Insurance Committee

Filed: 2/26/2008

 

 


 

 


 
09500HB4379ham001 LRB095 14317 AMC 47050 a

1
AMENDMENT TO HOUSE BILL 4379

2     AMENDMENT NO. ______. Amend House Bill 4379 by replacing
3 everything after the enacting clause with the following:
 
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

 

 

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1     denial, suspension, or revocation set forth in Section
2     500-70;
3         (3) has completed, if required by the Director, a
4     pre-licensing course of study for the lines of authority
5     for which the individual has applied (an individual who
6     successfully completes the Fire and Casualty pre-licensing
7     courses also meets the requirements for Personal
8     Lines-Property and Casualty);
9         (4) has paid the fees set forth in Section 500-135; and
10         (5) has successfully passed the examinations for the
11     lines of authority for which the person has applied.
12     (b) A pre-licensing course of study for each class of
13 insurance for which an insurance producer license is requested
14 must be established in accordance with rules prescribed by the
15 Director and must consist of the following minimum hours:
16Class of InsuranceNumber of
17Hours
18Life (Class 1 (a))20 15.0
19Accident and Health (Class 1(b) or 2(a))20 15.0
20Fire (Class 3)20 15.0
21Casualty (Class 2)20 15.0
22Personal Lines-Property Casualty20 15.0
23Motor Vehicle (Class 2(b) or 3(e))12.5 7.5
24     Notwithstanding any other rulemaking authority that may
25 exist, neither the Governor nor any agency or agency head under
26 the jurisdiction of the Governor has any authority to make or

 

 

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

 

 

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1     Section 500-135; and
2         (2) the business entity has designated a licensed
3     producer responsible for the business entity's compliance
4     with the insurance laws and rules of this State.
5     (d) The Director may require any documents reasonably
6 necessary to verify the information contained in an
7 application.
8 (Source: P.A. 92-386, eff. 1-1-02.)
 
9     (215 ILCS 5/500-35)
10     Sec. 500-35. License.
11     (a) Unless denied a license pursuant to Section 500-70,
12 persons who have met the requirements of Sections 500-25 and
13 500-30 shall be issued a 2-year insurance producer license. An
14 insurance producer may receive qualification for a license in
15 one or more of the following lines of authority:
16         (1) Life: insurance coverage on human lives including
17     benefits of endowment and annuities, and may include
18     benefits in the event of death or dismemberment by accident
19     and benefits for disability income.
20         (2) Variable life and variable annuity products:
21     insurance coverage provided under variable life insurance
22     contracts and variable annuities.
23         (3) Accident and health or sickness: insurance
24     coverage for sickness, bodily injury, or accidental death
25     and may include benefits for disability income.

 

 

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

 

 

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1     be directly related to and complement the classroom portion
2     of the course in order to be considered for credit. An
3     instruction method other than classroom or seminar shall be
4     considered as self-study methodology. Self-study credit
5     hours require the successful completion of an examination
6     covering the self-study material. The examination may not
7     be self-evaluated. However, if the self-study material is
8     completed through the use of an approved computerized
9     interactive format whereby the computer validates the
10     successful completion of the self-study material, no
11     additional examination is required. The self-study credit
12     hours contained in a certified course shall be considered
13     classroom hours when at least two-thirds of the hours are
14     given as classroom or seminar instruction.
15         Notwithstanding any other rulemaking authority that
16     may exist, neither the Governor nor any agency or agency
17     head under the jurisdiction of the Governor has any
18     authority to make or promulgate rules to implement or
19     enforce the provisions of this amendatory Act of the 95th
20     General Assembly. If, however, the Governor believes that
21     rules are necessary to implement or enforce the provisions
22     of this amendatory Act of the 95th General Assembly, the
23     Governor may suggest rules to the General Assembly by
24     filing them with the Clerk of the House and the Secretary
25     of the Senate and by requesting that the General Assembly
26     authorize such rulemaking by law, enact those suggested

 

 

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1     rules into law, or take any other appropriate action in the
2     General Assembly's discretion. Nothing contained in this
3     amendatory Act of the 95th General Assembly shall be
4     interpreted to grant rulemaking authority under any other
5     Illinois statute where such authority is not otherwise
6     explicitly given. For the purposes of this amendatory Act
7     of the 95th General Assembly, "rules" is given the meaning
8     contained in Section 1-70 of the Illinois Administrative
9     Procedure Act, and "agency" and "agency head" are given the
10     meanings contained in Sections 1-20 and 1-25 of the
11     Illinois Administrative Procedure Act to the extent that
12     such definitions apply to agencies or agency heads under
13     the jurisdiction of the Governor.
14         (2) An insurance producer license automatically
15     terminates when an insurance producer fails to
16     successfully meet the requirements of item (1) of
17     subsection (b) of this Section. The producer must complete
18     the course in advance of the renewal date to allow the
19     education provider time to report the credit to the
20     Department.
21     (c) A provider of a pre-licensing or continuing education
22 course required by Section 500-30 and this Section must pay a
23 registration fee and a course certification fee for each course
24 being certified as provided by Section 500-135.
25     (d) An individual insurance producer who allows his or her
26 license to lapse may, within 12 months after the due date of

 

 

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1 the renewal fee, be issued a license without the necessity of
2 passing a written examination. However, a penalty in the amount
3 of double the unpaid renewal fee shall be required after the
4 due date.
5     (e) A licensed insurance producer who is unable to comply
6 with license renewal procedures due to military service may
7 request a waiver of those procedures.
8     (f) The license must contain the licensee's name, address,
9 and personal identification number, the date of issuance, the
10 lines of authority, the expiration date, and any other
11 information the Director deems necessary.
12     (g) Licensees must inform the Director by any means
13 acceptable to the Director of a change of address within 30
14 days after the change.
15     (h) In order to assist in the performance of the Director's
16 duties, the Director may contract with a non-governmental
17 entity including the National Association of Insurance
18 Commissioners (NAIC), or any affiliates or subsidiaries that
19 the NAIC oversees, to perform any ministerial functions,
20 including collection of fees, related to producer licensing
21 that the Director and the non-governmental entity may deem
22 appropriate.
23 (Source: P.A. 92-386, eff. 1-1-02.)".