99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB2617

 

Introduced , by Rep. Frank J. Mautino

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/155.39

    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.


LRB099 07332 MLM 27442 b

 

 

A BILL FOR

 

HB2617LRB099 07332 MLM 27442 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing 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
10warrantor who is designated by the warrantor to be responsible
11for the administration of vehicle protection product
12warranties.
13    "Incidental costs" means expenses specified in the vehicle
14protection product warranty incurred by the warranty holder
15related to the failure of the vehicle protection product to
16perform as provided in the warranty. Incidental costs may
17include, without limitation, insurance policy deductibles,
18rental vehicle charges, the difference between the actual value
19of the stolen vehicle at the time of theft and the cost of a
20replacement vehicle, sales taxes, registration fees,
21transaction fees, and mechanical inspection fees.
22    "Vehicle protection product" means a vehicle protection
23device, system, or service that is (i) installed on or applied

 

 

HB2617- 2 -LRB099 07332 MLM 27442 b

1to a vehicle, (ii) is designed to prevent loss or damage to a
2vehicle from a specific cause, (iii) includes a written
3warranty by a warrantor that provides if the vehicle protection
4product fails to prevent loss or damage to a vehicle from a
5specific cause, that the warranty holder shall be paid
6specified incidental costs by the warrantor as a result of the
7failure of the vehicle protection product to perform pursuant
8to the terms of the warranty, and (iv) the warrantor's
9liability is covered by a warranty reimbursement insurance
10policy. The term "vehicle protection product" shall include,
11without limitation, alarm systems, body part marking products,
12steering locks, window etch products, pedal and ignition locks,
13fuel and ignition kill switches, and electronic, radio, and
14satellite tracking devices.
15    "Vehicle protection product warrantor" or "warrantor"
16means a person who is contractually obligated to the warranty
17holder under the terms of the vehicle protection product.
18Warrantor does not include an authorized insurer.
19    "Warranty reimbursement insurance policy" means a policy
20of insurance issued to the vehicle protection product warrantor
21to pay on behalf of the warrantor all covered contractual
22obligations incurred by the warrantor under the terms and
23conditions of the insured vehicle protection product
24warranties sold by the warrantor. The warranty reimbursement
25insurance policy shall be issued by an insurer authorized to do
26business in this State that has filed its policy form with the

 

 

HB2617- 3 -LRB099 07332 MLM 27442 b

1Department.
2    (b) No vehicle protection product sold or offered for sale
3in this State shall be subject to the provisions of this Code
4or the Service Contract Act.
5    Vehicle protection product warrantors and related vehicle
6protection product sellers and warranty administrators
7complying with this Section are not required to comply with and
8are not subject to any other provision of this Code. The
9vehicle protection products' written warranties are express
10warranties and not insurance.
11    (c) This Section applies to all vehicle protection products
12sold or offered for sale prior to, on, or after the effective
13date of this amendatory Act of the 93rd General Assembly. The
14enactment of this Section does not imply that vehicle
15protection products should have been subject to regulation
16under this Code prior to the enactment of this Section.
17(Source: P.A. 95-331, eff. 8-21-07.)