IL SB2771

Amends the Illinois Insurance Code to define and regulate "vehicle protection products" as protective chemicals, substances, devices, or systems installed on vehicles designed to prevent loss or damage from specific causes, with written warranties covering incidental costs if the product fails.

Vehicle protection products backed by warranty reimbursement insurance policies are exempt from Illinois Insurance Code and Service Contract Act requirements unless they meet the definition of a service contract.

Clarifies that vehicle protection products do not include fuel additives, oil additives, or other chemical products applied to engines, transmissions, or fuel systems.

Amends the Service Contract Act to permit service contracts to provide payment of specified incidental costs related to protective chemicals, substances, devices, or systems, while excluding such vehicle protection products from compliance with the Service Contract Act if they meet the Insurance Code definition.

Requires service contracts that include protective product coverage to clearly disclose refund terms and permits providers to retain cancellation fees of up to 10% of the contract price or $50, whichever is less.