093_SB1150sam001
LRB093 09649 JLS 12479 a
1 AMENDMENT TO SENATE BILL 1150
2 AMENDMENT NO. . Amend Senate Bill 1150 by replacing
3 everything after the enacting clause with the following:
4 "Section 5. The Illinois Insurance Code is amended by
5 changing Sections 500-10 and 500-135 and adding Section
6 500-107 as follows:
7 (215 ILCS 5/500-10)
8 Sec. 500-10. Definitions. In addition to the
9 definitions in Section 2 of the Code, the following
10 definitions apply to this Article:
11 "Business entity" means a corporation, association,
12 partnership, limited liability company, limited liability
13 partnership, or other legal entity.
14 "Car rental limited line licensee" means a person
15 authorized under the provisions of Section 500-105 to sell
16 certain coverages relating to the rental of vehicles.
17 "Home state" means the District of Columbia and any state
18 or territory of the United States in which an insurance
19 producer maintains his or her principal place of residence or
20 principal place of business and is licensed to act as an
21 insurance producer.
22 "Insurance" means any of the lines of authority in
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1 Section 500-35, any health care plan under the Health
2 Maintenance Organization Act, or any limited health care plan
3 under the Limited Health Service Organization Act.
4 "Insurance producer" means a person required to be
5 licensed under the laws of this State to sell, solicit, or
6 negotiate insurance.
7 "Insurer" means a company as defined in subsection (e) of
8 Section 2 of this Code, a health maintenance organization as
9 defined in the Health Maintenance Organization Act, or a
10 limited health service organization as defined in the Limited
11 Health Service Organization Act.
12 "License" means a document issued by the Director
13 authorizing an individual to act as an insurance producer for
14 the lines of authority specified in the document or
15 authorizing a business entity to act as an insurance
16 producer. The license itself does not create any authority,
17 actual, apparent, or inherent, in the holder to represent or
18 commit an insurance carrier.
19 "Limited lines insurance" means those lines of insurance
20 defined in Section 500-100 or any other line of insurance
21 that the Director may deem it necessary to recognize for the
22 purposes of complying with subsection (e) of Section 500-40.
23 "Limited lines producer" means a person authorized by the
24 Director to sell, solicit, or negotiate limited lines
25 insurance.
26 "Negotiate" means the act of conferring directly with or
27 offering advice directly to a purchaser or prospective
28 purchaser of a particular contract of insurance concerning
29 any of the substantive benefits, terms, or conditions of the
30 contract, provided that the person engaged in that act either
31 sells insurance or obtains insurance from insurers for
32 purchasers.
33 "Person" means an individual or a business entity.
34 "Rental agreement" means a written agreement setting
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1 forth the terms and conditions governing the use of a vehicle
2 provided by a rental company for rental or lease.
3 "Rental company" means a person, or a franchisee of the
4 person, in the business of providing primarily private
5 passenger vehicles to the public under a rental agreement for
6 a period not to exceed 30 days.
7 "Rental period" means the term of the rental agreement.
8 "Renter" means a person obtaining the use of a vehicle
9 from a rental company under the terms of a rental agreement
10 for a period not to exceed 30 days.
11 "Self-service storage facility limited line licensee"
12 means a person authorized under the provisions of Section
13 500-107 to sell certain coverages relating to the rental of
14 self-service storage facilities.
15 "Sell" means to exchange a contract of insurance by any
16 means, for money or its equivalent, on behalf of an insurance
17 company.
18 "Solicit" means attempting to sell insurance or asking or
19 urging a person to apply for a particular kind of insurance
20 from a particular company.
21 "Terminate" means the cancellation of the relationship
22 between an insurance producer and the insurer or the
23 termination of a producer's authority to transact insurance.
24 "Uniform Business Entity Application" means the current
25 version of the National Association of Insurance
26 Commissioners' Uniform Business Entity Application for
27 nonresident business entities.
28 "Uniform Application" means the current version of the
29 National Association of Insurance Commissioners' Uniform
30 Application for nonresident producer licensing.
31 "Vehicle" or "rental vehicle" means a motor vehicle of
32 (1) the private passenger type, including passenger vans,
33 mini vans, and sport utility vehicles or (2) the cargo type,
34 including cargo vans, pickup trucks, and trucks with a gross
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1 vehicle weight of less than 26,000 pounds the operation of
2 which does not require the operator to possess a commercial
3 driver's license.
4 (Source: P.A. 92-386, eff. 1-1-02.)
5 (215 ILCS 5/500-107 new)
6 Sec. 5/500-107. Self-service storage facility limited
7 line license for self-storage facilities.
8 (a) A self-service storage facility must obtain a
9 producer license or obtain a self-service storage facility
10 limited line license before offering or selling insurance in
11 connection with and incidental to the rental of storage space
12 provided by a self-service storage facility. The sale of
13 insurance may occur at the rental office or by preselection
14 of coverage in a master, corporate, group rental, or
15 individual agreement. The following general categories of
16 coverage may be offered or sold:
17 (1) insurance that provides hazard insurance
18 coverage to renters for the loss of, or damage to,
19 tangible personal property in storage or in transit
20 during the rental period; or
21 (2) any other coverage the Director may approve as
22 meaningful and appropriate in connection with the rental
23 of storage space.
24 (b) Insurance may not be offered by a self-service
25 storage limited line producer pursuant to this Section
26 unless:
27 (1) the self-service storage facility has applied
28 for and obtained a self-service storage facility limited
29 line license;
30 (2) at every rental location where rental
31 agreements are executed, brochures or other written
32 materials are readily available to the prospective renter
33 that:
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1 (A) summarize clearly and correctly the
2 material terms of coverage offered to renters,
3 including the identity of the insurer;
4 (B) disclose that the coverage offered by the
5 self-service storage facility may provide a
6 duplication of coverage already provided by the
7 renter's personal homeowner's insurance policy,
8 automobile insurance policy, personal liability
9 insurance policy, or other source of coverage;
10 (C) state that the purchase by the renter of
11 the kinds of coverage specified in this Section is
12 not required in order to rent storage space; and
13 (D) describe the process for filing a claim in
14 the event the consumer elects to purchase coverage
15 and in the event of a claim; and
16 (3) evidence of coverage is provided to each renter
17 who elects to purchase the coverage.
18 (c) A self-service storage facility limited line license
19 issued under this Section shall also authorize any employee
20 of the self-service storage facility limited line licensee to
21 act individually on behalf and under the supervision of the
22 self-service storage facility limited line licensee with
23 respect to the kinds of coverage specified in this Section.
24 (d) A self-service storage facility licensed pursuant to
25 this Section must conduct a training program in which
26 employees being trained shall receive basic instruction about
27 the kinds of coverage specified in this Section and offered
28 for purchase by prospective renters of storage space.
29 (e) Notwithstanding any other provision of this Section
30 or any rule adopted by the Director, a self-service storage
31 facility limited line producer pursuant to this Section is
32 not required to treat moneys collected from renters
33 purchasing insurance when renting storage space as funds
34 received in a fiduciary capacity, provided that the charges
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1 for coverage shall be itemized and ancillary to a rental
2 transaction.
3 (f) The sale of insurance not in conjunction with a
4 rental transaction shall not be permitted.
5 (g) A self-service storage facility limited line
6 producer under this Section may not advertise, represent, or
7 otherwise hold itself or any of its employees out as licensed
8 insurers, insurance producers, insurance agents, or insurance
9 brokers.
10 (h) Direct commissions may not be paid to self-service
11 storage facility employees by the insurer or the customer
12 purchasing insurance products. The self-service storage
13 facility may include insurance products in an overall
14 employee performance compensation incentive program.
15 (i) An application for a self-service storage facility
16 limited line license must be made on a form specified by the
17 Director.
18 (215 ILCS 5/500-135)
19 Sec. 500-135. Fees.
20 (a) The fees required by this Article are as follows:
21 (1) a fee of $150 payable once every 2 years for an
22 insurance producer license;
23 (2) a fee of $25 for the issuance of a temporary
24 insurance producer license;
25 (3) a fee of $50 payable once every 2 years for a
26 business entity;
27 (4) an annual $25 fee for a limited line producer
28 license issued under items (1) through (7) of subsection
29 (a) of Section 500-100;
30 (5) a $25 application fee for the processing of a
31 request to take the written examination for an insurance
32 producer license;
33 (6) an annual registration fee of $500 for
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1 registration of an education provider;
2 (7) a certification fee of $25 for each certified
3 pre-licensing or continuing education course and an
4 annual fee of $10 for renewing the certification of each
5 such course;
6 (8) a fee of $50 payable once every 2 years for a
7 car rental limited line license;
8 (9) a fee of $150 payable once every 2 years for a
9 limited lines license other than the licenses issued
10 under items (1) through (7) of subsection (a) of Section
11 500-100, or a car rental limited line license, or a
12 self-service storage facility limited line license;.
13 (10) a fee of $50 payable once every 2 years for a
14 self-service storage facility limited line license.
15 (b) Except as otherwise provided, all fees paid to and
16 collected by the Director under this Section shall be paid
17 promptly after receipt thereof, together with a detailed
18 statement of such fees, into a special fund in the State
19 Treasury to be known as the Insurance Producer Administration
20 Fund. The moneys deposited into the Insurance Producer
21 Administration Fund may be used only for payment of the
22 expenses of the Department in the execution, administration,
23 and enforcement of the insurance laws of this State, and
24 shall be appropriated as otherwise provided by law for the
25 payment of those expenses with first priority being any
26 expenses incident to or associated with the administration
27 and enforcement of this Article.
28 (Source: P.A. 92-386, eff. 1-1-02.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.".