97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1607

 

Introduced 2/9/2011, by Sen. Mike Jacobs

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/155.43 new
215 ILCS 5/424  from Ch. 73, par. 1031

    Amends the Illinois Insurance Code. Provides that no insurance producer shall use a senior-specific certification or professional designation that indicates or implies in such a way as to mislead a purchaser or prospective purchaser that the insurance producer has a special certification or training in advising or servicing seniors in connection with the solicitation, sale, or purchase of a life insurance or annuity product or in the provision of advice as to the value of or the advisability of purchasing or selling a life insurance or annuity product, either directly or indirectly through publications, writings, or by issuing or promulgating analyses or reports related to a life insurance or annuity product. Defines "use of senior-specific certifications or professional designations". Makes other changes. Effective immediately.


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A BILL FOR

 

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1    AN ACT concerning insurance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 424 and by adding Section 155.43 as follows:
 
6    (215 ILCS 5/155.43 new)
7    Sec. 155.43. Misrepresentation of Senior-Specific
8Certification.
9    (a) No insurance producer shall use a senior-specific
10certification or professional designation that indicates or
11implies in such a way as to mislead a purchaser or prospective
12purchaser that the insurance producer has a special
13certification or training in advising or servicing seniors in
14connection with the solicitation, sale, or purchase of a life
15insurance or annuity product or in the provision of advice as
16to the value of or the advisability of purchasing or selling a
17life insurance or annuity product, either directly or
18indirectly through publications, writings, or by issuing or
19promulgating analyses or reports related to a life insurance or
20annuity product.
21    (b) "Use of senior-specific certifications or professional
22designations" includes, but is not limited to, all of the
23following:

 

 

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1        (1) Use of a certification or professional designation
2    by an insurance producer who has not actually earned or is
3    otherwise ineligible to use such certification or
4    designation.
5        (2) Use of a nonexistent or self-conferred
6    certification or professional designation.
7        (3) Use of a certification or professional designation
8    that indicates or implies a level of occupational
9    qualifications obtained through education, training, or
10    experience that the insurance producer using the
11    certification or designation does not have.
12        (4) Use of a certification or professional designation
13    that was obtained from a certifying or designating
14    organization that:
15            (i) is primarily engaged in the business of
16        instruction in sales or marketing;
17            (ii) does not have reasonable standards or
18        procedures for assuring the competency of its
19        certificate holders or designees;
20            (iii) does not have reasonable standards or
21        procedures for monitoring and disciplining its
22        certificate holders or designees for improper or
23        unethical conduct; or
24            (iv) does not have reasonable continuing education
25        requirements for its certificate holders or designees
26        in order to maintain the certificate or designation.

 

 

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1    (c) There is a rebuttable presumption that a certifying or
2designating organization is not disqualified under this
3Section if the certification or designation issued from the
4organization does not primarily apply to sales or marketing and
5if the organization or the certification or designation in
6question has been accredited by any of the following entities:
7        (i) the American National Standards Institute;
8        (ii) the National Commission for Certifying Agencies;
9    or
10        (iii) any organization included on the list
11    "Accrediting Agencies Recognized for Title IV Purposes"
12    prepared by the United States Department of Education.
13    (d) In determining whether a combination of words or an
14acronym standing for a combination of words constitutes a
15certification or professional designation indicating or
16implying that a person has a special certification or training
17in advising or servicing seniors, the Department of Insurance
18shall consider all of the following:
19        (1) Use of one or more words, such as "senior",
20    "retirement", "elder", or like words combined with one or
21    more words, such as "certified", "registered",
22    "chartered", "advisor", "specialist", "consultant",
23    "planner", or like words in the name of the certification
24    or professional designation.
25        (2) The manner in which the words listed in paragraph
26    (1) of subsection (b) are combined.

 

 

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1    (e) For purposes of this Section, a job title within an
2organization that is licensed or registered by a State or
3federal financial services regulatory agency is not a
4certification or professional designation, unless it is used in
5a manner that would confuse or mislead a reasonable consumer,
6if the job title indicates seniority or standing within the
7organization or specifies an individual's area of
8specialization within the organization. For purposes of this
9subsection (e), "financial services regulatory agency"
10includes, but is not limited to, an agency that regulates
11insurers, insurance producers, broker-dealers, investment
12advisers, or investment companies.
 
13    (215 ILCS 5/424)  (from Ch. 73, par. 1031)
14    Sec. 424. Unfair methods of competition and unfair or
15deceptive acts or practices defined. The following are hereby
16defined as unfair methods of competition and unfair and
17deceptive acts or practices in the business of insurance:
18    (1) The commission by any person of any one or more of the
19acts defined or prohibited by Sections 134, 143.24c, 147, 148,
20149, 151, 155.22, 155.22a, 155.42, 236, 237, 364, and 469 of
21this Code.
22    (2) Entering into any agreement to commit, or by any
23concerted action committing, any act of boycott, coercion or
24intimidation resulting in or tending to result in unreasonable
25restraint of, or monopoly in, the business of insurance.

 

 

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1    (3) Making or permitting, in the case of insurance of the
2types enumerated in Classes 1, 2, and 3 of Section 4, any
3unfair discrimination between individuals or risks of the same
4class or of essentially the same hazard and expense element
5because of the race, color, religion, or national origin of
6such insurance risks or applicants. The application of this
7Article to the types of insurance enumerated in Class 1 of
8Section 4 shall in no way limit, reduce, or impair the
9protections and remedies already provided for by Sections 236
10and 364 of this Code or any other provision of this Code.
11    (4) Engaging in any of the acts or practices defined in or
12prohibited by Sections 154.5 through 154.8 of this Code.
13    (5) Making or charging any rate for insurance against
14losses arising from the use or ownership of a motor vehicle
15which requires a higher premium of any person by reason of his
16physical handicap, race, color, religion, or national origin.
17(Source: P.A. 92-399, eff. 8-16-01; 92-651, eff. 7-11-02;
1892-669, eff. 1-1-03.)
 
19    Section 99. Effective date. This Act takes effect upon
20becoming law.