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| Public Act 100-0876 | ||||
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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 adding | ||||
Section 401.3 and by changing Section 500-35 as follows: | ||||
(215 ILCS 5/401.3 new) | ||||
Sec. 401.3. Advisory council; powers and duties. There is | ||||
created within the Department an advisory council to review and | ||||
make recommendations to the Department regarding rules to be | ||||
adopted with respect to continuing education courses for which | ||||
the approval of the Department is required under the provisions | ||||
of this Code. In addition, the advisory council shall make | ||||
recommendations to the Department regarding rules with respect | ||||
to course materials, curriculum, and credentials of | ||||
instructors. | ||||
The advisory council shall be comprised of 7 members | ||||
appointed by the Director. One member shall be an educational | ||||
instructor who has regularly provided educational offerings | ||||
for more than 5 out of the last 10 years to individuals | ||||
licensed under this Code. Three members shall be recommended by | ||||
the leadership of 3 statewide trade organizations whose | ||||
memberships are primarily composed of individuals licensed | ||||
under this Code, none of which may come from the same | ||||
organization. Three members shall represent a domestic | ||
company. | ||
The members' terms shall be 3 years or until their | ||
successors are appointed, and the expiration of their terms | ||
shall be staggered. No individual may serve more than 3 | ||
consecutive terms. | ||
The Director shall appoint an employee of the Department to | ||
serve as the chairperson of the advisory council, ex officio, | ||
without a vote. | ||
Four voting advisory council members shall constitute a | ||
quorum. A quorum is necessary for all advisory council | ||
decisions and recommendations.
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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(Section scheduled to be repealed on January 1, 2027)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
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
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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 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
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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(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
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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
Insurance
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Commissioners (NAIC), or any affiliates or subsidiaries that | ||
the NAIC oversees,
to perform any
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. 96-839, eff. 1-1-10; 97-113, eff. 7-14-11.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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