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91_HB1524 LRB9100321JSpcB 1 AN ACT concerning the licensing of insurance producers. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Insurance Code is amended by 5 changing Sections 491.1, 492.2, 494.1, 496.2, 497.1, 499.1, 6 505.1, 509.1, and 510.2 and adding Section 495.2 as follows: 7 (215 ILCS 5/491.1) (from Ch. 73, par. 1065.38-1) 8 Sec. 491.1. Definitions. In addition to the definitions 9 in Section 2, the following definitions apply to this 10 Article. 11
(a)Insurance. Insurance is any of the classes of 12 insurance found in Section 4. 13 (b)Insurance producer. An insurance producer is an 14 individual who solicits, negotiates, effects, procures, 15 renews, continues or binds policies of insurance covering 16 property or risks located in Illinois. 17 (c)License. A license is a document authorizing an 18 individual to act as an insurance producer, limited insurance 19 representative or temporary insurance producer, as specified 20 in such document. 21 (d)Limited insurance representative. A limited 22 insurance representative is an individual appointed by an 23 insurance company, health maintenance organization, or 24 limited health service organization to represent that company 25 or organization regarding the types of insurance set forth in 26 Section 495.1. 27 "Limited licensee" means a person authorized pursuant to 28 the provisions of Section 495.2 to sell certain coverages 29 relating to the rental of vehicles. 30 (e)Registered firm. A registered firm is a 31 corporation, partnership, or limited liability company which -2- LRB9100321JSpcB 1 transacts the business of insurance as an insurance agency. 2 "Rental agreement" means a written agreement setting 3 forth the terms and conditions governing the use of a vehicle 4 provided by a rental company for rental or lease. 5 "Rental company" means a person, or a franchisee or 6 location or office of such person, in the business of 7 providing primarily private passenger vehicles to the public 8 under a rental agreement for a period not to exceed 90 days. 9 "Rental period" means the term of the rental agreement. 10 "Renter" means a person obtaining the use of a vehicle 11 from a rental company under the terms of a rental agreement 12 for a period not to exceed 90 days. 13 "Vehicle" or "rental vehicle" means a motor vehicle of 14 (1) the private passenger type, including passenger vans, 15 minivans, and sport utility vehicles or (2) the cargo type, 16 including cargo vans, pick up trucks, and trucks with a gross 17 vehicle weight of less than 26,000 pounds the operation of 18 which does not require the operator to possess a commercial 19 driver's license. 20 (Source: P.A. 90-499, eff. 8-19-97.) 21 (215 ILCS 5/492.2) (from Ch. 73, par. 1065.39-2) 22 Sec. 492.2. License Required. 23 (a) No person shall act as or hold himself out to be an 24 insurance producer unless duly licensed in accordance with 25 this Article for the class or classes of insurance as to 26 which he acts or holds himself out as an insurance producer. 27 (b) No person shall, for a fee, engage in the business 28 of offering any advice, counsel, opinion or service with 29 respect to the benefits, advantages or disadvantages under 30 any policy of insurance that could be issued in Illinois, 31 unless that person is 32 (1) engaged or employed as an attorney licensed to 33 practice law and performing duties incidental to that -3- LRB9100321JSpcB 1 position; 2 (2) a licensed insurance producer, limited insurance 3 representative or temporary insurance producer offering 4 advice concerning a class of insurance as to which he is 5 licensed to transact business; 6 (3) a trust officer of a bank performing duties 7 incidental to his position; 8 (4) an actuary or a certified public accountant engaged 9 or employed in a consulting capacity, performing duties 10 incidental to that position; or 11 (5) a licensed public adjuster acting within the scope 12 of his license. 13 (c) In addition to any other penalty set forth in this 14 Article, any individual violating paragraph (a) or (b) is 15 guilty of a Class A misdemeanor. Any individual violating 16 paragraph (a) or (b) and misappropriating or converting any 17 monies collected in conjunction with such violation is guilty 18 of a Class 4 felony. 19 (Source: P.A. 83-801.) 20 (215 ILCS 5/494.1) (from Ch. 73, par. 1065.41-1) 21 Sec. 494.1. Insurance producer license; application and 22 examination. 23 (a) Each application for an insurance producer license 24 shall be made on a form specified by the Director, and shall 25 be signed by the applicant declaring under penalty of 26 refusal, suspension or revocation of the license that the 27 statements made in the application are true, correct and 28 complete to the best of the applicant's knowledge and belief. 29 Before approving the application, the Director shall satisfy 30 himself that the applicant (1) is at least 18 years of age; 31 (2) is competent, trustworthy and of good business 32 reputation; (3) has completed a pre-licensing course of 33 study; and (4) has, pursuant to Section 508.2, filed a bond-4- LRB9100321JSpcB 1 which is in force and effect or is exempt from the2 requirement of filing such bond; and (5)has paid the fees 3 required by Section 509.1. A pre-licensing course of study 4 for each class of insurance for which an insurance producer 5 license is requested shall be established in accordance with 6 rules and regulations prescribed by the Director and shall 7 consist of the following minimum hours: 8 Class of Insurance Number of Hours 9 Life (Class 1 (a)) 15 10 Accident/Health (Class 1(b) or 2(a)) 15 11 Fire (Class 3) 15 12 Casualty (Class 2) 15 13 Motor Vehicle (Class 2(b) or 3(e)) 7 1/2 14 (b) Applicants for an insurance producer license shall 15 pass, within 90 days of each other, both part one and part 2 16 of a written examination unless exempt pursuant to Section 17 498.1. The examination shall reasonably test the knowledge 18 of the applicant concerning the class or classes of insurance 19 for which a license is applied, the duties and 20 responsibilities of an insurance producer and the insurance 21 laws and rules of Illinois. The examinations provided for by 22 this Section shall be conducted under rules and regulations 23 prescribed by the Director. The Director may make 24 arrangements, including contracting with an outside testing 25 service, for administering such examinations and collecting 26 the non-refundable application fee provided for by Section 27 509.1. 28 Each applicant required to take an examination shall, at 29 the time of request for examination, enclose with the 30 application a non-refundable application fee payable to the 31 Director, as provided for in Section 509.1, plus a separate 32 remittance payable to the designated testing service for the 33 total fees the testing service charges for each of the 34 various services being requested by the applicant. An -5- LRB9100321JSpcB 1 applicant who fails to appear for the examination as 2 scheduled, or appears but fails to pass, shall not be 3 entitled to any refund, and shall be required to submit a new 4 request for examination together with all of the requisite 5 fees before being rescheduled for another examination at a 6 later date. 7 (c) Before each license renewal, an insurance producer 8 shall satisfactorily complete at least 15 hours of course 9 study in accordance with rules prescribed by the Director. 10 The Director may not approve a course of study unless the 11 course provides for classroom, seminar, or self-study 12 instruction methods. A course given in a combination 13 instruction method of classroom or seminar and self-study 14 shall be deemed to be a self-study course unless the 15 classroom or seminar certified hours meets or exceeds 16 two-thirds of total hours certified for the course. The 17 self-study material used in the combination course must be 18 directly related to and complement the classroom portion of 19 the course in order to be considered for credit. An 20 instruction method other than classroom or seminar shall be 21 considered as self-study methodology. Self-study credit 22 hours require the successful completion of an examination 23 covering the self-study material, which shall not be 24 self-evaluated. Provided, however, that if the self-study 25 material is completed through the use of an approved 26 computerized interactive format whereby the computer 27 validates the successful completion of the self-study 28 material, no additional examination shall be required. The 29 self-study credit hours contained in a certified course shall 30 be considered classroom hours when at least two-thirds of the 31 hours are given as classroom or seminar instruction. 32 (d) An insurance producer license shall automatically 33 terminate when an insurance producer fails to successfully 34 meet the requirements of paragraph (c) of this Section. -6- LRB9100321JSpcB 1 (e) The holder of an insurance producer license shall 2 inform the Director in writing of a change in his residential 3 address within 30 days of such change. 4 (f) Each provider of a prelicensing or continuing 5 education course required by this Section shall pay a 6 registration fee and a course certification fee for each 7 course being certified as provided by Section 509.1. 8 (g) The quality and content of education courses 9 provided for insurance producers in this State has a direct 10 effect on the residents of this State. It is in the public 11 interest that education courses provided for insurance 12 producers are of high quality. In order to assure that 13 education courses provided for insurance producers are 14 appropriately designed and that the entities and individuals 15 providing education courses are appropriately qualified, 16 there is created the Insurance Producer Education Review 17 Board. The Board shall advise and assist the Department in 18 reviewing and approving proposed education courses for 19 insurance producers. The Board shall also provide advice to 20 the Department regarding continuing education requirements. 21 The Board shall be appointed by the Director. The Director 22 shall seek the advice of the 2 largest not-for-profit 23 professional insurance producer associations in this State, 24 with respect to the appointment of licensed insurance 25 producers to the Board. The Board shall consist of the 26 following: 27 (1) 4 licensed insurance producers who are members 28 of an insurance producer association; 29 (2) 2 representatives of domestic insurance 30 companies; and 31 (3) one continuing education course provider who is 32 a resident of this State. 33 The initial members of the Board shall serve for a term 34 as follows: -7- LRB9100321JSpcB 1 (1) 3 members shall serve for a term of one year; 2 (2) 3 members shall serve for a term of 2 years; 3 and 4 (3) one member shall serve for a term of 3 years. 5 The Director shall by lot determine the length of the terms 6 for the initial Board members. The term of the respective 7 successors shall be 3 years. Board members shall serve 8 without compensation, but may be reimbursed for reasonable 9 and necessary expenses incurred in the performance of their 10 duties. 11 (Source: P.A. 89-152, eff. 1-1-97.) 12 (215 ILCS 5/495.2 new) 13 Sec. 495.2. Limited license for rental companies. 14 (a) A rental company must obtain a producer license, 15 become a registered firm, or obtain a limited license before 16 offering or selling insurance in connection with and 17 incidental to the rental of vehicles, whether at the rental 18 office or by pre-selection of coverage in a master, 19 corporate, group rental, or individual agreement in any of 20 the following general categories: 21 (1) personal accident insurance covering the risks 22 of travel including, but not limited to, accident and 23 health insurance that provides coverage, as applicable, 24 to renters and other rental vehicle occupants for 25 accidental death or dismemberment and reimbursement for 26 medical expenses resulting from an accident that occurs 27 during the rental period; 28 (2) liability insurance, including uninsured and 29 underinsured motorist coverage, that provides coverage, 30 as applicable, to renters and other authorized drivers of 31 rental vehicles for liability arising from the operation 32 of the rental vehicle; 33 (3) personal effects insurance that provides -8- LRB9100321JSpcB 1 coverage, as applicable, to renters and other vehicle 2 occupants for the loss of, or damage to, personal effects 3 that occurs during the rental period; 4 (4) roadside assistance and emergency sickness 5 protection programs; 6 (5) any other travel or auto-related coverage that 7 a rental company offers in connection with and incidental 8 to the rental of vehicles. 9 (b) No insurance may be offered by a limited licensee 10 pursuant to this Section unless: 11 (1) the rental period of the rental agreement does 12 not exceed 90 consecutive days; 13 (2) at every rental location where rental 14 agreements are executed, brochures or other written 15 materials are readily available to the prospective renter 16 that: 17 (A) summarize clearly and correctly, the 18 material terms of coverage offered to renters, 19 including the identity of the insurer; 20 (B) disclose that the coverage offered by the 21 rental company may provide a duplication of coverage 22 already provided by a renter's personal automobile 23 insurance policy, homeowner's insurance policy, 24 personal liability insurance policy, or other source 25 of coverage; 26 (C) state that the purchase by the renter of 27 the kinds of coverage specified in this Section is 28 not required in order to rent a vehicle; and 29 (D) describe the process for filing a claim in 30 the event the renter elects to purchase coverage and 31 in the event of a claim; and 32 (3) evidence of coverage on the face of the rental 33 agreement is disclosed to every renter who elects to 34 purchase such coverage. -9- LRB9100321JSpcB 1 (c) A limited license issued under this Section shall 2 also authorize any employee of the limited licensee to act 3 individually on behalf and under the supervision of the 4 limited licensee with respect to the kinds of coverage 5 specified in this Section. 6 (d) A rental company licensed pursuant to this Section 7 shall conduct a training program in which employees being 8 trained shall receive basic instruction about the kinds of 9 coverage specified in this Section and offered for purchase 10 by prospective renters of rental vehicles. 11 (e) Notwithstanding any other provision of this Section 12 or any rule adopted by the Director, a limited licensee 13 pursuant to this Section shall not be required to treat 14 moneys collected from renters purchasing insurance when 15 renting vehicles as funds received in a fiduciary capacity, 16 provided that the charges for coverage shall be itemized and 17 be ancillary to a rental transaction. The sale of insurance 18 not in conjunction with a rental transaction shall not be 19 permitted. 20 (f) No limited licensee under this Section shall 21 advertise, represent, or otherwise hold itself or any of its 22 employees out as licensed insurers, insurance producers, 23 insurance agents, or insurance brokers. 24 (g) No direct commissions may be paid to rental car 25 company employees by the insurer or the customer purchasing 26 insurance products. The rental car company may include 27 insurance products in an overall employee performance 28 compensation incentive program. 29 (215 ILCS 5/496.2) (from Ch. 73, par. 1065.43-2) 30 Sec. 496.2. License. 31 (a) Insurance producer. 32 (1) An applicant who has met the requirements of 33 Section 494.1 shall be issued a perpetual insurance -10- LRB9100321JSpcB 1 producer license. 2 (2) Each insurance producer license shall remain in 3 effect as long as the holder of the license maintains in4 force and effect the bond required by Section 508.2 and5 pays the annualfee required by Section 509.1 by the date 6 due, unless the license is revoked or suspended pursuant 7 to Section 505.1. The annualfee required by Section 8 509.1 shall not be required of a licensed insurance 9 producer who enters the military service of the United 10 States. This waiver shall continue in effect until such 11 time as the insurance producer is discharged from the 12 military service. 13 (3) An insurance producer who does not maintain his 14 insurance producer license in effect pursuant to 15 paragraph (a)(2) of this subsection Sectionmay, within 16 36 months from the due date of the unpaid annualfee, 17 make application for the same license without the 18 necessity of passing a written examination. Payment of 19 the annualfee and proof a bond is in forcemust 20 accompany the application. In addition, proof of 21 compliance with Section 494.1(c) must be received by the 22 Department before the license is issued accompany the23 application, where applicable. 24 If an insurance producer fails to pay the annualfee 25 by the due date but applies for reinstatement of the 26 license within 36 months of the due date, then the 27 producer shall pay the reinstatement fee required by 28 Section 509.1 of this Code and either: 29 A. The annuallicense fee which will cause a 30 license to be issued with a current effective date; 31 or 32 B. The annuallicense fee which will cause a 33 license to be dated the expiration date of the last 34 active license, provided the producer applies for -11- LRB9100321JSpcB 1 reinstatement within 2 months of the due date. 2 If a license is issued pursuant to option A of 3 this paragraph with a lapse in licensing, the 4 producer must sign a statement attesting that he has 5 not been active as an insurance producer during the 6 period since the last active license. 7 (b) Limited Insurance Representative. 8 (1) An applicant who has met the requirements of 9 Section 495.1 shall be issued a perpetual limited 10 insurance representative license. 11 (2) A Eachlimited insurance representative license 12 shall remain in effect as long as the appointing 13 insurance company or employer pays the respective fee 14 required by Section 509.1 prior to January 1 of each 15 year, unless the license is revoked or suspended pursuant 16 to Section 505.1. Failure of the insurance company or 17 employer to pay the license fee or to submit the required 18 documents shall cause immediate termination of the 19 limited insurance representative license regarding which 20 such failure occurs. 21 (3) A Eachlimited insurance representative license 22 may be terminated by the insurance company, employer, or 23 the licensee. 24 (c) Limited license for rental companies. 25 (1) An applicant who has met the requirements of 26 Section 495.2 shall be issued a limited license. 27 (2) A limited license for rental companies shall 28 remain in effect as long as the limited licensee pays the 29 respective fee required by Section 509.1 prior to January 30 1 of each year, unless the license is revoked or 31 suspended pursuant to Section 505.1. Failure of the 32 limited licensee to pay the license fee or to submit the 33 required documents shall cause immediate suspension of 34 the limited license. -12- LRB9100321JSpcB 1 (3) A limited license for rental companies may be 2 voluntarily terminated by the limited licensee. The 3 license fee will not be refunded upon termination of the 4 limited license by the licensee. 5 (d) (c)License Content. The Eachlicense shall contain 6 the name, residential address and personal identification 7 number of the licensee, the date the license was issued, 8 general conditions relative to the license's expiration or 9 termination, the class or classes of insurance covered by the 10 license, and any other information the Director considers 11 proper. A Eachlimited insurance representative license 12 shall also contain the name and address of the appointing 13 insurance company or employer. 14 (Source: P.A. 88-313.) 15 (215 ILCS 5/497.1) (from Ch. 73, par. 1065.44-1) 16 Sec. 497.1. Nonresident licensing. 17 (a) A nonresident may apply for an insurance producer 18 license or limited insurance representative license if (1) 19 the applicant holds a similar license from his state of 20 residence and (2) the applicant's state of residence accepts 21 Illinois residents for licensing. Each nonresident applicant 22 shall be in compliance with the requirements of subsection 23 paragraph(a) of Section 494.1, except that requirement (3) 24 of subsection paragraph(a) shall not be applicable to 25 nonresident applicants. 26 (b) The requirements of subsection paragraph(c) of 27 Section 494.1 shall not apply to nonresident applicants. If 28 an applicant's state of residence accepts compliance with the 29 requirements of subsection paragraph(c) of Section 494.1 by 30 an Illinois insurance producer as compliance with that 31 state's continuing education requirements, a nonresident 32 applicant may fulfill the requirements of subsection 33 paragraph(c) of Section 494.1 by demonstrating compliance -13- LRB9100321JSpcB 1 with the continuing education requirements of the applicant's 2 state of residence. A nonresident applicant may be licensed 3 without written examination if (1) the state in which the 4 applicant resides requires no similar examination or (2) the 5 public official having supervision of insurance in the 6 applicant's state of residence certifies that the applicant 7 has passed a written examination for the classes of insurance 8 applied for or was licensed prior to the time a written 9 examination was required. 10 (c) A nonresident applicant shall file with the Director 11 an affidavit appointing the Director and his or her successor 12 in office as such applicant's agent upon whom all lawful 13 process in any action, suit or legal proceeding against the 14 applicant may be served, and shall agree that any such lawful 15 process is of the same legal force and validity as personal 16 service of process upon such applicant. The Director shall, 17 within 10 days after receiving process, forward a copy of 18 such process by registered or certified mail to the 19 individual for whom he has received such process at the 20 individual's address of record. 21 (d) Whenever, by the laws or regulations of any other 22 state, any limitation of rights and privileges, conditions 23 precedent, or any other requirements are imposed upon 24 residents of this State who are nonresident applicants or 25 licensees of such other state in addition to, or in excess 26 of, those imposed on nonresidents under this Code, the same 27 such requirements shall be imposed upon such residents of 28 such other state. 29 (Source: P.A. 89-152, eff. 1-1-97.) 30 (215 ILCS 5/499.1) (from Ch. 73, par. 1065.46-1) 31 Sec. 499.1. Registered firms. 32 (a) Any corporation, partnership, or limited liability 33 company transacting insurance business as an insurance agency -14- LRB9100321JSpcB 1 shall register with the Director before transacting insurance 2 business in this State. Such registration shall remain in 3 effect as long as the firm pays the annualfee required by 4 Section 509.1 of this Code by the date due, unless the 5 registration is revoked or suspended pursuant to Section 6 505.1 of this Code. 7 (b) Each firm required to register before acting as a 8 registered firm pursuant to this Article shall appoint one or 9 more licensed insurance producers who are officers, 10 directors, or partners in the firm to be responsible for the 11 firm's compliance with the insurance laws and Title 50 of the 12 Illinois Administrative Code. Such individual or individuals 13 shall submit to the Director a registration form and the fees 14 required by Section 509.1. The Director shall prescribe the 15 registration form and may require any documents reasonably 16 necessary to verify the information contained in the 17 registration form. Within 30 days of a change in officers, 18 directors, or partners who are appointed to be responsible 19 for the firm's compliance with the insurance laws and Title 20 50 of the Illinois Administrative Code, the firm shall report 21 the change to the Department. 22 (c) The registered firm shall inform the Director in 23 writing of a change in its business address within 30 days of 24 such change. 25 (d) Each registered firm shall disclose its members, 26 officers or directors who are authorized to act as insurance 27 producers, and report any changes in such personnel to the 28 Director within 30 days of such changes. 29 (e) (Blank). 30 (Source: P.A. 89-240, eff. 1-1-96; 90-41, eff. 10-1-97; 31 90-499, eff. 8-19-97; 90-655, eff. 7-30-98.) 32 (215 ILCS 5/505.1) (from Ch. 73, par. 1065.52-1) 33 Sec. 505.1. License suspension, revocation, or denial. -15- LRB9100321JSpcB 1 (a) Any license issued under this Article may be 2 suspended or revoked, and any application for a license may 3 be denied, if the Director finds that the licensee or 4 applicant: 5 (1) has wilfully violated any provision of this 6 Code or any rule or regulation promulgated by the 7 Director; 8 (2) has intentionally made a material misstatement 9 in his application for a license; 10 (3) has obtained or attempted to obtain a license 11 through misrepresentation or fraud; 12 (4) has misappropriated or converted to his own 13 use, or improperly withheld, money required to be held in 14 a fiduciary capacity; 15 (5) has intentionally misrepresented the terms of 16 any actual or proposed insurance policy; 17 (6) has, in the transaction of business under his 18 license, used fraudulent, coercive or dishonest 19 practices, or has demonstrated incompetence, 20 untrustworthiness or financial irresponsibility; 21 (7) has been, within the past 3 years, convicted of 22 a felony, unless the individual demonstrates to the 23 Director sufficient rehabilitation to warrant the public 24 trust; 25 (8) has knowingly accepted insurance business from 26 an individual who is not licensed; 27 (9) has failed to appear without reasonable cause 28 or excuse in response to a subpoena lawfully issued by 29 the Director; 30 (10) has had his license suspended or revoked or 31 his application denied in any other State, district, 32 territory or province on grounds similar to those stated 33 in this Section; 34 (11) (Blank) has violated any of the provisions of-16- LRB9100321JSpcB 1 Section 504.1; 2 (12) has failed to meet the education requirements 3 of subsection paragraph(c) of Section 494.1; 4 (13) has failed to report a felony conviction, as 5 required by Section 503.1; 6 (14) has knowingly employed, contracted or engaged 7 in any insurance related capacity any person whose 8 license as an insurance producer or limited insurance 9 representative has been revoked within the previous three 10 years or whose request for a license has been refused or 11 suspended pursuant to this Section at the time of such 12 employment, engaging or contracting; or 13 (15) has failed to make satisfactory repayment to 14 the Illinois Student Assistance Commission for a 15 delinquent or defaulted student loan. 16 (b) Suspension or revocation of a license or the denial 17 of an application pursuant to this Section shall be by 18 written order sent to the licensee or applicant by certified 19 or registered mail at the address specified in the records of 20 the Department. The licensee or applicant may in writing 21 request a hearing within 30 days from the date of mailing. 22 If no written request is made, such order shall be final upon 23 the expiration of said 30 days. 24 (c) If the licensee or applicant requests a hearing 25 pursuant to this Section the Director shall issue a written 26 notice of hearing sent to the licensee or applicant by 27 certified or registered mail at his address, as specified in 28 the records of the Department, and stating: 29 (1) the grounds, charges or conduct which justifies 30 suspension or revocation or denial under this Section; 31 (2) a specific time for the hearing, which may not 32 be less than 20 nor more than 30 days after the mailing 33 of the notice of hearing; and 34 (3) a specific place for the hearing, which may be -17- LRB9100321JSpcB 1 either in the City of Springfield or Chicago or in the 2 county where the licensee's principal place of business 3 is located. 4 (d) Upon the suspension or revocation of a license, the 5 licensee or other person having possession or custody of such 6 license shall promptly deliver it to the Director in person 7 or by mail. The Director shall publish all suspensions and 8 revocations after such suspensions or revocations become 9 final in a manner designed to notify interested insurance 10 companies and other persons. 11 (e) Any individual whose license is revoked or whose 12 application is denied pursuant to this Section shall be 13 ineligible to apply for any license for 3 years. No person 14 whose license as an insurance producer or limited 15 representative has been revoked, suspended or denied shall be 16 employed, contracted or engaged in any insurance related 17 capacity during the time the revocation, suspension or denial 18 is in effect. A suspension pursuant to this Section may be 19 for a period of up to 2 years. 20 (f) In addition to or instead of a denial, suspension or 21 revocation of a license pursuant to this Section, the 22 licensee may be subjected to a civil penalty of up to $1,000 23 for each cause for denial, suspension or revocation. Such 24 penalty is enforceable under Section 403A(5) of this Code. 25 (Source: P.A. 89-318, eff. 1-1-96.) 26 (215 ILCS 5/509.1) (from Ch. 73, par. 1065.56-1) 27 Sec. 509.1. Fees. 28 (a) The fees required by this Article are as follows: 29 (1) A An annualfee of $150 payable once every 2 30 years $75for an insurance producer license; 31 (2) A fee of $25 for the issuance of a temporary 32 insurance producer license; 33 (3) A An annualregistration fee of $50 payable -18- LRB9100321JSpcB 1 once every 2 years $25for a business firm to register; 2 (4) A fee of $50 payable once every 2 years An3 annual $25 feefor a limited insurance representative 4 license or a limited license for rental companies; 5 (5) A $25 application fee for the processing of 6 each request to take the written examination for an 7 insurance producer license; 8 (6) An annual registration fee of $500 for an 9 education provider to register; 10 (7) A certification fee of $25 for each certified 11 prelicensing or continuing education course and an annual 12 fee of $10 for renewing the certification of each such 13 course; and 14 (8) A license reinstatement fee of $50 for 15 reinstating a license which lapsed because the annualfee 16 was not received by the due date. 17 (9) A registration fee of $15 for reinstating a 18 firm registration that lapsed because the annualfee was 19 not received by the due date. 20 (b) Except as otherwise provided, all fees paid to and 21 collected by the Director under this Section shall be paid 22 promptly after receipt thereof, together with a detailed 23 statement of such fees, into a special fund in the State 24 Treasury to be known as the Insurance Producer Administration 25 Fund. The monies deposited into the Insurance Producer 26 Administration Fund shall be used only for payment of the 27 expenses of the Department in the execution, administration, 28 and enforcement of the insurance laws of this State, and 29 shall be appropriated as otherwise provided by law for the 30 payment of such expenses with first priority being any 31 expenses incident to or associated with the administration 32 and enforcement of this Article. 33 (Source: P.A. 89-152, eff. 1-1-97; 90-372, eff. 7-1-98; 34 90-655, eff. 7-30-98.) -19- LRB9100321JSpcB 1 (215 ILCS 5/510.2) (from Ch. 73, par. 1065.57-2) 2 Sec. 510.2. Exemptions from licensing requirements. The 3 provisions of Sections 492.2, 494.1, 495.1, 495.2, 496.2, 4 497.1, 498.1, 499.1, 500.1 and 501.2 shall not apply to: 5 (a) any regularly salaried officer or employee of an 6 insurance company, who is engaged in the performance of usual 7 and customary executive, administrative or clerical duties; 8 (b) salaried employees in the office of an insurance 9 producer, limited insurance representative, limited licensee, 10 or registered firm, who devote their full time to clerical 11 and administrative services, including the incidental taking 12 of insurance applications and receipt of premiums in the 13 office of their employer, as long as such employees do not 14 receive any commissions on such applications and their 15 compensation is not varied by the volume of applications or 16 premiums taken or received, except as authorized under 17 subsection (g) of Section 495.2; 18 (c) persons who secure and furnish information for the 19 purpose of group life insurance, annuities, group or blanket 20 accident and health insurance, or for the purpose of 21 enrolling individuals under such plans, issuing certificates 22 under such plans or otherwise assisting in administering such 23 plans, where no commission is paid for such service; 24 (d) advisory organizations, according to Article VIIA of 25 this Code, or persons who furnish information for the purpose 26 of life or accident and health insurance distributed on a 27 mass merchandise basis and administered by group methods; 28 (e) employers or their officers or employees, or the 29 trustees of any employee trust plan, to the extent that such 30 employers, officers, employees or trustees are engaged in the 31 administration or operation of any program of employee 32 benefits for their own employees or the employees of their 33 subsidiaries or affiliates, which program involves the use of 34 insurance issued by an insurance company, as long as such -20- LRB9100321JSpcB 1 employers, officers, employees or trustees are not in any 2 manner compensated, directly or indirectly, by the company 3 issuing the contracts; or 4 (f) employees of insurance companies or organizations 5 employed by insurance companies who are engaging in the 6 inspection, rating or classification of risks, or in the 7 supervision of the training of insurance producers, limited 8 insurance representatives, limited licensees, or temporary 9 insurance producers, and who are not individually engaged in 10 the solicitation or negotiation of policies or contracts for 11 insurance. 12 (Source: P.A. 83-1299.) 13 (215 ILCS 5/504.1 rep.) 14 (215 ILCS 5/508.2 rep.) 15 Section 10. The Illinois Insurance Code is amended by 16 repealing Sections 504.1 and 508.2. 17 Section 99. Effective date. This Act takes effect 18 January 1, 2000.
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