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| 1 | AN ACT concerning business. | ||||||
| 2 | Be it enacted by the People of the State of Illinois, | ||||||
| 3 | represented in the General Assembly: | ||||||
| 4 | Section 5. The Motor Vehicle Retail Installment Sales Act | ||||||
| 5 | is amended by adding Section 9.04 as follows: | ||||||
| 6 | (815 ILCS 375/9.04 new) | ||||||
| 7 | Sec. 9.04. Warranty disclosures for third-party motor | ||||||
| 8 | vehicle warranties. | ||||||
| 9 | (a) As used in this Section, "third-party motor vehicle | ||||||
| 10 | warranty" means an additional warranty, extended service | ||||||
| 11 | contract, or vehicle protection plan provided by an entity | ||||||
| 12 | that is not the manufacturer of a vehicle. | ||||||
| 13 | (b) A seller that sells or offers for sale a third-party | ||||||
| 14 | motor vehicle warranty shall, upon the request of the | ||||||
| 15 | consumer, provide to the consumer: | ||||||
| 16 | (1) a copy of the third-party motor vehicle warranty | ||||||
| 17 | contract; and | ||||||
| 18 | (2) a written disclosure provided by the third-party | ||||||
| 19 | motor vehicle warranty provider summarizing all costs that | ||||||
| 20 | the consumer may be responsible for under the third-party | ||||||
| 21 | motor vehicle warranty, including, but not limited to: | ||||||
| 22 | (A) any deductibles, co-pays, or service fees for | ||||||
| 23 | a covered repair; | ||||||
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| 1 | (B) any maximum coverage limits or caps on | ||||||
| 2 | reimbursements; | ||||||
| 3 | (C) any costs or services that are not covered | ||||||
| 4 | that may result in out-of-pocket expenses; and | ||||||
| 5 | (D) a statement clarifying that all claim | ||||||
| 6 | approvals and coverage determinations are made solely | ||||||
| 7 | by the third-party motor vehicle warranty provider, | ||||||
| 8 | not the seller. | ||||||
| 9 | (c) A seller shall be deemed to have satisfied the | ||||||
| 10 | requirements of subsection (b) if the dealer provides the | ||||||
| 11 | consumer: | ||||||
| 12 | (1) a completed Federal Trade Commission Buyers Guide, | ||||||
| 13 | as required under 16 CFR 455; and | ||||||
| 14 | (2) upon request of the consumer, a copy of the | ||||||
| 15 | third-party motor vehicle warranty contract and a written | ||||||
| 16 | disclosure that satisfies the requirements of paragraph | ||||||
| 17 | (2) of subsection (b). | ||||||
| 18 | (d) A seller does not violate this Section if: | ||||||
| 19 | (1) the third-party motor vehicle warranty provider | ||||||
| 20 | denies a claim made under the third-party motor vehicle | ||||||
| 21 | warranty; or | ||||||
| 22 | (2) the third-party motor vehicle warranty provider | ||||||
| 23 | makes any errors, omissions, or changes in its description | ||||||
| 24 | of the coverage terms, costs, or conditions of the | ||||||
| 25 | third-party motor vehicle warranty. | ||||||