|  |
Public Act 098-0222
Public Act 0222 98TH GENERAL ASSEMBLY
|
Public Act 098-0222
| | HB1460 Enrolled | LRB098 07451 RPM 37519 b |
|
| AN ACT concerning insurance.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Service Contract Act is amended by changing | Section 5 as follows:
| (215 ILCS 152/5)
| Sec. 5. Definitions.
| "Department" means the Department of Insurance.
| "Director" means the Director of Insurance.
| "Road hazard" means a hazard that is encountered while | driving a motor vehicle, including, but not limited to, | potholes, rocks, wood debris, metal parts, glass, plastic, | curbs, and composite scraps. | "Service Contract" means a contract or agreement whereby a | service
contract provider
undertakes for a specified period of | time, for separate and identifiable
consideration, to
perform | the repair, replacement, or maintenance, or indemnification | for such
services, of
any automobile, system, or consumer | product in connection with the operational
or
structural | failure due to a defect in materials or workmanship, or normal | wear
and tear,
with or without additional provision for | incidental payment or indemnity under
limited
circumstances, | for related expenses, including, but not limited to, towing,
|
| rental, and
emergency road service. Service contracts may | provide for: | (1) the repair,
replacement, or
maintenance of such | property for damage resulting from power surges and
| accidental
damage from handling; . | (2) the repair or replacement of tires or wheels, or | both, on a motor vehicle damaged as the result of coming | into contact with road hazards; | (3) the removal of dents, dings, or creases on a motor | vehicle that can be repaired using the process of paintless | dent removal without affecting the existing paint finish | and without replacing vehicle body panels, sanding, | bonding, or painting; | (4) the repair of chips or cracks in or the replacement | of motor vehicle windshields as a result of damage caused | by road hazards; | (5) the replacement of a motor vehicle key or key-fob | in the event that the key or key-fob becomes inoperable or | is lost or stolen; | (6) a protective chemical, substance, device, or | system that (A) is installed on or applied to a motor | vehicle, (B) is designed to prevent loss or damage to a | motor vehicle from a specific cause, and (C) includes a | written product warranty providing for payment to or on | behalf of the warranty holder's incidental costs in the | event that the product fails to prevent loss or damage as |
| specified; the reimbursement of incidental costs under the | warranty must be tied to the purchase of a physical product | that is formulated or designed to make the specified loss | or damage less likely to occur; or | (7) other services that may be approved by the | Director, if not inconsistent with other provisions of this | Act. | Service contracts shall not include: | (i) contracts of limited
duration
that provide for | scheduled maintenance only; .
| (ii) fuel additives, oil additives, or other chemical | products applied to the engine, transmission, or fuel | system of a motor vehicle; | (iii) coverage for the repair or replacement, or both, | of damage to the interior surfaces of a vehicle, or for | repair or replacement, or both, of damage to the exterior | paint or finish of a vehicle; however, such coverage may be | offered in connection with the sale of a protective | chemical, device, or system described in item (6) of this | definition. | "Service contract holder" means the person who purchases a | service
contract or a
permitted transferee.
| "Service contract provider" means a person who is | contractually
obligated to the
service contract holder under | the terms of the service contract. A service
contract
provider | does not include an insurer.
|
| "Service contract reimbursement insurance policy" means a | policy of
insurance that
is issued to the service contract | provider to provide reimbursement to the
service
contract | provider or to pay on behalf of the service contract provider | all
covered
contractual obligations incurred by the service | contract provider under the
terms and
conditions of the insured | service contracts issued or sold by the service
contract
| provider.
| "System" means the heating, cooling, plumbing, electrical, | ventilation,
or any other similar
system of a home.
| (Source: P.A. 90-711, eff. 8-7-98.)
|
Effective Date: 1/1/2014
|
|
|
|
Translate
