92nd General Assembly
Summary of SB1996
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Short description: 
INS PRODUCER COMMISSIONS                                                   

Synopsis of Bill as introduced:
        Amends the  Illinois  Insurance  Code  in  relation  to  producer      
   compensation  that  is  not  deductible  from premiums.  Provides that      
   records regarding notice of certain fees must be retained for 3  years      
   rather  than indefinitely.  Provides that when a contract or policy is      
   cancelled, the amount to be refunded to a customer shall be calculated      
   on a pro-rated basis for the remaining time  the  policy  will  be  in      
   force  limited  to  a  maximum  of  90  days.   Provides that if a fee      
   disclosure to the consumer documents that  the  producer  performed  a      
   service  corresponding  to  the  policy  and provides that the fee was      
   fully earned, the  fee  is  fully  earned  at  the  inception  of  the      
   disclosure statement's execution. Effective immediately.                    
        SENATE AMENDMENT NO. 1.                                                
        Requires producers and business entities to maintain  records  of      
   fee  disclosures  for 7, rather than 3, years. Provides for refunds on      
   cancelled policies if the policy is cancelled within 90 days following      
   the inception  date  and  provides  for  a  prorated  refund.  Deletes      
   provision limiting the refund to a period not exceeding 90 days.            
          FISCAL NOTE (Department of Insurance)                                
          SB 1996 would create no fiscal impact on the Department.             
Last action on Bill: PUBLIC ACT.............................. 92-0587

   Last action date: JUN-26-2002

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   0     SENATE -   1


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