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SB0129 Engrossed |
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LRB094 00004 AMC 30004 b |
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| AN ACT concerning service contracts.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Service Contract Act is amended by changing |
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| Sections 5 and 10 and by adding Section 37 as follows:
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| (215 ILCS 152/5)
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| Sec. 5. Definitions.
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| "Department" means the Department of Insurance.
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| "Director" means the Director of Insurance.
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| "Service Contract" means a contract or agreement whereby a |
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| service
contract provider
undertakes for a specified period of |
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| time, for separate and identifiable
consideration, to
perform |
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| the repair, replacement, or maintenance, or indemnification |
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| for such
services, of
any automobile, system, or consumer |
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| product in connection with the operational
or
structural |
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| failure due to a defect in materials or workmanship, or normal |
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| wear
and tear,
with or without additional provision for |
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| incidental payment or indemnity under
limited
circumstances, |
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| for related expenses, including, but not limited to, towing,
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| rental, and
emergency road service. Service contracts may |
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| provide for the repair,
replacement, or
maintenance of such |
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| property for damage resulting from power surges and
accidental
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| damage from handling. Except as provided in Section 37, service
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| Service contracts shall not include contracts of limited
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| duration
that provide for scheduled maintenance only.
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| "Service contract holder" means the person who purchases a |
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| service
contract or a
permitted transferee.
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| "Service contract provider" means a person who is |
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| contractually
obligated to the
service contract holder under |
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| the terms of the service contract. A service
contract
provider |
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| does not include an insurer.
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| "Service contract reimbursement insurance policy" means a |
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| policy of
insurance that
is issued to the service contract |
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| provider to provide reimbursement to the
service
contract |
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| provider or to pay on behalf of the service contract provider |
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| all
covered
contractual obligations incurred by the service |
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| contract provider under the
terms and
conditions of the insured |
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| service contracts issued or sold by the service
contract
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| provider.
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| "System" means the heating, cooling, plumbing, electrical, |
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| ventilation,
or any other similar
system of a home.
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| (Source: P.A. 90-711, eff. 8-7-98.)
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| (215 ILCS 152/10)
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| Sec. 10. Exemptions. Service contract providers and |
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| related service
contract sellers and administrators complying |
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| with this Act are not required
to comply with and are not |
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| subject to any provision of the Illinois Insurance
Code. A |
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| service contract provider who is the manufacturer or a |
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| wholly-owned
subsidiary of the manufacturer of the product or |
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| the builder, seller, or
lessor of the product that is the
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| subject of the service contract is required to comply only with |
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| Sections 30,
35, 37, 45, and 50 of this Act; except that, a |
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| service contract provider who sells
a motor vehicle, excluding |
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| a motorcycle as defined in Section 1-147 of the
Illinois |
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| Vehicle Code, or who leases, but is not the manufacturer of, |
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| the motor
vehicle, excluding a motorcycle as defined in Section |
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| 1-147 of the Illinois
Vehicle Code, that is the subject of the |
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| service contract must comply with this
Act in its entirety. |
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| Contracts for the repair and monitoring of private alarm
or |
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| private security systems regulated under the Private |
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| Detective, Private
Alarm, Private Security, and Locksmith Act |
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| of 2004 are not
required to comply
with this Act and are not |
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| subject to any provision of the Illinois Insurance
Code.
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| (Source: P.A. 92-16, eff. 6-28-01; 93-438, eff. 8-5-03.)
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| (215 ILCS 152/37 new) |
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| Sec. 37. Performance of automobile service contract |
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| services. If the service contract is for an automobile and |
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| provides that a specified number of individual services are to |
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| be provided to the service contract holder during the duration |
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| of the service contract, the service contract provider must |
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| provide the number of individual services specified under the |
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| service contract even if the contract has expired. |
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| For the purposes of this Section, "service contract holder" |
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| means only the purchaser of the service contract.
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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