HB4324 EngrossedLRB102 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7    (Section scheduled to be repealed on January 1, 2027)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 or participation in a professional insurance
18    association under paragraph (3) of this subsection in
19    accordance with rules prescribed by the Director. Three of
20    the 24 hours of course study must consist of classroom or
21    webinar ethics instruction. The Director may not approve a
22    course of study unless the course provides for classroom,
23    seminar, webinar, or self-study instruction methods. A
24    course given in a combination instruction method of
25    classroom, seminar, webinar, or self-study shall be deemed
26    to be a self-study course unless the classroom, seminar,



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



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1    be approved by the Director for up to 4 hours of continuing
2    education credit per biennial reporting period. Credit
3    shall be provided on an hour-for-hour basis. These hours
4    shall be verified and submitted by the association on
5    behalf of the insurance producer and credited upon timely
6    filing with the Director or his or her designee on a
7    biennial basis. Any association submitting continuing
8    education credit hours on behalf of insurance producers
9    must be registered as an education provider under Section
10    500-135. Credit granted under these provisions shall not
11    be used to satisfy ethics education requirements. Active
12    participation in a State or national professional
13    insurance association is defined by one of the following
14    methods:
15            (A) service on a board of directors of a State or
16        national chapter of the association;
17            (B) service on a formal committee of a State or
18        national chapter of the association; or
19            (C) service on a formal subcommittee or task force
20        of a State or national chapter of the association.
21    (c) A provider of a pre-licensing or continuing education
22course required by Section 500-30 and this Section must pay a
23registration fee and a course certification fee for each
24course being certified as provided by Section 500-135.
25    (d) An individual insurance producer who allows his or her
26license to lapse may, within 12 months after the due date of



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1the renewal fee, be issued a license without the necessity of
2passing a written examination. However, a penalty in the
3amount of double the unpaid renewal fee shall be required
4after the due date.
5    (e) A licensed insurance producer who is unable to comply
6with license renewal procedures due to military service may
7request a waiver of those procedures.
8    (f) The license must contain the licensee's name, address,
9and personal identification number, the date of issuance, the
10lines of authority, the expiration date, and any other
11information the Director deems necessary.
12    (g) Licensees must inform the Director by any means
13acceptable to the Director of a change of address within 30
14days after the change.
15    (h) In order to assist in the performance of the
16Director's duties, the Director may contract with a
17non-governmental entity including the National Association of
18Insurance Commissioners (NAIC), or any affiliates or
19subsidiaries that the NAIC oversees, to perform any
20ministerial functions, including collection of fees, related
21to producer licensing that the Director and the
22non-governmental entity may deem appropriate.
23(Source: P.A. 100-876, eff. 8-14-18.)