Illinois General Assembly - Full Text of HB4324
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Full Text of HB4324  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/5/2022, by Rep. Bob Morgan


215 ILCS 5/500-35

    Amends the Illinois Insurance Code. In provisions concerning insurance producer licenses, provides that an insurance producer's active participation in a State or national professional insurance association may be approved by the Director of Insurance for up to 4 hours of continuing education credit per biennial reporting period. Provides that the hours shall be credited upon timely filing with the Director or his or her designee on a biennial basis, the credit shall not be used to satisfy ethics education requirements, and active participation in a State or national professional insurance association is defined by specified methods.

LRB102 23347 BMS 32513 b





HB4324LRB102 23347 BMS 32513 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
5changing Section 500-35 as follows:
6    (215 ILCS 5/500-35)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 500-35. License.
9    (a) Unless denied a license pursuant to Section 500-70,
10persons who have met the requirements of Sections 500-25 and
11500-30 shall be issued a 2-year insurance producer license. An
12insurance producer may receive qualification for a license in
13one or more of the following lines of authority:
14        (1) Life: insurance coverage on human lives including
15    benefits of endowment and annuities, and may include
16    benefits in the event of death or dismemberment by
17    accident and benefits for disability income.
18        (2) Variable life and variable annuity products:
19    insurance coverage provided under variable life insurance
20    contracts and variable annuities.
21        (3) Accident and health or sickness: insurance
22    coverage for sickness, bodily injury, or accidental death
23    and may include benefits for disability income.



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



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1    self-study material used in the combination course must be
2    directly related to and complement the classroom portion
3    of the course in order to be considered for credit. An
4    instruction method other than classroom or seminar shall
5    be considered as self-study methodology. Self-study credit
6    hours require the successful completion of an examination
7    covering the self-study material. The examination may not
8    be self-evaluated. However, if the self-study material is
9    completed through the use of an approved computerized
10    interactive format whereby the computer validates the
11    successful completion of the self-study material, no
12    additional examination is required. The self-study credit
13    hours contained in a certified course shall be considered
14    classroom hours when at least two-thirds of the hours are
15    given as classroom or seminar instruction.
16        (2) An insurance producer's active participation in a
17    State or national professional insurance association may
18    be approved by the Director for up to 4 hours of continuing
19    education credit per biennial reporting period. These
20    hours shall be credited upon timely filing with the
21    Director or his or her designee on a biennial basis.
22    Credit granted under these provisions shall not be used to
23    satisfy ethics education requirements. Active
24    participation in a State or national professional
25    insurance association is defined by one of the following
26    methods:



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1            (A) service on a board of directors of a State or
2        national chapter of the association;
3            (B) service on a formal committee of a State or
4        national chapter of the association; or
5            (C) service on a formal subcommittee or task force
6        of a State or national chapter of the association.
7        (3) An insurance producer license automatically
8    terminates when an insurance producer fails to
9    successfully meet the requirements of item (1) of
10    subsection (b) of this Section. The producer must complete
11    the course in advance of the renewal date to allow the
12    education provider time to report the credit to the
13    Department.
14    (c) A provider of a pre-licensing or continuing education
15course required by Section 500-30 and this Section must pay a
16registration fee and a course certification fee for each
17course being certified as provided by Section 500-135.
18    (d) An individual insurance producer who allows his or her
19license to lapse may, within 12 months after the due date of
20the renewal fee, be issued a license without the necessity of
21passing a written examination. However, a penalty in the
22amount of double the unpaid renewal fee shall be required
23after the due date.
24    (e) A licensed insurance producer who is unable to comply
25with license renewal procedures due to military service may
26request a waiver of those procedures.



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1    (f) The license must contain the licensee's name, address,
2and personal identification number, the date of issuance, the
3lines of authority, the expiration date, and any other
4information the Director deems necessary.
5    (g) Licensees must inform the Director by any means
6acceptable to the Director of a change of address within 30
7days after the change.
8    (h) In order to assist in the performance of the
9Director's duties, the Director may contract with a
10non-governmental entity including the National Association of
11Insurance Commissioners (NAIC), or any affiliates or
12subsidiaries that the NAIC oversees, to perform any
13ministerial functions, including collection of fees, related
14to producer licensing that the Director and the
15non-governmental entity may deem appropriate.
16(Source: P.A. 100-876, eff. 8-14-18.)