94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB0912


 
Introduced 2/18/2005, by Sen. William R. Haine - Emil Jones, Jr.
 
SYNOPSIS AS INTRODUCED:
 		













215 ILCS 152/5









    Amends the Service Contract Act.  Makes a technical change in a Section concerning
definitions.
















LRB094 04529 LJB 34558 b

















 


 


A BILL FOR









 











SB0912

LRB094 04529 LJB 34558 b






1
    AN ACT concerning regulation.

 
2
    Be it enacted by the People of the State of Illinois, 
3
represented in the General Assembly: 


 
4
    Section 5. The Service Contract Act is amended by changing 
5
Section 5 as follows:
 



6
    (215 ILCS 152/5)



7
    Sec. 5. Definitions. 

8
    "Department" means the
the Department of Insurance.
9
    "Director" means the Director of Insurance.

10
    "Service Contract" means a contract or agreement whereby a 
11
service
contract provider
undertakes for a specified period of 
12
time, for separate and identifiable
consideration, to
perform 
13
the repair, replacement, or maintenance, or indemnification 
14
for such
services, of
any automobile, system, or consumer 
15
product in connection with the operational
or
structural 
16
failure due to a defect in materials or workmanship, or normal 
17
wear
and tear,
with or without additional provision for 
18
incidental payment or indemnity under
limited
circumstances, 
19
for related expenses, including, but not limited to, towing,

20
rental, and
emergency road service.  Service contracts may 
21
provide for the repair,
replacement, or
maintenance of such 
22
property for damage resulting from power surges and
accidental

23
damage from handling.  Service contracts shall not include 
24
contracts of limited
duration
that provide for scheduled 
25
maintenance only.

26
    "Service contract holder" means the person who purchases a 
27
service
contract or a
permitted transferee.

28
    "Service contract provider" means a person who is 
29
contractually
obligated to the
service contract holder under 
30
the terms of the service contract.  A service
contract
provider 
31
does not include an insurer.

32
    "Service contract reimbursement insurance policy" means a 
 


 






SB0912
- 2 -
LRB094 04529 LJB 34558 b




1
policy of
insurance that
is issued to the service contract 
2
provider to provide reimbursement to the
service
contract 
3
provider or to pay on behalf of the service contract provider 
4
all
covered
contractual obligations incurred by the service 
5
contract provider under the
terms and
conditions of the insured 
6
service contracts issued or sold by the service
contract

7
provider.

8
    "System" means the heating, cooling, plumbing, electrical, 
9
ventilation,
or any other similar
system of a home.

10
(Source: P.A. 90-711, eff. 8-7-98.)