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Public Act 102-0766 | ||||
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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 Section 500-35 as follows:
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(215 ILCS 5/500-35)
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(Section scheduled to be repealed on January 1, 2027)
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Sec. 500-35. License.
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(a) Unless denied a license pursuant to Section 500-70, | ||||
persons who have met
the
requirements of Sections 500-25 and | ||||
500-30 shall be issued a 2-year insurance
producer license.
An | ||||
insurance producer may receive qualification for a license in | ||||
one or more of
the following
lines of authority:
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(1) Life: insurance coverage on human lives including | ||||
benefits of
endowment
and annuities, and may include | ||||
benefits in the event of death or dismemberment
by
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accident and benefits for disability income.
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(2) Variable life and variable annuity products: | ||||
insurance coverage
provided
under variable life insurance | ||||
contracts and variable annuities.
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(3) Accident and health or sickness: insurance | ||||
coverage for sickness,
bodily
injury, or accidental death | ||||
and may include benefits for disability income.
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(4) Property: insurance coverage for the direct or | ||
consequential loss or
damage to property of every kind.
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(5) Casualty: insurance coverage against legal | ||
liability, including that
for
death, injury, or disability | ||
or damage to real or personal property.
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(6) Personal lines: property and casualty insurance | ||
coverage sold to
individuals and families for primarily | ||
noncommercial purposes.
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(7) Any other line of insurance permitted under State | ||
laws or rules.
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(b) An insurance producer license shall remain in effect | ||
unless revoked or
suspended
as long as the fee set forth in | ||
Section 500-135 is paid and education
requirements for | ||
resident
individual producers are met by the due date.
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(1) Before each license renewal, an insurance producer | ||
must satisfactorily
complete at least 24 hours of course | ||
study or participation in a professional insurance | ||
association under paragraph (3) of this subsection in | ||
accordance with rules prescribed
by the
Director. Three of | ||
the 24 hours of course study must consist of classroom or | ||
webinar ethics instruction. The Director may not approve a | ||
course of study unless the course
provides for
classroom, | ||
seminar, webinar, or self-study instruction methods. A | ||
course given in a
combination
instruction method of | ||
classroom, seminar, webinar, or self-study shall be deemed | ||
to
be a self-study course unless the classroom, seminar, |
or webinar certified hours meets
or exceeds two-thirds
of | ||
total hours certified for the course. The self-study | ||
material used in the
combination
course must be directly | ||
related to and complement the classroom portion of the
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course in
order to be considered for credit. An | ||
instruction method other than classroom
or seminar
shall | ||
be considered as self-study methodology. Self-study credit | ||
hours
require the
successful completion of an examination | ||
covering the self-study material. The
examination may not | ||
be self-evaluated. However, if the self-study material is
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completed
through the use of an approved computerized | ||
interactive format whereby the
computer
validates the | ||
successful completion of the self-study material, no | ||
additional
examination
is required. The self-study credit | ||
hours contained in a certified course shall
be considered
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classroom hours when at least two-thirds of the hours are | ||
given as classroom or
seminar
instruction.
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(2) An insurance producer license automatically | ||
terminates when an
insurance
producer fails to | ||
successfully meet the requirements of item (1) of | ||
subsection
(b) of this
Section. The producer must complete | ||
the course in advance of the renewal date
to allow
the | ||
education provider time to report the credit to the | ||
Department.
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(3) An insurance producer's active participation in a | ||
State or national professional insurance association may |
be approved by the Director for up to 4 hours of continuing | ||
education credit per biennial reporting period. Credit | ||
shall be provided on an hour-for-hour basis. These hours | ||
shall be verified and submitted by the association on | ||
behalf of the insurance producer and credited upon timely | ||
filing with the Director or his or her designee on a | ||
biennial basis. Any association submitting continuing | ||
education credit hours on behalf of insurance producers | ||
must be registered as an education provider under Section | ||
500-135. Credit granted under these provisions shall not | ||
be used to satisfy ethics education requirements. Active | ||
participation in a State or national professional | ||
insurance association is defined by one of the following | ||
methods: | ||
(A) service on a board of directors of a State or | ||
national chapter of the association; | ||
(B) service on a formal committee of a State or | ||
national chapter of the association; or | ||
(C) service on a formal subcommittee or task force | ||
of a State or national chapter of the association. | ||
(c) A provider of a pre-licensing or continuing education | ||
course required
by Section
500-30 and this Section must pay a | ||
registration fee and a course certification
fee for each | ||
course
being certified as provided by Section 500-135.
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(d) An individual insurance producer who allows his or her | ||
license to lapse
may,
within 12 months after the due date of |
the renewal fee, be issued a license
without the necessity
of | ||
passing a written examination. However, a penalty in the | ||
amount of double
the unpaid renewal
fee shall be required | ||
after the due date.
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(e) A licensed insurance producer who is unable to comply | ||
with license
renewal
procedures due to military service may | ||
request a waiver of those procedures.
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(f) The license must contain the licensee's name, address, | ||
and personal
identification
number, the date of issuance, the | ||
lines of authority, the expiration date, and
any other
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information the Director deems necessary.
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(g) Licensees must inform the Director by any means | ||
acceptable to the
Director of a
change of address within 30 | ||
days after the change.
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(h) In order to assist in the performance of the | ||
Director's duties, the
Director may
contract with a | ||
non-governmental entity including the National Association of
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Insurance
Commissioners (NAIC), or any affiliates or | ||
subsidiaries that the NAIC oversees,
to perform any
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ministerial functions, including collection of fees, related | ||
to producer
licensing that the Director
and the | ||
non-governmental entity may deem appropriate.
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(Source: P.A. 100-876, eff. 8-14-18.)
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