Illinois General Assembly - Full Text of SB2513
Illinois General Assembly

Previous General Assemblies

Full Text of SB2513  100th General Assembly




SB2513 EngrossedLRB100 17072 SMS 32223 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 adding
5Section 401.3 and by changing Section 500-35 as follows:
6    (215 ILCS 5/401.3 new)
7    Sec. 401.3. Advisory council; powers and duties. There is
8created within the Department an advisory council to review and
9make recommendations to the Department regarding rules to be
10adopted with respect to continuing education courses for which
11the approval of the Department is required under the provisions
12of this Code. In addition, the advisory council shall make
13recommendations to the Department regarding rules with respect
14to course materials, curriculum, and credentials of
16    The advisory council shall be comprised of 7 members
17appointed by the Director. One member shall be an educational
18instructor who has regularly provided educational offerings
19for more than 5 out of the last 10 years to individuals
20licensed under this Code. Three members shall be recommended by
21the leadership of 3 statewide trade organizations whose
22memberships are primarily composed of individuals licensed
23under this Code, none of which may come from the same



SB2513 Engrossed- 2 -LRB100 17072 SMS 32223 b

1organization. Three members shall represent a domestic
3    The members' terms shall be 3 years or until their
4successors are appointed, and the expiration of their terms
5shall be staggered. No individual may serve more than 3
6consecutive terms.
7    The Director shall appoint an employee of the Department to
8serve as the chairperson of the advisory council, ex officio,
9without a vote.
10    Four voting advisory council members shall constitute a
11quorum. A quorum is necessary for all advisory council
12decisions and recommendations.
13    (215 ILCS 5/500-35)
14    (Section scheduled to be repealed on January 1, 2027)
15    Sec. 500-35. License.
16    (a) Unless denied a license pursuant to Section 500-70,
17persons who have met the requirements of Sections 500-25 and
18500-30 shall be issued a 2-year insurance producer license. An
19insurance producer may receive qualification for a license in
20one or more of the following lines of authority:
21        (1) Life: insurance coverage on human lives including
22    benefits of endowment and annuities, and may include
23    benefits in the event of death or dismemberment by accident
24    and benefits for disability income.
25        (2) Variable life and variable annuity products:



SB2513 Engrossed- 3 -LRB100 17072 SMS 32223 b

1    insurance coverage provided under variable life insurance
2    contracts and variable annuities.
3        (3) Accident and health or sickness: insurance
4    coverage for sickness, bodily injury, or accidental death
5    and may include benefits for disability income.
6        (4) Property: insurance coverage for the direct or
7    consequential loss or damage to property of every kind.
8        (5) Casualty: insurance coverage against legal
9    liability, including that for death, injury, or disability
10    or damage to real or personal property.
11        (6) Personal lines: property and casualty insurance
12    coverage sold to individuals and families for primarily
13    noncommercial purposes.
14        (7) Any other line of insurance permitted under State
15    laws or rules.
16    (b) An insurance producer license shall remain in effect
17unless revoked or suspended as long as the fee set forth in
18Section 500-135 is paid and education requirements for resident
19individual producers are met by the due date.
20        (1) Before each license renewal, an insurance producer
21    must satisfactorily complete at least 24 hours of course
22    study in accordance with rules prescribed by the Director.
23    Three of the 24 hours of course study must consist of
24    classroom or webinar ethics instruction. The Director may
25    not approve a course of study unless the course provides
26    for classroom, seminar, webinar, or self-study instruction



SB2513 Engrossed- 4 -LRB100 17072 SMS 32223 b

1    methods. A course given in a combination instruction method
2    of classroom, seminar, webinar, or self-study shall be
3    deemed to be a self-study course unless the classroom,
4    seminar, or webinar certified hours meets or exceeds
5    two-thirds of total hours certified for the course. The
6    self-study material used in the combination course must be
7    directly related to and complement the classroom portion of
8    the course in order to be considered for credit. An
9    instruction method other than classroom or seminar shall be
10    considered as self-study methodology. Self-study credit
11    hours require the successful completion of an examination
12    covering the self-study material. The examination may not
13    be self-evaluated. However, if the self-study material is
14    completed through the use of an approved computerized
15    interactive format whereby the computer validates the
16    successful completion of the self-study material, no
17    additional examination is required. The self-study credit
18    hours contained in a certified course shall be considered
19    classroom hours when at least two-thirds of the hours are
20    given as classroom or seminar instruction.
21        (2) An insurance producer license automatically
22    terminates when an insurance producer fails to
23    successfully meet the requirements of item (1) of
24    subsection (b) of this Section. The producer must complete
25    the course in advance of the renewal date to allow the
26    education provider time to report the credit to the



SB2513 Engrossed- 5 -LRB100 17072 SMS 32223 b

1    Department.
2    (c) A provider of a pre-licensing or continuing education
3course required by Section 500-30 and this Section must pay a
4registration fee and a course certification fee for each course
5being certified as provided by Section 500-135.
6    (d) An individual insurance producer who allows his or her
7license to lapse may, within 12 months after the due date of
8the renewal fee, be issued a license without the necessity of
9passing a written examination. However, a penalty in the amount
10of double the unpaid renewal fee shall be required after the
11due date.
12    (e) A licensed insurance producer who is unable to comply
13with license renewal procedures due to military service may
14request a waiver of those procedures.
15    (f) The license must contain the licensee's name, address,
16and personal identification number, the date of issuance, the
17lines of authority, the expiration date, and any other
18information the Director deems necessary.
19    (g) Licensees must inform the Director by any means
20acceptable to the Director of a change of address within 30
21days after the change.
22    (h) In order to assist in the performance of the Director's
23duties, the Director may contract with a non-governmental
24entity including the National Association of Insurance
25Commissioners (NAIC), or any affiliates or subsidiaries that
26the NAIC oversees, to perform any ministerial functions,



SB2513 Engrossed- 6 -LRB100 17072 SMS 32223 b

1including collection of fees, related to producer licensing
2that the Director and the non-governmental entity may deem
4(Source: P.A. 96-839, eff. 1-1-10; 97-113, eff. 7-14-11.)
5    Section 99. Effective date. This Act takes effect upon
6becoming law.