[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
| [ Introduced ] | [ Enrolled ] | [ Senate Amendment 001 ] |
91_HB0589eng HB0589 Engrossed LRB9101521JScs 1 AN ACT to amend the Illinois Insurance Code by changing 2 Section 141.02. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Insurance Code is amended by 6 changing Section 141.02 as follows: 7 (215 ILCS 5/141.02) (from Ch. 73, par. 753.02) 8 Sec. 141.02. Independent agents; company contracts. 9 (1) Definitions. For purposes of this Section an 10 independent insurance agent is any licensed agent 11 representing an insurance company on an independent 12 contractor basis and not as an employee. This term shall 13 include only those agents not obligated by contract to place 14 insurance accounts with any insurance company or group of 15 companies. This Section shall only apply to contracts which 16 have been effective for more than one year between an 17 independent insurance agent and any company authorized in 18 this State for the purpose of transacting the kind or kinds 19 of business enumerated in Class 2 or Class 3 of Section 4 of 20 this Code, except accident and health insurance. 21 (2) Rehabilitation. In an effort to avoid termination, 22 the company and agent may endeavor to reach mutual agreement 23 on a written plan for rehabilitation for a period of time 24 agreed by them. Any written plan agreed upon shall identify 25 the problem areas and specify what the agent must do in an 26 effort to avoid termination. 27 (3) Notice of Termination. Contracts between the 28 independent insurance agent and any company shall not be 29 terminated by the company except by signed mutual agreement 30 at the time of written termination notice or unless the 31 company provides 180 days written notice to the independent HB0589 Engrossed -2- LRB9101521JScs 1 insurance agent prior to the effective date of termination. 2 The effective date of termination shall be 180 days from the 3 date of mailing of the termination notice. The company must 4 maintain proof of mailing of the termination notice on a 5 recognized U.S. Post Office form. 6 (4) Renewals following termination. A. During the 180 7 days notice or other mutually agreed time period the 8 independent insurance agent shall not write or bind any new 9 business on behalf of the terminating company without 10 specific written approval. 11 B. The terminating company shall, following the date of 12 termination, renew all policies written by the independent 13 insurance agent for one policy term or for a period of one 14 year if the policy period is longer than one year unless: 15 (a) the policies do not meet the insurer's underwriting 16 standards; or 17 (b) the independent insurance agent notifies the insurer 18 in writing that the policy has been placed with another 19 insurer. 20 C. If a renewal policy does not meet the underwriting 21 requirements, the terminating insurer must give the 22 independent insurance agent 60 days notice of its intention 23 not to renew. 24 D. The rate of commission and renewal terms shall be in 25 accordance with those in effect immediately prior to 26 termination. The commission must be paid only through the 27 first renewal subsequent to the effective date of the 28 termination. 29 (5) Paragraphs (1) through (4) of this Section shall not 30 apply to terminations for abandonment, insolvency of the 31 terminating company, gross and willful misconduct, refusal, 32 suspension, revocation or termination of the agent's license 33 by the Director of Insurance, sale or material change of 34 ownership of agency, fraud, material misrepresentation or HB0589 Engrossed -3- LRB9101521JScs 1 failure to pay such independent insurance agent's account 2 less the independent insurance agent's commission and any 3 disputed items within 30 days after written demand by the 4 company. 5 (Source: P.A. 85-334.)