093_SB0741enr

 
SB741 Enrolled                       LRB093 03236 JLS 03253 b

 1        AN ACT relating to insurance.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The Illinois Insurance  Code  is  amended  by
 5    adding Section 155.39 as follows:

 6        (215 ILCS 5/155.39 new)
 7        Sec. 155.39.  Vehicle protection products.
 8        (a)  As used in this Section:
 9        "Administrator"  means  a  third  party  other  than  the
10    warrantor   who   is   designated  by  the  warrantor  to  be
11    responsible for  the  administration  of  vehicle  protection
12    product warranties.
13        "Incidental   costs"  means  expenses  specified  in  the
14    vehicle protection product warranty incurred by the  warranty
15    holder  related  to  the  failure  of  the vehicle protection
16    product to perform as provided in  the  warranty.  Incidental
17    costs  may  include,  without  limitation,  insurance  policy
18    deductibles,  rental  vehicle charges, the difference between
19    the actual value of the stolen vehicle at the time  of  theft
20    and   the   cost  of  a  replacement  vehicle,  sales  taxes,
21    registration   fees,   transaction   fees,   and   mechanical
22    inspection fees.
23        "Vehicle protection product" means a  vehicle  protection
24    device,  system,  or  service  that  is  (i)  installed on or
25    applied to a vehicle, (ii) is designed  to  prevent  loss  or
26    damage  to  a vehicle from a specific cause, (iii) includes a
27    written warranty by a warrantor that provides if the  vehicle
28    protection  product  fails  to  prevent  loss  or damage to a
29    vehicle from a specific cause, that the warranty holder shall
30    be paid specified incidental costs  by  the  warrantor  as  a
31    result  of  the  failure of the vehicle protection product to
 
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 1    perform pursuant to the terms of the warranty, and  (iv)  the
 2    warrantor's  liability is covered by a warranty reimbursement
 3    insurance policy. The term "vehicle protection product" shall
 4    include, without limitation, alarm systems, body part marking
 5    products, steering locks, window  etch  products,  pedal  and
 6    ignition   locks,   fuel  and  ignition  kill  switches,  and
 7    electronic, radio, and satellite tracking devices.
 8        "Vehicle protection  product  warrantor"  or  "warrantor"
 9    means a person who is contractually obligated to the warranty
10    holder  under  the  terms  of the vehicle protection product.
11    Warrantor does not include an authorized insurer.
12        "Warranty reimbursement insurance policy" means a  policy
13    of   insurance  issued  to  the  vehicle  protection  product
14    warrantor to pay on  behalf  of  the  warrantor  all  covered
15    contractual  obligations  incurred by the warrantor under the
16    terms  and  conditions  of  the  insured  vehicle  protection
17    product warranties  sold  by  the  warrantor.   The  warranty
18    reimbursement  insurance policy shall be issued by an insurer
19    authorized to do business in this State that  has  filed  its
20    policy form with the Department.
21        (b)  No  vehicle  protection  product sold or offered for
22    sale in this State shall be subject to the provisions of this
23    Code.    Vehicle protection product  warrantors  and  related
24    vehicle    protection    product    sellers    and   warranty
25    administrators complying with this Section are  not  required
26    to  comply with and are not subject to any other provision of
27    this  Code.   The  vehicle   protection   products'   written
28    warranties are express warranties and not insurance.
29        (c)  This  Section  applies  to  all  vehicle  protection
30    products  sold or offered for sale prior to, on, or after the
31    effective date of this amendatory Act  of  the  93rd  General
32    Assembly.  The  enactment of this Section does not imply that
33    vehicle protection  products  should  have  been  subject  to
34    regulation  under  this  Code  prior to the enactment of this
 
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 1    Section.

 2        Section 99. Effective date. This Act  takes  effect  upon
 3    becoming law.