VEHICLE CD-MANDATORY INSURANCE

Amends the Illinois Vehicle Code. Requires an insurer to notify the Secretary of State if an insurer issues a new or replacement policy, terminates a policy, either by cancellation or failure to renew, unless the same insurer issues a replacement policy complying with this Act at the same time the insurer terminates the old policy and no lapse in coverage results, or reinstates a policy after the insurer has notified the Secretary of a cancellation or termination. Provides that the Director of the Division of Insurance may assess a civil penalty of $200 against an insurer that fails to notify the Secretary of the required information. Provides for notice by the Secretary, when the Secretary receives evidence, by a notice of termination of a motor vehicle liability policy or otherwise, that the owner of a motor vehicle registered or required to be registered in this State does not have the mandatory insurance coverage for the operation of the vehicle. Requires the owner to respond to the letter within 10 days of the date on the letter and explain how the owner has met the duty to have continuous insurance coverage for the vehicle. Provides for penalties for a lapse in the mandatory insurance coverage. Provides that any person whose vehicle registration or license plates have been revoked for a lapse in the mandatory insurance coverage may request a hearing.