Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 152/20

(215 ILCS 152/20)

Sec. 20.

Reimbursement policy; required provisions.

(a) No service contract reimbursement insurance policy shall be issued,
sold, or offered for
sale in this State unless the policy states that the issuer of the policy will
reimburse or pay on
behalf of the service contract provider all covered sums which the service
contract
provider is legally obligated to pay or will provide the service that the
service contract
provider is legally obligated to perform according to the service contract
provider's
contractual obligations under the provisions of the insured service contracts
issued or
sold by the service contract provider.

(b) If covered service is not provided by the service contract
provider within 60
days of proof of loss by the service contract holder, the service contract
holder may
file directly with the insurance company writing the service contract
reimbursement
insurance policy.

(c) A service contract reimbursement insurance company that insures a
service
contract shall be deemed to have received payment of the premium if the service
contract
holder paid for the service contract coverage.

(d) If a service contract is canceled by a service contract holder, the
service contract
reimbursement insurance company shall be required to return the unearned
service
contract reimbursement insurance premium for that contract to the insured
service
contract provider. If the service contract provider fails to refund the amounts
required
under Section 35 of this Act, the service contract reimbursement insurance
company shall
be responsible for the refund to the service contract holder.

(Source: P.A. 90-711, eff. 8-7-98.)