625 ILCS 5/7-317
2021 Illinois Compiled Statutes|Chapter 625 - VEHICLES|625 ILCS 5/ - Illinois Vehicle Code.|Chapter 7 - Illinois Safety And Family Financial Responsibility Law

 (from Ch. 95 1/2, par. 7-317)Sec. 7-317. "Motor vehicle liability policy" defined.(a)  Certification. -A "motor vehicle liability policy", as that term is  used in this Act, means an "owner's policy" or an "operator's policy" of  liability insurance, certified as provided in Section 7-315 or Section  7-316 as proof of financial responsibility for the future, and issued,  except as otherwise provided in Section 7-316, by an insurance carrier  duly authorized to transact business in this State, to or for the  benefit of the person named therein as insured.(b) Owner's Policy. --Such owner's policy of liability insurance:1.  Shall designate by explicit description or by     appropriate reference, all motor vehicles with respect to which coverage is thereby intended to be granted;2.  Shall insure the person named therein and any     other person using or responsible for the use of such motor vehicle or vehicles with the express or implied permission of the insured;3. Shall insure every named insured and any other     person using or responsible for the use of any motor vehicle owned by the named insured and used by such other person with the express or implied permission of the named insured on account of the maintenance, use or operation of any motor vehicle owned by the named insured, within the continental limits of the United States or the Dominion of Canada against loss from liability imposed by law arising from such maintenance, use or operation, to the extent and aggregate amount, exclusive of interest and cost, with respect to each motor vehicle, of $25,000 for bodily injury to or death of one person as a result of any one accident and, subject to such limit as to one person, the amount of $50,000 for bodily injury to or death of all persons as a result of any one accident and the amount of $20,000 for damage to property of others as a result of any one accident. The changes to this paragraph  made by this amendatory Act of the 98th General Assembly apply only to policies issued or renewed on or after January 1, 2015.(c) Operator's Policy. --When an operator's policy is required, it  shall insure the person named therein as insured against the liability  imposed by law upon the insured for bodily injury to or death of any  person or damage to property to the amounts and limits above set forth  and growing out of the use or operation by the insured within the  continental limits of the United States or the Dominion of Canada of any  motor vehicle not owned by him.(d) Required Statements in Policies. --Every motor vehicle liability  policy must specify the name and address of the insured, the coverage  afforded by the policy, the premium charged therefor, the policy period,  and the limits of liability, and shall contain an agreement that the  insurance thereunder is provided in accordance with the coverage defined  in this Act, as respects bodily injury and death or property damage or  both, and is subject to all the provisions of this Act.(e) Policy Need Not Insure Workers' Compensation. --Any liability  policy or policies issued hereunder need not cover any liability of the  insured assumed by or imposed upon the insured under any workers'  compensation law nor any liability for damage to property in charge of  the insured or the insured's employees.(f) Provisions Incorporated in Policy. --Every motor vehicle  liability policy is subject to the following provisions which need not  be contained therein:1. The liability of the insurance carrier under any     such policy shall become absolute whenever loss or damage covered by the policy occurs and the satisfaction by the insured of a final judgment for such loss or damage shall not be a condition precedent to the right or obligation of the carrier to make payment on account of such loss or damage.2. No such policy may be cancelled or annulled as     respects any loss or damage, by any agreement between the carrier and the insured after the insured has become responsible for such loss or damage, and any such cancellation or annulment shall be void.3. The insurance carrier shall, however, have the     right to settle any claim covered by the policy, and if such settlement is made in good faith, the amount thereof shall be deductible from the limits of liability specified in the policy.4. The policy, the written application therefor, if     any, and any rider or endorsement which shall not conflict with the provisions of this Act shall constitute the entire contract between the parties.(g) Excess or Additional Coverage. --Any motor vehicle liability  policy may, however, grant any lawful coverage in excess of or in  addition to the coverage herein specified or contain any agreements,  provisions, or stipulations not in conflict with the provisions of this  Act and not otherwise contrary to law.(h) Reimbursement Provision Permitted. --The policy may provide that  the insured, or any other person covered by the policy shall reimburse  the insurance carrier for payment made on account of any loss or damage  claim or suit involving a breach of the terms, provisions or conditions  of the policy; and further, if the policy shall provide for limits in  excess of the limits specified in this Act, the insurance carrier may  plead against any plaintiff, with respect to the amount of such excess  limits of liability, any defense which it may be entitled to plead  against the insured.(i) Proration of Insurance Permitted. --The policy may provide for  the pro-rating of the insurance thereunder with other applicable valid  and collectible insurance.(j) Binders. --Any binder pending the issuance of any policy, which  binder contains or by reference includes the provisions hereunder shall  be sufficient proof of ability to respond in damages.(k) Copy of Policy to Be Filed with Department of  Insurance--Approval. --A copy of the form of every motor vehicle  liability policy which is to be used to meet the requirements of this  Act must be filed, by the company offering such policy, with the  Department of Insurance, which shall approve or disapprove the policy  within 30 days of its filing. If the Department approves the policy in  writing within such 30 day period or fails to take action for 30 days,  the form of policy shall be deemed approved as filed. If within the 30  days the Department disapproves the form of policy filed upon the ground  that it does not comply with the requirements of this Act, the  Department shall give written notice of its decision and its reasons  therefor to the carrier and the policy shall not be accepted as proof of  financial responsibility under this Act.(l) Insurance Carrier Required to File Certificate. --An insurance  carrier who has issued a motor vehicle liability policy or policies or  an operator's policy meeting the requirements of this Act shall, upon  the request of the insured therein, deliver to the insured for filing,  or at the request of the insured, shall file direct, with the Secretary  of State a certificate, as required by this Act, which shows that such  policy or policies have been issued. No insurance carrier may require  the payment of any extra fee or surcharge, in addition to the insurance  premium, for the execution, delivery or filing of such certificate.(m) Proof When Made By Endorsement. --Any motor vehicle liability  policy which by endorsement contains the provisions required hereunder  shall be sufficient proof of ability to respond in damages.  (Source: P.A. 98-519, eff. 1-1-15.)