103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4429

 

Introduced 1/16/2024, by Rep. Thaddeus Jones

 

SYNOPSIS AS INTRODUCED:
 
New Act
215 ILCS 5/500-35
215 ILCS 5/1565
225 ILCS 454/5-70

    Creates the Improving Access to Flood Insurance Act. Provides that each insurance producer, public adjuster, managing broker, broker, and employee of a lender shall participate in at least 3 hours of National Flood Insurance Program training. Provides that the insurance producer, public adjuster, managing broker, broker, or lender shall submit evidence of satisfaction of the requirement to the entity that regulates that profession. Requires the Department of Insurance to: provide a list of pre-approved courses available through the Federal Emergency Management Agency's Emergency Management Institute and other educational institutions the Department determines provide information and training equivalent to the Federal Emergency Management Agency's Emergency Management Institute; and to provide instructions for an insurance producer, public adjuster, managing broker, broker, lender, or employee of a lender to apply and secure credit for course work that meets equivalent educational goals but that is not included on the pre-approved list. Provides that a violation of the Act shall be considered a violation of any other law under which the insurance producer, public adjuster, managing broker, broker, or lender is licensed, chartered, or organized. Makes conforming changes in the Illinois Insurance Code and the Real Estate License Act of 2000. Effective immediately.


LRB103 36050 RPS 66137 b

 

 

A BILL FOR

 

HB4429LRB103 36050 RPS 66137 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 1. Short title. This Act may be cited as the
5Improving Access to Flood Insurance Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Broker" has the meaning given to that term in the Real
8Estate License Act of 2000.
9    "Lender" means a bank, a savings bank, or a credit union
10chartered or organized under the laws of the State of Illinois
11that engages in real estate lending.
12    "Managing broker" has the meaning given to that term in
13the Real Estate License Act of 2000.
14    "National Flood Insurance Program training" means any
15class or continuing education opportunity where the main
16topics include:
17        (1) the National Flood Insurance Program;
18        (2) elements of the National Flood Insurance Program;
19    or
20        (3) flood insurance premium reduction strategies, such
21    as floodplain management, flood risk reduction, or flood
22    hazard mitigation.
 

 

 

HB4429- 2 -LRB103 36050 RPS 66137 b

1    Section 10. National Flood Insurance Program training
2requirement. In addition to any other continuing education
3requirements that may apply for that profession, each
4insurance producer, public adjuster, managing broker, broker,
5and employee of a lender shall participate in at least 3 hours
6of National Flood Insurance Program training. The insurance
7producer, public adjuster, managing broker, broker, or lender
8shall submit evidence of satisfaction of the requirements of
9this Section to the entity that regulates that profession. The
10Department of Insurance shall provide a list of pre-approved
11courses available through the Federal Emergency Management
12Agency's Emergency Management Institute and other educational
13institutions the Department determines provide information and
14training equivalent to the Federal Emergency Management
15Agency's Emergency Management Institute. The Department of
16Insurance shall also provide instructions for an insurance
17producer, public adjuster, managing broker, broker, lender, or
18employee of a lender to apply and secure credit for course work
19that meets equivalent educational goals but that is not
20included on the pre-approved list.
 
21    Section 15. Violation of the Act. A violation of this Act
22shall be considered a violation of any other law under which
23the insurance producer, public adjuster, managing broker,
24broker, or lender is licensed, chartered, or organized.
 

 

 

HB4429- 3 -LRB103 36050 RPS 66137 b

1    Section 105. The Illinois Insurance Code is amended by
2changing Sections 500-35 and 1565 as follows:
 
3    (215 ILCS 5/500-35)
4    (Section scheduled to be repealed on January 1, 2027)
5    Sec. 500-35. License.
6    (a) Unless denied a license pursuant to Section 500-70,
7persons who have met the requirements of Sections 500-25 and
8500-30 shall be issued a 2-year insurance producer license. An
9insurance producer may receive qualification for a license in
10one or more of the following lines of authority:
11        (1) Life: insurance coverage on human lives including
12    benefits of endowment and annuities, and may include
13    benefits in the event of death or dismemberment by
14    accident and benefits for disability income.
15        (2) Variable life and variable annuity products:
16    insurance coverage provided under variable life insurance
17    contracts and variable annuities.
18        (3) Accident and health or sickness: insurance
19    coverage for sickness, bodily injury, or accidental death
20    and may include benefits for disability income.
21        (4) Property: insurance coverage for the direct or
22    consequential loss or damage to property of every kind.
23        (5) Casualty: insurance coverage against legal
24    liability, including that for death, injury, or disability
25    or damage to real or personal property.

 

 

HB4429- 4 -LRB103 36050 RPS 66137 b

1        (6) Personal lines: property and casualty insurance
2    coverage sold to individuals and families for primarily
3    noncommercial purposes.
4        (7) Any other line of insurance permitted under State
5    laws or rules.
6    (b) An insurance producer license shall remain in effect
7unless revoked or suspended as long as the fee set forth in
8Section 500-135 is paid and education requirements for
9resident individual producers are met by the due date.
10        (1) Before each license renewal, an insurance producer
11    must satisfactorily complete at least 24 hours of course
12    study or participation in a professional insurance
13    association under paragraph (3) of this subsection in
14    accordance with rules prescribed by the Director. Three of
15    the 24 hours of course study must consist of classroom or
16    webinar ethics instruction. The Director may not approve a
17    course of study unless the course provides for classroom,
18    seminar, webinar, or self-study instruction methods. A
19    course given in a combination instruction method of
20    classroom, seminar, webinar, or self-study shall be deemed
21    to be a self-study course unless the classroom, seminar,
22    or webinar certified hours meets or exceeds two-thirds of
23    total hours certified for the course. The self-study
24    material used in the combination course must be directly
25    related to and complement the classroom portion of the
26    course in order to be considered for credit. An

 

 

HB4429- 5 -LRB103 36050 RPS 66137 b

1    instruction method other than classroom or seminar shall
2    be 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
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
11    classroom hours when at least two-thirds of the hours are
12    given as classroom or seminar instruction. In addition to
13    any other requirements under this Section, an insurance
14    producer shall comply with the Improving Access to Flood
15    Insurance Act.
16        (2) An insurance producer license automatically
17    terminates when an insurance producer fails to
18    successfully meet the requirements of item (1) of
19    subsection (b) of this Section. The producer must complete
20    the course in advance of the renewal date to allow the
21    education provider time to report the credit to the
22    Department.
23        (3) An insurance producer's active participation in a
24    State or national professional insurance association may
25    be approved by the Director for up to 4 hours of continuing
26    education credit per biennial reporting period. Credit

 

 

HB4429- 6 -LRB103 36050 RPS 66137 b

1    shall be provided on an hour-for-hour basis. These hours
2    shall be verified and submitted by the association on
3    behalf of the insurance producer and credited upon timely
4    filing with the Director or his or her designee on a
5    biennial basis. Any association submitting continuing
6    education credit hours on behalf of insurance producers
7    must be registered as an education provider under Section
8    500-135. Credit granted under these provisions shall not
9    be used to satisfy ethics education requirements. Active
10    participation in a State or national professional
11    insurance association is defined by one of the following
12    methods:
13            (A) service on a board of directors of a State or
14        national chapter of the association;
15            (B) service on a formal committee of a State or
16        national chapter of the association; or
17            (C) service on a formal subcommittee or task force
18        of a State or national chapter of the association.
19    (c) A provider of a pre-licensing or continuing education
20course required by Section 500-30 and this Section must pay a
21registration fee and a course certification fee for each
22course being certified as provided by Section 500-135.
23    (d) An individual insurance producer who allows his or her
24license to lapse may, within 12 months after the due date of
25the renewal fee, be issued a license without the necessity of
26passing a written examination. However, a penalty in the

 

 

HB4429- 7 -LRB103 36050 RPS 66137 b

1amount of double the unpaid renewal fee shall be required
2after the due date.
3    (e) A licensed insurance producer who is unable to comply
4with license renewal procedures due to military service may
5request a waiver of those procedures.
6    (f) The license must contain the licensee's name, address,
7and personal identification number, the date of issuance, the
8lines of authority, the expiration date, and any other
9information the Director deems necessary.
10    (g) Licensees must inform the Director by any means
11acceptable to the Director of a change of address within 30
12days after the change.
13    (h) In order to assist in the performance of the
14Director's duties, the Director may contract with a
15non-governmental entity including the National Association of
16Insurance Commissioners (NAIC), or any affiliates or
17subsidiaries that the NAIC oversees, to perform any
18ministerial functions, including collection of fees, related
19to producer licensing that the Director and the
20non-governmental entity may deem appropriate.
21(Source: P.A. 102-766, eff. 1-1-23.)
 
22    (215 ILCS 5/1565)
23    Sec. 1565. Continuing education.
24    (a) An individual who holds a public adjuster license and
25who is not exempt under subsection (b) of this Section shall

 

 

HB4429- 8 -LRB103 36050 RPS 66137 b

1satisfactorily complete a minimum of 24 hours of continuing
2education courses, including 3 hours of classroom or webinar
3ethics instruction, reported on a biennial basis in
4conjunction with the license renewal cycle.
5    The Director may not approve a course of study unless the
6course provides for classroom, seminar, or self-study
7instruction methods. A course given in a combination
8instruction method of classroom or seminar and self-study
9shall be deemed to be a self-study course unless the classroom
10or seminar certified hours meets or exceeds two-thirds of the
11total hours certified for the course. The self-study material
12used in the combination course must be directly related to and
13complement the classroom portion of the course in order to be
14considered for credit. An instruction method other than
15classroom or seminar shall be considered as self-study
16methodology. Self-study credit hours require the successful
17completion of an examination covering the self-study material.
18The examination may not be self-evaluated. However, if the
19self-study material is completed through the use of an
20approved computerized interactive format whereby the computer
21validates the successful completion of the self-study
22material, no additional examination is required. The
23self-study credit hours contained in a certified course shall
24be considered classroom hours when at least two-thirds of the
25hours are given as classroom or seminar instruction.
26    The public adjuster must complete the course in advance of

 

 

HB4429- 9 -LRB103 36050 RPS 66137 b

1the renewal date to allow the education provider time to
2report the credit to the Department.
3    (b) This Section shall not apply to:
4        (1) licensees not licensed for one full year prior to
5    the end of the applicable continuing education biennium;
6    or
7        (2) licensees holding nonresident public adjuster
8    licenses who have met the continuing education
9    requirements of their home state and whose home state
10    gives credit to residents of this State on the same basis.
11    (c) Only continuing education courses approved by the
12Director shall be used to satisfy the continuing education
13requirement of subsection (a) of this Section.
14    (d) In addition to any other requirements under this
15Section, a public adjuster shall comply with the Improving
16Access to Flood Insurance Act.
17(Source: P.A. 102-135, eff. 7-23-21.)
 
18    Section 110. The Real Estate License Act of 2000 is
19amended by changing Section 5-70 as follows:
 
20    (225 ILCS 454/5-70)
21    (Section scheduled to be repealed on January 1, 2030)
22    Sec. 5-70. Continuing education requirement; managing
23broker or broker.
24    (a) The requirements of this Section apply to all managing

 

 

HB4429- 10 -LRB103 36050 RPS 66137 b

1brokers and brokers.
2    (b) Except as otherwise provided in this Section, each
3person who applies for renewal of a license as a managing
4broker or broker must successfully complete 12 hours of real
5estate continuing education courses recommended by the Board
6and approved by the Department during the current term of the
7license. In addition, those licensees renewing or obtaining a
8managing broker's license must successfully complete a 12-hour
9broker management continuing education course approved by the
10Department during the current term of the license. The broker
11management continuing education course must be completed in
12the classroom or through a live, interactive webinar or online
13distance education format. No license may be renewed except
14upon the successful completion of the required courses or
15their equivalent or upon a waiver of those requirements for
16good cause shown as determined by the Secretary upon the
17recommendation of the Board. The requirements of this Article
18are applicable to all managing brokers and brokers except
19those managing brokers and brokers who, during the current
20term of licensure:
21        (1) serve in the armed services of the United States;
22        (2) serve as an elected State or federal official;
23        (3) serve as a full-time employee of the Department;
24    or
25        (4) are admitted to practice law pursuant to Illinois
26    Supreme Court rule.

 

 

HB4429- 11 -LRB103 36050 RPS 66137 b

1    (c) (Blank).
2    (d) A person receiving an initial license during the 90
3days before the renewal date shall not be required to complete
4the continuing education courses provided for in subsection
5(b) of this Section as a condition of initial license renewal.
6    (e) The continuing education requirement for brokers and
7managing brokers shall consist of a single core curriculum and
8an elective curriculum, to be recommended by the Board and
9approved by the Department in accordance with this subsection.
10The core curriculum shall not be further divided into
11subcategories or divisions of instruction. The core curriculum
12shall consist of 4 hours during the current term of the license
13on subjects that may include, but are not limited to,
14advertising, agency, disclosures, escrow, fair housing,
15residential leasing agent management, and license law. The
16amount of time allotted to each of these subjects shall be
17recommended by the Board and determined by the Department. The
18Department, upon the recommendation of the Board, shall review
19the core curriculum every 4 years, at a minimum, and shall
20revise the curriculum if necessary. However, the core
21curriculum's total hourly requirement shall only be subject to
22change by amendment of this subsection, and any change to the
23core curriculum shall not be effective for a period of 6 months
24after such change is made by the Department. The Department
25shall provide notice to all approved education providers of
26any changes to the core curriculum. When determining whether

 

 

HB4429- 12 -LRB103 36050 RPS 66137 b

1revisions of the core curriculum's subjects or specific time
2requirements are necessary, the Board shall consider recent
3changes in applicable laws, new laws, and areas of the license
4law and the Department policy that the Board deems
5appropriate, and any other subject areas the Board deems
6timely and applicable in order to prevent violations of this
7Act and to protect the public. In establishing a
8recommendation to the Department regarding the elective
9curriculum, the Board shall consider subjects that cover the
10various aspects of the practice of real estate that are
11covered under the scope of this Act.
12    (f) The subject areas of continuing education courses
13recommended by the Board and approved by the Department shall
14be meant to protect the professionalism of the industry, the
15consumer, and the public and prevent violations of this Act
16and may include without limitation the following:
17        (1) license law and escrow;
18        (2) antitrust;
19        (3) fair housing;
20        (4) agency;
21        (5) appraisal;
22        (6) property management;
23        (7) residential brokerage;
24        (8) farm property management;
25        (9) transaction management rights and duties of
26    parties in a transaction;

 

 

HB4429- 13 -LRB103 36050 RPS 66137 b

1        (10) commercial brokerage and leasing;
2        (11) real estate financing;
3        (12) disclosures;
4        (13) residential leasing agent management;
5        (14) advertising;
6        (15) broker supervision and designated managing broker
7    responsibility;
8        (16) professional conduct; and
9        (17) use of technology.
10    (g) In lieu of credit for those courses listed in
11subsection (f) of this Section, credit may be earned for
12serving as a licensed instructor in an approved course of
13continuing education. The amount of credit earned for teaching
14a course shall be the amount of continuing education credit
15for which the course is approved for licensees taking the
16course.
17    (h) Credit hours may be earned for self-study programs
18approved by the Department.
19    (i) A managing broker or broker may earn credit for a
20specific continuing education course only once during the
21current term of the license.
22    (j) No more than 12 hours of continuing education credit
23may be taken in one calendar day.
24    (k) To promote the offering of a uniform and consistent
25course content, the Department may provide for the development
26of a single broker management course to be offered by all

 

 

HB4429- 14 -LRB103 36050 RPS 66137 b

1education providers who choose to offer the broker management
2continuing education course. The Department may contract for
3the development of the 12-hour broker management continuing
4education course with an outside vendor or consultant and, if
5the course is developed in this manner, the Department or the
6outside consultant shall license the use of that course to all
7approved education providers who wish to provide the course.
8    (l) Except as specifically provided in this Act,
9continuing education credit hours may not be earned for
10completion of pre-license or post-license courses. The courses
11comprising the approved 45-hour post-license curriculum for
12broker licensees shall satisfy the continuing education
13requirement for the initial broker license term. The approved
1445-hour managing broker pre-license brokerage administration
15and management course shall satisfy the 12-hour broker
16management continuing education requirement for the initial
17managing broker license term.
18    (m) In addition to any other requirements of this Section,
19a managing broker or broker shall comply with the Improving
20Access to Flood Insurance Act.
21(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)
 
22    Section 999. Effective date. This Act takes effect upon
23becoming law.