(815 ILCS 375/8) (from Ch. 121 1/2, par. 568)
Sec. 8.
(a) A seller under a retail installment contract may require
insurance against substantial risk of loss of or damage to the motor
vehicle, protecting the seller or holder as well as the buyer, and may,
if the buyer elects, include therefor in the contract an amount not
exceeding the premiums chargeable for such insurance in accordance with
rate filings made with the Director of Insurance. No seller or holder
may require as a condition precedent to, or as a part of, a retail
installment transaction that such insurance be purchased from or through
the seller or holder, or any employee, affiliate, or associate of seller
or holder. A seller under a retail installment contract may not require
other insurance; but if the buyer voluntarily contracts therefor, the
seller may then include in the contract an amount for that other
insurance not exceeding the premiums paid or payable by the seller or
holder. In those transactions where the buyer elects to select the
insurance company, broker or agent for the purpose of obtaining
insurance required by the holder under this Section, the buyer must, on
or before the date when buyer takes possession of the motor vehicle,
furnish the holder with satisfactory evidence of insurance in a company
acceptable to the seller or holder.
(b) If the obligor fails to furnish evidence that he has procured
insurance on the property, the licensee may purchase substitute insurance that
may be substantially equivalent to or more limited than coverage the obligor is
required to maintain. Such insurance must comply with the Collateral
Protection Act.
(Source: P.A. 90-437, eff. 1-1-98.)
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