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Public Act 91-0234
SB363 Enrolled LRB9100321JSpcB
AN ACT concerning the licensing of insurance producers.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Sections 491.1, 492.2, 494.1, 496.2, 497.1, 499.1,
505.1, 508.2, 509.1, and 510.2 and adding Section 495.2 as
follows:
(215 ILCS 5/491.1) (from Ch. 73, par. 1065.38-1)
Sec. 491.1. Definitions. In addition to the definitions
in Section 2, the following definitions apply to this
Article.
"Car rental limited licensee" means a person authorized
pursuant to the provisions of Section 495.2 to sell certain
coverages relating to the rental of vehicles.
(a) Insurance. Insurance is any of the classes of
insurance found in Section 4.
(b) Insurance producer. An insurance producer is an
individual who solicits, negotiates, effects, procures,
renews, continues or binds policies of insurance covering
property or risks located in Illinois.
(c) License. A license is a document authorizing an
individual to act as an insurance producer, limited insurance
representative or temporary insurance producer, as specified
in such document.
(d) Limited insurance representative. A limited
insurance representative is an individual appointed by an
insurance company, health maintenance organization, or
limited health service organization to represent that company
or organization regarding the types of insurance set forth in
Section 495.1.
(e) Registered firm. A registered firm is a
corporation, partnership, or limited liability company which
transacts the business of insurance as an insurance agency.
"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 such
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.
"Vehicle" or "rental vehicle" means a motor vehicle of
(1) the private passenger type, including passenger vans,
minivans, 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.
(Source: P.A. 90-499, eff. 8-19-97.)
(215 ILCS 5/492.2) (from Ch. 73, par. 1065.39-2)
Sec. 492.2. License Required.
(a) No person shall act as or hold himself out to be an
insurance producer unless duly licensed in accordance with
this Article for the class or classes of insurance as to
which he acts or holds himself out as an insurance producer.
(b) No person shall, 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;
(2) a licensed insurance producer, limited insurance
representative or temporary insurance producer offering
advice concerning a class of insurance as to which he is
licensed to transact business;
(3) a trust officer of a bank performing duties
incidental to his position;
(4) an actuary or a certified public accountant engaged
or employed in a consulting capacity, performing duties
incidental to that position; or
(5) a licensed public adjuster acting within the scope
of his license.
(c) In addition to any other penalty set forth in this
Article, any individual violating paragraph (a) or (b) is
guilty of a Class A misdemeanor. Any individual violating
paragraph (a) or (b) and misappropriating or converting any
monies collected in conjunction with such violation is guilty
of a Class 4 felony.
(Source: P.A. 83-801.)
(215 ILCS 5/494.1) (from Ch. 73, par. 1065.41-1)
Sec. 494.1. Insurance producer license; application and
examination.
(a) Each application for an insurance producer license
shall be made on a form specified by the Director, and shall
be signed by the applicant declaring 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 applicant's knowledge and belief.
Before approving the application, the Director shall satisfy
himself that the applicant (1) is at least 18 years of age;
(2) is competent, trustworthy and of good business
reputation; (3) has completed a pre-licensing course of
study; and (4) has certified that the, pursuant to Section
508.2, filed a bond required by Section 508.2 which is in
force and effect or that the applicant is exempt from the
requirement of obtaining filing such bond; and (5) has paid
the fees required by Section 509.1. A pre-licensing course
of study for each class of insurance for which an insurance
producer license is requested shall be established in
accordance with rules and regulations prescribed by the
Director and shall consist of the following minimum hours:
Class of Insurance Number of Hours
Life (Class 1 (a)) 15
Accident/Health (Class 1(b) or 2(a)) 15
Fire (Class 3) 15
Casualty (Class 2) 15
Motor Vehicle (Class 2(b) or 3(e)) 7 1/2
(b) Applicants for an insurance producer license shall
pass, within 90 days of each other, both part one and part 2
of a written examination unless exempt pursuant to Section
498.1. The examination shall reasonably test the knowledge
of the applicant concerning the class or classes of insurance
for which a license is applied, the duties and
responsibilities of an insurance producer and the insurance
laws and rules of Illinois. The examinations provided for by
this Section shall be conducted under rules and regulations
prescribed by the Director. The Director may make
arrangements, including contracting with an outside testing
service, for administering such examinations and collecting
the non-refundable application fee provided for by Section
509.1.
Each applicant required to take an examination shall, at
the time of request for examination, enclose with the
application a non-refundable application fee payable to the
Director, as provided for in Section 509.1, 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. An
applicant who fails to appear for the examination as
scheduled, or appears but fails to pass, shall not be
entitled to any refund, and shall be required to submit a new
request for examination together with all of the requisite
fees before being rescheduled for another examination at a
later date.
(c) Before each license renewal, an insurance producer
shall satisfactorily complete at least 30 15 hours of course
study in accordance with rules prescribed by the Director.
The Director may not approve a course of study unless the
course provides for classroom, seminar, or self-study
instruction methods. A course given in a combination
instruction method of classroom or seminar and self-study
shall be deemed to be a self-study course unless the
classroom or seminar 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, which shall not be
self-evaluated. Provided, however, that 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 shall be 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.
(d) An insurance producer license shall automatically
terminate when an insurance producer fails to successfully
meet the requirements of paragraph (c) of this Section.
(e) The holder of an insurance producer license shall
inform the Director in writing of a change in his residential
address within 30 days of such change.
(f) Each provider of a prelicensing or continuing
education course required by this Section shall pay a
registration fee and a course certification fee for each
course being certified as provided by Section 509.1.
(Source: P.A. 89-152, eff. 1-1-97.)
(215 ILCS 5/495.2 new)
Sec. 495.2. Car rental limited license for rental
companies.
(a) A rental company must obtain a producer license,
become a registered firm, or obtain a car rental limited
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
pre-selection 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;
(2) liability insurance, including uninsured and
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;
(3) personal effects insurance that provides
coverage, as applicable, to renters and other vehicle
occupants for the loss of, or damage to, personal effects
that occurs during the rental period;
(4) roadside assistance and emergency sickness
protection programs;
(5) any other travel or auto-related coverage that
a rental company offers in connection with and incidental
to the rental of vehicles.
(b) No insurance may be offered by a car rental limited
licensee pursuant to this Section unless:
(1) the rental company has applied for and obtained
a car rental limited license;
(2) the rental period of the rental agreement does
not exceed 30 consecutive days;
(3) at every rental location where rental
agreements are executed, brochures or other written
materials are readily available to the prospective renter
that:
(A) summarize clearly and correctly, the
material terms of coverage offered to renters,
including the identity of the insurer;
(B) disclose that the coverage offered by the
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;
(C) state that the purchase by the renter of
the kinds of coverage specified in this Section is
not required in order to rent a vehicle; and
(D) describe the process for filing a claim in
the event the renter elects to purchase coverage and
in the event of a claim; and
(4) evidence of coverage in the rental agreement is
disclosed to every renter who elects to purchase such
coverage.
(c) Car rental company franchisees shall apply for a car
rental limited license independent of the franchisor if
insurance provided pursuant to this Section is offered by the
franchisee.
(d) A car rental limited license issued under this
Section shall also authorize any employee of the car rental
limited licensee to act individually on behalf and under the
supervision of the car rental limited licensee with respect
to the kinds of coverage specified in this Section.
(e) A rental company licensed pursuant to this Section
shall 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
licensee pursuant to this Section shall not be 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) No car rental limited licensee under this Section
shall advertise, represent, or otherwise hold itself or any
of its employees out as licensed insurers, insurance
producers, insurance agents, or insurance brokers.
(i) No direct commissions may 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 license
shall be made on a form specified by the Director.
(215 ILCS 5/496.2) (from Ch. 73, par. 1065.43-2)
Sec. 496.2. License.
(a) Insurance producer.
(1) An applicant who has met the requirements of
Section 494.1 shall be issued a perpetual insurance
producer license.
(2) Each insurance producer license shall remain in
effect as long as the holder of the license maintains in
force and effect the bond required by Section 508.2 and
pays the annual fee required by Section 509.1 by the date
due, unless the license is revoked or suspended pursuant
to Section 505.1. The annual fee required by Section
509.1 shall not be required of a licensed insurance
producer who enters the military service of the United
States. This waiver shall continue in effect until such
time as the insurance producer is discharged from the
military service.
(3) An insurance producer who does not maintain his
insurance producer license in effect pursuant to
paragraph (a)(2) of this subsection Section may, within
36 months from the due date of the unpaid annual fee,
make application for the same license without the
necessity of passing a written examination. Payment of
the annual fee and proof a bond is in force must
accompany the application. In addition, proof of
compliance with Section 494.1(c) must be received by the
Department before the license is issued accompany the
application, where applicable.
If an insurance producer fails to pay the annual fee
by the due date but applies for reinstatement of the
license within 36 months of the due date, then the
producer shall pay the reinstatement fee required by
Section 509.1 of this Code and either:
A. The annual license fee which will cause a
license to be issued with a current effective date;
or
B. The annual license fee which will cause a
license to be dated the expiration date of the last
active license, provided the producer applies for
reinstatement within 2 months of the due date.
If a license is issued pursuant to option A of
this paragraph with a lapse in licensing, the
producer must sign a statement attesting that he has
not been active as an insurance producer during the
period since the last active license.
(4) Of the insurance producer licenses renewed
during the one-year period following the effective date
of this amendatory Act of the 91st General Assembly,
approximately 50% shall be for a duration of one year and
approximately 50% shall be for a duration of 2 years.
All subsequent renewals shall be for a duration of 2
years.
For the first license renewal period following the
effective date of this amendatory Act of the 91st General
Assembly, producers renewing a license for one year shall
have no continuing education requirement; producers renewing
a license for 2 years shall satisfactorily complete at least
15 hours of continuing education. All subsequent renewals
shall meet the continuing education requirements pursuant to
subsection (c) of Section 494.1 of this Act.
(b) Limited Insurance Representative.
(1) An applicant who has met the requirements of
Section 495.1 shall be issued a perpetual limited
insurance representative license.
(2) A Each limited insurance representative license
shall remain in effect as long as the appointing
insurance company pays the respective fee required by
Section 509.1 prior to January 1 of each year, unless the
license is revoked or suspended pursuant to Section
505.1. Failure of the insurance company to pay the
license fee or to submit the required documents shall
cause immediate termination of the limited insurance
representative license regarding which such failure
occurs.
(3) A Each limited insurance representative license
may be terminated by the insurance company or the
licensee.
(c) Car rental limited licenses.
(1) An applicant who has met the requirements of
Section 495.2 shall be issued a car rental limited
license.
(2) A car rental limited license for a rental
company shall remain in effect as long as the car rental
limited licensee pays the respective fee required by
Section 509.1 prior to the next fee date unless the car
rental license is revoked or suspended pursuant to
Section 505.1. Failure of the car rental limited
licensee to pay the license fee or to submit the required
documents shall cause immediate suspension of the car
rental limited license.
(3) A car rental limited license for rental
companies may be voluntarily terminated by the car rental
limited licensee. The license fee shall not be refunded
upon termination of the car rental limited license by the
car rental limited licensee.
(d) (c) License Content. The Each license shall contain
the name, residential address and personal identification
number of the licensee, the date the license was issued,
general conditions relative to the license's expiration or
termination, the class or classes of insurance covered by the
license, and any other information the Director considers
proper. A Each limited insurance representative license
shall also contain the name and address of the appointing
insurance company.
(Source: P.A. 88-313.)
(215 ILCS 5/497.1) (from Ch. 73, par. 1065.44-1)
Sec. 497.1. Nonresident licensing.
(a) A nonresident may apply for an insurance producer
license or limited insurance representative license if (1)
the applicant holds a similar license from his state of
residence and (2) the applicant's state of residence accepts
Illinois residents for licensing. Each nonresident applicant
shall be in compliance with the requirements of subsection
paragraph (a) of Section 494.1, except that requirement (3)
of subsection paragraph (a) shall not be applicable to
nonresident applicants.
(b) The requirements of subsection paragraph (c) of
Section 494.1 shall not apply to nonresident applicants. If
an applicant's state of residence accepts compliance with the
requirements of subsection paragraph (c) of Section 494.1 by
an Illinois insurance producer as compliance with that
state's continuing education requirements, a nonresident
applicant may fulfill the requirements of subsection
paragraph (c) of Section 494.1 by demonstrating compliance
with the continuing education requirements of the applicant's
state of residence. A nonresident applicant may be licensed
without written examination if (1) the state in which the
applicant resides requires no similar examination or (2) the
public official having supervision of insurance in the
applicant's state of residence certifies that the applicant
has passed a written examination for the classes of insurance
applied for or was licensed prior to the time a written
examination was required.
(c) A nonresident applicant shall file with the Director
an affidavit appointing the Director and his or her successor
in office as such applicant's agent upon whom all lawful
process in any action, suit or legal proceeding against the
applicant may be served, and shall agree that any such lawful
process is of the same legal force and validity as personal
service of process upon such applicant. The Director shall,
within 10 days after receiving process, forward a copy of
such process by registered or certified mail to the
individual for whom he has received such process at the
individual's address of record.
(d) Whenever, by the laws or regulations of any other
state, any limitation of rights and privileges, conditions
precedent, or any other requirements are imposed upon
residents of this State who are nonresident applicants or
licensees of such other state in addition to, or in excess
of, those imposed on nonresidents under this Code, the same
such requirements shall be imposed upon such residents of
such other state.
(Source: P.A. 89-152, eff. 1-1-97.)
(215 ILCS 5/499.1) (from Ch. 73, par. 1065.46-1)
Sec. 499.1. Registered firms.
(a) Any corporation, partnership, or limited liability
company transacting insurance business as an insurance agency
shall register with the Director before transacting insurance
business in this State. Such registration shall remain in
effect as long as the firm pays the annual fee required by
Section 509.1 of this Code by the date due, unless the
registration is revoked or suspended pursuant to Section
505.1 of this Code.
(b) Each firm required to register before acting as a
registered firm pursuant to this Article shall appoint one or
more licensed insurance producers who are officers,
directors, or partners in the firm to be responsible for the
firm's compliance with the insurance laws and Title 50 of the
Illinois Administrative Code. Such individual or individuals
shall submit to the Director a registration form and the fees
required by Section 509.1. The Director shall prescribe the
registration form and may require any documents reasonably
necessary to verify the information contained in the
registration form. Within 30 days of a change in officers,
directors, or partners who are appointed to be responsible
for the firm's compliance with the insurance laws and Title
50 of the Illinois Administrative Code, the firm shall report
the change to the Department.
(c) The registered firm shall inform the Director in
writing of a change in its business address within 30 days of
such change.
(d) Each registered firm shall disclose its members,
officers or directors who are authorized to act as insurance
producers, and report any changes in such personnel to the
Director within 30 days of such changes.
(e) (Blank).
(Source: P.A. 89-240, eff. 1-1-96; 90-41, eff. 10-1-97;
90-499, eff. 8-19-97; 90-655, eff. 7-30-98.)
(215 ILCS 5/505.1) (from Ch. 73, par. 1065.52-1)
Sec. 505.1. License suspension, revocation, or denial.
(a) Any license issued under this Article may be
suspended or revoked, and any application for a license may
be denied, if the Director finds that the licensee or
applicant:
(1) has wilfully violated any provision of this
Code or any rule or regulation promulgated by the
Director;
(2) has intentionally made a material misstatement
in his application for a license;
(3) has obtained or attempted to obtain a license
through misrepresentation or fraud;
(4) has misappropriated or converted to his own
use, or improperly withheld, money required to be held in
a fiduciary capacity;
(5) has intentionally misrepresented the terms of
any actual or proposed insurance policy;
(6) has, in the transaction of business under his
license, used fraudulent, coercive or dishonest
practices, or has demonstrated incompetence,
untrustworthiness or financial irresponsibility;
(7) has been, within the past 3 years, convicted of
a felony, unless the individual demonstrates to the
Director sufficient rehabilitation to warrant the public
trust;
(8) has knowingly accepted insurance business from
an individual who is not licensed;
(9) has failed to appear without reasonable cause
or excuse in response to a subpoena lawfully issued by
the Director;
(10) has had his license suspended or revoked or
his application denied in any other State, district,
territory or province on grounds similar to those stated
in this Section;
(11) (Blank) has violated any of the provisions of
Section 504.1;
(12) has failed to meet the education requirements
of subsection paragraph (c) of Section 494.1;
(13) has failed to report a felony conviction, as
required by Section 503.1;
(14) has knowingly employed, contracted or engaged
in any insurance related capacity any person whose
license as an insurance producer or limited insurance
representative has been revoked within the previous three
years or whose request for a license has been refused or
suspended pursuant to this Section at the time of such
employment, engaging or contracting; or
(15) has failed to make satisfactory repayment to
the Illinois Student Assistance Commission for a
delinquent or defaulted student loan.
(b) Suspension or revocation of a license or the denial
of an application pursuant to this Section shall be by
written order sent to the licensee or applicant by certified
or registered mail at the address specified in the records of
the Department. The licensee or applicant may in writing
request a hearing within 30 days from the date of mailing.
If no written request is made, such order shall be final upon
the expiration of said 30 days.
(c) If the licensee or applicant requests a hearing
pursuant to this Section the Director shall issue a written
notice of hearing sent to the licensee or applicant by
certified or registered mail at his address, as specified in
the records of the Department, and stating:
(1) the grounds, charges or conduct which justifies
suspension or revocation or denial under this Section;
(2) a specific time for the hearing, which may not
be less than 20 nor more than 30 days after the mailing
of the notice of hearing; and
(3) a specific place for the hearing, which may be
either in the City of Springfield or Chicago or in the
county where the licensee's principal place of business
is located.
(d) Upon the suspension or revocation of a license, the
licensee or other person having possession or custody of such
license shall promptly deliver it to the Director in person
or by mail. The Director shall publish all suspensions and
revocations after such suspensions or revocations become
final in a manner designed to notify interested insurance
companies and other persons.
(e) Any individual whose license is revoked or whose
application is denied pursuant to this Section shall be
ineligible to apply for any license for 3 years. No person
whose license as an insurance producer or limited
representative has been revoked, suspended or denied shall be
employed, contracted or engaged in any insurance related
capacity during the time the revocation, suspension or denial
is in effect. A suspension pursuant to this Section may be
for a period of up to 2 years.
(f) In addition to or instead of a denial, suspension or
revocation of a license pursuant to this Section, the
licensee may be subjected to a civil penalty of up to $1,000
for each cause for denial, suspension or revocation. Such
penalty is enforceable under Section 403A(5) of this Code.
(Source: P.A. 89-318, eff. 1-1-96.)
(215 ILCS 5/508.2) (from Ch. 73, par. 1065.55-2)
Sec. 508.2. Bond required of Insurance Producers.
(1) Each producer and registered firm who places
insurance either directly or indirectly with an insurer with
which the producer or registered firm does not have an agent
contact shall maintain in force while licensed a bond in
favor of the people of the State of Illinois executed by an
authorized surety company and payable to any party injured
under the terms of the bond. The bond shall be continuous in
form and in the amount of $2,500 or 5% of the premiums
brokered in the previous calendar year, whichever is greater,
but not to exceed $50,000 total aggregate liability. The bond
shall be conditioned upon full accounting and due payment to
the person or company entitled thereto, of funds coming into
the insurance producer's possession as an incident to
insurance transactions under the his license or surplus line
insurance transactions under the his license as a surplus
line producer.
(2) Authorized insurance producers of a registered firm
may meet the requirements of this Section with a bond in the
name of the registered firm, continuous in form and in the
amounts set forth in subsection (1) of this Section.
Insurance producers may meet the requirements of this
Section with a bond in the name of an association. An
individual producer remains responsible for assuring that a
producer bond is in effect and is for the correct amount.
The association must have been in existence for 5 years, have
common membership, and been formed for a purpose other than
obtaining a bond.
(3) Such bond shall remain in force and effect until the
surety is released from liability by the Director or until
the bond is canceled by the surety. The surety may cancel the
bond and be released from further liability thereunder upon
30 days' written notice in advance to the Principal Director.
Such cancellation shall not affect any liability incurred or
accrued thereunder before the termination of the 30-day
period. Upon receipt of any notice of cancellation, the
Director shall immediately notify the licensee.
(4) Such license may be revoked shall automatically
terminate upon there being no bond in force, or if the
producer acts without a bond which is required pursuant to
this Section, and the license shall be returned by its lawful
custodian to the Director for cancellation.
(5) If a party injured under the terms of the bond
requests the producer to provide the name of the surety and
the bond number, the producer must provide the information
within 3 working days after receiving the request.
(6) An association may meet the requirements of this
Section for all of its members with a bond in the name of the
association that is continuous in form and in the amounts set
forth in subsection (1) of this Section.
(Source: P.A. 88-313.)
(215 ILCS 5/509.1) (from Ch. 73, par. 1065.56-1)
Sec. 509.1. Fees.
(a) The fees required by this Article are as follows:
(1) A An annual fee of $75 per year for an
insurance producer license;
(2) A fee of $25 for the issuance of a temporary
insurance producer license;
(3) A An annual registration fee of $50 payable
once every 2 years $25 for a business firm to register;
(4) An annual $25 fee for a limited insurance
representative license;
(5) A $25 application fee for the processing of
each request to take the written examination for an
insurance producer license;
(6) An annual registration fee of $500 for an
education provider to register;
(7) A certification fee of $25 for each certified
prelicensing or continuing education course and an annual
fee of $10 for renewing the certification of each such
course; and
(8) A license reinstatement fee of $50 for
reinstating a license which lapsed because the annual fee
was not received by the due date;.
(9) A registration fee of $15 for reinstating a
firm registration that lapsed because the annual fee was
not received by the due date; and.
(10) A fee of $50 payable once every 2 years for a
car rental limited license.
(b) Except as otherwise provided, all fees paid to and
collected by the Director under this Section shall be paid
promptly after receipt thereof, together with a detailed
statement of such fees, into a special fund in the State
Treasury to be known as the Insurance Producer Administration
Fund. The monies deposited into the Insurance Producer
Administration Fund shall be used only for payment of the
expenses of the Department in the execution, administration,
and enforcement of the insurance laws of this State, and
shall be appropriated as otherwise provided by law for the
payment of such expenses with first priority being any
expenses incident to or associated with the administration
and enforcement of this Article.
(Source: P.A. 89-152, eff. 1-1-97; 90-372, eff. 7-1-98;
90-655, eff. 7-30-98.)
(215 ILCS 5/510.2) (from Ch. 73, par. 1065.57-2)
Sec. 510.2. Exemptions from licensing requirements. The
provisions of Sections 492.2, 494.1, 495.1, 495.2, 496.2,
497.1, 498.1, 499.1, 500.1 and 501.2 shall not apply to:
(a) any regularly salaried officer or employee of an
insurance company, who is engaged in the performance of usual
and customary executive, administrative or clerical duties;
(b) salaried employees in the office of an insurance
producer, limited insurance representative, car rental
limited licensee, or registered firm, who devote their full
time to clerical and administrative services, including the
incidental taking of insurance applications and receipt of
premiums in the office of their employer, as long as such
employees do not receive any commissions on such applications
and their compensation is not varied by the volume of
applications or premiums taken or received, except as
authorized under subsection (g) of Section 495.2;
(c) persons who secure and furnish information for the
purpose of group life insurance, annuities, group or blanket
accident and health insurance, or for the purpose of
enrolling individuals under such plans, issuing certificates
under such plans or otherwise assisting in administering such
plans, where no commission is paid for such service;
(d) advisory organizations, according to Article VIIA of
this Code, or persons who furnish information for the purpose
of life or accident and health insurance distributed on a
mass merchandise basis and administered by group methods;
(e) employers or their officers or employees, or the
trustees of any employee trust plan, to the extent that such
employers, officers, employees or trustees are engaged in the
administration or operation of any program of employee
benefits for their own employees or the employees of their
subsidiaries or affiliates, which program involves the use of
insurance issued by an insurance company, as long as such
employers, officers, employees or trustees are not in any
manner compensated, directly or indirectly, by the company
issuing the contracts; or
(f) employees of insurance companies or organizations
employed by insurance companies who are engaging in the
inspection, rating or classification of risks, or in the
supervision of the training of insurance producers, limited
insurance representatives, car rental limited licensees, or
temporary insurance producers, and who are not individually
engaged in the solicitation or negotiation of policies or
contracts for insurance.
(Source: P.A. 83-1299.)
Section 99. Effective date. This Act takes effect
January 1, 2000.
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