Full Text of HB2617 99th General Assembly
HB2617 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB2617 Introduced , by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Insurance Code. Provides that no vehicle protection product sold or offered for sale in this State
shall be subject to the Service Contract Act.
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| | A BILL FOR |
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| 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 Illinois Insurance Code is amended by | 5 | | changing Section 155.39 as follows:
| 6 | | (215 ILCS 5/155.39)
| 7 | | Sec. 155.39. Vehicle protection products.
| 8 | | (a) As used in this Section:
| 9 | | "Administrator" means a third party other than the | 10 | | warrantor who is
designated by the warrantor to be responsible | 11 | | for the administration of
vehicle protection product | 12 | | warranties.
| 13 | | "Incidental costs" means expenses specified in the vehicle | 14 | | protection
product warranty incurred by the warranty holder | 15 | | related to the failure of the
vehicle protection product to | 16 | | perform as provided in the warranty.
Incidental costs may | 17 | | include, without limitation, insurance policy
deductibles, | 18 | | rental vehicle charges, the difference between the actual value
| 19 | | of the stolen vehicle at the time of theft and the cost of a | 20 | | replacement
vehicle, sales taxes, registration fees, | 21 | | transaction fees, and mechanical
inspection fees.
| 22 | | "Vehicle protection product" means a vehicle protection | 23 | | device,
system, or service that is (i) installed on or applied |
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| 1 | | to a vehicle, (ii) is
designed to prevent loss or damage to a | 2 | | vehicle from a specific cause, (iii)
includes a written | 3 | | warranty by a warrantor that provides if the vehicle
protection | 4 | | product fails to prevent loss or damage to a vehicle from a
| 5 | | specific cause, that the warranty holder shall be paid | 6 | | specified incidental
costs by the warrantor as a result of the | 7 | | failure of the vehicle protection
product to perform pursuant | 8 | | to the terms of the warranty, and (iv) the
warrantor's | 9 | | liability is covered by a warranty reimbursement insurance
| 10 | | policy. The term "vehicle protection product"
shall include, | 11 | | without limitation, alarm systems, body part marking products,
| 12 | | steering locks, window etch products, pedal and ignition locks, | 13 | | fuel and
ignition kill switches, and electronic, radio, and | 14 | | satellite tracking devices.
| 15 | | "Vehicle protection product warrantor" or "warrantor"
| 16 | | means a person who is contractually obligated to the
warranty | 17 | | holder under the terms of the vehicle protection product.
| 18 | | Warrantor does not include an authorized insurer.
| 19 | | "Warranty reimbursement insurance policy" means a policy | 20 | | of
insurance
issued to the vehicle protection product warrantor
| 21 | | to pay on behalf of the warrantor
all covered contractual | 22 | | obligations incurred by the warrantor under the terms
and | 23 | | conditions of the insured vehicle protection product | 24 | | warranties sold by
the warrantor. The warranty reimbursement | 25 | | insurance policy shall be issued by
an insurer authorized to do | 26 | | business in this State that has filed its policy
form with the |
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| 1 | | Department.
| 2 | | (b) No vehicle protection product sold or offered for sale | 3 | | in this State
shall be subject to the provisions of this Code | 4 | | or the Service Contract Act .
| 5 | | Vehicle protection product warrantors and related vehicle | 6 | | protection
product sellers and warranty administrators | 7 | | complying with this Section are
not required to comply with and | 8 | | are not subject to any other provision of this
Code. The | 9 | | vehicle protection products' written warranties are express
| 10 | | warranties and not insurance.
| 11 | | (c) This Section applies to all vehicle protection products | 12 | | sold or
offered for sale prior to, on, or after the effective | 13 | | date of this amendatory
Act
of the 93rd General Assembly. The | 14 | | enactment of this Section does not
imply that vehicle | 15 | | protection products should have been subject to regulation
| 16 | | under this Code prior to the enactment of this Section.
| 17 | | (Source: P.A. 95-331, eff. 8-21-07.)
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