093_SB1150enr

 
SB1150 Enrolled                      LRB093 09649 LRD 09888 b

 1        AN ACT concerning insurance.

 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
 5    changing  Sections  500-10  and  500-135  and  adding Section
 6    500-107 as follows:

 7        (215 ILCS 5/500-10)
 8        Sec.   500-10.  Definitions.    In   addition   to    the
 9    definitions   in   Section  2  of  the  Code,  the  following
10    definitions apply to this Article:
11        "Business  entity"  means  a  corporation,   association,
12    partnership,  limited  liability  company,  limited liability
13    partnership, or other legal entity.
14        "Car  rental  limited  line  licensee"  means  a   person
15    authorized  under  the  provisions of Section 500-105 to sell
16    certain coverages relating to the rental of vehicles.
17        "Home state" means the District of Columbia and any state
18    or territory of the  United  States  in  which  an  insurance
19    producer maintains his or her principal place of residence or
20    principal  place  of  business  and  is licensed to act as an
21    insurance producer.
22        "Insurance" means  any  of  the  lines  of  authority  in
23    Section  500-35,  any  health  care  plan  under  the  Health
24    Maintenance Organization Act, or any limited health care plan
25    under the Limited Health Service Organization Act.
26        "Insurance  producer"  means  a  person  required  to  be
27    licensed  under  the  laws of this State to sell, solicit, or
28    negotiate insurance.
29        "Insurer" means a company as defined in subsection (e) of
30    Section 2 of this Code, a health maintenance organization  as
31    defined  in  the  Health  Maintenance  Organization Act, or a
 
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 1    limited health service organization as defined in the Limited
 2    Health Service Organization Act.
 3        "License"  means  a  document  issued  by  the   Director
 4    authorizing an individual to act as an insurance producer for
 5    the   lines   of  authority  specified  in  the  document  or
 6    authorizing  a  business  entity  to  act  as  an   insurance
 7    producer.   The license itself does not create any authority,
 8    actual, apparent, or inherent, in the holder to represent  or
 9    commit an insurance carrier.
10        "Limited  lines insurance" means those lines of insurance
11    defined in Section 500-100 or any  other  line  of  insurance
12    that  the Director may deem it necessary to recognize for the
13    purposes of complying with subsection (e) of Section 500-40.
14        "Limited lines producer" means a person authorized by the
15    Director  to  sell,  solicit,  or  negotiate  limited   lines
16    insurance.
17        "Negotiate"  means the act of conferring directly with or
18    offering  advice  directly  to  a  purchaser  or  prospective
19    purchaser of a particular contract  of  insurance  concerning
20    any  of the substantive benefits, terms, or conditions of the
21    contract, provided that the person engaged in that act either
22    sells  insurance  or  obtains  insurance  from  insurers  for
23    purchasers.
24        "Person" means an individual or a business entity.
25        "Rental agreement"  means  a  written  agreement  setting
26    forth the terms and conditions governing the use of a vehicle
27    provided by a rental company for rental or lease.
28        "Rental  company"  means a person, or a franchisee of the
29    person,  in  the  business  of  providing  primarily  private
30    passenger vehicles to the public under a rental agreement for
31    a period not to exceed 30 days.
32        "Rental period" means the term of the rental agreement.
33        "Renter" means a person obtaining the use  of  a  vehicle
34    from  a  rental company under the terms of a rental agreement
 
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 1    for a period not to exceed 30 days.
 2        "Self-service storage  facility  limited  line  licensee"
 3    means  a  person  authorized  under the provisions of Section
 4    500-107 to sell certain coverages relating to the  rental  of
 5    self-service storage facilities.
 6        "Sell"  means  to exchange a contract of insurance by any
 7    means, for money or its equivalent, on behalf of an insurance
 8    company.
 9        "Solicit" means attempting to sell insurance or asking or
10    urging a person to apply for a particular kind  of  insurance
11    from a particular company.
12        "Terminate"  means  the  cancellation of the relationship
13    between  an  insurance  producer  and  the  insurer  or   the
14    termination of a producer's authority to transact insurance.
15        "Uniform  Business  Entity Application" means the current
16    version   of   the   National   Association   of    Insurance
17    Commissioners'   Uniform   Business  Entity  Application  for
18    nonresident business entities.
19        "Uniform Application" means the current  version  of  the
20    National  Association  of  Insurance  Commissioners'  Uniform
21    Application for nonresident producer licensing.
22        "Vehicle"  or  "rental  vehicle" means a motor vehicle of
23    (1) the private passenger  type,  including  passenger  vans,
24    mini  vans, and sport utility vehicles or (2) the cargo type,
25    including cargo vans, pickup trucks, and trucks with a  gross
26    vehicle  weight  of  less than 26,000 pounds the operation of
27    which does not require the operator to possess  a  commercial
28    driver's license.
29    (Source: P.A. 92-386, eff. 1-1-02.)

30        (215 ILCS 5/500-107 new)
31        Sec. 500-107.  Self-service storage facility limited line
32    license for self-storage facilities.
33        (a)  Except  as  permitted  by  subsection  (j)  of  this
 
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 1    Section,  a  self-service  storage  facility  must  obtain  a
 2    producer  license  or  obtain a self-service storage facility
 3    limited line license before offering or selling insurance  in
 4    connection with and incidental to the rental of storage space
 5    provided  by  a  self-service  storage  facility. The sale of
 6    insurance may occur at the rental office or  by  preselection
 7    of   coverage  in  a  master,  corporate,  group  rental,  or
 8    individual agreement. The  following  general  categories  of
 9    coverage may be offered or sold:
10             (1)  insurance   that   provides   hazard  insurance
11        coverage to renters  for  the  loss  of,  or  damage  to,
12        tangible  personal  property  in  storage  or  in transit
13        during the rental period; or
14             (2)  any other coverage the Director may approve  as
15        meaningful  and appropriate in connection with the rental
16        of storage space.
17        (b)  Insurance may  not  be  offered  by  a  self-service
18    storage  limited  line  producer  pursuant  to  this  Section
19    unless:
20             (1)  the  self-service  storage facility has applied
21        for and obtained a self-service storage facility  limited
22        line license;
23             (2)  at   every   rental   location   where   rental
24        agreements  are  executed,  brochures  or  other  written
25        materials are readily available to the prospective renter
26        that:
27                  (A)  summarize   clearly   and   correctly  the
28             material  terms  of  coverage  offered  to  renters,
29             including the identity of the insurer;
30                  (B)  disclose that the coverage offered by  the
31             self-service   storage   facility   may   provide  a
32             duplication of  coverage  already  provided  by  the
33             renter's   personal  homeowner's  insurance  policy,
34             automobile  insurance  policy,  personal   liability
 
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 1             insurance policy, or other source of coverage;
 2                  (C)  state  that  the purchase by the renter of
 3             the kinds of coverage specified in this  Section  is
 4             not required in order to rent storage space; and
 5                  (D)  describe the process for filing a claim in
 6             the  event  the consumer elects to purchase coverage
 7             and in the event of a claim; and
 8             (3)  evidence of coverage is provided to each renter
 9        who elects to purchase the coverage.
10        (c)  A self-service storage facility limited line license
11    issued under this Section shall also authorize  any  employee
12    of the self-service storage facility limited line licensee to
13    act  individually  on behalf and under the supervision of the
14    self-service storage  facility  limited  line  licensee  with
15    respect to the kinds of coverage specified in this Section.
16        (d)  A self-service storage facility licensed pursuant to
17    this  Section  must  conduct  a  training  program  in  which
18    employees being trained shall receive basic instruction about
19    the  kinds  of coverage specified in this Section and offered
20    for purchase by prospective renters of storage space.
21        (e)  Notwithstanding any other provision of this  Section
22    or  any  rule adopted by the Director, a self-service storage
23    facility limited line producer pursuant to  this  Section  is
24    not   required   to   treat  moneys  collected  from  renters
25    purchasing insurance when  renting  storage  space  as  funds
26    received  in  a fiduciary capacity, provided that the charges
27    for coverage shall be itemized  and  ancillary  to  a  rental
28    transaction.
29        (f)  The  sale  of  insurance  not  in conjunction with a
30    rental transaction shall not be permitted.
31        (g)  A  self-service  storage   facility   limited   line
32    producer  under this Section may not advertise, represent, or
33    otherwise hold itself or any of its employees out as licensed
34    insurers, insurance producers, insurance agents, or insurance
 
SB1150 Enrolled             -6-      LRB093 09649 LRD 09888 b
 1    brokers.
 2        (h)  Direct commissions may not be paid  to  self-service
 3    storage  facility  employees  by  the insurer or the customer
 4    purchasing  insurance  products.  The  self-service   storage
 5    facility   may  include  insurance  products  in  an  overall
 6    employee performance compensation incentive program.
 7        (i)  An application for a self-service  storage  facility
 8    limited  line license must be made on a form specified by the
 9    Director.
10        (j)  Nothing contained in this Section shall prohibit  an
11    unlicensed  person  from  enrolling,  issuing,  or  otherwise
12    distributing  certificates  of insurance under a group master
13    policy lawfully issued in this or another state when:
14             (1)  the  enrollment  or  distribution  is   by   an
15        employee of the group master policyholder;
16             (2)  no  commission  is  paid for such enrollment or
17        distribution;
18             (3)  the distribution is incidental and ancillary to
19        the  primary  rental  business  of   the   group   master
20        policyholder; and
21             (4)  the  group  master  policy is sold to the group
22        master policyholder by a licensed producer.
23        (k)  Nothing in this Section applies to or affects common
24    carriers regulated by the Illinois Commerce Commission.

25        (215 ILCS 5/500-135)
26        Sec. 500-135.  Fees.
27        (a)  The fees required by this Article are as follows:
28             (1)  a fee of $150 payable once every 2 years for an
29        insurance producer license;
30             (2)  a fee of $25 for the issuance  of  a  temporary
31        insurance producer license;
32             (3)  a  fee  of $50 payable once every 2 years for a
33        business entity;
 
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 1             (4)  an annual $25 fee for a limited  line  producer
 2        license  issued under items (1) through (7) of subsection
 3        (a) of Section 500-100;
 4             (5)  a $25 application fee for the processing  of  a
 5        request  to take the written examination for an insurance
 6        producer license;
 7             (6)  an  annual  registration  fee   of   $500   for
 8        registration of an education provider;
 9             (7)  a  certification  fee of $25 for each certified
10        pre-licensing  or  continuing  education  course  and  an
11        annual fee of $10 for renewing the certification of  each
12        such course;
13             (8)  a  fee  of $50 payable once every 2 years for a
14        car rental limited line license;
15             (9)  a fee of $150 payable once every 2 years for  a
16        limited  lines  license  other  than  the licenses issued
17        under items (1) through (7) of subsection (a) of  Section
18        500-100,  or  a  car  rental  limited  line license, or a
19        self-service storage facility limited line license;.
20             (10)  a fee of $50 payable once every 2 years for  a
21        self-service storage facility limited line license.
22        (b)  Except  as  otherwise provided, all fees paid to and
23    collected by the Director under this Section  shall  be  paid
24    promptly  after  receipt  thereof,  together  with a detailed
25    statement of such fees, into a  special  fund  in  the  State
26    Treasury to be known as the Insurance Producer Administration
27    Fund.   The  moneys  deposited  into  the  Insurance Producer
28    Administration Fund may be  used  only  for  payment  of  the
29    expenses  of the Department in the execution, administration,
30    and enforcement of the insurance  laws  of  this  State,  and
31    shall  be  appropriated  as otherwise provided by law for the
32    payment of those  expenses  with  first  priority  being  any
33    expenses  incident  to  or associated with the administration
34    and enforcement of this Article.
 
SB1150 Enrolled             -8-      LRB093 09649 LRD 09888 b
 1    (Source: P.A. 92-386, eff. 1-1-02.)