Bill Text: IL HB2617 | 2015-2016 | 99th General Assembly | Introduced

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Bill Title: 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.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2015-04-24 - Rule 19(a) / Re-referred to Rules Committee [HB2617 Detail]

Download: Illinois-2015-HB2617-Introduced.html

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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.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Section 155.39 as follows:
(215 ILCS 5/155.39)
Sec. 155.39. Vehicle protection products.
(a) As used in this Section:
"Administrator" means a third party other than the
warrantor who is designated by the warrantor to be responsible
for the administration of vehicle protection product
warranties.
"Incidental costs" means expenses specified in the vehicle
protection product warranty incurred by the warranty holder
related to the failure of the vehicle protection product to
perform as provided in the warranty. Incidental costs may
include, without limitation, insurance policy deductibles,
rental vehicle charges, the difference between the actual value
of the stolen vehicle at the time of theft and the cost of a
replacement vehicle, sales taxes, registration fees,
transaction fees, and mechanical inspection fees.
"Vehicle protection product" means a vehicle protection
device, system, or service that is (i) installed on or applied

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

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