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| Public Act 097-0113 | ||||
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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 500-35 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(Section scheduled to be repealed on January 1, 2017)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 | ||||
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 | ||
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 | ||
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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"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 | ||
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. 92-386, eff. 1-1-02; 93-288, eff. 1-1-04.)
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(215 ILCS 5/500-35)
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(Section scheduled to be repealed on January 1, 2017)
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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 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, or seminar, webinar, or and self-study shall be | ||
deemed to
be a self-study course unless the classroom, or | ||
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.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law. | ||