HB1287 EngrossedLRB097 06812 RPM 46903 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Sections 500-10 and 500-35 as follows:
 
6    (215 ILCS 5/500-10)
7    (Section scheduled to be repealed on January 1, 2017)
8    Sec. 500-10. Definitions. In addition to the definitions in
9Section 2 of the Code, the following definitions apply to this
10Article:
11    "Business entity" means a corporation, association,
12partnership, limited liability company, limited liability
13partnership, or other legal entity.
14    "Car rental limited line licensee" means a person
15authorized under the provisions of Section 500-105 to sell
16certain coverages relating to the rental of vehicles.
17    "Home state" means the District of Columbia and any state
18or territory of the United States in which an insurance
19producer maintains his or her principal place of residence or
20principal place of business and is licensed to act as an
21insurance producer.
22    "Insurance" means any of the lines of authority in Section
23500-35, any health care plan under the Health Maintenance

 

 

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1Organization Act, or any limited health care plan under the
2Limited Health Service Organization Act.
3    "Insurance producer" means a person required to be licensed
4under the laws of this State to sell, solicit, or negotiate
5insurance.
6    "Insurer" means a company as defined in subsection (e) of
7Section 2 of this Code, a health maintenance organization as
8defined in the Health Maintenance Organization Act, or a
9limited health service organization as defined in the Limited
10Health Service Organization Act.
11    "License" means a document issued by the Director
12authorizing an individual to act as an insurance producer for
13the lines of authority specified in the document or authorizing
14a business entity to act as an insurance producer. The license
15itself does not create any authority, actual, apparent, or
16inherent, in the holder to represent or commit an insurance
17carrier.
18    "Limited lines insurance" means those lines of insurance
19defined in Section 500-100 or any other line of insurance that
20the Director may deem it necessary to recognize for the
21purposes of complying with subsection (e) of Section 500-40.
22    "Limited lines producer" means a person authorized by the
23Director to sell, solicit, or negotiate limited lines
24insurance.
25    "Negotiate" means the act of conferring directly with or
26offering advice directly to a purchaser or prospective

 

 

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1purchaser of a particular contract of insurance concerning any
2of the substantive benefits, terms, or conditions of the
3contract, provided that the person engaged in that act either
4sells insurance or obtains insurance from insurers for
5purchasers.
6    "Person" means an individual or a business entity.
7    "Rental agreement" means a written agreement setting forth
8the terms and conditions governing the use of a vehicle
9provided by a rental company for rental or lease.
10    "Rental company" means a person, or a franchisee of the
11person, in the business of providing primarily private
12passenger vehicles to the public under a rental agreement for a
13period not to exceed 30 days.
14    "Rental period" means the term of the rental agreement.
15    "Renter" means a person obtaining the use of a vehicle from
16a rental company under the terms of a rental agreement for a
17period not to exceed 30 days.
18    "Self-service storage facility limited line licensee"
19means a person authorized under the provisions of Section
20500-107 to sell certain coverages relating to the rental of
21self-service storage facilities.
22    "Sell" means to exchange a contract of insurance by any
23means, for money or its equivalent, on behalf of an insurance
24company.
25    "Solicit" means attempting to sell insurance or asking or
26urging a person to apply for a particular kind of insurance

 

 

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1from a particular company.
2    "Terminate" means the cancellation of the relationship
3between an insurance producer and the insurer or the
4termination of a producer's authority to transact insurance.
5    "Uniform Business Entity Application" means the current
6version of the National Association of Insurance
7Commissioners' Uniform Business Entity Application for
8nonresident business entities.
9    "Uniform Application" means the current version of the
10National Association of Insurance Commissioners' Uniform
11Application for nonresident producer licensing.
12    "Vehicle" or "rental vehicle" means a motor vehicle of (1)
13the private passenger type, including passenger vans, mini
14vans, and sport utility vehicles or (2) the cargo type,
15including cargo vans, pickup trucks, and trucks with a gross
16vehicle weight of less than 26,000 pounds the operation of
17which does not require the operator to possess a commercial
18driver's license.
19    "Webinar" means an online educational presentation during
20which a live and participating instructor and participating
21viewers, whose attendance is periodically verified throughout
22the presentation, actively engage in discussion and in the
23submission and answering of questions.
24(Source: P.A. 92-386, eff. 1-1-02; 93-288, eff. 1-1-04.)
 
25    (215 ILCS 5/500-35)

 

 

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1    (Section scheduled to be repealed on January 1, 2017)
2    Sec. 500-35. License.
3    (a) Unless denied a license pursuant to Section 500-70,
4persons who have met the requirements of Sections 500-25 and
5500-30 shall be issued a 2-year insurance producer license. An
6insurance producer may receive qualification for a license in
7one or more of the following lines of authority:
8        (1) Life: insurance coverage on human lives including
9    benefits of endowment and annuities, and may include
10    benefits in the event of death or dismemberment by accident
11    and benefits for disability income.
12        (2) Variable life and variable annuity products:
13    insurance coverage provided under variable life insurance
14    contracts and variable annuities.
15        (3) Accident and health or sickness: insurance
16    coverage for sickness, bodily injury, or accidental death
17    and may include benefits for disability income.
18        (4) Property: insurance coverage for the direct or
19    consequential loss or damage to property of every kind.
20        (5) Casualty: insurance coverage against legal
21    liability, including that for death, injury, or disability
22    or damage to real or personal property.
23        (6) Personal lines: property and casualty insurance
24    coverage sold to individuals and families for primarily
25    noncommercial purposes.
26        (7) Any other line of insurance permitted under State

 

 

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1    laws or rules.
2    (b) An insurance producer license shall remain in effect
3unless revoked or suspended as long as the fee set forth in
4Section 500-135 is paid and education requirements for resident
5individual producers are met by the due date.
6        (1) Before each license renewal, an insurance producer
7    must satisfactorily complete at least 24 hours of course
8    study in accordance with rules prescribed by the Director.
9    Three of the 24 hours of course study must consist of
10    classroom ethics instruction. The Director may not approve
11    a course of study unless the course provides for classroom,
12    seminar, webinar, or self-study instruction methods. A
13    course given in a combination instruction method of
14    classroom, or seminar, webinar, or and self-study shall be
15    deemed to be a self-study course unless the classroom, or
16    seminar, or webinar certified hours meets or exceeds
17    two-thirds of total hours certified for the course. The
18    self-study material used in the combination course must be
19    directly related to and complement the classroom portion of
20    the course in order to be considered for credit. An
21    instruction method other than classroom or seminar shall be
22    considered as self-study methodology. Self-study credit
23    hours require the successful completion of an examination
24    covering the self-study material. The examination may not
25    be self-evaluated. However, if the self-study material is
26    completed through the use of an approved computerized

 

 

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1    interactive format whereby the computer validates the
2    successful completion of the self-study material, no
3    additional examination is required. The self-study credit
4    hours contained in a certified course shall be considered
5    classroom hours when at least two-thirds of the hours are
6    given as classroom or seminar instruction.
7        (2) An insurance producer license automatically
8    terminates when an insurance producer fails to
9    successfully meet the requirements of item (1) of
10    subsection (b) of this Section. The producer must complete
11    the course in advance of the renewal date to allow the
12    education provider time to report the credit to the
13    Department.
14    (c) A provider of a pre-licensing or continuing education
15course required by Section 500-30 and this Section must pay a
16registration fee and a course certification fee for each course
17being certified as provided by Section 500-135.
18    (d) An individual insurance producer who allows his or her
19license to lapse may, within 12 months after the due date of
20the renewal fee, be issued a license without the necessity of
21passing a written examination. However, a penalty in the amount
22of double the unpaid renewal fee shall be required after the
23due date.
24    (e) A licensed insurance producer who is unable to comply
25with license renewal procedures due to military service may
26request a waiver of those procedures.

 

 

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1    (f) The license must contain the licensee's name, address,
2and personal identification number, the date of issuance, the
3lines of authority, the expiration date, and any other
4information the Director deems necessary.
5    (g) Licensees must inform the Director by any means
6acceptable to the Director of a change of address within 30
7days after the change.
8    (h) In order to assist in the performance of the Director's
9duties, the Director may contract with a non-governmental
10entity including the National Association of Insurance
11Commissioners (NAIC), or any affiliates or subsidiaries that
12the NAIC oversees, to perform any ministerial functions,
13including collection of fees, related to producer licensing
14that the Director and the non-governmental entity may deem
15appropriate.
16(Source: P.A. 96-839, eff. 1-1-10.)
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.