093_SB0741ham001

 










                                     LRB093 03236 AMC 16616 a

 1                    AMENDMENT TO SENATE BILL 741

 2        AMENDMENT NO.     .  Amend Senate Bill 741  by  replacing
 3    the title with the following:

 4        "AN ACT relating to insurance."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Illinois Insurance Code  is  amended  by
 8    adding Section 155.39 as follows:

 9        (215 ILCS 5/155.39 new)
10        Sec. 155.39.  Vehicle protection products.
11        (a)  As used in this Section:
12        "Administrator"  means  a  third  party  other  than  the
13    warrantor   who   is   designated  by  the  warrantor  to  be
14    responsible for  the  administration  of  vehicle  protection
15    product warranties.
16        "Incidental   costs"  means  expenses  specified  in  the
17    vehicle protection product warranty incurred by the  warranty
18    holder  related  to  the  failure  of  the vehicle protection
19    product to perform as provided in  the  warranty.  Incidental
20    costs  may  include,  without  limitation,  insurance  policy
21    deductibles,  rental  vehicle charges, the difference between
 
                            -2-      LRB093 03236 AMC 16616 a
 1    the actual value of the stolen vehicle at the time  of  theft
 2    and   the   cost  of  a  replacement  vehicle,  sales  taxes,
 3    registration   fees,   transaction   fees,   and   mechanical
 4    inspection fees.
 5        "Vehicle protection product" means a  vehicle  protection
 6    device,  system,  or  service  that  is  (i)  installed on or
 7    applied to a vehicle, (ii) is designed  to  prevent  loss  or
 8    damage  to  a vehicle from a specific cause, (iii) includes a
 9    written warranty by a warrantor that provides if the  vehicle
10    protection  product  fails  to  prevent  loss  or damage to a
11    vehicle from a specific cause, that the warranty holder shall
12    be paid specified incidental costs  by  the  warrantor  as  a
13    result  of  the  failure of the vehicle protection product to
14    perform pursuant to the terms of the warranty, and  (iv)  the
15    warrantor's  liability is covered by a warranty reimbursement
16    insurance policy. The term "vehicle protection product" shall
17    include, without limitation, alarm systems, body part marking
18    products, steering locks, window  etch  products,  pedal  and
19    ignition   locks,   fuel  and  ignition  kill  switches,  and
20    electronic, radio, and satellite tracking devices.
21        "Vehicle protection  product  warrantor"  or  "warrantor"
22    means a person who is contractually obligated to the warranty
23    holder  under  the  terms  of the vehicle protection product.
24    Warrantor does not include an authorized insurer.
25        "Warranty reimbursement insurance policy" means a  policy
26    of   insurance  issued  to  the  vehicle  protection  product
27    warrantor to pay on  behalf  of  the  warrantor  all  covered
28    contractual  obligations  incurred by the warrantor under the
29    terms  and  conditions  of  the  insured  vehicle  protection
30    product warranties  sold  by  the  warrantor.   The  warranty
31    reimbursement  insurance policy shall be issued by an insurer
32    authorized to do business in this State that  has  filed  its
33    policy form with the Department.
34        (b)  No  vehicle  protection  product sold or offered for
 
                            -3-      LRB093 03236 AMC 16616 a
 1    sale in this State shall be subject to the provisions of this
 2    Code.    Vehicle protection product  warrantors  and  related
 3    vehicle    protection    product    sellers    and   warranty
 4    administrators complying with this Section are  not  required
 5    to  comply with and are not subject to any other provision of
 6    this  Code.   The  vehicle   protection   products'   written
 7    warranties are express warranties and not insurance.
 8        (c)  This  Section  applies  to  all  vehicle  protection
 9    products  sold or offered for sale prior to, on, or after the
10    effective date of this amendatory Act  of  the  93rd  General
11    Assembly.  The  enactment of this Section does not imply that
12    vehicle protection  products  should  have  been  subject  to
13    regulation  under  this  Code  prior to the enactment of this
14    Section.

15        Section 99. Effective date. This Act  takes  effect  upon
16    becoming law.".