Full Text of SB3024 99th General Assembly
SB3024 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 SB3024 Introduced 2/18/2016, by Sen. William R. Haine SYNOPSIS AS INTRODUCED: |
| 215 ILCS 5/500-100 | |
215 ILCS 5/1403 |
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Amends the Illinois Insurance Code. In a provision concerning limited lines producer licenses, provides that nothing in the Code shall be construed to require a limited lines producer license or any other form or class of producer's license for financial institutions, or their employees, if the financial institution has purchased or sponsored a group credit life, credit accident and health, credit casualty, or credit property insurance policy or program, under which the financial institution enrolls or performs other administrative services to enable individuals to purchase insurance coverage under the group credit insurance policy from a licensed producer in compliance with provisions concerning license exceptions and credit life and credit accident and health insurance policies under the Code. In a provision concerning licensure requirements for financial institutions, provides that nothing in the Code or in any other law of this State shall be construed to require a financial institution, or the officers or employees of the financial institution, to become licensed under the Code in order to offer any line of insurance that is excluded from the definition of insurance under the Code if that line of insurance is offered in relation to the financial institution's banking business. Provides that for limited purposes, a financial institution, or its officers or employees, that perform administrative services related to lines of insurance excluded from the definition of insurance under the Code, including, but not limited to, marketing, sponsorship, enrollment, and insurance plan certificate issuance services, shall be deemed to be offering insurance related to the financial institution's banking business. Effective immediately.
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| | A BILL FOR |
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| | | SB3024 | | LRB099 20642 EGJ 45237 b |
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| 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 500-100 and 1403 as follows:
| 6 | | (215 ILCS 5/500-100)
| 7 | | (Section scheduled to be repealed on January 1, 2017)
| 8 | | Sec. 500-100. Limited lines producer license.
| 9 | | (a) An individual who is at least 18 years of age and whom | 10 | | the Director
considers to
be competent, trustworthy, and of | 11 | | good business reputation may obtain a limited
lines producer
| 12 | | license for one or more of the following classes:
| 13 | | (1) travel insurance, as defined in Section 500-10 of | 14 | | this Article;
| 15 | | (2) industrial life insurance, as defined in Section | 16 | | 228 of this Code;
| 17 | | (3) industrial accident and health insurance, as | 18 | | defined in
Section 368 of this
Code;
| 19 | | (4) insurance issued by a company organized under the | 20 | | Farm Mutual
Insurance Company Act of 1986;
| 21 | | (5) legal expense insurance;
| 22 | | (6) enrollment of recipients of public aid or medicare | 23 | | in a health
maintenance
organization;
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| 1 | | (7) a limited health care plan issued by an | 2 | | organization having a
certificate of
authority under the | 3 | | Limited Health Service Organization Act;
| 4 | | (8) credit life and credit accident and health | 5 | | insurance and other credit insurance policies approved or | 6 | | permitted by the Director; a credit insurance company must | 7 | | conduct a training program in which an applicant shall | 8 | | receive basic instruction about the credit insurance | 9 | | products that he or she will be selling ; nothing in this | 10 | | Code shall be construed to require a limited producer | 11 | | license or any other form or class of producer's license | 12 | | for financial institutions, or their employees, if the | 13 | | financial institution has purchased or sponsored a group | 14 | | credit life, credit accident and health, credit casualty, | 15 | | or credit property insurance policy or program, under which | 16 | | the financial institution enrolls or performs other | 17 | | administrative services to enable individuals to purchase | 18 | | insurance coverage under the group credit insurance policy | 19 | | from a licensed producer in compliance with Section 155.56 | 20 | | and paragraph (2) of subsection (b) of Section 500-20 of | 21 | | this Code . | 22 | | (b) The application for a limited lines producer license | 23 | | must be submitted
on a form
prescribed by the Director by a | 24 | | designee of the insurance company, health
maintenance
| 25 | | organization, or limited health service organization | 26 | | appointing the limited
insurance
representative. The insurance |
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| 1 | | company, health maintenance organization, or
limited health
| 2 | | service organization must pay the fee required by Section | 3 | | 500-135.
| 4 | | (c) A limited lines producer may represent more than one | 5 | | insurance company,
health
maintenance organization, or limited | 6 | | health service organization.
| 7 | | (d) An applicant who has met the requirements of this | 8 | | Section shall be
issued a
perpetual limited lines producer | 9 | | license.
| 10 | | (e) A limited lines producer license shall remain in effect | 11 | | as long as the
appointing
insurance company pays the respective | 12 | | fee required by Section 500-135 prior to
January 1 of
each | 13 | | year, unless the license is revoked or suspended pursuant to
| 14 | | Section 500-70. Failure of the
insurance company to pay the | 15 | | license fee or to submit the required documents
shall cause
| 16 | | immediate termination of the limited line insurance producer | 17 | | license with
respect to which the
failure occurs.
| 18 | | (f) A limited lines producer license may be terminated by | 19 | | the insurance
company or
the licensee.
| 20 | | (g) A person whom the Director considers to be competent, | 21 | | trustworthy, and
of
good
business reputation may be issued a | 22 | | car rental limited line license. A car
rental limited line
| 23 | | license for a rental company shall remain in effect as long as | 24 | | the car rental
limited line licensee
pays the respective fee | 25 | | required by Section 500-135 prior to the next fee date
unless | 26 | | the car rental
license is revoked or suspended pursuant to |
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| 1 | | Section 500-70. Failure of the car
rental limited line
licensee | 2 | | to pay the license fee or to submit the required documents | 3 | | shall cause
immediate
suspension of the car rental limited line | 4 | | license. A car rental limited line
license for rental
companies | 5 | | may be voluntarily
terminated by the car rental limited line | 6 | | licensee. The license fee
shall not be refunded upon | 7 | | termination of the car rental limited line license
by the car | 8 | | rental
limited line licensee.
| 9 | | (g-5) A business entity may be issued a limited lines | 10 | | producer license for credit life and credit accident and health | 11 | | insurance and other credit insurance policies approved or | 12 | | permitted by the Director, provided that: | 13 | | (1) application for the limited lines producer license | 14 | | for credit insurance is made on a form specified by the | 15 | | Director; | 16 | | (2) the appointing insurance company has paid the | 17 | | application fee amount required by the Director for the | 18 | | business entity's application; and | 19 | | (3) the business entity has designated an individual | 20 | | with an in force limited license producer license issued | 21 | | under paragraph (8) of subsection (a) of this Section to be | 22 | | responsible for the business entity's compliance with the | 23 | | insurance laws and regulations of this State related to | 24 | | credit life and credit accident and health insurance and | 25 | | other credit insurance policies approved or permitted by | 26 | | the Director that are offered or sold by that business |
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| 1 | | entity. | 2 | | Except as specifically authorized by paragraph (8) of | 3 | | subsection (a) of this Section or this subsection (g-5), a | 4 | | business entity holding a limited lines license under this | 5 | | subsection (g-5) may not advertise, represent, or otherwise | 6 | | hold itself or any of its employees out as licensed insurers, | 7 | | insurance producers, insurance agents, or insurance brokers. | 8 | | (h) A limited lines producer issued a license pursuant to | 9 | | this Section is
not
subject to
the requirements of Section | 10 | | 500-30.
| 11 | | (i) A limited lines producer license must contain the name, | 12 | | address and
personal
identification number of the licensee, the | 13 | | date the license was issued,
general conditions relative
to the | 14 | | license's expiration or termination, and any other information | 15 | | the
Director considers
proper. A limited line producer license, | 16 | | if applicable, must also contain the
name and address of
the | 17 | | appointing insurance company.
| 18 | | (Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14; | 19 | | 98-1165, eff. 6-1-15; 99-161, eff. 1-1-16 .)
| 20 | | (215 ILCS 5/1403)
| 21 | | Sec. 1403. Licensure requirements for financial | 22 | | institutions.
| 23 | | (a) A financial institution transacting insurance business | 24 | | in this State
shall register with the Director pursuant to the | 25 | | Illinois Insurance Code and
shall be subject to the laws, |
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| 1 | | rules, and penalties of the Illinois Insurance
Code.
| 2 | | (b) The solicitation and sale of insurance by a financial | 3 | | institution
shall be conducted only by individuals who have | 4 | | been issued and maintain an
insurance producer's license | 5 | | pursuant to the Illinois Insurance Code and shall
be subject to | 6 | | the laws, rules, and penalties of the Illinois Insurance Code.
| 7 | | (c) For the purposes of this Section, a "financial | 8 | | institution" means the
subsidiary of a financial institution | 9 | | when the financial institution is
transacting insurance | 10 | | business in this State only through the subsidiary. For
the | 11 | | purposes of Section 499.1 of the Illinois Insurance Code, a | 12 | | financial
institution shall be deemed to be a corporation.
| 13 | | (d) Nothing in this Code or in any other law of this State | 14 | | shall be construed to require a financial institution, or the | 15 | | officers or employees of the financial institution, to become | 16 | | licensed under this Code in order to offer any line of | 17 | | insurance that is excluded from the definition of insurance, as | 18 | | defined by Section 1402, if that line of insurance is offered | 19 | | in relation to the financial institution's banking business. | 20 | | For purposes of this subsection (d), a financial institution, | 21 | | or its officers or employees, that perform administrative | 22 | | services related to lines of insurance excluded from the | 23 | | definition of insurance, as defined by Section 1402, including, | 24 | | but not limited to, marketing, sponsorship, enrollment, and | 25 | | insurance plan certificate issuance services, shall be deemed | 26 | | to be offering insurance related to the financial institution's |
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| 1 | | banking business. | 2 | | (Source: P.A. 90-41, eff. 10-1-97.)
| 3 | | Section 99. Effective date. This Act takes effect upon | 4 | | becoming law.
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