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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||||||||||||||||||||
5 | changing Section 500-35 as follows:
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6 | (215 ILCS 5/500-35)
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7 | Sec. 500-35. License.
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8 | (a) Unless denied a license pursuant to Section 500-70, | ||||||||||||||||||||||||
9 | persons who have met
the
requirements of Sections 500-25 and | ||||||||||||||||||||||||
10 | 500-30 shall be issued a 2-year insurance
producer license.
An | ||||||||||||||||||||||||
11 | insurance producer may receive qualification for a license in | ||||||||||||||||||||||||
12 | one or more of
the following
lines of authority:
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13 | (1) Life: insurance coverage on human lives including | ||||||||||||||||||||||||
14 | benefits of
endowment
and annuities, and may include | ||||||||||||||||||||||||
15 | benefits in the event of death or dismemberment
by
accident | ||||||||||||||||||||||||
16 | and benefits for disability income.
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17 | (2) Variable life and variable annuity products: | ||||||||||||||||||||||||
18 | insurance coverage
provided
under variable life insurance | ||||||||||||||||||||||||
19 | contracts and variable annuities.
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20 | (3) Accident and health or sickness: insurance | ||||||||||||||||||||||||
21 | coverage for sickness,
bodily
injury, or accidental death | ||||||||||||||||||||||||
22 | and may include benefits for disability income.
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23 | (4) Property: insurance coverage for the direct or |
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1 | consequential loss or
damage to property of every kind.
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2 | (5) Casualty: insurance coverage against legal | ||||||
3 | liability, including that
for
death, injury, or disability | ||||||
4 | or damage to real or personal property.
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5 | (6) Personal lines: property and casualty insurance | ||||||
6 | coverage sold to
individuals and families for primarily | ||||||
7 | noncommercial purposes.
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8 | (7) Any other line of insurance permitted under State | ||||||
9 | laws or rules.
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10 | (b) An insurance producer license shall remain in effect | ||||||
11 | unless revoked or
suspended
as long as the fee set forth in | ||||||
12 | Section 500-135 is paid and education
requirements for resident
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13 | individual producers are met by the due date.
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14 | (1) Before each license renewal, an insurance producer | ||||||
15 | must satisfactorily
complete at least 30 hours of course | ||||||
16 | study in accordance with rules prescribed
by the
Director. | ||||||
17 | The Director may not approve a course of study unless the | ||||||
18 | course
provides for
classroom, seminar, or self-study | ||||||
19 | instruction methods. A course given in a
combination
| ||||||
20 | instruction method of classroom or seminar and self-study | ||||||
21 | shall be deemed to
be a self-study course unless the | ||||||
22 | classroom or seminar certified hours meets
or exceeds | ||||||
23 | two-thirds
of total hours certified for the course. The | ||||||
24 | self-study material used in the
combination
course must be | ||||||
25 | directly related to and complement the classroom portion of | ||||||
26 | the
course in
order to be considered for credit. An |
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1 | instruction method other than classroom
or seminar
shall be | ||||||
2 | considered as self-study methodology. Self-study credit | ||||||
3 | hours
require the
successful completion of an examination | ||||||
4 | covering the self-study material. The
examination may not | ||||||
5 | be self-evaluated. However, if the self-study material is
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6 | completed
through the use of an approved computerized | ||||||
7 | interactive format whereby the
computer
validates the | ||||||
8 | successful completion of the self-study material, no | ||||||
9 | additional
examination
is required. The self-study credit | ||||||
10 | hours contained in a certified course shall
be considered
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11 | classroom hours when at least two-thirds of the hours are | ||||||
12 | given as classroom or
seminar
instruction.
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13 | (2) An insurance producer license automatically | ||||||
14 | terminates when an
insurance
producer fails to | ||||||
15 | successfully meet the requirements of item (1) of | ||||||
16 | subsection
(b) of this
Section. The producer must complete | ||||||
17 | the course in advance of the renewal date
to allow
the | ||||||
18 | education provider time to report the credit to the | ||||||
19 | Department.
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20 | (c) A provider of a pre-licensing or continuing education | ||||||
21 | course required
by Section
500-30 and this Section must pay a | ||||||
22 | registration fee and a course certification
fee for each course
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23 | being certified as provided by Section 500-135.
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24 | (d) An individual insurance producer who allows his or her | ||||||
25 | license to lapse
may,
within 12 months after the due date of | ||||||
26 | the renewal fee, be issued a license
without the necessity
of |
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1 | passing a written examination. However, a penalty in the amount | ||||||
2 | of double
the unpaid renewal
fee shall be required after the | ||||||
3 | due date.
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4 | (e) A licensed insurance producer who is unable to comply | ||||||
5 | with license
renewal
procedures due to military service may | ||||||
6 | request a waiver of those procedures.
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7 | (f) The license must contain the licensee's name, address, | ||||||
8 | and personal
identification
number, the date of issuance, the | ||||||
9 | lines of authority, the expiration date, and
any other
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10 | information the Director deems necessary. The Department shall | ||||||
11 | not use the licensee's social security number as the licensee's | ||||||
12 | personal identification number.
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13 | (g) Licensees must inform the Director by any means | ||||||
14 | acceptable to the
Director of a
change of address within 30 | ||||||
15 | days after the change.
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16 | (h) In order to assist in the performance of the Director's | ||||||
17 | duties, the
Director may
contract with a non-governmental | ||||||
18 | entity including the National Association of
Insurance
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19 | Commissioners (NAIC), or any affiliates or subsidiaries that | ||||||
20 | the NAIC oversees,
to perform any
ministerial functions, | ||||||
21 | including collection of fees, related to producer
licensing | ||||||
22 | that the Director
and the non-governmental entity may deem | ||||||
23 | appropriate.
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24 | (Source: P.A. 92-386, eff. 1-1-02.)
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25 | Section 99. Effective date. This Act takes effect January | ||||||
26 | 1, 2009.
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