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Motor Vehicle Liability 

 

State of Illinois Self-Insured
Motor Vehicle Liability Plan

Department of Central Management Services
Risk Management Division

1.0. Issuing Agency

This Plan is issued by the Department of Central Management Services, Risk Management Division, State of Illinois, hereinafter called the Department, pursuant to 20 ILCS 405/405-105

2.0. Declarations

 

2.1. Named Insured

The named insured under this Plan shall be: The State of Illinois, including all Departments, Boards, Commissions, Universities and agencies as now and hereafter constituted.

2.2. Plan Period

The Plan Period shall be from August 7, 1976, 12:01 a.m., until further notice. The Department reserves the right to unilaterally change the terms and conditions of this policy at its option.

2.3. Coverage

The insurance coverage afforded by this Plan shall be Blanket Motor Vehicle Liability Coverage, with specific coverage as described in this Plan. The coverage hereunder shall be a self-insured obligation of the State of Illinois pursuant to 20 ILCS 405/405-105.

2.4. Insured's Address

For reporting and record keeping purposes, the address of the Named Insured shall be:

 

Department of Central Management Services
Risk Management Division
Auto Liability Section
801 S. 7th Street
Springfield, Illinois 62703
Phones:
(217) 782-0202
1-800-442-1300 (#2)

2.5.

These Declarations and the following Basic Provisions, Plan Conditions, Additional Provisions and Plan Definitions become the Official Plan for the Self-Insurance Motor Vehicle Liability Program for the State of Illinois when signed below by the Director of Central Management Services, State of Illinois. (Revised 8/22/95)

3.0. Basic Provisions

 

3.1. Coverage

The Department hereby states that the NAMED INSURED stated in the Declarations, as well as the ADDITIONAL INSUREDS, shall be covered for motor vehicle liability subject to the limits of liability, exclusions, conditions and other terms of this Plan and 20 ILCS 405/405-105.

  • Coverage A - Bodily Injury Liability
  • Coverage B - Property Damage Liability

3.1.1.

To pay on behalf of the Named and Additional Insureds all sums, not exceeding the Plan limit, which the insured shall become legally obligated to pay as damages because of Bodily Injury or Property Damage to which this liability coverage applies, caused by an occurrence and arising out of the ownership, maintenance or use, including loading and unloading, of any MOTOR VEHICLE. Coverage for MOBILE EQUIPMENT is specifically excluded.

3.1.2.

The coverage afforded under this Plan shall at all times be primary coverage for all state owned vehicles, state leased vehicles, or vehicles provided or loaned to the state by the Federal Government pursuant to written agreement. Coverage shall be excess over available insurance coverage for all employee owned, other non-owned vehicles or vehicles rented by insureds. In the event there is no insurance on an employee owned or a non-owned vehicle at the time of accident, this Plan will provide excess coverage above the statutory minimum amount of insurance required at the time of accident.

3.1.3.

Property damage for rental vehicles is only provided if the NAMED INSURED, STATE OFFICER, or state employee renting the vehicle is on TRAVEL STATUS. This coverage is only provided as excess above the Rental Company's coverage. The Department will only consider a claim under this self-insured Plan as excess over and above the commercial carrier's coverage. Note that Collision Damage Waiver coverage is not reimbursable as a travel expense per regulations of the Travel Control Board.

3.2. Exclusions

3.2.1.

Coverage is specifically excluded for ADDITIONAL INSUREDS for any bodily injury, sickness, disease or death arising out of and in the course of his/her employment by the insured. Coverage is not provided for any obligation for which the insured may be held liable under any Worker's Compensation, Unemployment Compensation or disability benefits law, or under any similar law.

3.2.2.

Property damage to state-owned vehicles, other state owned property, or state leased vehicles is excluded.

3.2.3.

Property damage to vehicles owned by ADDITIONAL INSUREDS is excluded.

3.3. Suspension or Revocation of Coverage

Any employee may have coverage under the Plan suspended or revoked as outlined in the High Risk Drivers Program pursuant to 80 Ill. Adm. Code 3100.

4.0. Plan Conditions

4.1. Limits of Liability

The Department's limit of liability under this Plan for all damage as stated shall be a combined single limit of $2,000,000 per occurrence.

4.2. Notice of Occurrence

In the event of bodily injury, death, damage to or destruction of property, which arises out of the use of a Motor Vehicle, as defined in this Plan, on State business, and whether or not the motor vehicle was owned by the State, the driver of such motor vehicle shall immediately following such occurrence, make a report of the occurrence to the Department. Such notice shall contain particulars which are sufficient to identify the Insured and also all reasonably obtainable information respecting the time, place and circumstances of such occurrence, the name and address of the insured, the other driver, passengers, the owner of the other motor vehicle or other damaged property, and the names and addresses of available witnesses. In all cases, the driver's written report along with the Uniform Cover Letter completed by the Agency Auto Coordinator must be received by Risk Management, Auto Liability Office not later than 7 calendar days following the occurrence or the driver and Agency risk forfeiture of coverage under the Plan. It shall be the responsibility of the driver, unless he is dead or disabled, to make certain the report is filed. If such report is not so filed, the driver will risk forfeiture of the indemnity against suit and hold harmless provision provided under 20 ILCS 405/405-105. If the driver is dead or disabled, the report of the accident or occurrence shall be filed by the driver's superior. A telephone call to the Department to report a serious property damage loss or a bodily injury does not relieve the driver of the responsibility for filing a report of the occurrence as required by this section. Such reports shall be made on SR-1 Form, "Motorist's Report of Illinois Motor Vehicle Accident", or other reports approved by the Department.

4.3. Notice of Claim or Suit

If claim is made or suit brought against the Insured, the Insured shall, immediately, forward to the Department every demand, notice, summons or other process received by him or his representatives. The insured shall provide the date, time, and place of service of summons. Failure of the insured to properly and timely forward such notices shall result in the state's right to recover from the insured any costs or damages incurred because of such failure to properly and timely forward such demands, notices, summons, or other processes to the Department. When named as a defendant in a lawsuit, the insured shall, in writing, keep the Attorney General's Office and CMS advised of his/her current address until the suit is resolved or the defense cannot be provided by Attorney General. If default judgment against the insured results because the insured failed to keep the Attorney General's Office and CMS advised of his/her current address, this Plan will not indemnify such judgment.

4.4. Assistance and Cooperation of the Insured

The Insured shall promptly and without delay cooperate with all of the Department's requests for information and/or other investigation of the accident facts, and upon the Department's request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. With respect to the claim settlement, the Insured shall not voluntarily make any payment, assume any obligation, or incur any expenses. The Insured shall not give any statement to any other insurance company, or any attorney representing the other driver or other claimants without the prior approval of the Department.

4.5. Other Insurance

With respect to any other insurance, the coverage afforded by this Plan shall be excess coverage. This means that if an additional insured has any other valid and collectible insurance, that coverage must be exhausted before any payment will be considered under this Plan. If, for any reason whatsoever, any other insurer shall deny liability as to all or any part of its obligations to an Additional Insured, then the Department shall be liable under this coverage with respect to such loss. The Additional Insured shall assign to the Department all of his/her or its rights against such other insurer and execute all documents necessary to secure such rights and shall, in his own name, whenever requested by the Department, and at the Department's expense, make any demand and institute any legal proceeding which the Department shall deem necessary against such insurer.

4.6. Subrogation

In the event of any payment under this Plan, the Department shall be subrogated to all the Insured's rights of recovery therefor. The insured shall execute all documents required and shall do everything that may be necessary to secure such rights. The Department shall have no right of Subrogation against any other Insured except: 1) when use of a State Vehicle by an insured was not within the course of his/her employment, or 2) when an insured fails to meet the mandatory minimum insurance requirements in effect at the time of accident. When an insured fails, for any reason, to have mandatory minimum insurance coverage in effect on the date of accident and the Department makes payment, the Department shall have right of subrogation against the insured for the amount of all payments up to the amount of mandatory minimum insurance coverage required by law at the time of accident. The Department shall have no right of subrogation against any person, firm, or corporation in respect of which the Insured has assumed liability under any contract or agreement, unless such other person, firm, or corporation has other valid and collectible insurance against the loss, then this waiver of subrogation shall apply as regards the excess of loss over and above the valid and collectible insurance in force for such interests. The Department waives any right of subrogation against the United States of America which might arise by reason of any payment under the Plan, but only in connection with operations performed by the insured under any U. S. Government contract requiring such waiver.

4.7. Terms of the Plan Conformed to Statute

If any condition in this Plan conflicts with any specified provision of State statute, in which it is claimed that the insured is liable for any such injuries or loss as are covered by this Plan, such statutory provision shall be substituted for such condition.

5.0. Additional Provisions

5.1. Defense, Settlement, and Supplementary Payments

As respects the coverage afforded by the other terms of this Plan, the Department shall:

5.1.1.

Have the right and duty to defend any suit against the insured alleging such injury, sickness, disease or destruction and seeking damages on account thereof, even if such suit is groundless, false or fraudulent; but the Department may make or cause to be made such investigation, negotiation and settlement of any claim or suit as it deems expedient. Defense of suits arising from coverage afforded by this Plan shall be conducted by the Office of the Attorney General or by such Attorney as designated by the Department consistent with such discretionary powers delegated by the Attorney General.

5.1.2.

Pay all premiums on appeal bonds required in any such suit and premiums on bonds to release attachments in any such suit for an amount not in excess of the applicable limit of liability of this Plan.

5.1.3.

Pay all expenses incurred by the Department, all costs taxed against the insured in any suit and all interest accruing after entry of judgment until the Department has paid, tendered or deposited in court such part of such judgment as does not exceed the limit of the Department's liability thereon.

5.1.4.

Pay all fees due as may be contracted for to employ outside auto damage appraisal, Independent Medical Examination, medical cost containment service, or other services related to claim investigation and adjustment.

5.1.5.

Pay expenses incurred by the Insured for such immediate emergency medical and surgical relief to others as shall be imperative at the time of the occurrence.

5.1.6.

Have the right to determine any question of coverage not elsewhere defined.

5.1.7.

Any amounts incurred under these additional provisions, except settlement of claims and suits, are payable by the Department in addition to the applicable limit of liability of the Plan.

5.2. Additional Insured

The unqualified word "INSURED" wherever used in this Plan includes not only the NAMED INSURED as shown in the Declaration, but also:

5.2.1. State Officers

5.2.2.

Any employee of the NAMED INSURED while acting for or on behalf of the NAMED INSURED while within the course of such employee's employment, while operating a motor vehicle.

5.2.3.

Any other person while using any vehicle with the written authorization of the Agency Director, provided his actual operation or (if he is not operating) his other actual use thereof is within the scope of such authorization.

5.3. Definitions

Definitions of terms used in this Plan shall be those listed under Plan Definitions.

5.4. Plan Territory

This Plan applies to accidents or occurrences involving motor vehicles used by or on behalf of the NAMED INSURED anywhere during the Plan period.

6.0. Plan Definitions When used in this Plan:

6.1.1. Agency

The term "Agency" means the Named Insured owning, leasing or renting a vehicle or approving the use of an owned or non-owned vehicle.

6.1.2. Bodily Injury

The term "Bodily Injury" means bodily damage, harm, injury, sickness or disease including death resulting from a specific motor vehicle accident, sustained by any person.

6.1.3. Department

The term "Department" wherever used in this Plan means the Department of Central Management Services of the State of Illinois. This Department shall be deemed to be the Agent of the State as underwriter of this Plan.

6.1.4. Insured

The term "Insured" as used in this Plan means, in addition to the NAMED INSURED, any person or organization qualifying as an insured in the "Additional Insured" provisions in paragraph 5.2 of this Plan. The coverage afforded applies separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the Department's liability, pursuant to 20 ILCS 405/405-105.

6.1.5. Mobile Equipment

The term "Mobile Equipment" as used in this Plan means a land vehicle (including any machinery or apparatus attached thereto), whether or not self-propelled, (1) not subject to motor vehicle registration laws, or (2) maintained for use exclusively on premises owned by or rented to the NAMED INSURED, including the ways immediately adjoining, or (3) designed for use principally off public roads, or (4) designed or maintained for the sole purpose of affording mobility to equipment of the following types forming an integral part of or permanently attached to such vehicle: power cranes; shovels; loaders; diggers and drills; concrete mixers (other than the mixer-in-transit type); graders; scrapers; rollers and other road construction or repair equipment; air compressors; pumps and generators; including spraying, welding and building cleaning equipment; and geophysical exploration and well-servicing equipment.

6.1.6. Motor Vehicle

The term "Motor Vehicle" wherever used in the Plan means a land motor vehicle, automobile, truck, trailer, semitrailer or motorcycle designed for travel on public roads, (including any machinery or apparatus attached thereto), but does not include Mobile Equipment. Specifically included shall be motorcycles owned, rented or loaned to the Universities for instructional purposes.

6.1.7. Named Insured

The term "Named Insured" as used in this Plan shall mean the State of Illinois including all Departments, Boards, Commissions, Universities and agencies as now or hereafter constituted.

6.1.8. Occurrence

The term "Occurrence" means an event or a continuous or repeated exposure to conditions which result in Bodily Injury or Property Damage neither expected nor intended from the standpoint of the insured.

6.1.9. Property Damage

The term "Property Damage" as used in this Plan means: (1) physical injury to or destruction of tangible property which occurs during the Plan period, including the loss of use thereof at any time resulting therefrom; or (2) loss of use of tangible property which has not been physically injured or destroyed provided such loss of use is caused by an occurrence during the Plan period.

6.1.10. State

The term "State" wherever used in this Plan shall mean the State of Illinois, (the Corporate Entity of the State, the physical entity of the State, and the Body of Laws which govern the Officers, Employees, and the Citizens of the State).

6.1.11. State Officer

The term "State Officer" shall mean agency Directors, Assistant Directors, Chiefs, other Elected Officials, and heads of State Agencies, Boards, Commissions, and Universities.

6.1.12. Travel Status

The term "travel status" shall mean that time during which an individual is eligible to receive reimbursement for travel expenses per rules of the Travel Control Board.