2005 Illinois 625 ILCS 5/ Illinois Vehicle Code. 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 $500 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 $500.
(Source: P.A. 87‑829.)
(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 $500. (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 $500;
2. To any person who sustained damage to personal or
real property in excess of $500;
3. To any person who was injured as a result of the
accident; and
4. To the estate of any person killed as a result of
the accident.
(Source: P.A. 87‑829.)
(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 $500, 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. 87‑829.)
(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.)
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