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| Public Act 098-0222 | ||||
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AN ACT concerning insurance.
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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 | ||||
Section 5 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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"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,
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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
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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; .
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(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.
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"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.
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"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
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provider.
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"System" means the heating, cooling, plumbing, electrical, | ||
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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