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1 | | AN ACT concerning regulation.
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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 Sections 500-10 and 500-35 as follows:
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6 | | (215 ILCS 5/500-10)
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7 | | (Section scheduled to be repealed on January 1, 2017)
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8 | | Sec. 500-10. Definitions. In addition to the definitions in |
9 | | Section 2 of
the
Code, the following
definitions apply to this |
10 | | Article:
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11 | | "Business entity" means a corporation, association, |
12 | | partnership, limited
liability
company, limited liability |
13 | | partnership, or other legal entity.
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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.
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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
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20 | | principal place of business and is licensed to act as an |
21 | | insurance producer.
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22 | | "Insurance" means any of the lines of authority in Section |
23 | | 500-35, any health
care plan
under the Health Maintenance |
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1 | | Organization Act, or any limited health care plan
under the
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2 | | Limited Health Service Organization Act.
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3 | | "Insurance producer" means a person required to be licensed |
4 | | under the laws of
this State
to sell, solicit, or negotiate |
5 | | insurance.
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6 | | "Insurer" means a company as defined in subsection (e) of |
7 | | Section 2 of this
Code, a
health maintenance organization as |
8 | | defined in the Health Maintenance
Organization Act, or a
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9 | | limited health service organization as defined in the Limited |
10 | | Health
Service Organization Act.
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11 | | "License" means a document issued by the Director |
12 | | authorizing an individual
to act as an
insurance producer for |
13 | | the lines of authority specified in the document or
authorizing |
14 | | a business
entity to act as an insurance producer. The license |
15 | | itself does not create any
authority, actual,
apparent, or |
16 | | inherent, in the holder to represent or commit
an insurance |
17 | | carrier.
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18 | | "Limited lines insurance" means those lines of insurance |
19 | | defined in Section
500-100 or
any other line of insurance that |
20 | | the Director may deem it necessary to
recognize for the |
21 | | purposes
of complying with subsection (e) of Section 500-40.
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22 | | "Limited lines producer" means a person authorized by the |
23 | | Director to sell,
solicit, or
negotiate limited lines |
24 | | insurance.
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25 | | "Negotiate" means the act of conferring directly with or |
26 | | offering advice
directly to a
purchaser or prospective |
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1 | | purchaser of a particular contract of insurance
concerning any
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2 | | of the substantive benefits, terms, or conditions of the |
3 | | contract, provided
that the person
engaged in that act either |
4 | | sells insurance or obtains insurance from
insurers for |
5 | | purchasers.
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6 | | "Person" means an individual or a business entity.
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7 | | "Rental agreement" means a written agreement setting forth |
8 | | the terms and
conditions
governing the use of a vehicle |
9 | | provided by a rental company for
rental or lease.
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10 | | "Rental company" means a person, or a franchisee of the |
11 | | person, in the
business of
providing primarily private |
12 | | passenger vehicles to the public under a
rental agreement for a |
13 | | period
not to exceed 30 days.
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14 | | "Rental period" means the term of the rental agreement.
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15 | | "Renter" means a person obtaining the use of a vehicle from |
16 | | a
rental company under the
terms of a rental agreement for a |
17 | | period not to exceed 30 days.
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18 | | "Self-service storage facility limited line licensee" |
19 | | means a person
authorized under the provisions of Section |
20 | | 500-107 to sell certain coverages
relating to the rental of |
21 | | self-service storage facilities.
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22 | | "Sell" means to exchange a contract of insurance by any |
23 | | means, for
money or its equivalent, on
behalf of an insurance |
24 | | company.
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25 | | "Solicit" means attempting to
sell insurance or asking or |
26 | | urging a person to apply for a
particular kind of insurance |
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1 | | from a particular company.
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2 | | "Terminate" means the cancellation of the relationship |
3 | | between an insurance
producer and the
insurer or the |
4 | | termination of a producer's authority to transact insurance.
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5 | | "Uniform Business Entity Application" means the current |
6 | | version of the
National Association of Insurance |
7 | | Commissioners' Uniform
Business Entity Application for |
8 | | nonresident business entities.
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9 | | "Uniform Application" means the current version of the |
10 | | National Association
of Insurance Commissioners' Uniform
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11 | | Application for
nonresident producer licensing.
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12 | | "Vehicle" or "rental vehicle" means a motor vehicle of (1) |
13 | | the private
passenger
type, including passenger vans, mini |
14 | | vans, and sport utility vehicles or (2)
the cargo type,
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15 | | including cargo vans, pickup trucks, and trucks with a gross |
16 | | vehicle
weight of less than
26,000 pounds the operation of |
17 | | which does not require the operator to possess a
commercial
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18 | | driver's license.
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19 | | "Webinar" means an online educational presentation during |
20 | | which a live and participating instructor and participating |
21 | | viewers, whose attendance is periodically verified throughout |
22 | | the presentation, actively engage in discussion and in the |
23 | | submission and answering of questions. |
24 | | (Source: P.A. 92-386, eff. 1-1-02; 93-288, eff. 1-1-04 .)
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25 | | (215 ILCS 5/500-35)
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1 | | (Section scheduled to be repealed on January 1, 2017)
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2 | | Sec. 500-35. License.
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3 | | (a) Unless denied a license pursuant to Section 500-70, |
4 | | persons who have met
the
requirements of Sections 500-25 and |
5 | | 500-30 shall be issued a 2-year insurance
producer license.
An |
6 | | insurance producer may receive qualification for a license in |
7 | | one or more of
the following
lines of authority:
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8 | | (1) Life: insurance coverage on human lives including |
9 | | benefits of
endowment
and annuities, and may include |
10 | | benefits in the event of death or dismemberment
by
accident |
11 | | and benefits for disability income.
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12 | | (2) Variable life and variable annuity products: |
13 | | insurance coverage
provided
under variable life insurance |
14 | | contracts and variable annuities.
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15 | | (3) Accident and health or sickness: insurance |
16 | | coverage for sickness,
bodily
injury, or accidental death |
17 | | and may include benefits for disability income.
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18 | | (4) Property: insurance coverage for the direct or |
19 | | consequential loss or
damage to property of every kind.
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20 | | (5) Casualty: insurance coverage against legal |
21 | | liability, including that
for
death, injury, or disability |
22 | | or damage to real or personal property.
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23 | | (6) Personal lines: property and casualty insurance |
24 | | coverage sold to
individuals and families for primarily |
25 | | noncommercial purposes.
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26 | | (7) Any other line of insurance permitted under State |
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1 | | laws or rules.
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2 | | (b) An insurance producer license shall remain in effect |
3 | | unless revoked or
suspended
as long as the fee set forth in |
4 | | Section 500-135 is paid and education
requirements for resident
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5 | | individual producers are met by the due date.
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6 | | (1) Before each license renewal, an insurance producer |
7 | | must satisfactorily
complete at least 24 hours of course |
8 | | study in accordance with rules prescribed
by the
Director. |
9 | | Three of the 24 hours of course study must consist of |
10 | | classroom ethics instruction. The Director may not approve |
11 | | a course of study unless the course
provides for
classroom, |
12 | | seminar, webinar, or self-study instruction methods. A |
13 | | course given in a
combination
instruction method of |
14 | | classroom , or seminar , webinar, or and self-study shall be |
15 | | deemed to
be a self-study course unless the classroom , or |
16 | | seminar , or webinar certified hours meets
or exceeds |
17 | | two-thirds
of total hours certified for the course. The |
18 | | self-study material used in the
combination
course must be |
19 | | directly related to and complement the classroom portion of |
20 | | the
course in
order to be considered for credit. An |
21 | | instruction method other than classroom
or seminar
shall be |
22 | | considered as self-study methodology. Self-study credit |
23 | | hours
require the
successful completion of an examination |
24 | | covering the self-study material. The
examination may not |
25 | | be self-evaluated. However, if the self-study material is
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26 | | completed
through the use of an approved computerized |
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1 | | interactive format whereby the
computer
validates the |
2 | | successful completion of the self-study material, no |
3 | | additional
examination
is required. The self-study credit |
4 | | hours contained in a certified course shall
be considered
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5 | | classroom hours when at least two-thirds of the hours are |
6 | | given as classroom or
seminar
instruction.
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7 | | (2) An insurance producer license automatically |
8 | | terminates when an
insurance
producer fails to |
9 | | successfully meet the requirements of item (1) of |
10 | | subsection
(b) of this
Section. The producer must complete |
11 | | the course in advance of the renewal date
to allow
the |
12 | | education provider time to report the credit to the |
13 | | Department.
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14 | | (c) A provider of a pre-licensing or continuing education |
15 | | course required
by Section
500-30 and this Section must pay a |
16 | | registration fee and a course certification
fee for each course
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17 | | being certified as provided by Section 500-135.
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18 | | (d) An individual insurance producer who allows his or her |
19 | | license to lapse
may,
within 12 months after the due date of |
20 | | the renewal fee, be issued a license
without the necessity
of |
21 | | passing a written examination. However, a penalty in the amount |
22 | | of double
the unpaid renewal
fee shall be required after the |
23 | | due date.
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24 | | (e) A licensed insurance producer who is unable to comply |
25 | | with license
renewal
procedures due to military service may |
26 | | request a waiver of those procedures.
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1 | | (f) The license must contain the licensee's name, address, |
2 | | and personal
identification
number, the date of issuance, the |
3 | | lines of authority, the expiration date, and
any other
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4 | | information the Director deems necessary.
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5 | | (g) Licensees must inform the Director by any means |
6 | | acceptable to the
Director of a
change of address within 30 |
7 | | days after the change.
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8 | | (h) In order to assist in the performance of the Director's |
9 | | duties, the
Director may
contract with a non-governmental |
10 | | entity including the National Association of
Insurance
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11 | | Commissioners (NAIC), or any affiliates or subsidiaries that |
12 | | the NAIC oversees,
to perform any
ministerial functions, |
13 | | including collection of fees, related to producer
licensing |
14 | | that the Director
and the non-governmental entity may deem |
15 | | appropriate.
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16 | | (Source: P.A. 96-839, eff. 1-1-10.)
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17 | | Section 99. Effective date. This Act takes effect upon |
18 | | becoming law. |