Rep. JoAnn D. Osmond

Filed: 3/11/2011

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1287

2    AMENDMENT NO. ______. Amend House Bill 1287 by replacing
3everything after the enacting clause with the following:
 
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7    (Section scheduled to be repealed on January 1, 2017)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.

 

 

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1    "Home state" means the District of Columbia and any state
2or territory of the United States in which an insurance
3producer maintains his or her principal place of residence or
4principal place of business and is licensed to act as an
5insurance producer.
6    "Insurance" means any of the lines of authority in Section
7500-35, any health care plan under the Health Maintenance
8Organization Act, or any limited health care plan under the
9Limited Health Service Organization Act.
10    "Insurance producer" means a person required to be licensed
11under the laws of this State to sell, solicit, or negotiate
12insurance.
13    "Insurer" means a company as defined in subsection (e) of
14Section 2 of this Code, a health maintenance organization as
15defined in the Health Maintenance Organization Act, or a
16limited health service organization as defined in the Limited
17Health Service Organization Act.
18    "License" means a document issued by the Director
19authorizing an individual to act as an insurance producer for
20the lines of authority specified in the document or authorizing
21a business entity to act as an insurance producer. The license
22itself does not create any authority, actual, apparent, or
23inherent, in the holder to represent or commit an insurance
24carrier.
25    "Limited lines insurance" means those lines of insurance
26defined in Section 500-100 or any other line of insurance that

 

 

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1the Director may deem it necessary to recognize for the
2purposes of complying with subsection (e) of Section 500-40.
3    "Limited lines producer" means a person authorized by the
4Director to sell, solicit, or negotiate limited lines
5insurance.
6    "Negotiate" means the act of conferring directly with or
7offering advice directly to a purchaser or prospective
8purchaser of a particular contract of insurance concerning any
9of the substantive benefits, terms, or conditions of the
10contract, provided that the person engaged in that act either
11sells insurance or obtains insurance from insurers for
12purchasers.
13    "Person" means an individual or a business entity.
14    "Rental agreement" means a written agreement setting forth
15the terms and conditions governing the use of a vehicle
16provided by a rental company for rental or lease.
17    "Rental company" means a person, or a franchisee of the
18person, in the business of providing primarily private
19passenger vehicles to the public under a rental agreement for a
20period not to exceed 30 days.
21    "Rental period" means the term of the rental agreement.
22    "Renter" means a person obtaining the use of a vehicle from
23a rental company under the terms of a rental agreement for a
24period not to exceed 30 days.
25    "Self-service storage facility limited line licensee"
26means a person authorized under the provisions of Section

 

 

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1500-107 to sell certain coverages relating to the rental of
2self-service storage facilities.
3    "Sell" means to exchange a contract of insurance by any
4means, for money or its equivalent, on behalf of an insurance
5company.
6    "Solicit" means attempting to sell insurance or asking or
7urging a person to apply for a particular kind of insurance
8from a particular company.
9    "Terminate" means the cancellation of the relationship
10between an insurance producer and the insurer or the
11termination of a producer's authority to transact insurance.
12    "Uniform Business Entity Application" means the current
13version of the National Association of Insurance
14Commissioners' Uniform Business Entity Application for
15nonresident business entities.
16    "Uniform Application" means the current version of the
17National Association of Insurance Commissioners' Uniform
18Application for nonresident producer licensing.
19    "Vehicle" or "rental vehicle" means a motor vehicle of (1)
20the private passenger type, including passenger vans, mini
21vans, and sport utility vehicles or (2) the cargo type,
22including cargo vans, pickup trucks, and trucks with a gross
23vehicle weight of less than 26,000 pounds the operation of
24which does not require the operator to possess a commercial
25driver's license.
26    "Webinar" means an online educational presentation during

 

 

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1which a live and participating instructor and participating
2viewers, whose attendance is periodically verified throughout
3the presentation, actively engage in discussion and in the
4submission and answering of questions.
5(Source: P.A. 92-386, eff. 1-1-02; 93-288, eff. 1-1-04.)
 
6    (215 ILCS 5/500-35)
7    (Section scheduled to be repealed on January 1, 2017)
8    Sec. 500-35. License.
9    (a) Unless denied a license pursuant to Section 500-70,
10persons who have met the requirements of Sections 500-25 and
11500-30 shall be issued a 2-year insurance producer license. An
12insurance producer may receive qualification for a license in
13one or more of the following lines of authority:
14        (1) Life: insurance coverage on human lives including
15    benefits of endowment and annuities, and may include
16    benefits in the event of death or dismemberment by accident
17    and benefits for disability income.
18        (2) Variable life and variable annuity products:
19    insurance coverage provided under variable life insurance
20    contracts and variable annuities.
21        (3) Accident and health or sickness: insurance
22    coverage for sickness, bodily injury, or accidental death
23    and may include benefits for disability income.
24        (4) Property: insurance coverage for the direct or
25    consequential loss or damage to property of every kind.

 

 

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1        (5) Casualty: insurance coverage against legal
2    liability, including that for death, injury, or disability
3    or damage to real or personal property.
4        (6) Personal lines: property and casualty insurance
5    coverage sold to individuals and families for primarily
6    noncommercial purposes.
7        (7) Any other line of insurance permitted under State
8    laws or rules.
9    (b) An insurance producer license shall remain in effect
10unless revoked or suspended as long as the fee set forth in
11Section 500-135 is paid and education requirements for resident
12individual producers are met by the due date.
13        (1) Before each license renewal, an insurance producer
14    must satisfactorily complete at least 24 hours of course
15    study in accordance with rules prescribed by the Director.
16    Three of the 24 hours of course study must consist of
17    classroom ethics instruction. The Director may not approve
18    a course of study unless the course provides for classroom,
19    seminar, webinar, or self-study instruction methods. A
20    course given in a combination instruction method of
21    classroom, or seminar, webinar, or and self-study shall be
22    deemed to be a self-study course unless the classroom, or
23    seminar, or webinar certified hours meets or exceeds
24    two-thirds of total hours certified for the course. The
25    self-study material used in the combination course must be
26    directly related to and complement the classroom portion of

 

 

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1    the course in order to be considered for credit. An
2    instruction method other than classroom or seminar shall be
3    considered as self-study methodology. Self-study credit
4    hours require the successful completion of an examination
5    covering the self-study material. The examination may not
6    be self-evaluated. However, if the self-study material is
7    completed through the use of an approved computerized
8    interactive format whereby the computer validates the
9    successful completion of the self-study material, no
10    additional examination is required. The self-study credit
11    hours contained in a certified course shall be considered
12    classroom hours when at least two-thirds of the hours are
13    given as classroom or seminar instruction.
14        (2) An insurance producer license automatically
15    terminates when an insurance producer fails to
16    successfully meet the requirements of item (1) of
17    subsection (b) of this Section. The producer must complete
18    the course in advance of the renewal date to allow the
19    education provider time to report the credit to the
20    Department.
21    (c) A provider of a pre-licensing or continuing education
22course required by Section 500-30 and this Section must pay a
23registration fee and a course certification fee for each course
24being certified as provided by Section 500-135.
25    (d) An individual insurance producer who allows his or her
26license to lapse may, within 12 months after the due date of

 

 

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1the renewal fee, be issued a license without the necessity of
2passing a written examination. However, a penalty in the amount
3of double the unpaid renewal fee shall be required after the
4due date.
5    (e) A licensed insurance producer who is unable to comply
6with license renewal procedures due to military service may
7request a waiver of those procedures.
8    (f) The license must contain the licensee's name, address,
9and personal identification number, the date of issuance, the
10lines of authority, the expiration date, and any other
11information the Director deems necessary.
12    (g) Licensees must inform the Director by any means
13acceptable to the Director of a change of address within 30
14days after the change.
15    (h) In order to assist in the performance of the Director's
16duties, the Director may contract with a non-governmental
17entity including the National Association of Insurance
18Commissioners (NAIC), or any affiliates or subsidiaries that
19the NAIC oversees, to perform any ministerial functions,
20including collection of fees, related to producer licensing
21that the Director and the non-governmental entity may deem
22appropriate.
23(Source: P.A. 96-839, eff. 1-1-10.)".