(215 ILCS 152/35)
Sec. 35.
Cancellation and refunds.
No service contract may be issued, sold, or offered for sale in this State
unless the service
contract clearly states that the service contract holder is allowed to cancel
the service
contract. If the service contract holder elects cancellation, the service
contract provider may
retain a cancellation fee not to exceed the lesser of 10% of the service
contract price or
$50. The service contract cancellation provision must provide that the service
contract may be cancelled:
(1) within 30 days after its purchase if no service has been provided
and that a full
refund of the service contract consideration, less any cancellation fee stated
in the service
contract will be paid to the service contract holder; or
(2) at any other time and a pro rata refund of the service contract
consideration for
the unexpired term of the service contract, based on the number of elapsed
months, miles,
hours, or such other reasonably applicable measure which is clearly disclosed
in
the service
contract, less the value of any service received, and any cancellation fee
stated in the
service contract will be paid to the service contract holder.
(Source: P.A. 90-711, eff. 8-7-98.)
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