Article II - Security Following Accident
(625 ILCS 5/Ch. 7 Art. II heading) ARTICLE II. SECURITY FOLLOWING ACCIDENT
(625 ILCS 5/7‑201) (from Ch. 95 1/2, par. 7‑201)
Sec. 7‑201. Application of Article II. The Administrator as soon as practicable after the receipt of the report, required to be filed under Sections 11‑406 and 11‑410, of a motor vehicle accident occurring within this State and that has resulted in bodily injury or death of any person or that damage to the property of any one person in excess of $1,500 (or $500 if any of the vehicles involved in the accident is subject to Section 7‑601 but is not covered by a liability insurance policy in accordance with Section 7‑601) was sustained, shall determine:
1. Whether Section 7‑202 of this Code requires the
| deposit of security by or on behalf of any person who was the operator or owner of any motor vehicle in any manner involved in the accident; and | |
2. What amount of security shall be sufficient to |
| satisfy any potential judgment or judgments for money damages resulting from the accident as may be recovered against the operator or owner, which amount shall in no event be less than $1,500 (or $500 if any of the vehicles involved in the accident is subject to Section 7‑601 but is not covered by a liability insurance policy in accordance with Section 7‑601). | |
(Source: P.A. 95‑754, eff. 1‑1‑09.) |
(625 ILCS 5/7‑201.1) (from Ch. 95 1/2, par. 7‑201.1)
Sec. 7‑201.1. If the Administrator has not received a report required to be filed under Sections 11‑406 and 11‑410, or if the information contained in a report is insufficient, the Administrator shall send to the person required to file the report a written request for the missing report or the missing information. The Administrator shall send such request no later than 45 days after the accident or 7 days after receiving information that such accident has occurred, whichever is later.
If the request is sent to a driver involved in an accident, the request or an attachment thereto shall contain in bold print a warning that failure to comply with the request within 15 days may result in the suspension of the driver's license.
(Source: P.A. 84‑797.) |
(625 ILCS 5/7‑201.2) (from Ch. 95 1/2, par. 7‑201.2)
Sec. 7‑201.2. The Administrator, within 30 days after compiling sufficient information on a motor vehicle accident, shall certify to the Secretary of State the name of each owner and the name of each operator of any vehicle involved in the accident, his determination that security is required under this Code, and the amount of the security. The Administrator also shall supply to the Secretary of State a copy of any accident report requested by the Secretary.
The Administrator shall send a copy of the certification to each person whose name is certified. The copy, or an attachment thereto, shall contain in bold print an explanation that, because the person did not furnish the Department of Transportation with evidence that he or she is insured or otherwise able to pay for damages resulting from the accident, the person's name has been forwarded to the Secretary of State for possible suspension of his or her driver's license.
(Source: P.A. 84‑797.) |
(625 ILCS 5/7‑201.3) (from Ch. 95 1/2, par. 7‑201.3)
Sec. 7‑201.3. Administrator to itemize potential claims. The Administrator shall send by mail to the person required to deposit security an itemization of each potential claim of personal injury or property damage and the name and address of each potential claimant within the knowledge of the Administrator and upon which the determination of the amount of security is based.
(Source: P.A. 84‑797.) |
(625 ILCS 5/7‑202) (from Ch. 95 1/2, par. 7‑202)
Sec. 7‑202. Exceptions to requirements of security. (a) The requirements as to security and suspension as provided by Sections 7‑201 and 7‑205 shall not apply:
1. To the driver or owner if such owner had in effect at the time of such motor vehicle accident a liability policy covering such driver and owner with respect to the vehicle involved in such motor vehicle accident;
2. To the driver, if not the owner of such vehicle, if there was in effect at the time of such motor vehicle accident a liability policy or bond with respect to the operation of motor vehicles not owned by the driver;
3. To the driver or owner if the liability of such driver or owner for damages resulting from such motor vehicle accident is covered by any other form of liability insurance policy or bond;
4. To the driver or owner, if such owner is qualified as a self‑insurer as provided in Section 7‑502;
5. To the owner if such owner at the time of such motor vehicle accident was in compliance with Section 8‑101 or Section 9‑101;
6. To the driver or owner if such owner at the time of such motor vehicle accident was in compliance with the Federal Revised Interstate Commerce Act (P.L. 95‑473), as now or hereafter amended;
7. To the owner if the vehicle involved in such motor vehicle accident was owned by the United States, this State or any political sub‑division of this State, any municipality therein, or any local Mass Transit District;
8. To the driver or the owner of a vehicle involved in a motor vehicle accident wherein no injury or damage was caused to the person or property of any one other than such driver or owner;
9. To the driver or the owner of a vehicle which at the time of the motor vehicle accident was parked, unless such vehicle was parked at a place where parking was at the time of the accident prohibited under any applicable law or ordinance;
10. To the owner of a vehicle if at the time of the motor vehicle accident the vehicle was being operated without his permission, express or implied, or was parked by a person who had been operating such motor vehicle without such permission;
11. To the driver, if not the owner, of a commercial motor vehicle on which there was no liability policy or bond with respect to the operation of such vehicle in effect at the time of the motor vehicle accident when the driver was operating the vehicle in the course of the driver's employment and had no actual knowledge of such lack of a liability policy or bond prior to the motor vehicle accident.
(b) If at the time of the motor vehicle accident, an owner or driver is covered by a motor vehicle liability policy or bond meeting the requirements of this Code, such owner or driver shall be exempt from suspension under Section 7‑205 as to that motor vehicle accident, if the company issuing the policy or bond has failed, and such policy or bond was not effective at the time of the motor vehicle accident or any time thereafter, provided, that the owner or driver had no knowledge of the company's failure prior to the motor vehicle accident, and such owner or driver has secured within 30 days after learning of such failure another liability policy or bond meeting the requirements of the Code relating to future occurrences or motor vehicle accidents.
As used in this paragraph, the words "failed" or "failure" mean that the company has suspended operations by order of a court.
(Source: P.A. 85‑293.) |
(625 ILCS 5/7‑203) (from Ch. 95 1/2, par. 7‑203)
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 accident. However, every such policy or bond is subject, if the motor vehicle accident has resulted in bodily injury or death, to a limit, exclusive of interest and costs, of not less than $20,000 because of bodily injury to or death of any one person in any one motor vehicle accident and, subject to said limit for one person, to a limit of not less than $40,000 because of bodily injury to or death of 2 or more persons in any one motor vehicle accident, and, if the motor vehicle accident has resulted in injury to or destruction of property, to a limit of not less than $15,000 because of injury to or destruction of property of others in any one motor vehicle accident.
Upon receipt of a written motor vehicle accident 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 accident.
(Source: P.A. 85‑730.) |
(625 ILCS 5/7‑204) (from Ch. 95 1/2, par. 7‑204)
Sec. 7‑204. Form and amount of security ‑ Definition.
(A) Any security required to be deposited under this Act shall be in the form as the Secretary of State may require by administrative rule, and in the amounts as the Administrator may determine to be sufficient to satisfy any judgment or judgments for damages against an operator or owner but in no case in excess of the limits specified in Section 7‑203 of this Act in reference to the acceptable limits of a policy or bond nor for an amount less than $1,500 (or $500 if any of the vehicles involved in the accident is subject to Section 7‑601 but is not covered by a liability insurance policy in accordance with Section 7‑601).
(B) The person depositing security shall specify in writing the person or persons on whose behalf the deposit is made and, while at any time the deposit is in the custody of the Secretary of State or State Treasurer, the person depositing it may, in writing, amend the specification of the person or persons on whose behalf the deposit is made to include an additional person or persons; provided, however, that a single deposit of security shall be applicable only on behalf of persons, required to furnish security because of the same accident.
(C) Within 10 days after any security required under the provisions of this Article is deposited with the Secretary of State, the Secretary shall send notice of the security deposit to the following, if known:
1. To each owner and operator of any vehicle
| involved in the accident that sustained damage in excess of $1,500 (or $500 if any of the vehicles involved in the accident is subject to Section 7‑601 but is not covered by a liability insurance policy in accordance with Section 7‑601); | |
2. To any person who sustained damage to personal or |
| real property in excess of $1,500 (or $500 if any of the vehicles involved in the accident is subject to Section 7‑601 but is not covered by a liability insurance policy in accordance with Section 7‑601); | |
3. To any person who was injured as a result of the |
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4. To the estate of any person killed as a result of |
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(Source: P.A. 95‑754, eff. 1‑1‑09.) |
(625 ILCS 5/7‑205) (from Ch. 95 1/2, par. 7‑205)
Sec. 7‑205. Failure to deposit security ‑ Hearings and suspensions. The Secretary of State, within 15 days after receipt of the determination of the Administrator that a deposit of security is required under this Code, shall review all reports, documents and other pertinent evidence in his possession, and make a preliminary finding as to whether or not there is a reasonable possibility of a civil judgment being entered in a court of proper jurisdiction against the person so certified by the Administrator under this Code.
(a) Upon a preliminary finding that there is such a reasonable possibility, the Secretary of State shall notify such person by mail that his driving privileges, driver's license or registration will be suspended 45 days after the date of the mailing of the notice unless the person can prove to the satisfaction of the Secretary of State that he has deposited or has had deposited and filed on his behalf the security required under this Code or, within 15 days of the mailing of such notice, requests a formal hearing to determine whether his driving privileges, driver's license or registration should be suspended or whether the Secretary should enter an order of exoneration, and that such hearing shall be scheduled within 45 days after the mailing of such notice in accordance with the rules and regulations of the Secretary of State.
(b) Upon a preliminary finding that there is not such a reasonable possibility, the Secretary of State may elect to take no further action.
(c) In the event an order of suspension so entered applies to a nonresident owner or driver, then the privilege of driving or using a motor vehicle within the territorial limits of this State shall be so suspended.
(Source: P.A. 84‑797.) |
(625 ILCS 5/7‑206) (from Ch. 95 1/2, par. 7‑206)
Sec. 7‑206. Release from liability. (a) A person shall be relieved from the requirement for deposit of security required by Section 7‑201 in the event there shall be filed with the Secretary of State satisfactory evidence that the person who would otherwise be required to deposit security has been released from liability.
(b) A covenant not to sue shall relieve the parties thereto as to each other from the security requirements of this Article.
(Source: P.A. 83‑831.) |
(625 ILCS 5/7‑207) (from Ch. 95 1/2, par. 7‑207)
Sec. 7‑207. Adjudication of non‑liability.
A person shall be relieved from the requirement for deposit of security, required by Section 7‑201 of this Act, in the event there shall be filed with the Secretary of State evidence satisfactory of a final adjudication of non‑liability.
(Source: P. A. 77‑327.) |
(625 ILCS 5/7‑208) (from Ch. 95 1/2, par. 7‑208)
Sec. 7‑208. Agreements for payment of damages. (a) Any 2 or more of the persons involved in a motor vehicle accident subject to the provisions of Section 7‑201 or their authorized representatives, may at any time enter into a written agreement for the payment of an agreed amount in installments, with respect to all claims for injuries or damages resulting from the motor vehicle accident.
(b) The Secretary of State, to the extent provided by any such written agreement properly filed with him, shall not require the deposit of security and shall terminate any prior order of suspension, or, if security has previously been deposited, the Secretary of State shall immediately return such security to the depositor or an appropriate personal representative.
(c) In the event of a default in any payment under such agreement and upon notice of such default the Secretary of State shall forthwith suspend the driver's license and registration, or nonresident's operating privileges, of such person in default which shall not be restored unless and until:
1. Such person deposits and thereafter maintains |
| security as required under Section 7‑201 in such amount as the Secretary of State may then determine, | |
2. Two years have elapsed since the acceptance of |
| the notice of default by the Secretary of State and during such period no action upon such agreement has been instituted in any court having jurisdiction, or | |
3. The person enters into a second written agreement |
| for the payment of an agreed amount in installments with respect to all claims for injuries or damages resulting from the motor vehicle accident. | |
(Source: P.A. 90‑774, eff. 8‑14‑98.) |
(625 ILCS 5/7‑209) (from Ch. 95 1/2, par. 7‑209)
Sec. 7‑209. Payment upon judgment. The payment of a judgment arising out of a motor vehicle accident or the payment upon such judgment of an amount equal to the maximum amount which could be required for deposit under this Article shall for the purposes of this Code be deemed satisfied.
(Source: P.A. 83‑831.) |
(625 ILCS 5/7‑210) (from Ch. 95 1/2, par. 7‑210)
Sec. 7‑210. Termination of Security Requirement.
The Secretary of State, if satisfied as to the existence of any fact which under Sections 7‑206, 7‑207, 7‑208, or 7‑209 would entitle a person to be relieved from the security requirements of this Article, shall not require the deposit of security by the person so relieved from such requirement and shall terminate any prior order of suspension in respect to such person, or if security has previously been deposited by such person, the Secretary of State shall immediately return such deposit to such person.
(Source: P.A. 76‑1586.) |
(625 ILCS 5/7‑211) (from Ch. 95 1/2, par. 7‑211)
Sec. 7‑211. Duration of suspension.
(a) Unless a suspension is terminated under other provisions of this Code, the driver's license or registration and nonresident's operating privilege suspended as provided in Section 7‑205 shall remain suspended and shall not be renewed nor shall any license or registration be issued to the person until:
1. The person deposits or there shall be deposited |
| and filed on the person's behalf the security required under Section 7‑201; | |
2. Two years have elapsed following the date the |
| driver's license and registrations were suspended and evidence satisfactory to the Secretary of State that during the period no action for damages arising out of a motor vehicle accident has been properly filed; | |
3. Receipt of proper notice that the person has |
| filed bankruptcy which would include all claims for personal injury and property damage resulting from the accident; or | |
4. After the expiration of 5 years from the date of |
| the accident, the Secretary of State has not received documentation that any action at law for damages arising out of the motor vehicle accident has been filed against the person. | |
An affidavit that no action at law for damages arising out of the motor vehicle accident has been filed against the applicant, or if filed that it is not still pending shall be prima facie evidence of that fact. The Secretary of State may take whatever steps are necessary to verify the statement set forth in the applicant's affidavit.
(b) The driver's license or registration and nonresident's operating privileges suspended as provided in Section 7‑205 shall also remain suspended and shall not be renewed nor shall any license or registration be issued to the person until the person gives proof of his or her financial responsibility in the future as provided in Section 1‑164.5. The proof is to be maintained by the person in a manner satisfactory to the Secretary of State for a period of 3 years after the date the proof is first filed.
(Source: P.A. 90‑264, eff. 1‑1‑98; 91‑80, eff. 7‑9‑99.) |
(625 ILCS 5/7‑212) (from Ch. 95 1/2, par. 7‑212)
Sec. 7‑212. Authority of Administrator and Secretary of State to decrease amount of security. The Administrator may reduce the amount of security ordered in any case within one year after the date of the accident, but in no event for an amount less than $1,500 (or $500 if any of the vehicles involved in the accident is subject to Section 7‑601 but is not covered by a liability insurance policy in accordance with Section 7‑601), if, in the judgment of the Administrator the amount ordered is excessive, or may revoke or rescind its order requiring the deposit of security in any case within one year after the date of the accident if, in the judgment of the Administrator, the provisions of Sections 7‑202 and 7‑203 excuse or exempt the operator or owner from the requirement of the deposit. In case the security originally ordered has been deposited the excess of the reduced amount ordered shall be returned to the depositor or his personal representative forthwith, notwithstanding the provisions of Section 7‑214. The Secretary of State likewise shall have authority granted to the Administrator to reduce the amount of security ordered by the Administrator.
(Source: P.A. 95‑754, eff. 1‑1‑09.)
(625 ILCS 5/7‑213) (from Ch. 95 1/2, par. 7‑213)
Sec. 7‑213. Custody of security. Security deposited in compliance with the requirements of this Article shall be placed by the Secretary of State in the custody of the State Treasurer.
(Source: P.A. 83‑831.) |
(625 ILCS 5/7‑214) (from Ch. 95 1/2, par. 7‑214)
Sec. 7‑214. Disposition of Security. Such security shall be applicable only to the payment of a judgment or judgments, rendered against the person or persons on whose behalf the deposit was made, for damages arising out of the accident in question, in an action at law, begun not later than two years after the later of (i) the date the driver's license and registration were suspended following the accident or (ii) the date of any default in any payment under an installment agreement for payment of damages, and such deposit or any balance thereof shall be returned to the depositor or his personal representative when evidence satisfactory to the Secretary of State has been filed with him:
1. that there has been a release from liability, or a final adjudication of non‑liability; or
2. a duly acknowledged written agreement in accordance with Section 7‑208 of this Act; or
3. whenever after the expiration of two years after the later of (i) the date the driver's license and registration were suspended following the accident or (ii) the date of any default in any payment under an installment agreement for payment of damages, the Secretary of State shall be given reasonable evidence that there is no such action pending and no judgment rendered in such action left unpaid.
(Source: P.A. 90‑774, eff. 8‑14‑98.) |
(625 ILCS 5/7‑215) (from Ch. 95 1/2, par. 7‑215)
Sec. 7‑215. Matters not to be evidence in civil suits. Any action taken pursuant to this Chapter, or the Rules and Regulations adopted hereunder, or findings of the Administrator or the Secretary of State upon which such action is based, or the security filed as provided in this Article shall not be referred to in any way, nor shall it be any evidence of the negligence or due care of either party, at the trial of any civil action to recover damages.
(Source: P.A. 83‑831.) |
(625 ILCS 5/7‑216) (from Ch. 95 1/2, par. 7‑216)
Sec. 7‑216. Reciprocity ‑ Residents and nonresidents ‑ Licensing of nonresidents. (a) When a nonresident's operating privilege is suspended pursuant to Section 7‑205 the Secretary of State shall transmit a certified copy of the record of such action to the official in charge of the issuance of driver's license and registration certificates in the state in which such nonresident resides, if the law of such other state provides for action in relation thereto similar to that provided for in paragraph (b).
(b) Upon receipt of such certification that the operating privilege of a resident of this State has been suspended or revoked in any such other state pursuant to a law providing for its suspension or revocation for failure to deposit security for the payment of judgments arising out of a motor vehicle accident, or for failure to deposit security under circumstances which would require the Secretary of State to suspend a nonresident's operating privilege had the motor vehicle accident occurred in this State, the Secretary of State shall suspend the driver's license of such resident and all other registrations. Such suspension shall continue until such resident furnishes evidence of compliance with the law of such other state relating to the deposit of such security.
(c) In case the operator or the owner of a motor vehicle involved in a motor vehicle accident within this State has no driver's license or registration, such operator shall not be allowed a driver's license or registration until the operator has complied with the requirements of Sections 7‑201 thru 7‑216 to the same extent that would be necessary if, at the time of the motor vehicle accident, such operator had held a license and registration.
(Source: P.A. 83‑831.) |