|
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB2590 Introduced 5/31/2013, by Sen. William R. Haine SYNOPSIS AS INTRODUCED: |
| |
Amends the Illinois Insurance Code. Makes a change in the provision concerning limited lines producer licenses. Provides that the Director of Insurance may issue to a business entity that has filed with the Department an application for a limited license, in a form and manner prescribed by the Director, a limited lines travel insurance producer license that authorizes the limited lines travel insurance producer to sell, solicit, or negotiate travel insurance through a licensed insurer. Provides that notwithstanding any other provision of law, a travel retailer may offer and disseminate travel insurance on behalf of and under a limited lines producer business entity license only if certain conditions are met. Prohibits a travel retailer's employee or authorized representative who is not licensed as an insurance producer from certain actions. Provides that a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, are limited to offering and disseminating travel insurance on behalf of and under the direction of a limited lines producer meeting certain conditions is authorized to do so and receive related compensation upon registration by the limited lines producer. Provides that travel insurance may be provided under an individual policy or under a group or master policy. Provides that as the insurer designee, the limited lines producer is responsible for the acts of the travel retailer and the travel insurance supervising entity and shall use reasonable means to ensure compliance by the travel retailer with the provision concerning travel insurance limited line license for limited lines travel insurance producers. Requires an annual fee of $90 for a limited lines producer license.
|
| |
| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
|
|
| | SB2590 | | LRB098 12398 RPM 46783 b |
|
|
1 | | AN ACT concerning regulation.
|
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 Sections 500-10, 500-100, and 500-135 and by adding |
6 | | Section 500-108 as follows:
|
7 | | (215 ILCS 5/500-10)
|
8 | | (Section scheduled to be repealed on January 1, 2017)
|
9 | | Sec. 500-10. Definitions. In addition to the definitions in |
10 | | Section 2 of
the
Code, the following
definitions apply to this |
11 | | Article:
|
12 | | "Business entity" means a corporation, association, |
13 | | partnership, limited
liability
company, limited liability |
14 | | partnership, or other legal entity.
|
15 | | "Car rental limited line licensee" means a person |
16 | | authorized under the
provisions of
Section 500-105 to sell |
17 | | certain coverages relating to the rental of vehicles.
|
18 | | "Home state" means the District of Columbia and any state |
19 | | or territory of the
United
States in which an insurance |
20 | | producer maintains his or her principal place of
residence or
|
21 | | principal place of business and is licensed to act as an |
22 | | insurance producer.
|
23 | | "Insurance" means any of the lines of authority in Section |
|
| | SB2590 | - 2 - | LRB098 12398 RPM 46783 b |
|
|
1 | | 500-35, any health
care plan
under the Health Maintenance |
2 | | Organization Act, or any limited health care plan
under the
|
3 | | Limited Health Service Organization Act.
|
4 | | "Insurance producer" means a person required to be licensed |
5 | | under the laws of
this State
to sell, solicit, or negotiate |
6 | | insurance.
|
7 | | "Insurer" means a company as defined in subsection (e) of |
8 | | Section 2 of this
Code, a
health maintenance organization as |
9 | | defined in the Health Maintenance
Organization Act, or a
|
10 | | limited health service organization as defined in the Limited |
11 | | Health
Service Organization Act.
|
12 | | "License" means a document issued by the Director |
13 | | authorizing an individual
to act as an
insurance producer for |
14 | | the lines of authority specified in the document or
authorizing |
15 | | a business
entity to act as an insurance producer. The license |
16 | | itself does not create any
authority, actual,
apparent, or |
17 | | inherent, in the holder to represent or commit
an insurance |
18 | | carrier.
|
19 | | "Limited lines insurance" means those lines of insurance |
20 | | defined in Section
500-100 or
any other line of insurance that |
21 | | the Director may deem it necessary to
recognize for the |
22 | | purposes
of complying with subsection (e) of Section 500-40.
|
23 | | "Limited lines producer" means a person authorized by the |
24 | | Director to sell,
solicit, or
negotiate limited lines |
25 | | insurance.
|
26 | | "Negotiate" means the act of conferring directly with or |
|
| | SB2590 | - 3 - | LRB098 12398 RPM 46783 b |
|
|
1 | | offering advice
directly to a
purchaser or prospective |
2 | | purchaser of a particular contract of insurance
concerning any
|
3 | | of the substantive benefits, terms, or conditions of the |
4 | | contract, provided
that the person
engaged in that act either |
5 | | sells insurance or obtains insurance from
insurers for |
6 | | purchasers.
|
7 | | "Person" means an individual or a business entity.
|
8 | | "Rental agreement" means a written agreement setting forth |
9 | | the terms and
conditions
governing the use of a vehicle |
10 | | provided by a rental company for
rental or lease.
|
11 | | "Rental company" means a person, or a franchisee of the |
12 | | person, in the
business of
providing primarily private |
13 | | passenger vehicles to the public under a
rental agreement for a |
14 | | period
not to exceed 30 days.
|
15 | | "Rental period" means the term of the rental agreement.
|
16 | | "Renter" means a person obtaining the use of a vehicle from |
17 | | a
rental company under the
terms of a rental agreement for a |
18 | | period not to exceed 30 days.
|
19 | | "Self-service storage facility limited line licensee" |
20 | | means a person
authorized under the provisions of Section |
21 | | 500-107 to sell certain coverages
relating to the rental of |
22 | | self-service storage facilities.
|
23 | | "Sell" means to exchange a contract of insurance by any |
24 | | means, for
money or its equivalent, on
behalf of an insurance |
25 | | company.
|
26 | | "Solicit" means attempting to
sell insurance or asking or |
|
| | SB2590 | - 4 - | LRB098 12398 RPM 46783 b |
|
|
1 | | urging a person to apply for a
particular kind of insurance |
2 | | from a particular company.
|
3 | | "Terminate" means the cancellation of the relationship |
4 | | between an insurance
producer and the
insurer or the |
5 | | termination of a producer's authority to transact insurance.
|
6 | | "Travel insurance" means insurance coverage for personal |
7 | | risks incident to planned travel, including, but not limited to |
8 | | (1) interruption or cancellation of a trip or event, (2) loss |
9 | | of baggage or personal effects, (3) damages to accommodations |
10 | | or rental vehicles, or (4) sickness, accident, disability, or |
11 | | death occurring during travel. "Travel insurance" does not |
12 | | include major medical plans that provide comprehensive medical |
13 | | protection for travelers with trips lasting 6 months or longer, |
14 | | including those working overseas as an ex-patriot or as |
15 | | military personnel on deployment. |
16 | | "Uniform Business Entity Application" means the current |
17 | | version of the
National Association of Insurance |
18 | | Commissioners' Uniform
Business Entity Application for |
19 | | nonresident business entities.
|
20 | | "Uniform Application" means the current version of the |
21 | | National Association
of Insurance Commissioners' Uniform
|
22 | | Application for
nonresident producer licensing.
|
23 | | "Vehicle" or "rental vehicle" means a motor vehicle of (1) |
24 | | the private
passenger
type, including passenger vans, mini |
25 | | vans, and sport utility vehicles or (2)
the cargo type,
|
26 | | including cargo vans, pickup trucks, and trucks with a gross |
|
| | SB2590 | - 5 - | LRB098 12398 RPM 46783 b |
|
|
1 | | vehicle
weight of less than
26,000 pounds the operation of |
2 | | which does not require the operator to possess a
commercial
|
3 | | driver's license.
|
4 | | "Webinar" means an online educational presentation during |
5 | | which a live and participating instructor and participating |
6 | | viewers, whose attendance is periodically verified throughout |
7 | | the presentation, actively engage in discussion and in the |
8 | | submission and answering of questions. |
9 | | (Source: P.A. 97-113, eff. 7-14-11.)
|
10 | | (215 ILCS 5/500-100)
|
11 | | (Section scheduled to be repealed on January 1, 2017)
|
12 | | Sec. 500-100. Limited lines producer license.
|
13 | | (a) An individual who is at least 18 years of age and whom |
14 | | the Director
considers to
be competent, trustworthy, and of |
15 | | good business reputation may obtain a limited
lines producer
|
16 | | license for one or more of the following classes:
|
17 | | (1) travel insurance as defined in Section 500-10 of |
18 | | this Article on baggage or limited travel health, accident, |
19 | | or trip
cancellation
insurance sold in connection with |
20 | | transportation provided by a common carrier ;
|
21 | | (2) industrial life insurance, as defined in Section |
22 | | 228 of this Code;
|
23 | | (3) industrial accident and health insurance, as |
24 | | defined in
Section 368 of this
Code;
|
25 | | (4) insurance issued by a company organized under the |
|
| | SB2590 | - 6 - | LRB098 12398 RPM 46783 b |
|
|
1 | | Farm Mutual
Insurance Company Act of 1986;
|
2 | | (5) legal expense insurance;
|
3 | | (6) enrollment of recipients of public aid or medicare |
4 | | in a health
maintenance
organization;
|
5 | | (7) a limited health care plan issued by an |
6 | | organization having a
certificate of
authority under the |
7 | | Limited Health Service Organization Act.
|
8 | | (b) The application for a limited lines producer license |
9 | | must be submitted
on a form
prescribed by the Director by a |
10 | | designee of the insurance company, health
maintenance
|
11 | | organization, or limited health service organization |
12 | | appointing the limited
insurance
representative. The insurance |
13 | | company, health maintenance organization, or
limited health
|
14 | | service organization must pay the fee required by Section |
15 | | 500-135.
|
16 | | (c) A limited lines producer may represent more than one |
17 | | insurance company,
health
maintenance organization, or limited |
18 | | health service organization.
|
19 | | (d) An applicant who has met the requirements of this |
20 | | Section shall be
issued a
perpetual limited lines producer |
21 | | license.
|
22 | | (e) A limited lines producer license shall remain in effect |
23 | | as long as the
appointing
insurance company pays the respective |
24 | | fee required by Section 500-135 prior to
January 1 of
each |
25 | | year, unless the license is revoked or suspended pursuant to
|
26 | | Section 500-70. Failure of the
insurance company to pay the |
|
| | SB2590 | - 7 - | LRB098 12398 RPM 46783 b |
|
|
1 | | license fee or to submit the required documents
shall cause
|
2 | | immediate termination of the limited line insurance producer |
3 | | license with
respect to which the
failure occurs.
|
4 | | (f) A limited lines producer license may be terminated by |
5 | | the insurance
company or
the licensee.
|
6 | | (g) A person whom the Director considers to be competent, |
7 | | trustworthy, and
of
good
business reputation may be issued a |
8 | | car rental limited line license. A car
rental limited line
|
9 | | license for a rental company shall remain in effect as long as |
10 | | the car rental
limited line licensee
pays the respective fee |
11 | | required by Section 500-135 prior to the next fee date
unless |
12 | | the car rental
license is revoked or suspended pursuant to |
13 | | Section 500-70. Failure of the car
rental limited line
licensee |
14 | | to pay the license fee or to submit the required documents |
15 | | shall cause
immediate
suspension of the car rental limited line |
16 | | license. A car rental limited line
license for rental
companies |
17 | | may be voluntarily
terminated by the car rental limited line |
18 | | licensee. The license fee
shall not be refunded upon |
19 | | termination of the car rental limited line license
by the car |
20 | | rental
limited line licensee.
|
21 | | (h) A limited lines producer issued a license pursuant to |
22 | | this Section is
not
subject to
the requirements of Section |
23 | | 500-30.
|
24 | | (i) A limited lines producer license must contain the name, |
25 | | address and
personal
identification number of the licensee, the |
26 | | date the license was issued,
general conditions relative
to the |
|
| | SB2590 | - 8 - | LRB098 12398 RPM 46783 b |
|
|
1 | | license's expiration or termination, and any other information |
2 | | the
Director considers
proper. A limited line producer license, |
3 | | if applicable, must also contain the
name and address of
the |
4 | | appointing insurance company.
|
5 | | (Source: P.A. 92-386, eff. 1-1-02 .)
|
6 | | (215 ILCS 5/500-108 new) |
7 | | Sec. 500-108. Travel insurance limited line license for |
8 | | limited lines travel insurance producers. |
9 | | (a) As used in this Section: |
10 | | "Limited lines travel insurance producer" means a licensed |
11 | | insurance producer or limited lines producer designated by an |
12 | | insurer as the travel insurance supervising entity as set forth |
13 | | in subsection (h) of this Section. |
14 | | "Offer and disseminate" means providing general |
15 | | information, including a description of the coverage and price, |
16 | | as well as processing the application, collecting premiums, and |
17 | | performing other non-licensable activities permitted by this |
18 | | State. |
19 | | "Travel retailer" means a business entity that makes, |
20 | | arranges, or offers travel services and may offer and |
21 | | disseminate travel insurance as a service to its customers on |
22 | | behalf of and under the direction of a limited lines travel |
23 | | insurance producer. |
24 | | (b) The Director may issue to a business entity that has |
25 | | filed with the Department an application for a limited license, |
|
| | SB2590 | - 9 - | LRB098 12398 RPM 46783 b |
|
|
1 | | in a form and manner prescribed by the Director, a limited |
2 | | lines travel insurance producer license that authorizes the |
3 | | limited lines travel insurance producer to sell, solicit, or |
4 | | negotiate travel insurance through a licensed insurer. |
5 | | (c) Notwithstanding any other provision of law, a travel |
6 | | retailer may offer and disseminate travel insurance on behalf |
7 | | of and under a limited lines producer business entity license |
8 | | only if the following conditions are met: |
9 | | (1) the limited lines producer or travel retailer |
10 | | provides to purchasers of travel insurance: |
11 | | (A) a description of the material terms or the |
12 | | actual terms of the insurance coverage; |
13 | | (B) a description of the process for filing a |
14 | | claim; |
15 | | (C) a description of the review or cancellation |
16 | | process for the travel insurance policy; and |
17 | | (D) the identity and contact information of the |
18 | | insurer and limited lines producer. |
19 | | (2) at the time of licensure, the limited lines |
20 | | producer shall establish and maintain a register on a form |
21 | | prescribed by the Director of each travel retailer that |
22 | | offers travel insurance on the limited lines producer's |
23 | | behalf; the register shall be maintained and updated |
24 | | annually by the limited lines producer and shall include |
25 | | the name, address, and contact information of the travel |
26 | | retailer and an officer or person who directs or controls |
|
| | SB2590 | - 10 - | LRB098 12398 RPM 46783 b |
|
|
1 | | the travel retailer's operations and the travel retailer's |
2 | | federal tax identification number; the limited lines |
3 | | producer shall submit the register to the Director upon |
4 | | reasonable request; the limited lines producer shall also |
5 | | certify that the travel retailer registered complies with |
6 | | 18 USC 1033; |
7 | | (3) the limited lines producer has designated one of |
8 | | its employees as a licensed individual producer (a |
9 | | designated responsible producer or DRP) responsible for |
10 | | the limited lines producer's compliance with the travel |
11 | | insurance laws, rules, and regulations of this State; |
12 | | (4) the limited lines producer has paid all applicable |
13 | | insurance producer licensing fees as set forth in this |
14 | | Code; and |
15 | | (5) the limited lines producer requires each employee |
16 | | and authorized representative of the travel retailer whose |
17 | | duties include offering and disseminating travel insurance |
18 | | to complete a program of instruction or training that shall |
19 | | be subject to review by the Director; the training material |
20 | | shall, at a minimum, contain instructions on the types of |
21 | | insurance offered, ethical sales practices, and required |
22 | | disclosures to prospective customers. |
23 | | (d) Any travel retailer offering or disseminating travel |
24 | | insurance shall make available to prospective
purchasers |
25 | | brochures or other written materials that: |
26 | | (1) provide the identity and contact information of the |
|
| | SB2590 | - 11 - | LRB098 12398 RPM 46783 b |
|
|
1 | | insurer and the limited lines producer; |
2 | | (2) explain that the purchase of travel insurance is |
3 | | not required in order to purchase any other product or |
4 | | service from the travel retailer; and |
5 | | (3) explain that an unlicensed travel retailer is |
6 | | permitted to provide general information about the |
7 | | insurance offered by the travel retailer, including a |
8 | | description of the coverage and price, but is not qualified |
9 | | or authorized to answer technical questions about the terms |
10 | | and conditions of the insurance offered by the travel |
11 | | retailer or to evaluate the adequacy of the customer's |
12 | | existing insurance coverage. |
13 | | (e) A travel retailer's employee or authorized |
14 | | representative who is not licensed as an insurance producer may |
15 | | not: |
16 | | (1) evaluate or interpret the technical terms, |
17 | | benefits, and conditions of the offered travel insurance |
18 | | coverage; |
19 | | (2) evaluate or provide advice concerning a |
20 | | prospective purchaser's existing insurance coverage; or |
21 | | (3) hold himself, herself, or itself out as a licensed |
22 | | insurer, licensed producer, or insurance expert. |
23 | | (f) A travel retailer whose insurance-related activities, |
24 | | and those of its employees and authorized representatives, are |
25 | | limited to offering and disseminating travel insurance on |
26 | | behalf of and under the direction of a limited lines producer |
|
| | SB2590 | - 12 - | LRB098 12398 RPM 46783 b |
|
|
1 | | meeting the conditions stated in this Section is authorized to |
2 | | do so and receive related compensation upon registration by the |
3 | | limited lines producer as described in item (2) of subsection |
4 | | (c) of this Section. |
5 | | (g) Travel insurance may be provided under an individual |
6 | | policy or under a group or master policy. |
7 | | (h) As the insurer designee, the limited lines producer is |
8 | | responsible for the acts of the travel retailer and the travel |
9 | | insurance supervising entity and shall use reasonable means to |
10 | | ensure compliance by the travel retailer within this Section.
|
11 | | (215 ILCS 5/500-135)
|
12 | | (Section scheduled to be repealed on January 1, 2017)
|
13 | | Sec. 500-135. Fees.
|
14 | | (a) The fees required by this Article are as follows:
|
15 | | (1) a fee of $180 for a person who is a resident of |
16 | | Illinois, and $250
for a person who is not a resident of |
17 | | Illinois, payable once every 2
years for an insurance
|
18 | | producer
license;
|
19 | | (2) a fee of $50 for the issuance of a temporary |
20 | | insurance
producer
license;
|
21 | | (3) a fee of $150 payable once every 2 years for a |
22 | | business
entity;
|
23 | | (4) an annual $50 fee for a limited
line producer |
24 | | license issued under items (1)
through (7) of subsection |
25 | | (a) of Section 500-100;
|
|
| | SB2590 | - 13 - | LRB098 12398 RPM 46783 b |
|
|
1 | | (5) a $50 application fee for the processing of a |
2 | | request to
take the
written
examination for an insurance |
3 | | producer license;
|
4 | | (6) an annual registration fee of $1,000 for |
5 | | registration of
an
education provider;
|
6 | | (7) a certification fee of $50 for each certified
|
7 | | pre-licensing or
continuing
education course and an annual |
8 | | fee of $20 for renewing the
certification of
each such
|
9 | | course;
|
10 | | (8) a fee of $180 for a person who is a resident of |
11 | | Illinois, and $250
for a person who is not a resident of |
12 | | Illinois, payable once every 2
years for a car rental
|
13 | | limited line
license;
|
14 | | (9) a fee of $200 payable once every 2 years for a |
15 | | limited
lines license
other
than the licenses issued under |
16 | | items (1) through (7) of subsection (a) of
Section
500-100, |
17 | | a
car rental limited line license, or a self-service |
18 | | storage facility limited
line license;
|
19 | | (10) a fee of $50 payable once every 2 years for a |
20 | | self-service storage
facility limited line license ; .
|
21 | | (11) an annual fee of $90 for a limited lines producer |
22 | | license issued under item (1) of subsection (a) of Section |
23 | | 500-100 of this Code. |
24 | | (b) Except as otherwise provided, all
fees paid to and |
25 | | collected by the Director under
this Section shall be paid |
26 | | promptly after receipt thereof, together with a
detailed |
|
| | SB2590 | - 14 - | LRB098 12398 RPM 46783 b |
|
|
1 | | statement of
such fees, into a special fund in the State |
2 | | Treasury to be known as the
Insurance Producer
Administration |
3 | | Fund. The moneys deposited into the Insurance Producer
|
4 | | Administration Fund
may be used only for payment of the |
5 | | expenses of the Department in the
execution,
administration, |
6 | | and enforcement of the insurance laws of this State, and shall
|
7 | | be appropriated as
otherwise provided by law for the payment of |
8 | | those expenses with first priority
being any
expenses incident |
9 | | to or associated with the administration and enforcement of
|
10 | | this Article.
|
11 | | (Source: P.A. 95-331, eff. 8-21-07 .)
|
| | | SB2590 | - 15 - | LRB098 12398 RPM 46783 b |
|
| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 215 ILCS 5/500-10 | | | 4 | | 215 ILCS 5/500-100 | | | 5 | | 215 ILCS 5/500-108 new | | | 6 | | 215 ILCS 5/500-135 | |
|
|