093_SB1150sam001











                                     LRB093 09649 JLS 12479 a

 1                    AMENDMENT TO SENATE BILL 1150

 2        AMENDMENT NO.     .  Amend Senate Bill 1150 by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Illinois  Insurance Code is amended by
 5    changing Sections  500-10  and  500-135  and  adding  Section
 6    500-107 as follows:

 7        (215 ILCS 5/500-10)
 8        Sec.    500-10.  Definitions.    In   addition   to   the
 9    definitions  in  Section  2  of  the  Code,   the   following
10    definitions apply to this Article:
11        "Business   entity"  means  a  corporation,  association,
12    partnership, limited  liability  company,  limited  liability
13    partnership, or other legal entity.
14        "Car   rental  limited  line  licensee"  means  a  person
15    authorized under the provisions of Section  500-105  to  sell
16    certain coverages relating to the rental of vehicles.
17        "Home state" means the District of Columbia and any state
18    or  territory  of  the  United  States  in which an insurance
19    producer maintains his or her principal place of residence or
20    principal place of business and is  licensed  to  act  as  an
21    insurance producer.
22        "Insurance"  means  any  of  the  lines  of  authority in
 
                            -2-      LRB093 09649 JLS 12479 a
 1    Section  500-35,  any  health  care  plan  under  the  Health
 2    Maintenance Organization Act, or any limited health care plan
 3    under the Limited Health Service Organization Act.
 4        "Insurance  producer"  means  a  person  required  to  be
 5    licensed under the laws of this State to  sell,  solicit,  or
 6    negotiate insurance.
 7        "Insurer" means a company as defined in subsection (e) of
 8    Section  2 of this Code, a health maintenance organization as
 9    defined in the Health  Maintenance  Organization  Act,  or  a
10    limited health service organization as defined in the Limited
11    Health Service Organization Act.
12        "License"   means  a  document  issued  by  the  Director
13    authorizing an individual to act as an insurance producer for
14    the  lines  of  authority  specified  in  the   document   or
15    authorizing   a  business  entity  to  act  as  an  insurance
16    producer.  The license itself does not create any  authority,
17    actual,  apparent, or inherent, in the holder to represent or
18    commit an insurance carrier.
19        "Limited lines insurance" means those lines of  insurance
20    defined  in  Section  500-100  or any other line of insurance
21    that the Director may deem it necessary to recognize for  the
22    purposes of complying with subsection (e) of Section 500-40.
23        "Limited lines producer" means a person authorized by the
24    Director   to  sell,  solicit,  or  negotiate  limited  lines
25    insurance.
26        "Negotiate" means the act of conferring directly with  or
27    offering  advice  directly  to  a  purchaser  or  prospective
28    purchaser  of  a  particular contract of insurance concerning
29    any of the substantive benefits, terms, or conditions of  the
30    contract, provided that the person engaged in that act either
31    sells  insurance  or  obtains  insurance  from  insurers  for
32    purchasers.
33        "Person" means an individual or a business entity.
34        "Rental  agreement"  means  a  written  agreement setting
 
                            -3-      LRB093 09649 JLS 12479 a
 1    forth the terms and conditions governing the use of a vehicle
 2    provided by a rental company for rental or lease.
 3        "Rental company" means a person, or a franchisee  of  the
 4    person,  in  the  business  of  providing  primarily  private
 5    passenger vehicles to the public under a rental agreement for
 6    a period not to exceed 30 days.
 7        "Rental period" means the term of the rental agreement.
 8        "Renter"  means  a  person obtaining the use of a vehicle
 9    from a rental company under the terms of a  rental  agreement
10    for a period not to exceed 30 days.
11        "Self-service  storage  facility  limited  line licensee"
12    means a person authorized under  the  provisions  of  Section
13    500-107  to  sell certain coverages relating to the rental of
14    self-service storage facilities.
15        "Sell" means to exchange a contract of insurance  by  any
16    means, for money or its equivalent, on behalf of an insurance
17    company.
18        "Solicit" means attempting to sell insurance or asking or
19    urging  a  person to apply for a particular kind of insurance
20    from a particular company.
21        "Terminate" means the cancellation  of  the  relationship
22    between   an  insurance  producer  and  the  insurer  or  the
23    termination of a producer's authority to transact insurance.
24        "Uniform Business Entity Application" means  the  current
25    version    of   the   National   Association   of   Insurance
26    Commissioners'  Uniform  Business  Entity   Application   for
27    nonresident business entities.
28        "Uniform  Application"  means  the current version of the
29    National  Association  of  Insurance  Commissioners'  Uniform
30    Application for nonresident producer licensing.
31        "Vehicle" or "rental vehicle" means a  motor  vehicle  of
32    (1)  the  private  passenger  type, including passenger vans,
33    mini vans, and sport utility vehicles or (2) the cargo  type,
34    including  cargo vans, pickup trucks, and trucks with a gross
 
                            -4-      LRB093 09649 JLS 12479 a
 1    vehicle weight of less than 26,000 pounds  the  operation  of
 2    which  does  not require the operator to possess a commercial
 3    driver's license.
 4    (Source: P.A. 92-386, eff. 1-1-02.)

 5        (215 ILCS 5/500-107 new)
 6        Sec. 5/500-107.  Self-service  storage  facility  limited
 7    line license for self-storage facilities.
 8        (a)  A   self-service  storage  facility  must  obtain  a
 9    producer license or obtain a  self-service  storage  facility
10    limited  line license before offering or selling insurance in
11    connection with and incidental to the rental of storage space
12    provided by a self-service  storage  facility.  The  sale  of
13    insurance  may  occur at the rental office or by preselection
14    of  coverage  in  a  master,  corporate,  group  rental,   or
15    individual  agreement.  The  following  general categories of
16    coverage may be offered or sold:
17             (1)  insurance  that   provides   hazard   insurance
18        coverage  to  renters  for  the  loss  of,  or damage to,
19        tangible personal  property  in  storage  or  in  transit
20        during the rental period; or
21             (2)  any  other coverage the Director may approve as
22        meaningful and appropriate in connection with the  rental
23        of storage space.
24        (b)  Insurance  may  not  be  offered  by  a self-service
25    storage  limited  line  producer  pursuant  to  this  Section
26    unless:
27             (1)  the self-service storage facility  has  applied
28        for  and obtained a self-service storage facility limited
29        line license;
30             (2)  at   every   rental   location   where   rental
31        agreements  are  executed,  brochures  or  other  written
32        materials are readily available to the prospective renter
33        that:
 
                            -5-      LRB093 09649 JLS 12479 a
 1                  (A)  summarize  clearly   and   correctly   the
 2             material  terms  of  coverage  offered  to  renters,
 3             including the identity of the insurer;
 4                  (B)  disclose  that the coverage offered by the
 5             self-service  storage   facility   may   provide   a
 6             duplication  of  coverage  already  provided  by the
 7             renter's  personal  homeowner's  insurance   policy,
 8             automobile   insurance  policy,  personal  liability
 9             insurance policy, or other source of coverage;
10                  (C)  state that the purchase by the  renter  of
11             the  kinds  of coverage specified in this Section is
12             not required in order to rent storage space; and
13                  (D)  describe the process for filing a claim in
14             the event the consumer elects to  purchase  coverage
15             and in the event of a claim; and
16             (3)  evidence of coverage is provided to each renter
17        who elects to purchase the coverage.
18        (c)  A self-service storage facility limited line license
19    issued  under  this Section shall also authorize any employee
20    of the self-service storage facility limited line licensee to
21    act individually on behalf and under the supervision  of  the
22    self-service  storage  facility  limited  line  licensee with
23    respect to the kinds of coverage specified in this Section.
24        (d)  A self-service storage facility licensed pursuant to
25    this  Section  must  conduct  a  training  program  in  which
26    employees being trained shall receive basic instruction about
27    the kinds of coverage specified in this Section  and  offered
28    for purchase by prospective renters of storage space.
29        (e)  Notwithstanding  any other provision of this Section
30    or any rule adopted by the Director, a  self-service  storage
31    facility  limited  line  producer pursuant to this Section is
32    not  required  to  treat  moneys   collected   from   renters
33    purchasing  insurance  when  renting  storage  space as funds
34    received in a fiduciary capacity, provided that  the  charges
 
                            -6-      LRB093 09649 JLS 12479 a
 1    for  coverage  shall  be  itemized  and ancillary to a rental
 2    transaction.
 3        (f)  The sale of insurance  not  in  conjunction  with  a
 4    rental transaction shall not be permitted.
 5        (g)  A   self-service   storage   facility  limited  line
 6    producer under this Section may not advertise, represent,  or
 7    otherwise hold itself or any of its employees out as licensed
 8    insurers, insurance producers, insurance agents, or insurance
 9    brokers.
10        (h)  Direct  commissions  may not be paid to self-service
11    storage facility employees by the  insurer  or  the  customer
12    purchasing   insurance  products.  The  self-service  storage
13    facility  may  include  insurance  products  in  an   overall
14    employee performance compensation incentive program.
15        (i)  An  application  for a self-service storage facility
16    limited line license must be made on a form specified by  the
17    Director.

18        (215 ILCS 5/500-135)
19        Sec. 500-135.  Fees.
20        (a)  The fees required by this Article are as follows:
21             (1)  a fee of $150 payable once every 2 years for an
22        insurance producer license;
23             (2)  a  fee  of  $25 for the issuance of a temporary
24        insurance producer license;
25             (3)  a fee of $50 payable once every 2 years  for  a
26        business entity;
27             (4)  an  annual  $25 fee for a limited line producer
28        license issued under items (1) through (7) of  subsection
29        (a) of Section 500-100;
30             (5)  a  $25  application fee for the processing of a
31        request to take the written examination for an  insurance
32        producer license;
33             (6)  an   annual   registration   fee  of  $500  for

 
                            -7-      LRB093 09649 JLS 12479 a
 1        registration of an education provider;
 2             (7)  a certification fee of $25 for  each  certified
 3        pre-licensing  or  continuing  education  course  and  an
 4        annual  fee of $10 for renewing the certification of each
 5        such course;
 6             (8)  a fee of $50 payable once every 2 years  for  a
 7        car rental limited line license;
 8             (9)  a  fee of $150 payable once every 2 years for a
 9        limited lines license  other  than  the  licenses  issued
10        under  items (1) through (7) of subsection (a) of Section
11        500-100, or a car  rental  limited  line  license,  or  a
12        self-service storage facility limited line license;.
13             (10)  a  fee of $50 payable once every 2 years for a
14        self-service storage facility limited line license.
15        (b)  Except as otherwise provided, all fees paid  to  and
16    collected  by  the  Director under this Section shall be paid
17    promptly after receipt  thereof,  together  with  a  detailed
18    statement  of  such  fees,  into  a special fund in the State
19    Treasury to be known as the Insurance Producer Administration
20    Fund.  The moneys  deposited  into  the   Insurance  Producer
21    Administration  Fund  may  be  used  only  for payment of the
22    expenses of the Department in the execution,  administration,
23    and  enforcement  of  the  insurance  laws of this State, and
24    shall be appropriated as otherwise provided by  law  for  the
25    payment  of  those  expenses  with  first  priority being any
26    expenses incident to or associated  with  the  administration
27    and enforcement of this Article.
28    (Source: P.A. 92-386, eff. 1-1-02.)

29        Section  99.  Effective  date. This Act takes effect upon
30    becoming law.".