(815 ILCS 405/8) (from Ch. 121 1/2, par. 508)
Sec. 8.
(a) A seller under a retail installment contract or retail charge
agreement may require insurance against substantial risk of loss of or
damage to the goods 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 similar 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 furnish the holder with satisfactory evidence of insurance on or
before the date when the buyer takes possession of the goods.
(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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