Illinois General Assembly - Full Text of HB2338

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Full Text of HB2338 104th General Assembly

Introduced   Engrossed
House Amendment 001   House Amendment 002   House Amendment 003
House Amendment 004   Senate Amendment 001
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HB2338eng 104TH GENERAL ASSEMBLY

HB2338 Engrossed LRB104 11924 SPS 22016 b

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;

HB2338 Engrossed - 2 - LRB104 11924 SPS 22016 b

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.

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