Full Text of HB1460 98th General Assembly
HB1460ham001 98TH GENERAL ASSEMBLY | Rep. Greg Harris Filed: 3/12/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1460
| 2 | | AMENDMENT NO. ______. Amend House Bill 1460 by replacing | 3 | | everything after the enacting clause with the following:
| 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 Department of Insurance.
| 9 | | "Director" means the Director of Insurance.
| 10 | | "Road hazard" means a hazard that is encountered while | 11 | | driving a motor vehicle, including, but not limited to, | 12 | | potholes, rocks, wood debris, metal parts, glass, plastic, | 13 | | curbs, and composite scraps. | 14 | | "Service Contract" means a contract or agreement whereby a | 15 | | service
contract provider
undertakes for a specified period of | 16 | | time, for separate and identifiable
consideration, to
perform |
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| 1 | | the repair, replacement, or maintenance, or indemnification | 2 | | for such
services, of
any automobile, system, or consumer | 3 | | product in connection with the operational
or
structural | 4 | | failure due to a defect in materials or workmanship, or normal | 5 | | wear
and tear,
with or without additional provision for | 6 | | incidental payment or indemnity under
limited
circumstances, | 7 | | for related expenses, including, but not limited to, towing,
| 8 | | rental, and
emergency road service. Service contracts may | 9 | | provide for : | 10 | | (1) the repair,
replacement, or
maintenance of such | 11 | | property for damage resulting from power surges and
| 12 | | accidental
damage from handling ; . | 13 | | (2) the repair or replacement of tires or wheels, or | 14 | | both, on a motor vehicle damaged as the result of coming | 15 | | into contact with road hazards; | 16 | | (3) the removal of dents, dings, or creases on a motor | 17 | | vehicle that can be repaired using the process of paintless | 18 | | dent removal without affecting the existing paint finish | 19 | | and without replacing vehicle body panels, sanding, | 20 | | bonding, or painting; | 21 | | (4) the repair of chips or cracks in or the replacement | 22 | | of motor vehicle windshields as a result of damage caused | 23 | | by road hazards; | 24 | | (5) the replacement of a motor vehicle key or key-fob | 25 | | in the event that the key or key-fob becomes inoperable or | 26 | | is lost or stolen; |
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| 1 | | (6) a protective chemical, substance, device, or | 2 | | system that (A) is installed on or applied to a motor | 3 | | vehicle, (B) is designed to prevent loss or damage to a | 4 | | motor vehicle from a specific cause, and (C) includes a | 5 | | written product warranty providing for payment to or on | 6 | | behalf of the warranty holder's incidental costs in the | 7 | | event that the product fails to prevent loss or damage as | 8 | | specified; the reimbursement of incidental costs under the | 9 | | warranty must be tied to the purchase of a physical product | 10 | | that is formulated or designed to make the specified loss | 11 | | or damage less likely to occur; or | 12 | | (7) other services that may be approved by the | 13 | | Director, if not inconsistent with other provisions of this | 14 | | Act. | 15 | | Service contracts shall not include : | 16 | | (i) contracts of limited
duration
that provide for | 17 | | scheduled maintenance only ; .
| 18 | | (ii) fuel additives, oil additives, or other chemical | 19 | | products applied to the engine, transmission, or fuel | 20 | | system of a motor vehicle; | 21 | | (iii) coverage for the repair or replacement, or both, | 22 | | of damage to the interior surfaces of a vehicle, or for | 23 | | repair or replacement, or both, of damage to the exterior | 24 | | paint or finish of a vehicle; however, such coverage may be | 25 | | offered in connection with the sale of a protective | 26 | | chemical, device, or system described in item (6) of this |
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| 1 | | definition. | 2 | | "Service contract holder" means the person who purchases a | 3 | | service
contract or a
permitted transferee.
| 4 | | "Service contract provider" means a person who is | 5 | | contractually
obligated to the
service contract holder under | 6 | | the terms of the service contract. A service
contract
provider | 7 | | does not include an insurer.
| 8 | | "Service contract reimbursement insurance policy" means a | 9 | | policy of
insurance that
is issued to the service contract | 10 | | provider to provide reimbursement to the
service
contract | 11 | | provider or to pay on behalf of the service contract provider | 12 | | all
covered
contractual obligations incurred by the service | 13 | | contract provider under the
terms and
conditions of the insured | 14 | | service contracts issued or sold by the service
contract
| 15 | | provider.
| 16 | | "System" means the heating, cooling, plumbing, electrical, | 17 | | ventilation,
or any other similar
system of a home.
| 18 | | (Source: P.A. 90-711, eff. 8-7-98.)".
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