Sen. Michael E. Hastings

Filed: 3/9/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 2513 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Insurance Code is amended by
5adding Section 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



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1appointed by the Director. One member shall be an educational
2instructor who has regularly provided educational offerings
3for more than 5 out of the last 10 years to individuals
4licensed under this Code. Three members shall be recommended by
5the leadership of 3 statewide trade organizations whose
6memberships are primarily composed of individuals licensed
7under this Code, none of which may come from the same
8organization. Three members shall represent a domestic
10    The members' terms shall be 3 years or until their
11successors are appointed, and the expiration of their terms
12shall be staggered. No individual may serve more than 3
13consecutive terms.
14    The Director shall appoint an employee of the Department to
15serve as the chairperson of the advisory council, ex officio,
16without a vote.
17    Four voting advisory council members shall constitute a
18quorum. A quorum is necessary for all advisory council
19decisions and recommendations.
20    (215 ILCS 5/500-35)
21    (Section scheduled to be repealed on January 1, 2027)
22    Sec. 500-35. License.
23    (a) Unless denied a license pursuant to Section 500-70,
24persons who have met the requirements of Sections 500-25 and
25500-30 shall be issued a 2-year insurance producer license. An



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



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



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



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1acceptable to the Director of a change of address within 30
2days after the change.
3    (h) In order to assist in the performance of the Director's
4duties, the Director may contract with a non-governmental
5entity including the National Association of Insurance
6Commissioners (NAIC), or any affiliates or subsidiaries that
7the NAIC oversees, to perform any ministerial functions,
8including collection of fees, related to producer licensing
9that the Director and the non-governmental entity may deem
11(Source: P.A. 96-839, eff. 1-1-10; 97-113, eff. 7-14-11.)
12    Section 99. Effective date. This Act takes effect upon
13becoming law.".