Full Text of HB1460 98th General Assembly
HB1460enr 98TH GENERAL ASSEMBLY |
| | HB1460 Enrolled | | LRB098 07451 RPM 37519 b |
|
| 1 | | AN ACT concerning insurance.
| 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 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 | 17 | | the repair, replacement, or maintenance, or indemnification | 18 | | for such
services, of
any automobile, system, or consumer | 19 | | product in connection with the operational
or
structural | 20 | | failure due to a defect in materials or workmanship, or normal | 21 | | wear
and tear,
with or without additional provision for | 22 | | incidental payment or indemnity under
limited
circumstances, | 23 | | for related expenses, including, but not limited to, towing,
|
| | | HB1460 Enrolled | - 2 - | LRB098 07451 RPM 37519 b |
|
| 1 | | rental, and
emergency road service. Service contracts may | 2 | | provide for : | 3 | | (1) the repair,
replacement, or
maintenance of such | 4 | | property for damage resulting from power surges and
| 5 | | accidental
damage from handling ; . | 6 | | (2) the repair or replacement of tires or wheels, or | 7 | | both, on a motor vehicle damaged as the result of coming | 8 | | into contact with road hazards; | 9 | | (3) the removal of dents, dings, or creases on a motor | 10 | | vehicle that can be repaired using the process of paintless | 11 | | dent removal without affecting the existing paint finish | 12 | | and without replacing vehicle body panels, sanding, | 13 | | bonding, or painting; | 14 | | (4) the repair of chips or cracks in or the replacement | 15 | | of motor vehicle windshields as a result of damage caused | 16 | | by road hazards; | 17 | | (5) the replacement of a motor vehicle key or key-fob | 18 | | in the event that the key or key-fob becomes inoperable or | 19 | | is lost or stolen; | 20 | | (6) a protective chemical, substance, device, or | 21 | | system that (A) is installed on or applied to a motor | 22 | | vehicle, (B) is designed to prevent loss or damage to a | 23 | | motor vehicle from a specific cause, and (C) includes a | 24 | | written product warranty providing for payment to or on | 25 | | behalf of the warranty holder's incidental costs in the | 26 | | event that the product fails to prevent loss or damage as |
| | | HB1460 Enrolled | - 3 - | LRB098 07451 RPM 37519 b |
|
| 1 | | specified; the reimbursement of incidental costs under the | 2 | | warranty must be tied to the purchase of a physical product | 3 | | that is formulated or designed to make the specified loss | 4 | | or damage less likely to occur; or | 5 | | (7) other services that may be approved by the | 6 | | Director, if not inconsistent with other provisions of this | 7 | | Act. | 8 | | Service contracts shall not include : | 9 | | (i) contracts of limited
duration
that provide for | 10 | | scheduled maintenance only ; .
| 11 | | (ii) fuel additives, oil additives, or other chemical | 12 | | products applied to the engine, transmission, or fuel | 13 | | system of a motor vehicle; | 14 | | (iii) coverage for the repair or replacement, or both, | 15 | | of damage to the interior surfaces of a vehicle, or for | 16 | | repair or replacement, or both, of damage to the exterior | 17 | | paint or finish of a vehicle; however, such coverage may be | 18 | | offered in connection with the sale of a protective | 19 | | chemical, device, or system described in item (6) of this | 20 | | definition. | 21 | | "Service contract holder" means the person who purchases a | 22 | | service
contract or a
permitted transferee.
| 23 | | "Service contract provider" means a person who is | 24 | | contractually
obligated to the
service contract holder under | 25 | | the terms of the service contract. A service
contract
provider | 26 | | does not include an insurer.
|
| | | HB1460 Enrolled | - 4 - | LRB098 07451 RPM 37519 b |
|
| 1 | | "Service contract reimbursement insurance policy" means a | 2 | | policy of
insurance that
is issued to the service contract | 3 | | provider to provide reimbursement to the
service
contract | 4 | | provider or to pay on behalf of the service contract provider | 5 | | all
covered
contractual obligations incurred by the service | 6 | | contract provider under the
terms and
conditions of the insured | 7 | | service contracts issued or sold by the service
contract
| 8 | | provider.
| 9 | | "System" means the heating, cooling, plumbing, electrical, | 10 | | ventilation,
or any other similar
system of a home.
| 11 | | (Source: P.A. 90-711, eff. 8-7-98.)
|
|