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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
INSURANCE (215 ILCS 5/) Illinois Insurance Code. 215 ILCS 5/496.2
(215 ILCS 5/496.2) (from Ch. 73, par. 1065.43-2)
Sec. 496.2.
(Repealed).
(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.)
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215 ILCS 5/497.1
(215 ILCS 5/497.1) (from Ch. 73, par. 1065.44-1)
Sec. 497.1.
(Repealed).
(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.)
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215 ILCS 5/497.2
(215 ILCS 5/497.2) (from Ch. 73, par. 1065.44-2)
Sec. 497.2.
(Repealed).
(Source: P.A. 87-601. Repealed by P.A. 89-265, eff. 1-1-96.)
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215 ILCS 5/498.1
(215 ILCS 5/498.1) (from Ch. 73, par. 1065.45-1)
Sec. 498.1.
(Repealed).
(Source: P.A. 88-313. Repealed by P.A. 92-386, eff. 1-1-02.)
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215 ILCS 5/499.1
(215 ILCS 5/499.1) (from Ch. 73, par. 1065.46-1)
Sec. 499.1.
(Repealed).
(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.)
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215 ILCS 5/500-5
(215 ILCS 5/500-5)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-5.
Scope of Article.
This Article applies to all persons and
insurance companies as
defined in this Code. This Article does not apply to surplus lines producers
licensed pursuant to
Section 445 except as provided in Section 500-40 and subsection (b) of Section
500-90 of this
Article.
(Source: P.A. 92-386, eff. 1-1-02 .)
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215 ILCS 5/500-10
(215 ILCS 5/500-10)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-10. Definitions. In addition to the definitions in Section 2 of
the
Code, the following
definitions apply to this Article:
"Business entity" means a corporation, association, partnership, limited
liability
company, limited liability partnership, or other legal entity.
"Car rental limited line licensee" means a person authorized under the
provisions of
Section 500-105 to sell certain coverages relating to the rental of vehicles.
"Home state" means the District of Columbia and any state or territory of the
United
States in which an insurance producer maintains his or her principal place of
residence or
principal place of business and is licensed to act as an insurance producer.
"Insurance" means any of the lines of authority in Section 500-35, any health
care plan
under the Health Maintenance Organization Act, or any limited health care plan
under the
Limited Health Service Organization Act.
"Insurance producer" means a person required to be licensed under the laws of
this State
to sell, solicit, or negotiate insurance.
"Insurer" means a company as defined in subsection (e) of Section 2 of this
Code, a
health maintenance organization as defined in the Health Maintenance
Organization Act, or a
limited health service organization as defined in the Limited Health
Service Organization Act.
"License" means a document issued by the Director authorizing an individual
to act as an
insurance producer for the lines of authority specified in the document or
authorizing a business
entity to act as an insurance producer. The license itself does not create any
authority, actual,
apparent, or inherent, in the holder to represent or commit
an insurance carrier.
"Limited lines insurance" means those lines of insurance defined in Section
500-100 or
any other line of insurance that the Director may deem it necessary to
recognize for the purposes
of complying with subsection (e) of Section 500-40.
"Limited lines producer" means a person authorized by the Director to sell,
solicit, or
negotiate limited lines insurance.
"Negotiate" means the act of conferring directly with or offering advice
directly to a
purchaser or prospective purchaser of a particular contract of insurance
concerning any
of the substantive benefits, terms, or conditions of the contract, provided
that the person
engaged in that act either sells insurance or obtains insurance from
insurers for purchasers.
"Person" means an individual or a business entity.
"Rental agreement" means a written agreement setting forth the terms and
conditions
governing the use of a vehicle provided by a rental company for
rental or lease.
"Rental company" means a person, or a franchisee of the person, in the
business of
providing primarily private passenger vehicles to the public under a
rental agreement for a period
not to exceed 30 days.
"Rental period" means the term of the rental agreement.
"Renter" means a person obtaining the use of a vehicle from a
rental company under the
terms of a rental agreement for a period not to exceed 30 days.
"Self-service storage facility limited line licensee" means a person
authorized under the provisions of Section 500-107 to sell certain coverages
relating to the rental of self-service storage facilities.
"Sell" means to exchange a contract of insurance by any means, for
money or its equivalent, on
behalf of an insurance company.
"Solicit" means attempting to
sell insurance or asking or urging a person to apply for a
particular kind of insurance from a particular company.
"Terminate" means the cancellation of the relationship between an insurance
producer and the
insurer or the termination of a producer's authority to transact insurance.
"Travel insurance" has the meaning provided in Section 1630. "Uniform Business Entity Application" means the current version of the
National Association of Insurance Commissioners' Uniform
Business Entity Application for nonresident business entities.
"Uniform Application" means the current version of the National Association
of Insurance Commissioners' Uniform
Application for
nonresident producer licensing.
"Vehicle" or "rental vehicle" means a motor vehicle of (1) the private
passenger
type, including passenger vans, mini vans, and sport utility vehicles or (2)
the cargo type,
including cargo vans, pickup trucks, and trucks with a gross vehicle
weight of less than
26,000 pounds the operation of which does not require the operator to possess a
commercial
driver's license.
"Webinar" means an online educational presentation during which a live and participating instructor and participating viewers, whose attendance is periodically verified throughout the presentation, actively engage in discussion and in the submission and answering of questions. (Source: P.A. 102-212, eff. 10-28-21 .)
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215 ILCS 5/500-15
(215 ILCS 5/500-15)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-15.
License required.
(a) A person may not sell, solicit, or negotiate insurance in this State for
any class or
classes of insurance unless the person is licensed for that line of authority
in accordance with this
Article.
(b) A person may not, for a fee, engage in the business of offering any
advice, counsel, opinion, or service with respect to the benefits, advantages,
or disadvantages under any policy of insurance that could be issued in
Illinois, unless that person is:
(1) engaged or employed as an attorney licensed to | | practice law and performing duties incidental to that position;
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(2) a licensed insurance producer, limited insurance
| | representative, or temporary insurance producer offering advice concerning a class of insurance as to which he or she is licensed to transact business;
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(3) a trust officer of a bank performing duties
| | incidental to his or her position;
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(4) an actuary or a certified public accountant
| | engaged or employed in a consulting capacity, performing duties incidental to that position; or
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(5) a licensed public adjuster acting within the
| | scope of his or her license.
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(c) In addition to any other penalty set forth in this Article, an
individual
who
knowingly violates subsection (a) is guilty of a Class A misdemeanor.
(d) In addition to any other penalty set forth in this Article, any
individual violating subsection (a) or (b) and misappropriating or converting
any moneys collected in conjunction with the violation is guilty of a Class 4
felony.
(Source: P.A. 92-386, eff. 1-1-02 .)
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215 ILCS 5/500-20
(215 ILCS 5/500-20)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-20.
Exceptions to licensing.
(a) Nothing in this Article shall be construed to require an insurer to
obtain
an
insurance producer license. In this Section, the term "insurer" does not
include an insurer's
officers, directors, employees, subsidiaries, or affiliates.
(b) A license as an insurance producer shall not be required of the
following:
(1) an officer, director, or employee of an insurer | | or of an insurance producer, provided that the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, located, or to be performed in this State and:
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(A) the officer's, director's, or employee's
| | activities are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance;
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(B) the officer's, director's, or employee's
| | function relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or
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(C) the officer, director, or employee is acting
| | in the capacity of a special agent or agency supervisor assisting insurance producers if the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance;
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(2) a person who secures and furnishes information
| | for the purpose of group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and health insurance or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans or who performs administrative services related to mass marketed property and casualty insurance, if no commission is paid to the person for the service;
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(3) an employer or association or its officers,
| | directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, directors, or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees, or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts;
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(4) employees of insurers or organizations employed
| | by insurers who are engaging in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation, or negotiation of insurance;
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(5) a person whose activities in this State are
| | limited to advertising without the intent to solicit insurance in this State through communications in printed publications or forms of electronic mass media whose distribution is not limited to residents of this State, provided that the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this State;
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(6) a person who is not a resident of this State who
| | sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; or
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(7) a salaried, full-time employee who counsels or
| | advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer provided that the employee does not sell or solicit insurance or receive a commission.
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(Source: P.A. 92-386, eff. 1-1-02 .)
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215 ILCS 5/500-25
(215 ILCS 5/500-25)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-25.
Application for examination.
(a) A resident individual applying for an insurance producer license must
pass a written
examination unless exempt pursuant to Section 500-45. Both part one and part 2
of the
examination must be passed within 90 days of each other. The examination shall
test the
knowledge of the individual concerning the lines of authority for which
application is made, the
duties and responsibilities of an insurance producer, and the insurance laws
and rules of this
State. Examinations required by this Section must be developed and conducted
under rules
prescribed by the Director.
(b) The Director may make arrangements,
including contracting with an outside testing
service, for administering
examinations and collecting the nonrefundable fee set forth in Section
500-135.
(c) An individual applying for an examination must remit a nonrefundable fee
as
prescribed by the Director as set forth in Section 500-135, plus a separate
remittance payable to
the designated testing service for the total fees the testing service charges
for each of the various
services being requested by the applicant.
(d) An individual who fails to appear for the examination as scheduled or
fails
to pass the
examination, must reapply for an examination and remit all required fees and
forms before being
rescheduled for another examination.
(Source: P.A. 92-386, eff. 1-1-02 .)
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215 ILCS 5/500-30
(215 ILCS 5/500-30)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-30. Application for license.
(a) An individual applying for a resident insurance producer license must
make
application on a form specified by the Director and declare under penalty of
refusal, suspension,
or revocation of the license that the statements made in the application are
true, correct, and
complete to the best of the individual's knowledge and belief. Before
approving the application,
the Director must find that the individual:
(1) is at least 18 years of age;
(2) is sufficiently rehabilitated in cases in which | | the applicant has committed any act that is a ground for denial, suspension, or revocation set forth in Section 500-70, other than convictions set forth in paragraph (6) of subsection (a) of Section 500-70; with respect to applicants with convictions set forth in paragraph (6) of subsection (a) of Section 500-70, the Director shall determine in accordance with Section 500-76 that the conviction will not impair the ability of the applicant to engage in the position for which a license is sought;
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(3) has completed, if required by the Director, a
| | pre-licensing course of study before the insurance exam for the lines of authority for which the individual has applied (an individual who successfully completes the Fire and Casualty pre-licensing courses also meets the requirements for Personal Lines-Property and Casualty);
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(4) has paid the fees set forth in Section 500-135;
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(5) has successfully passed the examinations for the
| | lines of authority for which the person has applied.
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(b) A pre-licensing course of study for each class of insurance for which
an insurance
producer license is requested must be established in accordance with rules
prescribed by the
Director and must consist of the following minimum hours:
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Class of Insurance |
Number of |
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Hours |
Life (Class 1(a)) |
20 |
Accident and Health (Class 1(b) or 2(a)) |
20 |
Fire (Class 3) |
20 |
Casualty (Class 2) |
20 |
Personal Lines-Property Casualty |
20 |
Motor Vehicle (Class 2(b) or 3(e)) |
12.5 |
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7.5 hours of each pre-licensing course must be completed in a classroom or webinar setting, except Motor Vehicle, which would require 5 hours in a classroom or webinar setting.
(c) A business entity acting as an insurance producer must obtain an
insurance
producer license. Application must be made using the Uniform Business Entity
Application.
Before approving the application, the Director must find that:
(1) the business entity has paid the fees set forth
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(2) the business entity has designated a licensed
| | producer responsible for the business entity's compliance with the insurance laws and rules of this State.
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(d) The Director may require any documents reasonably necessary to verify
the
information contained in an application.
(Source: P.A. 102-135, eff. 7-23-21.)
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215 ILCS 5/500-35
(215 ILCS 5/500-35)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-35. License.
(a) Unless denied a license pursuant to Section 500-70, persons who have met
the
requirements of Sections 500-25 and 500-30 shall be issued a 2-year insurance
producer license.
An insurance producer may receive qualification for a license in one or more of
the following
lines of authority:
(1) Life: insurance coverage on human lives including | | benefits of endowment and annuities, and may include benefits in the event of death or dismemberment by accident and benefits for disability income.
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(2) Variable life and variable annuity products:
| | insurance coverage provided under variable life insurance contracts and variable annuities.
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(3) Accident and health or sickness: insurance
| | coverage for sickness, bodily injury, or accidental death and may include benefits for disability income.
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(4) Property: insurance coverage for the direct or
| | consequential loss or damage to property of every kind.
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(5) Casualty: insurance coverage against legal
| | liability, including that for death, injury, or disability or damage to real or personal property.
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(6) Personal lines: property and casualty insurance
| | coverage sold to individuals and families for primarily noncommercial purposes.
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(7) Any other line of insurance permitted under State
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(b) An insurance producer license shall remain in effect unless revoked or
suspended
as long as the fee set forth in Section 500-135 is paid and education
requirements for resident
individual producers are met by the due date.
(1) Before each license renewal, an insurance
| | producer must satisfactorily complete at least 24 hours of course study or participation in a professional insurance association under paragraph (3) of this subsection in accordance with rules prescribed by the Director. Three of the 24 hours of course study must consist of classroom or webinar ethics instruction. The Director may not approve a course of study unless the course provides for classroom, seminar, webinar, or self-study instruction methods. A course given in a combination instruction method of classroom, seminar, webinar, or self-study shall be deemed to be a self-study course unless the classroom, seminar, or webinar certified hours meets or exceeds two-thirds of total hours certified for the course. The self-study material used in the combination course must be directly related to and complement the classroom portion of the course in order to be considered for credit. An instruction method other than classroom or seminar shall be considered as self-study methodology. Self-study credit hours require the successful completion of an examination covering the self-study material. The examination may not be self-evaluated. However, if the self-study material is completed through the use of an approved computerized interactive format whereby the computer validates the successful completion of the self-study material, no additional examination is required. The self-study credit hours contained in a certified course shall be considered classroom hours when at least two-thirds of the hours are given as classroom or seminar instruction.
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(2) An insurance producer license automatically
| | terminates when an insurance producer fails to successfully meet the requirements of item (1) of subsection (b) of this Section. The producer must complete the course in advance of the renewal date to allow the education provider time to report the credit to the Department.
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(3) An insurance producer's active participation in
| | a State or national professional insurance association may be approved by the Director for up to 4 hours of continuing education credit per biennial reporting period. Credit shall be provided on an hour-for-hour basis. These hours shall be verified and submitted by the association on behalf of the insurance producer and credited upon timely filing with the Director or his or her designee on a biennial basis. Any association submitting continuing education credit hours on behalf of insurance producers must be registered as an education provider under Section 500-135. Credit granted under these provisions shall not be used to satisfy ethics education requirements. Active participation in a State or national professional insurance association is defined by one of the following methods:
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| (A) service on a board of directors of a State
| | or national chapter of the association;
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| (B) service on a formal committee of a State or
| | national chapter of the association; or
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| (C) service on a formal subcommittee or task
| | force of a State or national chapter of the association.
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| (c) A provider of a pre-licensing or continuing education course required
by Section
500-30 and this Section must pay a registration fee and a course certification
fee for each course
being certified as provided by Section 500-135.
(d) An individual insurance producer who allows his or her license to lapse
may,
within 12 months after the due date of the renewal fee, be issued a license
without the necessity
of passing a written examination. However, a penalty in the amount of double
the unpaid renewal
fee shall be required after the due date.
(e) A licensed insurance producer who is unable to comply with license
renewal
procedures due to military service may request a waiver of those procedures.
(f) The license must contain the licensee's name, address, and personal
identification
number, the date of issuance, the lines of authority, the expiration date, and
any other
information the Director deems necessary.
(g) Licensees must inform the Director by any means acceptable to the
Director of a
change of address within 30 days after the change.
(h) In order to assist in the performance of the Director's duties, the
Director may
contract with a non-governmental entity including the National Association of
Insurance
Commissioners (NAIC), or any affiliates or subsidiaries that the NAIC oversees,
to perform any
ministerial functions, including collection of fees, related to producer
licensing that the Director
and the non-governmental entity may deem appropriate.
(Source: P.A. 102-766, eff. 1-1-23 .)
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215 ILCS 5/500-40
(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
| | license and has paid the fees required by Section 500-135;
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(3) the person has submitted or transmitted to the
| | 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
| | 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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