Full Text of SB2513 100th General Assembly
SB2513enr 100TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 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 adding | 5 | | Section 401.3 and by changing Section 500-35 as follows: | 6 | | (215 ILCS 5/401.3 new) | 7 | | Sec. 401.3. Advisory council; powers and duties. There is | 8 | | created within the Department an advisory council to review and | 9 | | make recommendations to the Department regarding rules to be | 10 | | adopted with respect to continuing education courses for which | 11 | | the approval of the Department is required under the provisions | 12 | | of this Code. In addition, the advisory council shall make | 13 | | recommendations to the Department regarding rules with respect | 14 | | to course materials, curriculum, and credentials of | 15 | | instructors. | 16 | | The advisory council shall be comprised of 7 members | 17 | | appointed by the Director. One member shall be an educational | 18 | | instructor who has regularly provided educational offerings | 19 | | for more than 5 out of the last 10 years to individuals | 20 | | licensed under this Code. Three members shall be recommended by | 21 | | the leadership of 3 statewide trade organizations whose | 22 | | memberships are primarily composed of individuals licensed | 23 | | under this Code, none of which may come from the same |
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| 1 | | organization. Three members shall represent a domestic | 2 | | company. | 3 | | The members' terms shall be 3 years or until their | 4 | | successors are appointed, and the expiration of their terms | 5 | | shall be staggered. No individual may serve more than 3 | 6 | | consecutive terms. | 7 | | The Director shall appoint an employee of the Department to | 8 | | serve as the chairperson of the advisory council, ex officio, | 9 | | without a vote. | 10 | | Four voting advisory council members shall constitute a | 11 | | quorum. A quorum is necessary for all advisory council | 12 | | decisions and recommendations.
| 13 | | (215 ILCS 5/500-35)
| 14 | | (Section scheduled to be repealed on January 1, 2027)
| 15 | | Sec. 500-35. License.
| 16 | | (a) Unless denied a license pursuant to Section 500-70, | 17 | | persons who have met
the
requirements of Sections 500-25 and | 18 | | 500-30 shall be issued a 2-year insurance
producer license.
An | 19 | | insurance producer may receive qualification for a license in | 20 | | one or more of
the following
lines of authority:
| 21 | | (1) Life: insurance coverage on human lives including | 22 | | benefits of
endowment
and annuities, and may include | 23 | | benefits in the event of death or dismemberment
by
accident | 24 | | and benefits for disability income.
| 25 | | (2) Variable life and variable annuity products: |
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| 1 | | insurance coverage
provided
under variable life insurance | 2 | | contracts and variable annuities.
| 3 | | (3) Accident and health or sickness: insurance | 4 | | coverage for sickness,
bodily
injury, or accidental death | 5 | | and may include benefits for disability income.
| 6 | | (4) Property: insurance coverage for the direct or | 7 | | consequential loss or
damage to property of every kind.
| 8 | | (5) Casualty: insurance coverage against legal | 9 | | liability, including that
for
death, injury, or disability | 10 | | or damage to real or personal property.
| 11 | | (6) Personal lines: property and casualty insurance | 12 | | coverage sold to
individuals and families for primarily | 13 | | noncommercial purposes.
| 14 | | (7) Any other line of insurance permitted under State | 15 | | laws or rules.
| 16 | | (b) An insurance producer license shall remain in effect | 17 | | unless revoked or
suspended
as long as the fee set forth in | 18 | | Section 500-135 is paid and education
requirements for resident
| 19 | | individual producers are met by the due date.
| 20 | | (1) Before each license renewal, an insurance producer | 21 | | must satisfactorily
complete at least 24 hours of course | 22 | | study in accordance with rules prescribed
by the
Director. | 23 | | Three of the 24 hours of course study must consist of | 24 | | classroom or webinar ethics instruction. The Director may | 25 | | not approve a course of study unless the course
provides | 26 | | for
classroom, seminar, webinar, or self-study instruction |
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| 1 | | methods. A course given in a
combination
instruction method | 2 | | of classroom, seminar, webinar, or self-study shall be | 3 | | deemed to
be a self-study course unless the classroom, | 4 | | seminar, or webinar certified hours meets
or exceeds | 5 | | two-thirds
of total hours certified for the course. The | 6 | | self-study material used in the
combination
course must be | 7 | | directly related to and complement the classroom portion of | 8 | | the
course in
order to be considered for credit. An | 9 | | instruction method other than classroom
or seminar
shall be | 10 | | considered as self-study methodology. Self-study credit | 11 | | hours
require the
successful completion of an examination | 12 | | covering the self-study material. The
examination may not | 13 | | be self-evaluated. However, if the self-study material is
| 14 | | completed
through the use of an approved computerized | 15 | | interactive format whereby the
computer
validates the | 16 | | successful completion of the self-study material, no | 17 | | additional
examination
is required. The self-study credit | 18 | | hours contained in a certified course shall
be considered
| 19 | | classroom hours when at least two-thirds of the hours are | 20 | | given as classroom or
seminar
instruction.
| 21 | | (2) An insurance producer license automatically | 22 | | terminates when an
insurance
producer fails to | 23 | | successfully meet the requirements of item (1) of | 24 | | subsection
(b) of this
Section. The producer must complete | 25 | | the course in advance of the renewal date
to allow
the | 26 | | education provider time to report the credit to the |
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| 1 | | Department.
| 2 | | (c) A provider of a pre-licensing or continuing education | 3 | | course required
by Section
500-30 and this Section must pay a | 4 | | registration fee and a course certification
fee for each course
| 5 | | being certified as provided by Section 500-135.
| 6 | | (d) An individual insurance producer who allows his or her | 7 | | license to lapse
may,
within 12 months after the due date of | 8 | | the renewal fee, be issued a license
without the necessity
of | 9 | | passing a written examination. However, a penalty in the amount | 10 | | of double
the unpaid renewal
fee shall be required after the | 11 | | due date.
| 12 | | (e) A licensed insurance producer who is unable to comply | 13 | | with license
renewal
procedures due to military service may | 14 | | request a waiver of those procedures.
| 15 | | (f) The license must contain the licensee's name, address, | 16 | | and personal
identification
number, the date of issuance, the | 17 | | lines of authority, the expiration date, and
any other
| 18 | | information the Director deems necessary.
| 19 | | (g) Licensees must inform the Director by any means | 20 | | acceptable to the
Director of a
change of address within 30 | 21 | | days after the change.
| 22 | | (h) In order to assist in the performance of the Director's | 23 | | duties, the
Director may
contract with a non-governmental | 24 | | entity including the National Association of
Insurance
| 25 | | Commissioners (NAIC), or any affiliates or subsidiaries that | 26 | | the NAIC oversees,
to perform any
ministerial functions, |
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| 1 | | including collection of fees, related to producer
licensing | 2 | | that the Director
and the non-governmental entity may deem | 3 | | appropriate.
| 4 | | (Source: P.A. 96-839, eff. 1-1-10; 97-113, eff. 7-14-11 .)
| 5 | | Section 99. Effective date. This Act takes effect upon | 6 | | becoming law.
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