Public Act 098-1165
 
SB2979 EnrolledLRB098 19016 RPM 54166 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  


 
    Section 5. The Illinois Insurance Code is amended  by 
changing Sections 500-10 and 500-100 and  by adding Section 
500-108 as follows:
 



    (215 ILCS 5/500-10)


    (Section scheduled to be repealed on January 1, 2017)

    Sec. 500-10. Definitions. In addition to the definitions in 
Section 2 of
the
Code, the following
definitions apply to this 
Article:

    "Business entity" means a corporation, association, 
partnership, limited
liability
company, limited liability 
partnership, or other legal entity.

    "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.

    "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

principal place of business and is licensed to act as an 
insurance producer.

    "Insurance" means any of the lines of authority in Section 
500-35, any health
care plan
under the Health Maintenance 
Organization Act, or any limited health care plan
under the

Limited Health Service Organization Act.

    "Insurance producer" means a person required to be licensed 
under the laws of
this State
to sell, solicit, or negotiate 
insurance.

    "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

limited health service organization as defined in the Limited 
Health
Service Organization Act.

    "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.

    "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.

    "Limited lines producer" means a person authorized by the 
Director to sell,
solicit, or
negotiate limited lines 
insurance.

    "Negotiate" means the act of conferring directly with or 
offering advice
directly to a
purchaser or prospective 
purchaser of a particular contract of insurance
concerning any

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.

    "Person" means an individual or a business entity.

    "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.

    "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.

    "Rental period" means the term of the rental agreement.

    "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.

    "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.

    "Sell" means to exchange a contract of insurance by any 
means, for
money or its equivalent, on
behalf of an insurance 
company.

    "Solicit" means attempting to
sell insurance or asking or 
urging a person to apply for a
particular kind of insurance 
from a particular company.

    "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.

    "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.

    "Uniform Application" means the current version of the 
National Association
of Insurance Commissioners' Uniform

Application for
nonresident producer licensing.

    "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,

including cargo vans, pickup trucks, and trucks with a gross 
vehicle
weight of less than
26,000 pounds the operation of 
which does not require the operator to possess a
commercial

driver's license.

    "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.)

 



    (215 ILCS 5/500-100)


    (Section scheduled to be repealed on January 1, 2017)

    Sec. 500-100. Limited lines producer license. 

    (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

license for one or more of the following classes:

        (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;

        (2) industrial life insurance, as defined in Section 
    228 of this Code;

        (3) industrial accident and health insurance, as 
    defined in
Section 368 of this
Code;

        (4) insurance issued by a company organized under the 
    Farm Mutual
Insurance Company Act of 1986;

        (5) legal expense insurance;

        (6) enrollment of recipients of public aid or medicare 
    in a health
maintenance
organization;

        (7) a limited health care plan issued by an 
    organization having a
certificate of
authority under the 
    Limited Health Service Organization Act;

        (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

organization, or limited health service organization 
appointing the limited
insurance
representative.  The insurance 
company, health maintenance organization, or
limited health

service organization must pay the fee required by Section 
500-135.

    (c) A limited lines producer may represent more than one 
insurance company,
health
maintenance organization, or limited 
health service organization.

    (d) An applicant who has met the requirements of this 
Section shall be
issued a
perpetual limited lines producer 
license.

    (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

Section 500-70.  Failure of the
insurance company to pay the 
license fee or to submit the required documents
shall cause

immediate termination of the limited line insurance producer 
license with
respect to which the
failure occurs.

    (f) A limited lines producer license may be terminated by 
the insurance
company or
the licensee.

    (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

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.

    (h) A limited lines producer issued a license pursuant to 
this Section is
not
subject to
the requirements of Section 
500-30.

    (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.

(Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14.)

 
    (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 
    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 
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 
    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 
    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,  
    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.


Effective Date:  6/1/2015