SB3024 EngrossedLRB099 20642 EGJ 45237 b


  
1    AN ACT concerning regulation.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  

  
 
4    Section 5. The Illinois Insurance Code is amended  by 
5changing Section 1403 as follows:
 



6    (215 ILCS 5/1403)



7    Sec. 1403. Licensure requirements for financial 
8institutions. 

9    (a)  A financial institution transacting insurance business 
10in this State
shall register with the Director pursuant to the 
11Illinois Insurance Code and
shall be subject to the laws, 
12rules, and penalties of the Illinois Insurance
Code.

13    (b) The solicitation and sale of insurance by a financial 
14institution
shall be conducted only by individuals who have 
15been issued and maintain an
insurance producer's license 
16pursuant to the Illinois Insurance Code and shall
be subject to 
17the laws, rules, and penalties of the Illinois Insurance Code.

18    (c)  For the purposes of this Section, a "financial 
19institution" means the
subsidiary of a financial institution 
20when the financial institution is
transacting insurance 
21business in this State only through the subsidiary.  For
the 
22purposes of Section 499.1 of the Illinois Insurance Code, a 
23financial
institution shall be deemed to be a corporation.

 
 
SB3024 Engrossed- 2 -LRB099 20642 EGJ 45237 b

1    (d) Nothing in Section 500-100 of this Code shall be 
2construed to require a limited lines producer license or any 
3other form or class of producer's license for financial 
4institutions, or their employees, if the financial institution 
5has purchased or sponsored a group or individual credit life, 
6credit accident and health, credit casualty,  credit property, 
7or other credit insurance policy or program under which the 
8financial institution enrolls or performs other administrative 
9services to enable individuals to purchase insurance coverage 
10under the group or individual credit insurance policy from a 
11licensed producer in compliance with Section 155.56 and 
12paragraph (2) of subsection (b) of Section 500-20 of this Code. 
13(Source: P.A. 90-41, eff. 10-1-97.)

 

14    Section 99. Effective date. This Act takes effect upon 
15becoming law.