HB4379 Engrossed LRB095 14317 KBJ 40206 b

1     AN ACT concerning insurance.
 
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 500-30 and 500-35 as follows:
 
6     (215 ILCS 5/500-30)
7     Sec. 500-30. Application for license.
8     (a) An individual applying for a resident insurance
9 producer license must make application on a form specified by
10 the Director and declare under penalty of refusal, suspension,
11 or revocation of the license that the statements made in the
12 application are true, correct, and complete to the best of the
13 individual's knowledge and belief. Before approving the
14 application, the Director must find that the individual:
15         (1) is at least 18 years of age;
16         (2) has not committed any act that is a ground for
17     denial, suspension, or revocation set forth in Section
18     500-70;
19         (3) has completed, if required by the Director, a
20     pre-licensing course of study before the insurance exam for
21     the lines of authority for which the individual has applied
22     (an individual who successfully completes the Fire and
23     Casualty pre-licensing courses also meets the requirements

 

 

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1     for Personal Lines-Property and Casualty);
2         (4) has paid the fees set forth in Section 500-135; and
3         (5) has successfully passed the examinations for the
4     lines of authority for which the person has applied.
5     (b) A pre-licensing course of study for each class of
6 insurance for which an insurance producer license is requested
7 must be established in accordance with rules prescribed by the
8 Director and must consist of the following minimum hours:
9Class of InsuranceNumber of
10Hours
11Life (Class 1 (a))20 15.0
12Accident and Health (Class 1(b) or 2(a))20 15.0
13Fire (Class 3)20 15.0
14Casualty (Class 2)20 15.0
15Personal Lines-Property Casualty20 15.0
16Motor Vehicle (Class 2(b) or 3(e))12.5 7.5
17     7.5 hours of each pre-licensing course must be completed in
18 a classroom setting, except Motor Vehicle, which would require
19 5 hours in a classroom setting.
20     Notwithstanding any other rulemaking authority that may
21 exist, neither the Governor nor any agency or agency head under
22 the jurisdiction of the Governor has any authority to make or
23 promulgate rules to implement or enforce the provisions of this
24 amendatory Act of the 95th General Assembly. If, however, the
25 Governor believes that rules are necessary to implement or
26 enforce the provisions of this amendatory Act of the 95th

 

 

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1 General Assembly, the Governor may suggest rules to the General
2 Assembly by filing them with the Clerk of the House and the
3 Secretary of the Senate and by requesting that the General
4 Assembly authorize such rulemaking by law, enact those
5 suggested rules into law, or take any other appropriate action
6 in the General Assembly's discretion. Nothing contained in this
7 amendatory Act of the 95th General Assembly shall be
8 interpreted to grant rulemaking authority under any other
9 Illinois statute where such authority is not otherwise
10 explicitly given. For the purposes of this amendatory Act of
11 the 95th General Assembly, "rules" is given the meaning
12 contained in Section 1-70 of the Illinois Administrative
13 Procedure Act, and "agency" and "agency head" are given the
14 meanings contained in Sections 1-20 and 1-25 of the Illinois
15 Administrative Procedure Act to the extent that such
16 definitions apply to agencies or agency heads under the
17 jurisdiction of the Governor.
18     (c) A business entity acting as an insurance producer must
19 obtain an insurance producer license. Application must be made
20 using the Uniform Business Entity Application. Before
21 approving the application, the Director must find that:
22         (1) the business entity has paid the fees set forth in
23     Section 500-135; and
24         (2) the business entity has designated a licensed
25     producer responsible for the business entity's compliance
26     with the insurance laws and rules of this State.

 

 

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1     (d) The Director may require any documents reasonably
2 necessary to verify the information contained in an
3 application.
4 (Source: P.A. 92-386, eff. 1-1-02.)
 
5     (215 ILCS 5/500-35)
6     Sec. 500-35. License.
7     (a) Unless denied a license pursuant to Section 500-70,
8 persons who have met the requirements of Sections 500-25 and
9 500-30 shall be issued a 2-year insurance producer license. An
10 insurance producer may receive qualification for a license in
11 one or more of the following lines of authority:
12         (1) Life: insurance coverage on human lives including
13     benefits of endowment and annuities, and may include
14     benefits in the event of death or dismemberment by accident
15     and benefits for disability income.
16         (2) Variable life and variable annuity products:
17     insurance coverage provided under variable life insurance
18     contracts and variable annuities.
19         (3) Accident and health or sickness: insurance
20     coverage for sickness, bodily injury, or accidental death
21     and may include benefits for disability income.
22         (4) Property: insurance coverage for the direct or
23     consequential loss or damage to property of every kind.
24         (5) Casualty: insurance coverage against legal
25     liability, including that for death, injury, or disability

 

 

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1     or damage to real or personal property.
2         (6) Personal lines: property and casualty insurance
3     coverage sold to individuals and families for primarily
4     noncommercial purposes.
5         (7) Any other line of insurance permitted under State
6     laws or rules.
7     (b) An insurance producer license shall remain in effect
8 unless revoked or suspended as long as the fee set forth in
9 Section 500-135 is paid and education requirements for resident
10 individual producers are met by the due date.
11         (1) Before each license renewal, an insurance producer
12     must satisfactorily complete at least 24 30 hours of course
13     study in accordance with rules prescribed by the Director.
14     Three of the 24 hours of course study must consist of
15     classroom ethics instruction. The Director may not approve
16     a course of study unless the course provides for classroom,
17     seminar, or self-study instruction methods. A course given
18     in a combination instruction method of classroom or seminar
19     and self-study shall be deemed to be a self-study course
20     unless the classroom or seminar certified hours meets or
21     exceeds two-thirds of total hours certified for the course.
22     The self-study material used in the combination course must
23     be directly related to and complement the classroom portion
24     of the course in order to be considered for credit. An
25     instruction method other than classroom or seminar shall be
26     considered as self-study methodology. Self-study credit

 

 

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1     hours require the successful completion of an examination
2     covering the self-study material. The examination may not
3     be self-evaluated. However, if the self-study material is
4     completed through the use of an approved computerized
5     interactive format whereby the computer validates the
6     successful completion of the self-study material, no
7     additional examination is required. The self-study credit
8     hours contained in a certified course shall be considered
9     classroom hours when at least two-thirds of the hours are
10     given as classroom or seminar instruction.
11         Notwithstanding any other rulemaking authority that
12     may exist, neither the Governor nor any agency or agency
13     head under the jurisdiction of the Governor has any
14     authority to make or promulgate rules to implement or
15     enforce the provisions of this amendatory Act of the 95th
16     General Assembly. If, however, the Governor believes that
17     rules are necessary to implement or enforce the provisions
18     of this amendatory Act of the 95th General Assembly, the
19     Governor may suggest rules to the General Assembly by
20     filing them with the Clerk of the House and the Secretary
21     of the Senate and by requesting that the General Assembly
22     authorize such rulemaking by law, enact those suggested
23     rules into law, or take any other appropriate action in the
24     General Assembly's discretion. Nothing contained in this
25     amendatory Act of the 95th General Assembly shall be
26     interpreted to grant rulemaking authority under any other

 

 

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1     Illinois statute where such authority is not otherwise
2     explicitly given. For the purposes of this amendatory Act
3     of the 95th General Assembly, "rules" is given the meaning
4     contained in Section 1-70 of the Illinois Administrative
5     Procedure Act, and "agency" and "agency head" are given the
6     meanings contained in Sections 1-20 and 1-25 of the
7     Illinois Administrative Procedure Act to the extent that
8     such definitions apply to agencies or agency heads under
9     the jurisdiction of the Governor.
10         (2) An insurance producer license automatically
11     terminates when an insurance producer fails to
12     successfully meet the requirements of item (1) of
13     subsection (b) of this Section. The producer must complete
14     the course in advance of the renewal date to allow the
15     education provider time to report the credit to the
16     Department.
17     (c) A provider of a pre-licensing or continuing education
18 course required by Section 500-30 and this Section must pay a
19 registration fee and a course certification fee for each course
20 being certified as provided by Section 500-135.
21     (d) An individual insurance producer who allows his or her
22 license to lapse may, within 12 months after the due date of
23 the renewal fee, be issued a license without the necessity of
24 passing a written examination. However, a penalty in the amount
25 of double the unpaid renewal fee shall be required after the
26 due date.

 

 

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1     (e) A licensed insurance producer who is unable to comply
2 with license renewal procedures due to military service may
3 request a waiver of those procedures.
4     (f) The license must contain the licensee's name, address,
5 and personal identification number, the date of issuance, the
6 lines of authority, the expiration date, and any other
7 information the Director deems necessary.
8     (g) Licensees must inform the Director by any means
9 acceptable to the Director of a change of address within 30
10 days after the change.
11     (h) In order to assist in the performance of the Director's
12 duties, the Director may contract with a non-governmental
13 entity including the National Association of Insurance
14 Commissioners (NAIC), or any affiliates or subsidiaries that
15 the NAIC oversees, to perform any ministerial functions,
16 including collection of fees, related to producer licensing
17 that the Director and the non-governmental entity may deem
18 appropriate.
19 (Source: P.A. 92-386, eff. 1-1-02.)