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91_SB0363
LRB9100321JSpcB
1 AN ACT concerning the licensing of insurance producers.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5 changing Sections 491.1, 492.2, 494.1, 496.2, 497.1, 499.1,
6 505.1, 509.1, and 510.2 and adding Section 495.2 as follows:
7 (215 ILCS 5/491.1) (from Ch. 73, par. 1065.38-1)
8 Sec. 491.1. Definitions. In addition to the definitions
9 in Section 2, the following definitions apply to this
10 Article.
11 (a) Insurance. Insurance is any of the classes of
12 insurance found in Section 4.
13 (b) Insurance producer. An insurance producer is an
14 individual who solicits, negotiates, effects, procures,
15 renews, continues or binds policies of insurance covering
16 property or risks located in Illinois.
17 (c) License. A license is a document authorizing an
18 individual to act as an insurance producer, limited insurance
19 representative or temporary insurance producer, as specified
20 in such document.
21 (d) Limited insurance representative. A limited
22 insurance representative is an individual appointed by an
23 insurance company, health maintenance organization, or
24 limited health service organization to represent that company
25 or organization regarding the types of insurance set forth in
26 Section 495.1.
27 "Limited licensee" means a person authorized pursuant to
28 the provisions of Section 495.2 to sell certain coverages
29 relating to the rental of vehicles.
30 (e) Registered firm. A registered firm is a
31 corporation, partnership, or limited liability company which
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1 transacts the business of insurance as an insurance agency.
2 "Rental agreement" means a written agreement setting
3 forth the terms and conditions governing the use of a vehicle
4 provided by a rental company for rental or lease.
5 "Rental company" means a person, or a franchisee or
6 location or office of such person, in the business of
7 providing primarily private passenger vehicles to the public
8 under a rental agreement for a period not to exceed 90 days.
9 "Rental period" means the term of the rental agreement.
10 "Renter" means a person obtaining the use of a vehicle
11 from a rental company under the terms of a rental agreement
12 for a period not to exceed 90 days.
13 "Vehicle" or "rental vehicle" means a motor vehicle of
14 (1) the private passenger type, including passenger vans,
15 minivans, and sport utility vehicles or (2) the cargo type,
16 including cargo vans, pick up trucks, and trucks with a gross
17 vehicle weight of less than 26,000 pounds the operation of
18 which does not require the operator to possess a commercial
19 driver's license.
20 (Source: P.A. 90-499, eff. 8-19-97.)
21 (215 ILCS 5/492.2) (from Ch. 73, par. 1065.39-2)
22 Sec. 492.2. License Required.
23 (a) No person shall act as or hold himself out to be an
24 insurance producer unless duly licensed in accordance with
25 this Article for the class or classes of insurance as to
26 which he acts or holds himself out as an insurance producer.
27 (b) No person shall, for a fee, engage in the business
28 of offering any advice, counsel, opinion or service with
29 respect to the benefits, advantages or disadvantages under
30 any policy of insurance that could be issued in Illinois,
31 unless that person is
32 (1) engaged or employed as an attorney licensed to
33 practice law and performing duties incidental to that
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1 position;
2 (2) a licensed insurance producer, limited insurance
3 representative or temporary insurance producer offering
4 advice concerning a class of insurance as to which he is
5 licensed to transact business;
6 (3) a trust officer of a bank performing duties
7 incidental to his position;
8 (4) an actuary or a certified public accountant engaged
9 or employed in a consulting capacity, performing duties
10 incidental to that position; or
11 (5) a licensed public adjuster acting within the scope
12 of his license.
13 (c) In addition to any other penalty set forth in this
14 Article, any individual violating paragraph (a) or (b) is
15 guilty of a Class A misdemeanor. Any individual violating
16 paragraph (a) or (b) and misappropriating or converting any
17 monies collected in conjunction with such violation is guilty
18 of a Class 4 felony.
19 (Source: P.A. 83-801.)
20 (215 ILCS 5/494.1) (from Ch. 73, par. 1065.41-1)
21 Sec. 494.1. Insurance producer license; application and
22 examination.
23 (a) Each application for an insurance producer license
24 shall be made on a form specified by the Director, and shall
25 be signed by the applicant declaring under penalty of
26 refusal, suspension or revocation of the license that the
27 statements made in the application are true, correct and
28 complete to the best of the applicant's knowledge and belief.
29 Before approving the application, the Director shall satisfy
30 himself that the applicant (1) is at least 18 years of age;
31 (2) is competent, trustworthy and of good business
32 reputation; (3) has completed a pre-licensing course of
33 study; and (4) has, pursuant to Section 508.2, filed a bond
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1 which is in force and effect or is exempt from the
2 requirement of filing such bond; and (5) has paid the fees
3 required by Section 509.1. A pre-licensing course of study
4 for each class of insurance for which an insurance producer
5 license is requested shall be established in accordance with
6 rules and regulations prescribed by the Director and shall
7 consist of the following minimum hours:
8 Class of Insurance Number of Hours
9 Life (Class 1 (a)) 15
10 Accident/Health (Class 1(b) or 2(a)) 15
11 Fire (Class 3) 15
12 Casualty (Class 2) 15
13 Motor Vehicle (Class 2(b) or 3(e)) 7 1/2
14 (b) Applicants for an insurance producer license shall
15 pass, within 90 days of each other, both part one and part 2
16 of a written examination unless exempt pursuant to Section
17 498.1. The examination shall reasonably test the knowledge
18 of the applicant concerning the class or classes of insurance
19 for which a license is applied, the duties and
20 responsibilities of an insurance producer and the insurance
21 laws and rules of Illinois. The examinations provided for by
22 this Section shall be conducted under rules and regulations
23 prescribed by the Director. The Director may make
24 arrangements, including contracting with an outside testing
25 service, for administering such examinations and collecting
26 the non-refundable application fee provided for by Section
27 509.1.
28 Each applicant required to take an examination shall, at
29 the time of request for examination, enclose with the
30 application a non-refundable application fee payable to the
31 Director, as provided for in Section 509.1, plus a separate
32 remittance payable to the designated testing service for the
33 total fees the testing service charges for each of the
34 various services being requested by the applicant. An
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1 applicant who fails to appear for the examination as
2 scheduled, or appears but fails to pass, shall not be
3 entitled to any refund, and shall be required to submit a new
4 request for examination together with all of the requisite
5 fees before being rescheduled for another examination at a
6 later date.
7 (c) Before each license renewal, an insurance producer
8 shall satisfactorily complete at least 15 hours of course
9 study in accordance with rules prescribed by the Director.
10 The Director may not approve a course of study unless the
11 course provides for classroom, seminar, or self-study
12 instruction methods. A course given in a combination
13 instruction method of classroom or seminar and self-study
14 shall be deemed to be a self-study course unless the
15 classroom or seminar certified hours meets or exceeds
16 two-thirds of total hours certified for the course. The
17 self-study material used in the combination course must be
18 directly related to and complement the classroom portion of
19 the course in order to be considered for credit. An
20 instruction method other than classroom or seminar shall be
21 considered as self-study methodology. Self-study credit
22 hours require the successful completion of an examination
23 covering the self-study material, which shall not be
24 self-evaluated. Provided, however, that if the self-study
25 material is completed through the use of an approved
26 computerized interactive format whereby the computer
27 validates the successful completion of the self-study
28 material, no additional examination shall be required. The
29 self-study credit hours contained in a certified course shall
30 be considered classroom hours when at least two-thirds of the
31 hours are given as classroom or seminar instruction.
32 (d) An insurance producer license shall automatically
33 terminate when an insurance producer fails to successfully
34 meet the requirements of paragraph (c) of this Section.
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1 (e) The holder of an insurance producer license shall
2 inform the Director in writing of a change in his residential
3 address within 30 days of such change.
4 (f) Each provider of a prelicensing or continuing
5 education course required by this Section shall pay a
6 registration fee and a course certification fee for each
7 course being certified as provided by Section 509.1.
8 (g) The quality and content of education courses
9 provided for insurance producers in this State has a direct
10 effect on the residents of this State. It is in the public
11 interest that education courses provided for insurance
12 producers are of high quality. In order to assure that
13 education courses provided for insurance producers are
14 appropriately designed and that the entities and individuals
15 providing education courses are appropriately qualified,
16 there is created the Insurance Producer Education Review
17 Board. The Board shall advise and assist the Department in
18 reviewing and approving proposed education courses for
19 insurance producers. The Board shall also provide advice to
20 the Department regarding continuing education requirements.
21 The Board shall be appointed by the Director. The Director
22 shall seek the advice of the 2 largest not-for-profit
23 professional insurance producer associations in this State,
24 with respect to the appointment of licensed insurance
25 producers to the Board. The Board shall consist of the
26 following:
27 (1) 4 licensed insurance producers who are members
28 of an insurance producer association;
29 (2) 2 representatives of domestic insurance
30 companies; and
31 (3) one continuing education course provider who is
32 a resident of this State.
33 The initial members of the Board shall serve for a term
34 as follows:
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1 (1) 3 members shall serve for a term of one year;
2 (2) 3 members shall serve for a term of 2 years;
3 and
4 (3) one member shall serve for a term of 3 years.
5 The Director shall by lot determine the length of the terms
6 for the initial Board members. The term of the respective
7 successors shall be 3 years. Board members shall serve
8 without compensation, but may be reimbursed for reasonable
9 and necessary expenses incurred in the performance of their
10 duties.
11 (Source: P.A. 89-152, eff. 1-1-97.)
12 (215 ILCS 5/495.2 new)
13 Sec. 495.2. Limited license for rental companies.
14 (a) A rental company must obtain a producer license,
15 become a registered firm, or obtain a limited license before
16 offering or selling insurance in connection with and
17 incidental to the rental of vehicles, whether at the rental
18 office or by pre-selection of coverage in a master,
19 corporate, group rental, or individual agreement in any of
20 the following general categories:
21 (1) personal accident insurance covering the risks
22 of travel including, but not limited to, accident and
23 health insurance that provides coverage, as applicable,
24 to renters and other rental vehicle occupants for
25 accidental death or dismemberment and reimbursement for
26 medical expenses resulting from an accident that occurs
27 during the rental period;
28 (2) liability insurance, including uninsured and
29 underinsured motorist coverage, that provides coverage,
30 as applicable, to renters and other authorized drivers of
31 rental vehicles for liability arising from the operation
32 of the rental vehicle;
33 (3) personal effects insurance that provides
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1 coverage, as applicable, to renters and other vehicle
2 occupants for the loss of, or damage to, personal effects
3 that occurs during the rental period;
4 (4) roadside assistance and emergency sickness
5 protection programs;
6 (5) any other travel or auto-related coverage that
7 a rental company offers in connection with and incidental
8 to the rental of vehicles.
9 (b) No insurance may be offered by a limited licensee
10 pursuant to this Section unless:
11 (1) the rental period of the rental agreement does
12 not exceed 90 consecutive days;
13 (2) at every rental location where rental
14 agreements are executed, brochures or other written
15 materials are readily available to the prospective renter
16 that:
17 (A) summarize clearly and correctly, the
18 material terms of coverage offered to renters,
19 including the identity of the insurer;
20 (B) disclose that the coverage offered by the
21 rental company may provide a duplication of coverage
22 already provided by a renter's personal automobile
23 insurance policy, homeowner's insurance policy,
24 personal liability insurance policy, or other source
25 of coverage;
26 (C) state that the purchase by the renter of
27 the kinds of coverage specified in this Section is
28 not required in order to rent a vehicle; and
29 (D) describe the process for filing a claim in
30 the event the renter elects to purchase coverage and
31 in the event of a claim; and
32 (3) evidence of coverage on the face of the rental
33 agreement is disclosed to every renter who elects to
34 purchase such coverage.
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1 (c) A limited license issued under this Section shall
2 also authorize any employee of the limited licensee to act
3 individually on behalf and under the supervision of the
4 limited licensee with respect to the kinds of coverage
5 specified in this Section.
6 (d) A rental company licensed pursuant to this Section
7 shall conduct a training program in which employees being
8 trained shall receive basic instruction about the kinds of
9 coverage specified in this Section and offered for purchase
10 by prospective renters of rental vehicles.
11 (e) Notwithstanding any other provision of this Section
12 or any rule adopted by the Director, a limited licensee
13 pursuant to this Section shall not be required to treat
14 moneys collected from renters purchasing insurance when
15 renting vehicles as funds received in a fiduciary capacity,
16 provided that the charges for coverage shall be itemized and
17 be ancillary to a rental transaction. The sale of insurance
18 not in conjunction with a rental transaction shall not be
19 permitted.
20 (f) No limited licensee under this Section shall
21 advertise, represent, or otherwise hold itself or any of its
22 employees out as licensed insurers, insurance producers,
23 insurance agents, or insurance brokers.
24 (g) No direct commissions may be paid to rental car
25 company employees by the insurer or the customer purchasing
26 insurance products. The rental car company may include
27 insurance products in an overall employee performance
28 compensation incentive program.
29 (215 ILCS 5/496.2) (from Ch. 73, par. 1065.43-2)
30 Sec. 496.2. License.
31 (a) Insurance producer.
32 (1) An applicant who has met the requirements of
33 Section 494.1 shall be issued a perpetual insurance
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1 producer license.
2 (2) Each insurance producer license shall remain in
3 effect as long as the holder of the license maintains in
4 force and effect the bond required by Section 508.2 and
5 pays the annual fee required by Section 509.1 by the date
6 due, unless the license is revoked or suspended pursuant
7 to Section 505.1. The annual fee required by Section
8 509.1 shall not be required of a licensed insurance
9 producer who enters the military service of the United
10 States. This waiver shall continue in effect until such
11 time as the insurance producer is discharged from the
12 military service.
13 (3) An insurance producer who does not maintain his
14 insurance producer license in effect pursuant to
15 paragraph (a)(2) of this subsection Section may, within
16 36 months from the due date of the unpaid annual fee,
17 make application for the same license without the
18 necessity of passing a written examination. Payment of
19 the annual fee and proof a bond is in force must
20 accompany the application. In addition, proof of
21 compliance with Section 494.1(c) must be received by the
22 Department before the license is issued accompany the
23 application, where applicable.
24 If an insurance producer fails to pay the annual fee
25 by the due date but applies for reinstatement of the
26 license within 36 months of the due date, then the
27 producer shall pay the reinstatement fee required by
28 Section 509.1 of this Code and either:
29 A. The annual license fee which will cause a
30 license to be issued with a current effective date;
31 or
32 B. The annual license fee which will cause a
33 license to be dated the expiration date of the last
34 active license, provided the producer applies for
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1 reinstatement within 2 months of the due date.
2 If a license is issued pursuant to option A of
3 this paragraph with a lapse in licensing, the
4 producer must sign a statement attesting that he has
5 not been active as an insurance producer during the
6 period since the last active license.
7 (b) Limited Insurance Representative.
8 (1) An applicant who has met the requirements of
9 Section 495.1 shall be issued a perpetual limited
10 insurance representative license.
11 (2) A Each limited insurance representative license
12 shall remain in effect as long as the appointing
13 insurance company or employer pays the respective fee
14 required by Section 509.1 prior to January 1 of each
15 year, unless the license is revoked or suspended pursuant
16 to Section 505.1. Failure of the insurance company or
17 employer to pay the license fee or to submit the required
18 documents shall cause immediate termination of the
19 limited insurance representative license regarding which
20 such failure occurs.
21 (3) A Each limited insurance representative license
22 may be terminated by the insurance company, employer, or
23 the licensee.
24 (c) Limited license for rental companies.
25 (1) An applicant who has met the requirements of
26 Section 495.2 shall be issued a limited license.
27 (2) A limited license for rental companies shall
28 remain in effect as long as the limited licensee pays the
29 respective fee required by Section 509.1 prior to January
30 1 of each year, unless the license is revoked or
31 suspended pursuant to Section 505.1. Failure of the
32 limited licensee to pay the license fee or to submit the
33 required documents shall cause immediate suspension of
34 the limited license.
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1 (3) A limited license for rental companies may be
2 voluntarily terminated by the limited licensee. The
3 license fee will not be refunded upon termination of the
4 limited license by the licensee.
5 (d) (c) License Content. The Each license shall contain
6 the name, residential address and personal identification
7 number of the licensee, the date the license was issued,
8 general conditions relative to the license's expiration or
9 termination, the class or classes of insurance covered by the
10 license, and any other information the Director considers
11 proper. A Each limited insurance representative license
12 shall also contain the name and address of the appointing
13 insurance company or employer.
14 (Source: P.A. 88-313.)
15 (215 ILCS 5/497.1) (from Ch. 73, par. 1065.44-1)
16 Sec. 497.1. Nonresident licensing.
17 (a) A nonresident may apply for an insurance producer
18 license or limited insurance representative license if (1)
19 the applicant holds a similar license from his state of
20 residence and (2) the applicant's state of residence accepts
21 Illinois residents for licensing. Each nonresident applicant
22 shall be in compliance with the requirements of subsection
23 paragraph (a) of Section 494.1, except that requirement (3)
24 of subsection paragraph (a) shall not be applicable to
25 nonresident applicants.
26 (b) The requirements of subsection paragraph (c) of
27 Section 494.1 shall not apply to nonresident applicants. If
28 an applicant's state of residence accepts compliance with the
29 requirements of subsection paragraph (c) of Section 494.1 by
30 an Illinois insurance producer as compliance with that
31 state's continuing education requirements, a nonresident
32 applicant may fulfill the requirements of subsection
33 paragraph (c) of Section 494.1 by demonstrating compliance
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1 with the continuing education requirements of the applicant's
2 state of residence. A nonresident applicant may be licensed
3 without written examination if (1) the state in which the
4 applicant resides requires no similar examination or (2) the
5 public official having supervision of insurance in the
6 applicant's state of residence certifies that the applicant
7 has passed a written examination for the classes of insurance
8 applied for or was licensed prior to the time a written
9 examination was required.
10 (c) A nonresident applicant shall file with the Director
11 an affidavit appointing the Director and his or her successor
12 in office as such applicant's agent upon whom all lawful
13 process in any action, suit or legal proceeding against the
14 applicant may be served, and shall agree that any such lawful
15 process is of the same legal force and validity as personal
16 service of process upon such applicant. The Director shall,
17 within 10 days after receiving process, forward a copy of
18 such process by registered or certified mail to the
19 individual for whom he has received such process at the
20 individual's address of record.
21 (d) Whenever, by the laws or regulations of any other
22 state, any limitation of rights and privileges, conditions
23 precedent, or any other requirements are imposed upon
24 residents of this State who are nonresident applicants or
25 licensees of such other state in addition to, or in excess
26 of, those imposed on nonresidents under this Code, the same
27 such requirements shall be imposed upon such residents of
28 such other state.
29 (Source: P.A. 89-152, eff. 1-1-97.)
30 (215 ILCS 5/499.1) (from Ch. 73, par. 1065.46-1)
31 Sec. 499.1. Registered firms.
32 (a) Any corporation, partnership, or limited liability
33 company transacting insurance business as an insurance agency
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1 shall register with the Director before transacting insurance
2 business in this State. Such registration shall remain in
3 effect as long as the firm pays the annual fee required by
4 Section 509.1 of this Code by the date due, unless the
5 registration is revoked or suspended pursuant to Section
6 505.1 of this Code.
7 (b) Each firm required to register before acting as a
8 registered firm pursuant to this Article shall appoint one or
9 more licensed insurance producers who are officers,
10 directors, or partners in the firm to be responsible for the
11 firm's compliance with the insurance laws and Title 50 of the
12 Illinois Administrative Code. Such individual or individuals
13 shall submit to the Director a registration form and the fees
14 required by Section 509.1. The Director shall prescribe the
15 registration form and may require any documents reasonably
16 necessary to verify the information contained in the
17 registration form. Within 30 days of a change in officers,
18 directors, or partners who are appointed to be responsible
19 for the firm's compliance with the insurance laws and Title
20 50 of the Illinois Administrative Code, the firm shall report
21 the change to the Department.
22 (c) The registered firm shall inform the Director in
23 writing of a change in its business address within 30 days of
24 such change.
25 (d) Each registered firm shall disclose its members,
26 officers or directors who are authorized to act as insurance
27 producers, and report any changes in such personnel to the
28 Director within 30 days of such changes.
29 (e) (Blank).
30 (Source: P.A. 89-240, eff. 1-1-96; 90-41, eff. 10-1-97;
31 90-499, eff. 8-19-97; 90-655, eff. 7-30-98.)
32 (215 ILCS 5/505.1) (from Ch. 73, par. 1065.52-1)
33 Sec. 505.1. License suspension, revocation, or denial.
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1 (a) Any license issued under this Article may be
2 suspended or revoked, and any application for a license may
3 be denied, if the Director finds that the licensee or
4 applicant:
5 (1) has wilfully violated any provision of this
6 Code or any rule or regulation promulgated by the
7 Director;
8 (2) has intentionally made a material misstatement
9 in his application for a license;
10 (3) has obtained or attempted to obtain a license
11 through misrepresentation or fraud;
12 (4) has misappropriated or converted to his own
13 use, or improperly withheld, money required to be held in
14 a fiduciary capacity;
15 (5) has intentionally misrepresented the terms of
16 any actual or proposed insurance policy;
17 (6) has, in the transaction of business under his
18 license, used fraudulent, coercive or dishonest
19 practices, or has demonstrated incompetence,
20 untrustworthiness or financial irresponsibility;
21 (7) has been, within the past 3 years, convicted of
22 a felony, unless the individual demonstrates to the
23 Director sufficient rehabilitation to warrant the public
24 trust;
25 (8) has knowingly accepted insurance business from
26 an individual who is not licensed;
27 (9) has failed to appear without reasonable cause
28 or excuse in response to a subpoena lawfully issued by
29 the Director;
30 (10) has had his license suspended or revoked or
31 his application denied in any other State, district,
32 territory or province on grounds similar to those stated
33 in this Section;
34 (11) (Blank) has violated any of the provisions of
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1 Section 504.1;
2 (12) has failed to meet the education requirements
3 of subsection paragraph (c) of Section 494.1;
4 (13) has failed to report a felony conviction, as
5 required by Section 503.1;
6 (14) has knowingly employed, contracted or engaged
7 in any insurance related capacity any person whose
8 license as an insurance producer or limited insurance
9 representative has been revoked within the previous three
10 years or whose request for a license has been refused or
11 suspended pursuant to this Section at the time of such
12 employment, engaging or contracting; or
13 (15) has failed to make satisfactory repayment to
14 the Illinois Student Assistance Commission for a
15 delinquent or defaulted student loan.
16 (b) Suspension or revocation of a license or the denial
17 of an application pursuant to this Section shall be by
18 written order sent to the licensee or applicant by certified
19 or registered mail at the address specified in the records of
20 the Department. The licensee or applicant may in writing
21 request a hearing within 30 days from the date of mailing.
22 If no written request is made, such order shall be final upon
23 the expiration of said 30 days.
24 (c) If the licensee or applicant requests a hearing
25 pursuant to this Section the Director shall issue a written
26 notice of hearing sent to the licensee or applicant by
27 certified or registered mail at his address, as specified in
28 the records of the Department, and stating:
29 (1) the grounds, charges or conduct which justifies
30 suspension or revocation or denial under this Section;
31 (2) a specific time for the hearing, which may not
32 be less than 20 nor more than 30 days after the mailing
33 of the notice of hearing; and
34 (3) a specific place for the hearing, which may be
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1 either in the City of Springfield or Chicago or in the
2 county where the licensee's principal place of business
3 is located.
4 (d) Upon the suspension or revocation of a license, the
5 licensee or other person having possession or custody of such
6 license shall promptly deliver it to the Director in person
7 or by mail. The Director shall publish all suspensions and
8 revocations after such suspensions or revocations become
9 final in a manner designed to notify interested insurance
10 companies and other persons.
11 (e) Any individual whose license is revoked or whose
12 application is denied pursuant to this Section shall be
13 ineligible to apply for any license for 3 years. No person
14 whose license as an insurance producer or limited
15 representative has been revoked, suspended or denied shall be
16 employed, contracted or engaged in any insurance related
17 capacity during the time the revocation, suspension or denial
18 is in effect. A suspension pursuant to this Section may be
19 for a period of up to 2 years.
20 (f) In addition to or instead of a denial, suspension or
21 revocation of a license pursuant to this Section, the
22 licensee may be subjected to a civil penalty of up to $1,000
23 for each cause for denial, suspension or revocation. Such
24 penalty is enforceable under Section 403A(5) of this Code.
25 (Source: P.A. 89-318, eff. 1-1-96.)
26 (215 ILCS 5/509.1) (from Ch. 73, par. 1065.56-1)
27 Sec. 509.1. Fees.
28 (a) The fees required by this Article are as follows:
29 (1) A An annual fee of $150 payable once every 2
30 years $75 for an insurance producer license;
31 (2) A fee of $25 for the issuance of a temporary
32 insurance producer license;
33 (3) A An annual registration fee of $50 payable
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1 once every 2 years $25 for a business firm to register;
2 (4) A fee of $50 payable once every 2 years An
3 annual $25 fee for a limited insurance representative
4 license or a limited license for rental companies;
5 (5) A $25 application fee for the processing of
6 each request to take the written examination for an
7 insurance producer license;
8 (6) An annual registration fee of $500 for an
9 education provider to register;
10 (7) A certification fee of $25 for each certified
11 prelicensing or continuing education course and an annual
12 fee of $10 for renewing the certification of each such
13 course; and
14 (8) A license reinstatement fee of $50 for
15 reinstating a license which lapsed because the annual fee
16 was not received by the due date.
17 (9) A registration fee of $15 for reinstating a
18 firm registration that lapsed because the annual fee was
19 not received by the due date.
20 (b) Except as otherwise provided, all fees paid to and
21 collected by the Director under this Section shall be paid
22 promptly after receipt thereof, together with a detailed
23 statement of such fees, into a special fund in the State
24 Treasury to be known as the Insurance Producer Administration
25 Fund. The monies deposited into the Insurance Producer
26 Administration Fund shall be used only for payment of the
27 expenses of the Department in the execution, administration,
28 and enforcement of the insurance laws of this State, and
29 shall be appropriated as otherwise provided by law for the
30 payment of such expenses with first priority being any
31 expenses incident to or associated with the administration
32 and enforcement of this Article.
33 (Source: P.A. 89-152, eff. 1-1-97; 90-372, eff. 7-1-98;
34 90-655, eff. 7-30-98.)
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1 (215 ILCS 5/510.2) (from Ch. 73, par. 1065.57-2)
2 Sec. 510.2. Exemptions from licensing requirements. The
3 provisions of Sections 492.2, 494.1, 495.1, 495.2, 496.2,
4 497.1, 498.1, 499.1, 500.1 and 501.2 shall not apply to:
5 (a) any regularly salaried officer or employee of an
6 insurance company, who is engaged in the performance of usual
7 and customary executive, administrative or clerical duties;
8 (b) salaried employees in the office of an insurance
9 producer, limited insurance representative, limited licensee,
10 or registered firm, who devote their full time to clerical
11 and administrative services, including the incidental taking
12 of insurance applications and receipt of premiums in the
13 office of their employer, as long as such employees do not
14 receive any commissions on such applications and their
15 compensation is not varied by the volume of applications or
16 premiums taken or received, except as authorized under
17 subsection (g) of Section 495.2;
18 (c) persons who secure and furnish information for the
19 purpose of group life insurance, annuities, group or blanket
20 accident and health insurance, or for the purpose of
21 enrolling individuals under such plans, issuing certificates
22 under such plans or otherwise assisting in administering such
23 plans, where no commission is paid for such service;
24 (d) advisory organizations, according to Article VIIA of
25 this Code, or persons who furnish information for the purpose
26 of life or accident and health insurance distributed on a
27 mass merchandise basis and administered by group methods;
28 (e) employers or their officers or employees, or the
29 trustees of any employee trust plan, to the extent that such
30 employers, officers, employees or trustees are engaged in the
31 administration or operation of any program of employee
32 benefits for their own employees or the employees of their
33 subsidiaries or affiliates, which program involves the use of
34 insurance issued by an insurance company, as long as such
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1 employers, officers, employees or trustees are not in any
2 manner compensated, directly or indirectly, by the company
3 issuing the contracts; or
4 (f) employees of insurance companies or organizations
5 employed by insurance companies who are engaging in the
6 inspection, rating or classification of risks, or in the
7 supervision of the training of insurance producers, limited
8 insurance representatives, limited licensees, or temporary
9 insurance producers, and who are not individually engaged in
10 the solicitation or negotiation of policies or contracts for
11 insurance.
12 (Source: P.A. 83-1299.)
13 (215 ILCS 5/504.1 rep.)
14 (215 ILCS 5/508.2 rep.)
15 Section 10. The Illinois Insurance Code is amended by
16 repealing Sections 504.1 and 508.2.
17 Section 99. Effective date. This Act takes effect
18 January 1, 2000.