INSURANCE-SERVICE CONTRACTS

Amends the Illinois Insurance Code. Deletes a provision providing that no vehicle protection product sold or offered for sale in this State shall be subject to the provisions of the Code. Provides that vehicle protection products, the warrantors of such products, and related vehicle protection product sellers and warranty administrators complying with the provision are not required to comply with and are not subject to any other provision of the Code, except that such parties shall be deemed to be engaged in an insurance business subject to the Insurance Code for purposes of rehabilitation, liquidation, conservation, or dissolution by the Director pursuant to Article XIII of the Code. Amends the Service Contract Act. Provides that service contract providers and related service contract sellers and administrators complying with the Act are not required to comply with and are not subject to any provision of the Insurance Code, except that such parties shall be deemed to be engaged in an insurance business subject to the Code for purposes of rehabilitation, liquidation, conservation, or dissolution by the Director of Insurance pursuant to Article XIII of the Code. Provides that if a service contract provider engages in a pattern or practice of conduct that violates the Act and that the Director reasonably believes threatens to render the service contract provider insolvent or cause irreparable loss or injury to the property or business of any person or company located in this State, the Director may report the case to the Attorney General for proceedings in accordance with Article XIII of the Code. Makes other changes. Effective immediately.