Illinois General Assembly - Full Text of SB2513
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Full Text of SB2513  100th General Assembly


Sen. Michael E. Hastings

Filed: 2/21/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 2513 on page 1,
3line 5, after "401.3", by inserting "and by changing Section
4500-35"; and
5on page 2, immediately below line 11, by inserting the
7    "(215 ILCS 5/500-35)
8    (Section scheduled to be repealed on January 1, 2027)
9    Sec. 500-35. License.
10    (a) Unless denied a license pursuant to Section 500-70,
11persons who have met the requirements of Sections 500-25 and
12500-30 shall be issued a 2-year insurance producer license. An
13insurance producer may receive qualification for a license in
14one or more of the following lines of authority:
15        (1) Life: insurance coverage on human lives including
16    benefits of endowment and annuities, and may include



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1    benefits in the event of death or dismemberment by accident
2    and benefits for disability income.
3        (2) Variable life and variable annuity products:
4    insurance coverage provided under variable life insurance
5    contracts and variable annuities.
6        (3) Accident and health or sickness: insurance
7    coverage for sickness, bodily injury, or accidental death
8    and may include benefits for disability income.
9        (4) Property: insurance coverage for the direct or
10    consequential loss or damage to property of every kind.
11        (5) Casualty: insurance coverage against legal
12    liability, including that for death, injury, or disability
13    or damage to real or personal property.
14        (6) Personal lines: property and casualty insurance
15    coverage sold to individuals and families for primarily
16    noncommercial purposes.
17        (7) Any other line of insurance permitted under State
18    laws or rules.
19    (b) An insurance producer license shall remain in effect
20unless revoked or suspended as long as the fee set forth in
21Section 500-135 is paid and education requirements for resident
22individual producers are met by the due date.
23        (1) Before each license renewal, an insurance producer
24    must satisfactorily complete at least 24 hours of course
25    study in accordance with rules prescribed by the Director.
26    Three of the 24 hours of course study must consist of



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



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



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1entity including the National Association of Insurance
2Commissioners (NAIC), or any affiliates or subsidiaries that
3the NAIC oversees, to perform any ministerial functions,
4including collection of fees, related to producer licensing
5that the Director and the non-governmental entity may deem
7(Source: P.A. 96-839, eff. 1-1-10; 97-113, eff. 7-14-11.)".