Illinois General Assembly - Full Text of HB0241
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Full Text of HB0241  102nd General Assembly




HB0241 EngrossedLRB102 10112 BMS 15434 b

1    AN ACT concerning regulation.
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 Sections 500-30, 1510, and 1565 as follows:
6    (215 ILCS 5/500-30)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 500-30. Application for license.
9    (a) An individual applying for a resident insurance
10producer license must make application on a form specified by
11the Director and declare under penalty of refusal, suspension,
12or revocation of the license that the statements made in the
13application are true, correct, and complete to the best of the
14individual's knowledge and belief. Before approving the
15application, the Director must find that the individual:
16        (1) is at least 18 years of age;
17        (2) is sufficiently rehabilitated in cases in which
18    the applicant has committed any act that is a ground for
19    denial, suspension, or revocation set forth in Section
20    500-70, other than convictions set forth in paragraph (6)
21    of subsection (a) of Section 500-70; with respect to
22    applicants with convictions set forth in paragraph (6) of
23    subsection (a) of Section 500-70, the Director shall



HB0241 Engrossed- 2 -LRB102 10112 BMS 15434 b

1    determine in accordance with Section 500-76 that the
2    conviction will not impair the ability of the applicant to
3    engage in the position for which a license is sought;
4        (3) has completed, if required by the Director, a
5    pre-licensing course of study before the insurance exam
6    for the lines of authority for which the individual has
7    applied (an individual who successfully completes the Fire
8    and Casualty pre-licensing courses also meets the
9    requirements for Personal Lines-Property and Casualty);
10        (4) has paid the fees set forth in Section 500-135;
11    and
12        (5) has successfully passed the examinations for the
13    lines of authority for which the person has applied.
14    (b) A pre-licensing course of study for each class of
15insurance for which an insurance producer license is requested
16must be established in accordance with rules prescribed by the
17Director and must consist of the following minimum hours:
18Class of InsuranceNumber of
20Life (Class 1(a))20
21Accident and Health (Class 1(b) or 2(a))20
22Fire (Class 3)20
23Casualty (Class 2)20
24Personal Lines-Property Casualty20
25Motor Vehicle (Class 2(b) or 3(e))12.5
26    7.5 hours of each pre-licensing course must be completed



HB0241 Engrossed- 3 -LRB102 10112 BMS 15434 b

1in a classroom or webinar setting, except Motor Vehicle, which
2would require 5 hours in a classroom or webinar setting.
3    (c) A business entity acting as an insurance producer must
4obtain an insurance producer license. Application must be made
5using the Uniform Business Entity Application. Before
6approving the application, the Director must find that:
7        (1) the business entity has paid the fees set forth in
8    Section 500-135; and
9        (2) the business entity has designated a licensed
10    producer responsible for the business entity's compliance
11    with the insurance laws and rules of this State.
12    (d) The Director may require any documents reasonably
13necessary to verify the information contained in an
15(Source: P.A. 100-286, eff. 1-1-18.)
16    (215 ILCS 5/1510)
17    Sec. 1510. Definitions. In this Article:
18    "Adjusting a claim for loss or damage covered by an
19insurance contract" means negotiating values, damages, or
20depreciation or applying the loss circumstances to insurance
21policy provisions.
22    "Business entity" means a corporation, association,
23partnership, limited liability company, limited liability
24partnership, or other legal entity.
25    "Department" means the Department of Insurance.



HB0241 Engrossed- 4 -LRB102 10112 BMS 15434 b

1    "Director" means the Director of Insurance.
2    "Fingerprints" means an impression of the lines on the
3finger taken for the purpose of identification. The impression
4may be electronic or in ink converted to electronic format.
5    "Home state" means the District of Columbia and any state
6or territory of the United States where the public adjuster's
7principal place of residence or principal place of business is
8located. If neither the state in which the public adjuster
9maintains the principal place of residence nor the state in
10which the public adjuster maintains the principal place of
11business has a substantially similar law governing public
12adjusters, the public adjuster may declare another state in
13which it becomes licensed and acts as a public adjuster to be
14the home state.
15    "Individual" means a natural person.
16    "Person" means an individual or a business entity.
17    "Public adjuster" means any person who, for compensation
18or any other thing of value on behalf of the insured:
19        (i) acts or aids, solely in relation to first party
20    claims arising under insurance contracts that insure the
21    real or personal property of the insured, on behalf of an
22    insured in adjusting a claim for loss or damage covered by
23    an insurance contract;
24        (ii) advertises for employment as a public adjuster of
25    insurance claims or solicits business or represents
26    himself or herself to the public as a public adjuster of



HB0241 Engrossed- 5 -LRB102 10112 BMS 15434 b

1    first party insurance claims for losses or damages arising
2    out of policies of insurance that insure real or personal
3    property; or
4        (iii) directly or indirectly solicits business,
5    investigates or adjusts losses, or advises an insured
6    about first party claims for losses or damages arising out
7    of policies of insurance that insure real or personal
8    property for another person engaged in the business of
9    adjusting losses or damages covered by an insurance policy
10    for the insured.
11    "Uniform individual application" means the current version
12of the National Association of Directors (NAIC) Uniform
13Individual Application for resident and nonresident
15    "Uniform business entity application" means the current
16version of the National Association of Insurance Commissioners
17(NAIC) Uniform Business Entity Application for resident and
18nonresident business entities.
19    "Webinar" means an online educational presentation during
20which a live and participating instructor and participating
21viewers, whose attendance is periodically verified throughout
22the presentation, actively engage in discussion and in the
23submission and answering of questions.
24(Source: P.A. 96-1332, eff. 1-1-11.)
25    (215 ILCS 5/1565)



HB0241 Engrossed- 6 -LRB102 10112 BMS 15434 b

1    Sec. 1565. Continuing education.
2    (a) An individual who holds a public adjuster license and
3who is not exempt under subsection (b) of this Section shall
4satisfactorily complete a minimum of 24 hours of continuing
5education courses, including 3 hours of classroom or webinar
6ethics instruction, reported on a biennial basis in
7conjunction with the license renewal cycle.
8    The Director may not approve a course of study unless the
9course provides for classroom, seminar, or self-study
10instruction methods. A course given in a combination
11instruction method of classroom or seminar and self-study
12shall be deemed to be a self-study course unless the classroom
13or seminar certified hours meets or exceeds two-thirds of the
14total hours certified for the course. The self-study material
15used in the combination course must be directly related to and
16complement the classroom portion of the course in order to be
17considered for credit. An instruction method other than
18classroom or seminar shall be considered as self-study
19methodology. Self-study credit hours require the successful
20completion of an examination covering the self-study material.
21The examination may not be self-evaluated. However, if the
22self-study material is completed through the use of an
23approved computerized interactive format whereby the computer
24validates the successful completion of the self-study
25material, no additional examination is required. The
26self-study credit hours contained in a certified course shall



HB0241 Engrossed- 7 -LRB102 10112 BMS 15434 b

1be considered classroom hours when at least two-thirds of the
2hours are given as classroom or seminar instruction.
3    The public adjuster must complete the course in advance of
4the renewal date to allow the education provider time to
5report the credit to the Department.
6    (b) This Section shall not apply to:
7        (1) licensees not licensed for one full year prior to
8    the end of the applicable continuing education biennium;
9    or
10        (2) licensees holding nonresident public adjuster
11    licenses who have met the continuing education
12    requirements of their home state and whose home state
13    gives credit to residents of this State on the same basis.
14    (c) Only continuing education courses approved by the
15Director shall be used to satisfy the continuing education
16requirement of subsection (a) of this Section.
17(Source: P.A. 96-1332, eff. 1-1-11.)
18    Section 99. Effective date. This Act takes effect upon
19becoming law.