94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
SB2301

 

Introduced 1/12/2006, by Sen. William R. Haine

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/1403

    Amends the Illinois Insurance Code. Provides that financial institutions and officers and employees of the institution are not required to become licensed under the Code in order to offer a line of insurance that is excluded from the definition of insurance if the line of insurance is offered in relation to the financial institution's banking business. Effective immediately.


LRB094 17545 LJB 52841 b

 

 

A BILL FOR

 

SB2301 LRB094 17545 LJB 52841 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 Section 1403 as follows:
 
6     (215 ILCS 5/1403)
7     Sec. 1403. Licensure requirements for financial
8 institutions.
9     (a) A financial institution transacting insurance business
10 in this State shall register with the Director pursuant to the
11 Illinois Insurance Code and shall be subject to the laws,
12 rules, and penalties of the Illinois Insurance Code.
13     (b) The solicitation and sale of insurance by a financial
14 institution shall be conducted only by individuals who have
15 been issued and maintain an insurance producer's license
16 pursuant to the Illinois Insurance Code and shall be subject to
17 the laws, rules, and penalties of the Illinois Insurance Code.
18     (c) For the purposes of this Section, a "financial
19 institution" means the subsidiary of a financial institution
20 when the financial institution is transacting insurance
21 business in this State only through the subsidiary. For the
22 purposes of Section 499.1 of the Illinois Insurance Code, a
23 financial institution shall be deemed to be a corporation.
24     (d) Nothing in this Article or in any other law of this
25 State shall be construed to require a financial institution or
26 the officers or employees of the institution to become licensed
27 pursuant to this Code in order to offer any line of insurance
28 that is excluded from the definition of insurance, as defined
29 by Section 1402 of this Article, if that line of insurance is
30 offered in relation to the financial institution's banking
31 business.
32 (Source: P.A. 90-41, eff. 10-1-97.)
 

 

 

SB2301 - 2 - LRB094 17545 LJB 52841 b

1     Section 99. Effective date. This Act takes effect upon
2 becoming law.