(215 ILCS 5/500-40)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-40.
Nonresident licensing.
(a) Unless denied a license pursuant to Section 500-70, a nonresident person
shall
receive a nonresident producer license if:
(1) the person is currently licensed as a resident |
| and in good standing in his or her home state;
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(2) the person has submitted the proper request for a
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| license and has paid the fees required by Section 500-135;
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(3) the person has submitted or transmitted to the
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| Director the application for a license that the person submitted to his or her home state or, instead of that application, a completed Uniform Application; and
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(4) the person's home state awards nonresident
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| producer licenses to residents of this State on the same basis.
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(b) The Director may verify the producer's licensing status through the
Producer
Database maintained by the National Association of Insurance Commissioners or
its
affiliates or
subsidiaries or by obtaining certification from the public official having
supervision of insurance in the
applicant's state of
residence that the applicant has passed the written examination for the class
of insurance applied for.
(c) A nonresident producer who moves from one state to another state or a
resident
producer who moves from this State to another state must file a change of
address and provide
certification from the new resident state within 30 days after the change of
legal residence. No
fee or license application is required.
(d) Notwithstanding any other provision of this Article, a person licensed
as
a surplus
lines producer in his or her home state shall receive a nonresident surplus
lines producer license
pursuant to subsection (a) of this Section. Except as provided in subsection
(a),
nothing in this Section
supersedes any provision of Section 445 of this Code.
(e) Notwithstanding any other provision of this Article, a person licensed
as
a limited
lines producer in his or her home state shall receive a nonresident limited
lines producer license,
pursuant to subsection (a) of this Section, granting the same scope of
authority as granted under
the license issued by the producer's home state. For the purposes of this
subsection, limited line
insurance is any authority granted by the home state that restricts the
authority of the license to
less than the total authority prescribed in the associated major lines pursuant
to items (1) through
(5) of subsection (a) of Section 500-35.
(Source: P.A. 92-386, eff. 1-1-02 .)
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(215 ILCS 5/500-50)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-50. Insurance producers; examination statistics.
(a) The use of examinations for the purpose of determining qualifications of
persons
to be licensed as insurance producers has a direct and far-reaching effect on
persons seeking
those licenses, on insurance companies, and on the public. It is in the public
interest and it will
further the public welfare to insure that examinations for licensing do not
have the effect of
unlawfully discriminating against applicants for licensing as insurance
producers on the basis of
race, color, national origin, or sex.
(b) As used in this Section, the following words have the meanings given in
this
subsection.
Examination. "Examination" means the examination in each line of insurance
administered pursuant to Section 500-30.
Examinee. "Examinee" means a person who takes an examination.
Part. "Part" means a portion of an examination for which a score is
calculated.
Operational item. "Operational item" means a test question considered in
determining an
examinee's score.
Test form. "Test form" means the test booklet or instrument used for a part
of
an
examination.
Pretest item. "Pretest item" means a prospective test question that is
included
in a test
form in order to assess its performance, but is not considered in determining
an examinee's score.
Minority group or examinees. "Minority group" or "minority examinees" means
examinees who are American Indian or Alaska Native, Asian, Black or African American, Hispanic or Latino, or Native Hawaiian or Other Pacific Islander.
Correct-answer rate. "Correct-answer rate" for an item means the number of
examinees
who provided the correct answer on an item divided by the number of examinees
who answered
the item.
Correlation. "Correlation" means a statistical measure of the relationship
between
performance on an item and performance on a part of the examination.
(c) The Director shall ask each examinee to self-report on a voluntary basis
on the
answer sheet, application form, or by other appropriate means, the following
information:
(1) race or ethnicity (American Indian or Alaska |
| Native, Asian, Black or African American, Hispanic or Latino, Native Hawaiian or Other Pacific Islander, or White);
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(2) education (8th grade or less; less than 12th
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| grade; high school diploma or State of Illinois High School Diploma; some college, but no 4-year degree; or 4-year degree or more); and
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(3) gender (male or female).
The Director must advise all examinees that they are not required to provide
this
information, that they will not be penalized for not doing so, and that the
Director will use the
information provided exclusively for research and statistical purposes and to
improve the quality
and fairness of the examinations.
(d) No later than May 1 of each year, the Director must prepare, publicly
announce,
and publish an Examination Report of summary statistical information relating
to each
examination administered during the preceding calendar year. Each Examination
Report shall
show with respect to each examination:
(1) For all examinees combined and separately by race
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| or ethnicity, by educational level, by gender, by educational level within race or ethnicity, by education level within gender, and by race or ethnicity within gender:
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(A) number of examinees;
(B) percentage and number of examinees who passed
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(C) percentage and number of examinees who passed
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(D) mean scaled scores on each part; and
(E) standard deviation of scaled scores on each
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(2) For male examinees, female examinees, Black or
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| African American examinees, white examinees, American Indian or Alaska Native examinees, Asian examinees, Hispanic or Latino examinees, and Native Hawaiian or Other Pacific Islander, respectively, with a high school diploma or State of Illinois High School Diploma, the distribution of scaled scores on each part.
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No later than May 1 of each year, the Director must prepare and make
available on
request an Item Report of summary statistical information relating to each
operational item on
each test form administered during the preceding calendar year. The Item Report
shall show, for
each operational item, for all examinees combined and separately for Black or African
American
examinees, white examinees, American Indian or Alaska Native examinees, Asian examinees,
Hispanic or Latino examinees, and Native Hawaiian or Other Pacific Islander, the correct-answer rates and correlations.
The Director is not required to report separate statistical information
for any group or
subgroup comprising fewer than 50 examinees.
(e) The Director must obtain a regular analysis of the data collected under
this
Section, and any other relevant information, for purposes of the development of
new test forms.
The analysis shall continue the implementation of the item selection
methodology as
recommended in the Final Report of the Illinois Insurance Producer's Licensing
Examination
Advisory Committee dated November 19, 1991, and filed with the Department
unless some other
methodology is determined by the Director to be as effective in minimizing
differences between
white and minority examinee pass-fail rates.
(f) The Director has the discretion to set cutoff scores for the
examinations, provided
that scaled scores on test forms administered after July 1, 1993, shall be made
comparable to
scaled scores on test forms administered in 1991 by use of professionally
acceptable methods so
as to minimize changes in passing rates related to the presence or absence of
or changes in
equating or scaling equations or methods or content outlines. Each calendar
year, the scaled
cutoff score for each part of each examination shall fluctuate by no more than
the standard error
of measurement from the scaled cutoff score employed during the preceding year.
(g) No later than May 1, 2003 and no later than May 1 of every fourth year
thereafter,
the Director must release to the public and make generally available one
representative test form
and set of answer keys for each part of each examination.
(h) The Director must maintain, for a period of 3 years after they are
prepared or
used, all registration forms, test forms, answer sheets, operational items and
pretest items, item
analyses, and other statistical analyses relating to the examinations. All
personal identifying
information regarding examinees and the content of test items must be
maintained confidentially
as necessary for purposes of protecting the personal privacy of examinees and
the maintenance of
test security.
(i) In administering the examinations, the Director must make such
accommodations
for examinees with disabilities as are reasonably warranted by the particular disability
involved,
including the provision of additional time if necessary to complete an
examination or special
assistance in taking an examination.
(j) For the purposes of this Section:
(1) "American Indian or Alaska Native" means a person
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| having origins in any of the original peoples of North and South America, including Central America, and who maintains tribal affiliation or community attachment.
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(2) "Asian" means a person having origins in any of
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| the original peoples of the Far East, Southeast Asia, or the Indian subcontinent, including, but not limited to, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam.
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(3) "Black or African American" means a person having
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| origins in any of the black racial groups of Africa.
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(4) "Hispanic or Latino" means a person of Cuban,
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| Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.
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(5) "Native Hawaiian or Other Pacific Islander" means
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| a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.
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(6) "White" means a person having origins in any of
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| the original peoples of Europe, the Middle East, or North Africa.
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(Source: P.A. 102-465, eff. 1-1-22; 102-1100, eff. 1-1-23 .)
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(215 ILCS 5/500-60)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-60. Temporary licensing.
(a) The Director may issue a temporary insurance producer license for a
period not to
exceed 180 days and, at the discretion of the Director, may renew the temporary
producer license
for an additional 180 days without requiring an examination if the Director
deems that the
temporary license is necessary for the servicing of an insurance business in
the following cases:
(1) to the surviving spouse or court-appointed |
| personal representative of a licensed insurance producer who dies or becomes a person with a mental or physical disability to allow adequate time for the sale of the insurance business owned by the producer or for the recovery or return of the producer to the business or to provide for the training and licensing of new personnel to operate the producer's business;
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(2) to a member or employee of a business entity
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| licensed as an insurance producer, upon the death or disability of an individual designated in the business entity application or the license; or
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(3) to the designee of a licensed insurance producer
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| entering active service in the armed forces of the United States of America.
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(b) The Director may by order limit the authority of any temporary licensee
in any
way deemed necessary to protect insureds and the public. The Director may
require the
temporary licensee to have a suitable sponsor who is a licensed producer or
insurer and who
assumes responsibility for all acts of the temporary licensee and may impose
other similar
requirements designed to protect insureds and the public. The Director may by
order revoke a
temporary license if the interest of insureds or the public are endangered. A
temporary license
may not continue after the owner or the personal representative disposes of the
business.
(c) Before any temporary insurance producer license is issued, there must be
filed
with the Director a written application by the person desiring the license in
the form, with the
supplements, and containing the information that the Director requires.
License fees, as
provided for in Section 500-135, must be paid upon the issuance of the original
temporary
insurance producer license, but not for any renewal thereof.
(Source: P.A. 99-143, eff. 7-27-15 .)
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(215 ILCS 5/500-70)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-70. License denial, nonrenewal, or revocation.
(a) The Director may place on probation, suspend, revoke, or refuse to issue
or renew
an insurance producer's license or may levy a civil penalty in accordance with
this Section or
take any combination of actions, for any one or more of the following causes:
(1) providing incorrect, misleading, incomplete, or |
| materially untrue information in the license application;
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(2) violating any insurance laws, or violating any
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| rule, subpoena, or order of the Director or of another state's insurance commissioner;
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(3) obtaining or attempting to obtain a license
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| through misrepresentation or fraud;
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(4) improperly withholding, misappropriating or
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| converting any moneys or properties received in the course of doing insurance business;
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(5) intentionally misrepresenting the terms of an
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| actual or proposed insurance contract or application for insurance;
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(6) having been convicted of a felony, unless the
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| individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; consideration of such conviction of an applicant shall be in accordance with Section 500-76;
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(7) having admitted or been found to have committed
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| any insurance unfair trade practice or fraud;
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(8) using fraudulent, coercive, or dishonest
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| practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this State or elsewhere;
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(9) having an insurance producer license, or its
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| equivalent, denied, suspended, or revoked in any other state, province, district or territory;
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(10) forging a name to an application for insurance
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| or to a document related to an insurance transaction;
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(11) improperly using notes or any other reference
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| material to complete an examination for an insurance license;
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(12) knowingly accepting insurance business from an
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| individual who is not licensed;
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(13) failing to comply with an administrative or
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| court order imposing a child support obligation;
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(14) failing to pay state income tax or penalty or
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| interest or comply with any administrative or court order directing payment of state income tax or failed to file a return or to pay any final assessment of any tax due to the Department of Revenue;
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(15) (blank); or
(16) failing to comply with any provision of the
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| Viatical Settlements Act of 2009.
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(b) If the action by the Director is to nonrenew, suspend, or revoke a
license or to
deny an application for a license, the Director shall notify the applicant or
licensee and advise, in
writing, the applicant or licensee of the reason for the suspension,
revocation, denial or
nonrenewal of the applicant's or licensee's license. The applicant or licensee
may make written
demand upon the Director within 30 days after the date of mailing for a hearing
before the
Director to determine the reasonableness of the Director's action. The hearing
must be held
within not fewer than 20 days nor more than 30 days after the mailing of the
notice of hearing
and shall be held pursuant to 50 Ill. Adm. Code 2402.
(c) The license of a business entity may be suspended, revoked, or refused
if the
Director finds, after hearing, that an individual licensee's violation was
known or should have
been known by one or more of the partners, officers, or managers acting on
behalf of the
partnership, corporation, limited liability company, or limited liability
partnership and the
violation was neither reported to the Director nor corrective action taken.
(d) In addition to or instead of any applicable denial, suspension, or
revocation of a
license, a person may, after hearing, be subject to a civil penalty of up to
$10,000 for each cause for
denial, suspension, or revocation, however, the civil penalty may total no more
than $100,000.
(e) The Director has the authority to enforce the provisions of and impose
any penalty
or remedy authorized by this Article against any person who is under
investigation for or charged
with a violation of this Code or rules even if the person's license or
registration has been
surrendered or has lapsed by operation of law.
(f) Upon the suspension, denial, or revocation of a license, the licensee or
other
person having possession or custody of the license shall promptly deliver it to
the Director in
person or by mail. The Director shall publish all suspensions, denials, or
revocations after the
suspensions, denials, or revocations become final in a manner designed to
notify interested
insurance companies and other persons.
(g) A person whose license is revoked or whose application is denied
pursuant to this
Section is ineligible to apply for any license for 3 years after the revocation
or denial. A person
whose license as an insurance producer has been revoked, suspended, or denied
may not be
employed, contracted, or engaged in any insurance related capacity during the
time the
revocation, suspension, or denial is in effect.
(Source: P.A. 100-286, eff. 1-1-18; 100-872, eff. 8-14-18.)
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(215 ILCS 5/500-76) (Section scheduled to be repealed on January 1, 2027) Sec. 500-76. Applicant convictions. (a) The Director and the Department shall not require applicants to report the following information and shall not collect and consider the following criminal history records in connection with an insurance producer license application: (1) Juvenile adjudications of delinquent minors as |
| defined in Section 5-105 of the Juvenile Court Act of 1987, subject to the restrictions set forth in Section 5-130 of that Act.
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(2) Law enforcement records, court records, and
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| conviction records of an individual who was 17 years old at the time of the offense and before January 1, 2014, unless the nature of the offense required the individual to be tried as an adult.
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(3) Records of arrest not followed by a charge or
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(4) Records of arrest where charges were dismissed
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| unless related to the duties and responsibilities of an insurance producer. However, applicants shall not be asked to report any arrests, and any arrest not followed by a conviction shall not be the basis of a denial and may be used only to assess an applicant's rehabilitation.
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(5) Convictions overturned by a higher court.
(6) Convictions or arrests that have been sealed or
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(b) The Director, upon a finding that an applicant for a license under this Act was previously convicted of a felony, shall consider any mitigating factors and evidence of rehabilitation contained in the applicant's record, including any of the following factors and evidence, to determine if a license may be denied because the prior conviction will impair the ability of the applicant to engage in the position for which a license is sought:
(1) the bearing, if any, of the offense for which
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| the applicant was previously convicted on the duties and functions of the position for which a license is sought;
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(2) whether the conviction suggests a future
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| propensity to endanger the safety and property of others while performing the duties and responsibilities for which a license is sought;
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(3) whether 5 years since a felony conviction or 3
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| years since release from confinement for the conviction, whichever is later, have passed without a subsequent conviction;
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(4) if the applicant was previously licensed or
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| employed in this State or other states or jurisdictions, then the lack of prior misconduct arising from or related to the licensed position or position of employment;
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(5) the age of the person at the time of the criminal
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(6) successful completion of sentence and, for
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| applicants serving a term of parole or probation, a progress report provided by the applicant's probation or parole officer that documents the applicant's compliance with conditions of supervision;
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(7) evidence of the applicant's present fitness and
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(8) evidence of rehabilitation or rehabilitative
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| effort during or after incarceration or during or after a term of supervision, including, but not limited to, a certificate of good conduct under Section 5-5.5-25 of the Unified Code of Corrections or certificate of relief from disabilities under Section 5-5.5-10 of the Unified Code of Corrections; and
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(9) any other mitigating factors that contribute to
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| the person's potential and current ability to perform the duties and responsibilities of an insurance producer.
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(c) If a nonresident licensee meets the standards set forth in items (1) through (4) of subsection (a) of Section 500-40 and has received consent pursuant to 18 U.S.C. 1033(e)(2) from his or her home state, the Director shall grant the nonresident licensee a license.
(d) If the Director refuses to issue a license to an applicant based upon a conviction or convictions in whole or in part, then the Director shall notify the applicant of the denial in writing with the following included in the notice of denial:
(1) a statement about the decision to refuse to issue
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(2) a list of convictions that the Director
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| determined will impair the applicant's ability to engage in the position for which a license is sought;
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(3) a list of the convictions that were the sole or
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| partial basis for the refusal to issue a license; and
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(4) a summary of the appeal process or the earliest
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| the applicant may reapply for a license, whichever is applicable.
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(Source: P.A. 100-286, eff. 1-1-18 .)
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(215 ILCS 5/500-77)
(Section scheduled to be repealed on January 1, 2027) Sec. 500-77. Policyholder information and exclusive ownership
of expirations.
(a) As used in this Section, "expirations" means all information relative to
an insurance policy including, but not limited to, the name and address of the
insured, the location and description of the property insured, the value of the
insurance policy, the inception date, the renewal date, and the expiration date
of the insurance policy, the premiums, the limits and a description of the
terms and coverage of the insurance policy, and any other personal and
privileged information, as defined by Section 1003 of this Code, compiled by a
business entity or furnished by the insured to the
insurer or any agent,
contractor, or representative of the insurer.
For purposes of this Section only, a business entity
also includes a sole
proprietorship that transacts the business of insurance as an insurance agency.
(b) All "expirations" as defined in subsection (a) of this Section shall be
mutually and exclusively owned by the insured and the business entity. The
limitations on the use of expirations as provided in subsections (c) and (d)
of this Section shall be for mutual benefit of the insured and the business
entity.
(c) Except as otherwise provided in this Section, for
purposes of soliciting, selling, or negotiating the renewal or
sale of insurance coverage, insurance products, or insurance
services or for any other marketing purpose, a business entity shall own
and have the exclusive
use of expirations, records, and other written or electronically
stored information directly related to an insurance application
submitted by, or an insurance policy written through, the
business entity. No insurance company, managing
general agent, surplus
lines insurance broker, wholesale broker, group self-insurance
fund, third-party administrator, or any other entity, other than a financial
institution as defined in Section 1402 of this Code, shall use such
expirations, records, or other written or electronically stored information
to solicit, sell, or negotiate the renewal or sale of insurance coverage,
insurance products, or insurance services to the insured or for
any other marketing purposes, either directly or by providing such
information to others,
without, separate from the general agency
contract, the written consent of the business entity.
However, such
expirations,
records, or other written or electronically stored information may be used
for any purpose necessary for placing such business through the
insurance producer including reviewing an application and issuing
or renewing a policy and for loss control services.
(d) With respect to a business entity, this Section
shall not apply:
(1) when the insured requests either orally or in |
| writing that another business entity obtain quotes for insurance from another insurance company or when the insured requests in writing individually or through another business entity, that the insurance company renew the policy;
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(2) to policies in the Illinois Fair Plan, the
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| Illinois Automobile Insurance Plan, or the Illinois Assigned Risk Plan for coverage under the Workers' Compensation Act and the Workers' Occupational Diseases Act;
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(3) when the insurance producer is employed by or has
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| agreed to act exclusively or primarily for one company or group of affiliated insurance companies or to a producer who submits to the company or group of affiliated companies that are organized to transact business in this State as a reciprocal company, as defined in Article IV of this Code, every request or application for insurance for the classes and lines underwritten by the company or group of affiliated companies;
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(4) to policies providing life and accident and
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(5) when the business entity is in default for
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| nonpayment of premiums under the contract with the insurer or is guilty of conversion of the insured's or insurer's premiums or its license is revoked by or surrendered to the Department;
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(6) to any insurance company's obligations under
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| Sections 143.17 and 143.17a of this Code; or
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(7) to any insurer that, separate from a producer or
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| business entity, creates, develops, compiles, and assembles its own, identifiable expirations as defined in subsection (a).
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For purposes of this Section, an insurance producer shall be deemed to
have
agreed to act primarily for one company or a group of affiliated insurance
companies if the producer (i) receives 75% or more of his or her insurance
related commissions from one company or a group of affiliated companies or (ii)
places 75% or more of his or her policies with one company or a group of
affiliated companies.
Nothing in this Section prohibits an insurance company, with respect to any
items herein, from conveying to the insured or the business entity any
additional benefits or ownership rights including, but not limited to, the
ownership of expirations on any policy issued or the imposition of further
restrictions on the insurance company's use of the insured's personal
information.
(e) Nothing in this Section prevents a financial institution, as defined
in Section 1402 of this Code, from obtaining from the insured, the insurer, or
the business entity the expiration dates of an
insurance policy placed on
collateral or otherwise used as security in connection with a loan made or
serviced by the
financial institution when the financial institution requires the expiration
dates for evidence of insurance.
(f) For purposes of this Section, "financial institution" does not include
an insurance company, business entity, managing general
agent, surplus lines
broker, wholesale broker, group self-funded insurance fund, or third-party
administrator.
(g) The Director may adopt rules in accordance with Section
401 of this Code for the enforcement of this Section.
(h) This Section applies to the expirations relative to all policies of
insurance bound, applied for, sold, renewed, or otherwise taking effect on or
after
June 1, 2001.
(Source: P.A. 94-248, eff. 7-19-05 .)
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(215 ILCS 5/500-80)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-80.
Commissions.
(a) An insurer or insurance producer may not pay a commission, service fee,
brokerage, or other valuable consideration to a person for selling, soliciting,
or negotiating
insurance in this State if that person is required to be licensed under this
Article and is not so
licensed at the time of selling, soliciting, or negotiating the insurance.
(b) A person may not accept a commission, service fee, brokerage, or other
valuable
consideration for selling, soliciting, or negotiating insurance in this State
if that person is
required to be licensed under this Article and is not so licensed.
(c) Renewal or other deferred commissions may be paid to a person for
selling,
soliciting, or negotiating
insurance in this State if the person was required to be licensed under
this Article at the time of
the sale, solicitation, or negotiation and was so licensed at that time.
(d) An insurer or insurance producer may pay or assign commissions, service
fees,
brokerages, or other valuable consideration to an insurance agency or to
persons who do not sell,
solicit, or negotiate insurance in this State, unless the payment would violate
Section 151 of this
Code.
(e) When an insurance producer or business entity charges any fee or
compensation separate from commissions deductible from, or directly
attributable to, premiums on insurance
policies or contracts, it must comply with all of the following:
(1) It must provide written disclosure to the |
| consumer or contracting party that clearly specifies the amount or extent of the compensation or fee prior to the delivery of the corresponding policy. A copy of the written disclosure must be maintained by the producer or business entity that collects the compensation or fee for a period of 7 years.
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(2) If the combined compensation or fee exceeds 10%
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| of a directly attributable premium amount of a corresponding contract or policy, the disclosure must also include the signature of the consumer or contracting party acknowledging the compensation or fee.
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(3) If an insurance policy or contract is cancelled
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| for any reason within 90 days following the inception date, the producer or business entity shall refund to the consumer a prorated portion of the fee or compensation within 30 days after the producer or business entity receives proper documentation that the corresponding insurance policy or contract has been cancelled. At no time shall a producer or business entity charge the consumer a fee or compensation for cancellation of any insurance policy or contract.
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(4) If the policy file contains documentation that
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| the producer performed a service corresponding to the applicable coverage or policy and the written disclosure stated that the fees were fully earned, then those fees shall be fully earned at inception of the disclosure's execution.
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|
(Source: P.A. 92-386, eff. 1-1-02; 92-587, eff. 6-26-02 .)
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(215 ILCS 5/500-85)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-85.
Notification of termination; immunity; confidentiality.
(a) An insurer or authorized representative of an insurer that terminates
the appointment,
employment, contract, or other insurance business relationship with a producer
must notify the
Director within 30 days following the effective date of the termination, using
a format prescribed
by the Director, if the reason for termination is one of the reasons set forth
in Section 500-70 or
the insurer has knowledge the producer was found by a court, government body,
or self-regulatory organization authorized by law to have engaged in any of the
activities in Section 500-70. Upon written request by the Director, the insurer
must provide additional information,
documents, records, or other data pertaining to the termination or activity of
the producer.
(b) The insurer or the authorized representative of the insurer must
promptly notify the
Director in a format acceptable to the Director if, upon further review or
investigation, the insurer
discovers additional
information that would have been reportable to the Director in accordance
with subsection (a) had the insurer then known of its existence.
(c) Within 15 days after making the notification required by subsections (a)
and (b), the
insurer must mail a copy
of the notification to the producer at his or her last known address. If
the producer is terminated for cause for any of the reasons listed in Section
500-70, the insurer
must provide a copy of the notification to the producer at his or her last
known address by
certified mail, return receipt requested, postage prepaid or by overnight
delivery using a
nationally recognized carrier.
Within 30 days after the
producer has received the original or additional notification, the
producer may file written comments concerning the substance of the notification
with the
Director. The producer
must, by the same means, simultaneously send a copy of the comments to
the reporting insurer, and the comments shall become a part of the Director's
file and accompany
every copy of a report distributed or disclosed for any reason about the
producer as permitted
under this Code.
(d) There shall be no liability on the part of, nor shall a cause of
action of any nature arise against, an insurer, the authorized representative
of the insurer, a producer, the Director, or an organization of which the
Director is a member for any information, documents, records, or statements
provided pursuant to this Section.
(e) An insurer, the authorized representative of the insurer, or a
producer that fails to report as required under the provisions of this Section
or that is found to have reported with malicious intent by a court of competent
jurisdiction may, after notice and hearing, have its license or certificate of
authority suspended or revoked and may be subjected to a civil penalty.
(Source: P.A. 92-386, eff. 1-1-02 .)
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(215 ILCS 5/500-100)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-100. Limited lines producer license.
(a) An individual who is at least 18 years of age and whom the Director
considers to
be competent, trustworthy, and of good business reputation may obtain a limited
lines producer
license for one or more of the following classes:
(1) travel insurance, as defined in Section 500-10 of |
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(2) industrial life insurance, as defined in Section
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(3) industrial accident and health insurance, as
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| defined in Section 368 of this Code;
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(4) insurance issued by a company organized under the
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| Farm Mutual Insurance Company Act of 1986;
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(5) legal expense insurance;
(6) enrollment of recipients of public aid or
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| medicare in a health maintenance organization;
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(7) a limited health care plan issued by an
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| organization having a certificate of authority under the Limited Health Service Organization Act;
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(8) credit life and credit accident and health
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| insurance and other credit insurance policies approved or permitted by the Director; a credit insurance company must conduct a training program in which an applicant shall receive basic instruction about the credit insurance products that he or she will be selling.
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(b) The application for a limited lines producer license must be submitted
on a form
prescribed by the Director by a designee of the insurance company, health
maintenance
organization, or limited health service organization appointing the limited
insurance
representative. The insurance company, health maintenance organization, or
limited health
service organization must pay the fee required by Section 500-135.
(c) A limited lines producer may represent more than one insurance company,
health
maintenance organization, or limited health service organization.
(d) An applicant who has met the requirements of this Section shall be
issued a
perpetual limited lines producer license.
(e) A limited lines producer license shall remain in effect as long as the
appointing
insurance company pays the respective fee required by Section 500-135 prior to
January 1 of
each year, unless the license is revoked or suspended pursuant to
Section 500-70. Failure of the
insurance company to pay the license fee or to submit the required documents
shall cause
immediate termination of the limited line insurance producer license with
respect to which the
failure occurs.
(f) A limited lines producer license may be terminated by the insurance
company or
the licensee.
(g) A person whom the Director considers to be competent, trustworthy, and
of
good
business reputation may be issued a car rental limited line license. A car
rental limited line
license for a rental company shall remain in effect as long as the car rental
limited line licensee
pays the respective fee required by Section 500-135 prior to the next fee date
unless the car rental
license is revoked or suspended pursuant to Section 500-70. Failure of the car
rental limited line
licensee to pay the license fee or to submit the required documents shall cause
immediate
suspension of the car rental limited line license. A car rental limited line
license for rental
companies may be voluntarily
terminated by the car rental limited line licensee. The license fee
shall not be refunded upon termination of the car rental limited line license
by the car rental
limited line licensee.
(g-5) A business entity may be issued a limited lines producer license for credit life and credit accident and health insurance and other credit insurance policies approved or permitted by the Director, provided that:
(1) application for the limited lines producer
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| license for credit insurance is made on a form specified by the Director;
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(2) the appointing insurance company has paid the
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| application fee amount required by the Director for the business entity's application; and
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(3) the business entity has designated an individual
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| with an in force limited license producer license issued under paragraph (8) of subsection (a) of this Section to be responsible for the business entity's compliance with the insurance laws and regulations of this State related to credit life and credit accident and health insurance and other credit insurance policies approved or permitted by the Director that are offered or sold by that business entity.
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Except as specifically authorized by paragraph (8) of subsection (a) of this Section or this subsection (g-5), a business entity holding a limited lines license under this subsection (g-5) may not advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance producers, insurance agents, or insurance brokers.
(h) A limited lines producer issued a license pursuant to this Section is
not
subject to
the requirements of Section 500-30.
(i) A limited lines producer license must contain the name, address and
personal
identification number of the licensee, the date the license was issued,
general conditions relative
to the license's expiration or termination, and any other information the
Director considers
proper. A limited line producer license, if applicable, must also contain the
name and address of
the appointing insurance company.
(Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14; 98-1165, eff. 6-1-15; 99-161, eff. 1-1-16 .)
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(215 ILCS 5/500-105)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-105.
Car rental limited line license for rental companies.
(a) A rental company must obtain a producer license or obtain a car rental
limited line
license before offering or selling insurance in connection with and incidental
to the rental of
vehicles. The sale of the insurance may occur at the rental office or by
preselection of coverage
in a master, corporate, group rental, or individual agreement. The following
general categories
of coverage may be offered or sold:
(1) personal accident insurance covering the risks of |
| travel including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period;
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(2) liability insurance, including uninsured and
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| underinsured motorist coverage, that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle;
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(3) personal effects insurance that provides
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| coverage, as applicable, to renters and other vehicle occupants for the loss of, or damage to, personal effects that occurs during the rental period;
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(4) roadside assistance and emergency sickness
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(5) any other travel or auto-related coverage that a
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| rental company offers in connection with and incidental to the rental of vehicles.
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(b) Insurance may not be offered by a car rental limited line producer
pursuant to this
Section unless:
(1) the rental company has applied for and obtained a
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| car rental limited line license;
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(2) the rental period of the rental agreement does
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| not exceed 30 consecutive days;
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(3) at every rental location where rental agreements
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| are executed, brochures or other written materials are readily available to the prospective renter that:
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(A) summarize clearly and correctly, the material
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| terms of coverage offered to renters, including the identity of the insurer;
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(B) disclose that the coverage offered by the
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| rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage;
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(C) state that the purchase by the renter of the
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| kinds of coverage specified in this Section is not required in order to rent a vehicle; and
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(D) describe the process for filing a claim in
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| the event the renter elects to purchase coverage and in the event of a claim; and
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(4) evidence of coverage in the rental agreement is
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| disclosed to every renter who elects to purchase such coverage.
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(c) Car rental company franchisees must apply for a car rental limited line
license
independent of the franchisor if insurance provided pursuant to this Section is
offered by the
franchisee.
(d) A car rental limited line license issued under this Section shall also
authorize any
employee of the car rental
limited line licensee to act individually on behalf and
under the
supervision of the car rental limited line licensee with respect to the kinds
of coverage specified
in this Section.
(e) A rental company licensed pursuant to this Section must conduct a
training
program in which employees being trained shall receive basic instruction about
the kinds of
coverage specified in this Section and offered for purchase by prospective
renters of rental
vehicles.
(f) Notwithstanding any other provision of this Section or any rule adopted
by the
Director, a car rental limited line producer pursuant to this Section is not
required to treat moneys
collected from renters purchasing insurance when renting vehicles as funds
received in a
fiduciary capacity, provided that the charges for coverage shall be itemized
and be ancillary to a
rental transaction.
(g) The sale of insurance not in conjunction with a rental transaction shall
not be
permitted.
(h) A car rental limited line producer under this Section may not advertise,
represent,
or otherwise hold itself or any of its employees out as licensed insurers,
insurance producers,
insurance agents, or insurance brokers.
(i) Direct commissions may not be paid to rental car company employees by
the
insurer or the customer purchasing insurance products. The rental car company
may include
insurance products in an overall employee performance compensation incentive
program.
(j) An application for a car rental limited line license must be made on a
form
specified by the Director.
(Source: P.A. 92-386, eff. 1-1-02 .)
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