093_SB0741enr SB741 Enrolled LRB093 03236 JLS 03253 b 1 AN ACT relating to insurance. 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 adding Section 155.39 as follows: 6 (215 ILCS 5/155.39 new) 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 11 responsible for the administration of vehicle protection 12 product warranties. 13 "Incidental costs" means expenses specified in the 14 vehicle protection product warranty incurred by the warranty 15 holder related to the failure of the vehicle protection 16 product to perform as provided in the warranty. Incidental 17 costs may include, without limitation, insurance policy 18 deductibles, rental vehicle charges, the difference between 19 the actual value of the stolen vehicle at the time of theft 20 and the cost of a replacement vehicle, sales taxes, 21 registration fees, transaction fees, and mechanical 22 inspection fees. 23 "Vehicle protection product" means a vehicle protection 24 device, system, or service that is (i) installed on or 25 applied to a vehicle, (ii) is designed to prevent loss or 26 damage to a vehicle from a specific cause, (iii) includes a 27 written warranty by a warrantor that provides if the vehicle 28 protection product fails to prevent loss or damage to a 29 vehicle from a specific cause, that the warranty holder shall 30 be paid specified incidental costs by the warrantor as a 31 result of the failure of the vehicle protection product to SB741 Enrolled -2- LRB093 03236 JLS 03253 b 1 perform pursuant to the terms of the warranty, and (iv) the 2 warrantor's liability is covered by a warranty reimbursement 3 insurance policy. The term "vehicle protection product" shall 4 include, without limitation, alarm systems, body part marking 5 products, steering locks, window etch products, pedal and 6 ignition locks, fuel and ignition kill switches, and 7 electronic, radio, and satellite tracking devices. 8 "Vehicle protection product warrantor" or "warrantor" 9 means a person who is contractually obligated to the warranty 10 holder under the terms of the vehicle protection product. 11 Warrantor does not include an authorized insurer. 12 "Warranty reimbursement insurance policy" means a policy 13 of insurance issued to the vehicle protection product 14 warrantor to pay on behalf of the warrantor all covered 15 contractual obligations incurred by the warrantor under the 16 terms and conditions of the insured vehicle protection 17 product warranties sold by the warrantor. The warranty 18 reimbursement insurance policy shall be issued by an insurer 19 authorized to do business in this State that has filed its 20 policy form with the Department. 21 (b) No vehicle protection product sold or offered for 22 sale in this State shall be subject to the provisions of this 23 Code. Vehicle protection product warrantors and related 24 vehicle protection product sellers and warranty 25 administrators complying with this Section are not required 26 to comply with and are not subject to any other provision of 27 this Code. The vehicle protection products' written 28 warranties are express warranties and not insurance. 29 (c) This Section applies to all vehicle protection 30 products sold or offered for sale prior to, on, or after the 31 effective date of this amendatory Act of the 93rd General 32 Assembly. The enactment of this Section does not imply that 33 vehicle protection products should have been subject to 34 regulation under this Code prior to the enactment of this SB741 Enrolled -3- LRB093 03236 JLS 03253 b 1 Section. 2 Section 99. Effective date. This Act takes effect upon 3 becoming law.