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

HB4324ham001 102ND GENERAL ASSEMBLY

Rep. Bob Morgan

Filed: 2/28/2022

 

 


 

 


 
10200HB4324ham001LRB102 23347 BMS 36807 a

1
AMENDMENT TO HOUSE BILL 4324

2    AMENDMENT NO. ______. Amend House Bill 4324 by replacing
3everything after the enacting clause with the following:
 
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7    (Section scheduled to be repealed on January 1, 2027)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

 

 

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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
19unless revoked or suspended as long as the fee set forth in
20Section 500-135 is paid and education requirements for
21resident 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
3course required by Section 500-30 and this Section must pay a
4registration fee and a course certification fee for each
5course being certified as provided by Section 500-135.
6    (d) An individual insurance producer who allows his or her
7license to lapse may, within 12 months after the due date of
8the renewal fee, be issued a license without the necessity of
9passing a written examination. However, a penalty in the
10amount of double the unpaid renewal fee shall be required
11after the due date.
12    (e) A licensed insurance producer who is unable to comply
13with license renewal procedures due to military service may
14request a waiver of those procedures.
15    (f) The license must contain the licensee's name, address,
16and personal identification number, the date of issuance, the
17lines of authority, the expiration date, and any other
18information the Director deems necessary.
19    (g) Licensees must inform the Director by any means
20acceptable to the Director of a change of address within 30
21days after the change.
22    (h) In order to assist in the performance of the
23Director's duties, the Director may contract with a
24non-governmental entity including the National Association of
25Insurance Commissioners (NAIC), or any affiliates or
26subsidiaries that the NAIC oversees, to perform any

 

 

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1ministerial functions, including collection of fees, related
2to producer licensing that the Director and the
3non-governmental entity may deem appropriate.
4(Source: P.A. 100-876, eff. 8-14-18.)".