not be renewed for persons that
submit an application that does not contain this information.
Any person that knowingly submits false insurance information
shall be guilty of a Class C misdemeanor.
The changes to this subsection made by this amendatory Act
of the 98th General Assembly shall not take effect until the
beginning of the 2016 registration year.
(Source: P.A. 98-539, eff. 1-1-14.)
(625 ILCS 5/7-604) (from Ch. 95 1/2, par. 7-604)
Sec. 7-604. Verification of liability insurance policy.
(a) The Secretary of State may select random samples of
registrations of motor vehicles subject to Section 7-601 of
this Code, or owners thereof, for the purpose of verifying
whether or not the motor vehicles are insured.
In addition to such general random samples of motor vehicle
registrations, the Secretary may select for verification other
random samples, including, but not limited to registrations of
motor vehicles owned by persons:
(1) whose motor vehicle registrations during the
preceding 4 years have been suspended pursuant to Section
7-606 or 7-607 of this Code;
(2) who during the preceding 4 years have been
convicted of violating Section 3-707, 3-708 or 3-710 of
this Code while operating vehicles owned by other persons;
(3) whose driving privileges have been suspended
during the preceding 4 years;
(4) who during the preceding 4 years acquired ownership
of motor vehicles while the registrations of such vehicles
under the previous owners were suspended pursuant to
Section 7-606 or 7-607 of this Code; or
(5) who during the preceding 4 years have received a
disposition of supervision under subsection (c) of Section
5-6-1 of the Unified Code of Corrections for a violation of
Section 3-707, 3-708, or 3-710 of this Code.
(b) Upon receiving certification from the Department of
Transportation under Section 7-201.2 of this Code of the name
of an owner or operator of any motor vehicle involved in an
accident, the Secretary may verify whether or not at the time
of the accident such motor vehicle was covered by a liability
insurance policy in accordance with Section 7-601 of this Code.
(c) In preparation for selection of random samples and
their verification, the Secretary may send to owners of
randomly selected motor vehicles, or to randomly selected motor
vehicle owners, requests for information about their motor
vehicles and liability insurance coverage. The request shall
require the owner to state whether or not the motor vehicle was
insured on the verification date stated in the Secretary's
request and the request may require, but is not limited to, a
statement by the owner of the names and addresses of insurers,
policy numbers, and expiration dates of insurance coverage.
(d) Within 30 days after the Secretary mails a request, the
owner to whom it is sent shall furnish the requested
information to the Secretary above the owner's signed
affirmation that such information is true and correct. Proof of
insurance in effect on the verification date, as prescribed by
the Secretary, may be considered by the Secretary to be a
satisfactory response to the request for information.
Any owner whose response indicates that his or her vehicle
was not covered by a liability insurance policy in accordance
with Section 7-601 of this Code shall be deemed to have
registered or maintained registration of a motor vehicle in
violation of that Section. Any owner who fails to respond to
such a request shall be deemed to have registered or maintained
registration of a motor vehicle in violation of Section 7-601
of this Code.
(e) If the owner responds to the request for information by
asserting that his or her vehicle was covered by a liability
insurance policy on the verification date stated in the
Secretary's request, the Secretary may conduct a verification
of the response by furnishing necessary information to the
insurer named in the response. The insurer shall within 45 days
inform the Secretary whether or not on the verification date
stated the motor vehicle was insured by the insurer in
accordance with Section 7-601 of this Code. The Secretary may
by rule and regulation prescribe the procedures for
verification.
(f) No random sample selected under this Section shall be
categorized on the basis of race, color, religion, sex,
national origin, ancestry, age, marital status, physical or
mental disability, economic status or geography.
(g) This Section is repealed on December 31, 2015.
(Source: P.A. 92-458, eff. 8-22-01.)
(625 ILCS 5/3-918 rep.)
Section 905. The Illinois Vehicle Code is amended by
repealing Section 3-918.
Section 999. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance