Full Text of HB4324 102nd General Assembly
HB4324ham001 102ND GENERAL ASSEMBLY | Rep. Bob Morgan Filed: 2/28/2022
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| 1 | | AMENDMENT TO HOUSE BILL 4324
| 2 | | AMENDMENT NO. ______. Amend House Bill 4324 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing 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| 7 | | (Section scheduled to be repealed on January 1, 2027)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, | 10 | | persons who have met
the
requirements of Sections 500-25 and | 11 | | 500-30 shall be issued a 2-year insurance
producer license.
An | 12 | | insurance producer may receive qualification for a license in | 13 | | one 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
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| 1 | | accident and benefits for disability income.
| 2 | | (2) Variable life and variable annuity products: | 3 | | insurance coverage
provided
under variable life insurance | 4 | | contracts and variable annuities.
| 5 | | (3) Accident and health or sickness: insurance | 6 | | coverage for sickness,
bodily
injury, or accidental death | 7 | | and may include benefits for disability income.
| 8 | | (4) Property: insurance coverage for the direct or | 9 | | consequential loss or
damage to property of every kind.
| 10 | | (5) Casualty: insurance coverage against legal | 11 | | liability, including that
for
death, injury, or disability | 12 | | or damage to real or personal property.
| 13 | | (6) Personal lines: property and casualty insurance | 14 | | coverage sold to
individuals and families for primarily | 15 | | noncommercial purposes.
| 16 | | (7) Any other line of insurance permitted under State | 17 | | laws or rules.
| 18 | | (b) An insurance producer license shall remain in effect | 19 | | unless revoked or
suspended
as long as the fee set forth in | 20 | | Section 500-135 is paid and education
requirements for | 21 | | resident
individual producers are met by the due date.
| 22 | | (1) Before each license renewal, an insurance producer | 23 | | must satisfactorily
complete at least 24 hours of course | 24 | | study or participation in a professional insurance | 25 | | association under paragraph (3) of this subsection in | 26 | | accordance with rules prescribed
by the
Director. Three of |
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| 1 | | the 24 hours of course study must consist of classroom or | 2 | | webinar ethics instruction. The Director may not approve a | 3 | | course of study unless the course
provides for
classroom, | 4 | | seminar, webinar, or self-study instruction methods. A | 5 | | course given in a
combination
instruction method of | 6 | | classroom, seminar, webinar, or self-study shall be deemed | 7 | | to
be a self-study course unless the classroom, seminar, | 8 | | or webinar certified hours meets
or exceeds two-thirds
of | 9 | | total hours certified for the course. The self-study | 10 | | material used in the
combination
course must be directly | 11 | | related to and complement the classroom portion of the
| 12 | | course in
order to be considered for credit. An | 13 | | instruction method other than classroom
or seminar
shall | 14 | | be considered as self-study methodology. Self-study credit | 15 | | hours
require the
successful completion of an examination | 16 | | covering the self-study material. The
examination may not | 17 | | be self-evaluated. However, if the self-study material is
| 18 | | completed
through the use of an approved computerized | 19 | | interactive format whereby the
computer
validates the | 20 | | successful completion of the self-study material, no | 21 | | additional
examination
is required. The self-study credit | 22 | | hours contained in a certified course shall
be considered
| 23 | | classroom hours when at least two-thirds of the hours are | 24 | | given as classroom or
seminar
instruction.
| 25 | | (2) An insurance producer license automatically | 26 | | terminates when an
insurance
producer fails to |
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| 1 | | successfully meet the requirements of item (1) of | 2 | | subsection
(b) of this
Section. The producer must complete | 3 | | the course in advance of the renewal date
to allow
the | 4 | | education provider time to report the credit to the | 5 | | Department.
| 6 | | (3) An insurance producer's active participation in a | 7 | | State or national professional insurance association may | 8 | | be approved by the Director for up to 4 hours of continuing | 9 | | education credit per biennial reporting period. Credit | 10 | | shall be provided on an hour-for-hour basis. These hours | 11 | | shall be verified and submitted by the association on | 12 | | behalf of the insurance producer and credited upon timely | 13 | | filing with the Director or his or her designee on a | 14 | | biennial basis. Any association submitting continuing | 15 | | education credit hours on behalf of insurance producers | 16 | | must be registered as an education provider under Section | 17 | | 500-135. Credit granted under these provisions shall not | 18 | | be used to satisfy ethics education requirements. Active | 19 | | participation in a State or national professional | 20 | | insurance association is defined by one of the following | 21 | | methods: | 22 | | (A) service on a board of directors of a State or | 23 | | national chapter of the association; | 24 | | (B) service on a formal committee of a State or | 25 | | national chapter of the association; or | 26 | | (C) service on a formal subcommittee or task force |
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| 1 | | of a State or national chapter of the association. | 2 | | (c) A provider of a pre-licensing or continuing education | 3 | | course required
by Section
500-30 and this Section must pay a | 4 | | registration fee and a course certification
fee for each | 5 | | course
being certified as provided by Section 500-135.
| 6 | | (d) An individual insurance producer who allows his or her | 7 | | license to lapse
may,
within 12 months after the due date of | 8 | | the renewal fee, be issued a license
without the necessity
of | 9 | | passing a written examination. However, a penalty in the | 10 | | amount of double
the unpaid renewal
fee shall be required | 11 | | after the due date.
| 12 | | (e) A licensed insurance producer who is unable to comply | 13 | | with license
renewal
procedures due to military service may | 14 | | request a waiver of those procedures.
| 15 | | (f) The license must contain the licensee's name, address, | 16 | | and personal
identification
number, the date of issuance, the | 17 | | lines of authority, the expiration date, and
any other
| 18 | | information the Director deems necessary.
| 19 | | (g) Licensees must inform the Director by any means | 20 | | acceptable to the
Director of a
change of address within 30 | 21 | | days after the change.
| 22 | | (h) In order to assist in the performance of the | 23 | | Director's duties, the
Director may
contract with a | 24 | | non-governmental entity including the National Association of
| 25 | | Insurance
Commissioners (NAIC), or any affiliates or | 26 | | subsidiaries that the NAIC oversees,
to perform any
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| 1 | | ministerial functions, including collection of fees, related | 2 | | to producer
licensing that the Director
and the | 3 | | non-governmental entity may deem appropriate.
| 4 | | (Source: P.A. 100-876, eff. 8-14-18.)".
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