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Public Act 098-1165 |
SB2979 Enrolled | LRB098 19016 RPM 54166 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by |
changing Sections 500-10 and 500-100 and by adding Section |
500-108 as follows:
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(215 ILCS 5/500-10)
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(Section scheduled to be repealed on January 1, 2017)
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Sec. 500-10. Definitions. In addition to the definitions in |
Section 2 of
the
Code, the following
definitions apply to this |
Article:
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"Business entity" means a corporation, association, |
partnership, limited
liability
company, limited liability |
partnership, or other legal entity.
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"Car rental limited line licensee" means a person |
authorized under the
provisions of
Section 500-105 to sell |
certain coverages relating to the rental of vehicles.
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"Home state" means the District of Columbia and any state |
or territory of the
United
States in which an insurance |
producer maintains his or her principal place of
residence or
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principal place of business and is licensed to act as an |
insurance producer.
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"Insurance" means any of the lines of authority in Section |
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500-35, any health
care plan
under the Health Maintenance |
Organization Act, or any limited health care plan
under the
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Limited Health Service Organization Act.
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"Insurance producer" means a person required to be licensed |
under the laws of
this State
to sell, solicit, or negotiate |
insurance.
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"Insurer" means a company as defined in subsection (e) of |
Section 2 of this
Code, a
health maintenance organization as |
defined in the Health Maintenance
Organization Act, or a
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limited health service organization as defined in the Limited |
Health
Service Organization Act.
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"License" means a document issued by the Director |
authorizing an individual
to act as an
insurance producer for |
the lines of authority specified in the document or
authorizing |
a business
entity to act as an insurance producer. The license |
itself does not create any
authority, actual,
apparent, or |
inherent, in the holder to represent or commit
an insurance |
carrier.
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"Limited lines insurance" means those lines of insurance |
defined in Section
500-100 or
any other line of insurance that |
the Director may deem it necessary to
recognize for the |
purposes
of complying with subsection (e) of Section 500-40.
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"Limited lines producer" means a person authorized by the |
Director to sell,
solicit, or
negotiate limited lines |
insurance.
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"Negotiate" means the act of conferring directly with or |
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offering advice
directly to a
purchaser or prospective |
purchaser of a particular contract of insurance
concerning any
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of the substantive benefits, terms, or conditions of the |
contract, provided
that the person
engaged in that act either |
sells insurance or obtains insurance from
insurers for |
purchasers.
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"Person" means an individual or a business entity.
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"Rental agreement" means a written agreement setting forth |
the terms and
conditions
governing the use of a vehicle |
provided by a rental company for
rental or lease.
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"Rental company" means a person, or a franchisee of the |
person, in the
business of
providing primarily private |
passenger vehicles to the public under a
rental agreement for a |
period
not to exceed 30 days.
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"Rental period" means the term of the rental agreement.
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"Renter" means a person obtaining the use of a vehicle from |
a
rental company under the
terms of a rental agreement for a |
period not to exceed 30 days.
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"Self-service storage facility limited line licensee" |
means a person
authorized under the provisions of Section |
500-107 to sell certain coverages
relating to the rental of |
self-service storage facilities.
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"Sell" means to exchange a contract of insurance by any |
means, for
money or its equivalent, on
behalf of an insurance |
company.
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"Solicit" means attempting to
sell insurance or asking or |
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urging a person to apply for a
particular kind of insurance |
from a particular company.
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"Terminate" means the cancellation of the relationship |
between an insurance
producer and the
insurer or the |
termination of a producer's authority to transact insurance.
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"Travel insurance" means insurance coverage for personal |
risks incident to planned travel, including, but not limited |
to: (1) the interruption or cancellation of a trip or event, |
(2) the loss of baggage or personal effects, (3) damages to |
accommodations or rental vehicles, or (4) sickness, accident, |
disability, or death occurring during travel. "Travel |
insurance" does not include major medical plans that provide |
comprehensive medical protection for travelers with trips |
lasting 6 months or longer, including those working overseas as |
an ex-patriot or as military personnel on deployment. |
"Uniform Business Entity Application" means the current |
version of the
National Association of Insurance |
Commissioners' Uniform
Business Entity Application for |
nonresident business entities.
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"Uniform Application" means the current version of the |
National Association
of Insurance Commissioners' Uniform
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Application for
nonresident producer licensing.
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"Vehicle" or "rental vehicle" means a motor vehicle of (1) |
the private
passenger
type, including passenger vans, mini |
vans, and sport utility vehicles or (2)
the cargo type,
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including cargo vans, pickup trucks, and trucks with a gross |
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vehicle
weight of less than
26,000 pounds the operation of |
which does not require the operator to possess a
commercial
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driver's license.
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"Webinar" means an online educational presentation during |
which a live and participating instructor and participating |
viewers, whose attendance is periodically verified throughout |
the presentation, actively engage in discussion and in the |
submission and answering of questions. |
(Source: P.A. 97-113, eff. 7-14-11.)
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(215 ILCS 5/500-100)
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(Section scheduled to be repealed on January 1, 2017)
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Sec. 500-100. Limited lines producer license.
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(a) An individual who is at least 18 years of age and whom |
the Director
considers to
be competent, trustworthy, and of |
good business reputation may obtain a limited
lines producer
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license for one or more of the following classes:
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(1) travel insurance , as defined in Section 500-10 of |
this Article on baggage or limited travel health, accident, |
or trip
cancellation
insurance sold in connection with |
transportation provided by a common carrier ;
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(2) industrial life insurance, as defined in Section |
228 of this Code;
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(3) industrial accident and health insurance, as |
defined in
Section 368 of this
Code;
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(4) insurance issued by a company organized under the |
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Farm Mutual
Insurance Company Act of 1986;
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(5) legal expense insurance;
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(6) enrollment of recipients of public aid or medicare |
in a health
maintenance
organization;
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(7) a limited health care plan issued by an |
organization having a
certificate of
authority under the |
Limited Health Service Organization Act;
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(8) credit life and credit accident and health |
insurance and other credit insurance policies approved or |
permitted by the Director; a credit insurance company must |
conduct a training program in which an applicant shall |
receive basic instruction about the credit insurance |
products that he or she will be selling. |
(b) The application for a limited lines producer license |
must be submitted
on a form
prescribed by the Director by a |
designee of the insurance company, health
maintenance
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organization, or limited health service organization |
appointing the limited
insurance
representative. The insurance |
company, health maintenance organization, or
limited health
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service organization must pay the fee required by Section |
500-135.
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(c) A limited lines producer may represent more than one |
insurance company,
health
maintenance organization, or limited |
health service organization.
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(d) An applicant who has met the requirements of this |
Section shall be
issued a
perpetual limited lines producer |
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license.
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(e) A limited lines producer license shall remain in effect |
as long as the
appointing
insurance company pays the respective |
fee required by Section 500-135 prior to
January 1 of
each |
year, unless the license is revoked or suspended pursuant to
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Section 500-70. Failure of the
insurance company to pay the |
license fee or to submit the required documents
shall cause
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immediate termination of the limited line insurance producer |
license with
respect to which the
failure occurs.
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(f) A limited lines producer license may be terminated by |
the insurance
company or
the licensee.
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(g) A person whom the Director considers to be competent, |
trustworthy, and
of
good
business reputation may be issued a |
car rental limited line license. A car
rental limited line
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license for a rental company shall remain in effect as long as |
the car rental
limited line licensee
pays the respective fee |
required by Section 500-135 prior to the next fee date
unless |
the car rental
license is revoked or suspended pursuant to |
Section 500-70. Failure of the car
rental limited line
licensee |
to pay the license fee or to submit the required documents |
shall cause
immediate
suspension of the car rental limited line |
license. A car rental limited line
license for rental
companies |
may be voluntarily
terminated by the car rental limited line |
licensee. The license fee
shall not be refunded upon |
termination of the car rental limited line license
by the car |
rental
limited line licensee.
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(h) A limited lines producer issued a license pursuant to |
this Section is
not
subject to
the requirements of Section |
500-30.
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(i) A limited lines producer license must contain the name, |
address and
personal
identification number of the licensee, the |
date the license was issued,
general conditions relative
to the |
license's expiration or termination, and any other information |
the
Director considers
proper. A limited line producer license, |
if applicable, must also contain the
name and address of
the |
appointing insurance company.
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(Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14.)
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(215 ILCS 5/500-108 new) |
Sec. 500-108. Travel insurance business entity license. |
(a) As used in this Section: |
"Offering and disseminating" means the following: |
(1) Providing information to a prospective or current |
policyholder on behalf of a limited lines travel insurance |
entity, including brochures, buyer guides, descriptions of |
coverage, and price. |
(2) Referring specific questions regarding coverage |
features and benefits from a prospective or current |
policyholder to a limited lines travel insurance entity. |
(3) Disseminating and processing applications for |
coverage, coverage selection forms, or other similar forms |
in response to a request from a prospective or current |
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policyholder. |
(4) Collecting premiums from a prospective or current |
policyholder on behalf of a limited lines travel insurance |
entity. |
(5) Receiving and recording information from a |
policyholder to share with a limited lines travel insurance |
entity. |
"Travel insurance business entity" means a licensed |
insurance producer designated
by an insurer as set forth in |
subsection (i) of this Section. |
"Travel retailer" means a business organization that |
makes, arranges, or offers travel services and, with respect to |
travel insurance, is limited to offering and disseminating as |
defined in this Section, unless otherwise licensed under |
subsection (c) of this Section. |
(b) The Director may issue to a travel insurance business |
entity that registers travel
retailers under its license as |
described in paragraph (2) of subsection (d) of this Section a |
producer license as provided in paragraph (6) of subsection (a) |
of Section 500-35 of this Code. A travel insurance business |
entity license issued under this Section shall also authorize |
any employee of the travel insurance business entity to act |
individually on behalf and under the supervision of the travel |
insurance business entity licensee with respect to the coverage |
specified in this Section. Each travel insurance business |
entity licensed under this Section shall pay the Department a |
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fee of $500 for its initial license and $500 for each renewal |
license, payable on May 31 annually. |
(c) The Director may issue to a travel retailer a limited |
lines producer license. A travel retailer license issued under |
this Section shall also authorize any employee of the travel |
retailer limited line licensee to act individually on behalf |
and under the supervision of the travel retailer limited line |
licensee with respect to the coverage specified in this |
Section. |
(d) Notwithstanding any other provision of law, a travel |
retailer may do the limited activities of offering and |
disseminating travel insurance on behalf of and under the |
license of a supervising travel insurance business entity if |
the following conditions are met: |
(1) the travel insurance business entity or travel |
retailer provides to purchasers of travel insurance: |
(A) a description of the material terms or the |
actual material terms of the
insurance coverage; |
(B) a description of the process for filing a |
claim; |
(C) a description of the review or cancellation |
process for the travel insurance policy; and |
(D) the identity and contact information of the |
insurer and travel insurance business entity; |
(2) at the time of licensure, the travel insurance |
business entity shall establish and maintain a register on |
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a form prescribed by the Director of each travel retailer |
that offers travel insurance on the travel insurance |
business entity's behalf; the register shall be maintained |
and updated continuously by the travel insurance business |
entity and shall include the name, address, and contact |
information of the travel retailer and an officer or person |
who directs or controls the travel retailer's operations |
and the travel retailer's federal tax identification |
number; the travel insurance business entity shall submit |
the register to the Director annually on a form and in a |
manner approved by the Director; the limited lines producer |
shall also certify that the travel retailer personnel who |
is offering and disseminating insurance under the travel |
retailer's registration complies with 18 U.S.C. 1033; |
(3) the travel insurance business entity has |
designated one of its employees as a licensed individual |
producer (a designated responsible producer or DRP) |
responsible for the travel insurance business entity's and |
its travel retailer's compliance with the travel insurance |
laws, rules, and regulations of the State; |
(4) the travel insurance business entity has paid all |
applicable insurance producer licensing fees as set forth |
in this Code; and |
(5) the travel insurance business entity requires each |
employee and authorized representative of the travel |
retailer whose duties include offering and disseminating |
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travel insurance to receive a program of instruction or |
training that shall be subject to review by the Director; |
the training material shall, at a minimum, contain |
instructions on the types of insurance offered, ethical |
sales practices, and required disclosures to prospective |
customers. |
(e) Any travel retailer offering or disseminating travel |
insurance shall make available to prospective purchasers |
brochures or other written materials that: |
(1) provide the identity and contact information of the |
insurer and the travel
insurance business entity; |
(2) explain that the purchase of travel insurance is |
not required in order to
purchase any other product or |
service from the travel retailer; and |
(3) explain that an unlicensed travel retailer is |
permitted to provide general information about the |
insurance offered by the travel retailer, including a |
description of the coverage and price, but is not qualified |
or authorized to answer technical questions about the terms |
and conditions of the insurance offered by the travel |
retailer or to evaluate the adequacy of the customer's |
existing insurance coverage. |
(f) A travel retailer's employee or authorized |
representative who is not licensed as an insurance producer may |
not: |
(1) evaluate or interpret the technical terms, |
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benefits, and conditions of the
offered travel insurance |
coverage; |
(2) evaluate or provide advice concerning a |
prospective purchaser's existing
insurance coverage; or |
(3) hold himself, herself, or itself out as a licensed |
insurer, licensed producer, or insurance expert. |
(g) A travel retailer whose insurance-related activities, |
and those of its employees and authorized representatives, are |
limited to offering and disseminating travel insurance on |
behalf of and under the direction of a travel insurance |
business entity meeting the conditions stated in this Section |
is authorized to do so and receive related compensation upon |
registration by the travel insurance business entity as |
described in paragraph (2) of subsection (d) of this Section. |
(h) Travel insurance may be provided under an individual |
policy or under a group or master policy. |
(i) As the insurer designee, the travel insurance business |
entity is responsible for the acts of the travel retailer that |
is registered under its license. |
(j) Any entity that violates any provision of this Article |
shall be subject to all appropriate regulatory action as set |
forth in this Code.
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