Does Illinois have an auto insurance verification system?

Insurance companies are required to send a list of everyone who has filed for insurance with them to the state. If you apply for a driver's license and you're not on their list, they know you don't have auto insurance. Likewise, if you are dropped by your auto insurance company, they are required to send the state notification of that as well, so the state also knows when you've been dropped and will send you a note telling you that you need to get auto insurance. In addition, you need to carry proof of insurance with you in the car at all times in case of a traffic stop.