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91_SB0814
LRB9105876JSpc
1 AN ACT to amend the Illinois Insurance Code by changing
2 Sections 491.1, 496.2, 509.1, and 510.2 and adding Section
3 495.2.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Insurance Code is amended by
7 changing Sections 491.1, 496.2, 509.1, and 510.2 and adding
8 Section 495.2 as follows:
9 (215 ILCS 5/491.1) (from Ch. 73, par. 1065.38-1)
10 Sec. 491.1. Definitions. In addition to the definitions
11 in Section 2, the following definitions apply to this
12 Article.
13 "Car rental limited licensee" means a person authorized
14 pursuant to the provisions of Section 495.2 to sell certain
15 coverages relating to the rental of vehicles.
16 (a) Insurance. Insurance is any of the classes of
17 insurance found in Section 4.
18 (b) Insurance producer. An insurance producer is an
19 individual who solicits, negotiates, effects, procures,
20 renews, continues or binds policies of insurance covering
21 property or risks located in Illinois.
22 (c) License. A license is a document authorizing an
23 individual to act as an insurance producer, limited insurance
24 representative or temporary insurance producer, as specified
25 in such document.
26 (d) Limited insurance representative. A limited
27 insurance representative is an individual appointed by an
28 insurance company to represent that company regarding the
29 types of insurance set forth in Section 495.1.
30 (e) Registered firm. A registered firm is a
31 corporation, partnership, or limited liability company which
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1 transacts the business of insurance as an insurance agency.
2 "Rental agreement" means a written agreement setting
3 forth the terms and conditions governing the use of a vehicle
4 provided by a rental company for rental or lease.
5 "Rental company" means a person or a franchisee in the
6 business of providing primarily private passenger vehicles to
7 the public under a rental agreement for a period not to
8 exceed 30 days.
9 "Rental period" means the term of the rental agreement.
10 "Renter" means a person obtaining the use of a vehicle
11 from a rental company under the terms of a rental agreement
12 for a period not to exceed 30 days.
13 "Vehicle" or "rental vehicle" means a motor vehicle of
14 (1) the private passenger type, including passenger vans,
15 minivans, and sport utility vehicles or (2) the cargo type,
16 including cargo vans, pick up trucks, and trucks with a gross
17 vehicle weight of less than 26,000 pounds the operation of
18 which does not require the operator to possess a commercial
19 driver's license.
20 (Source: P.A. 90-499, eff. 8-19-97.)
21 (215 ILCS 5/495.2 new)
22 Sec. 495.2. Car rental limited license for rental
23 companies.
24 (a) A rental company must obtain a producer license,
25 become a registered firm, or obtain a car rental limited
26 license before offering or selling insurance in connection
27 with and incidental to the rental of vehicles, whether at the
28 rental office or by pre-selection of coverage in a master,
29 corporate, group rental, or individual agreement in any of
30 the following general categories:
31 (1) personal accident insurance covering the risks
32 of travel including, but not limited to, accident and
33 health insurance that provides coverage, as applicable,
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1 to renters and other rental vehicle occupants for
2 accidental death or dismemberment and reimbursement for
3 medical expenses resulting from an accident that occurs
4 during the rental period;
5 (2) liability insurance, including uninsured and
6 underinsured motorist coverage, that provides coverage,
7 as applicable, to renters and other authorized drivers of
8 rental vehicles for liability arising from the operation
9 of the rental vehicle;
10 (3) personal effects insurance that provides
11 coverage, as applicable, to renters and other vehicle
12 occupants for the loss of, or damage to, personal effects
13 that occurs during the rental period;
14 (4) roadside assistance and emergency sickness
15 protection programs;
16 (5) any other travel or auto-related coverage that
17 a rental company offers in connection with and incidental
18 to the rental of vehicles.
19 (b) No insurance may be offered by a car rental limited
20 licensee pursuant to this Section unless:
21 (1) the rental period of the rental agreement does
22 not exceed 30 consecutive days;
23 (2) at every rental location where rental
24 agreements are executed, brochures or other written
25 materials are readily available to the prospective renter
26 that:
27 (A) summarize clearly and correctly, the
28 material terms of coverage offered to renters,
29 including the identity of the insurer;
30 (B) disclose that the coverage offered by the
31 rental company may provide a duplication of coverage
32 already provided by a renter's personal automobile
33 insurance policy, homeowner's insurance policy,
34 personal liability insurance policy, or other source
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1 of coverage;
2 (C) state that the purchase by the renter of
3 the kinds of coverage specified in this Section is
4 not required in order to rent a vehicle; and
5 (D) describe the process for filing a claim in
6 the event the renter elects to purchase coverage and
7 in the event of a claim; and
8 (3) evidence of coverage in the rental agreement is
9 disclosed to every renter who elects to purchase such
10 coverage.
11 (c) A car rental limited license issued under this
12 Section shall also authorize any employee of the car rental
13 limited licensee to act individually on behalf and under the
14 supervision of the car rental limited licensee with respect
15 to the kinds of coverage specified in this Section.
16 (d) A car rental limited licensee shall conduct a
17 training program in which employees being trained shall
18 receive basic instruction about the kinds of coverage
19 specified in this Section and offered for purchase by
20 prospective renters of rental vehicles.
21 (e) Notwithstanding any other provision of this Section
22 or any rule adopted by the Director, a car rental limited
23 licensee pursuant to this Section shall not be required to
24 treat moneys collected from renters purchasing such insurance
25 when renting vehicles as funds received in a fiduciary
26 capacity, provided that the charges for coverage shall be
27 itemized and be ancillary to a rental transaction. The sale
28 of insurance not in conjunction with a rental transaction
29 shall not be permitted.
30 (f) No car rental limited licensee under this Section
31 shall advertise, represent, or otherwise hold itself or any
32 of its employees out as licensed insurers, insurance
33 producers, insurance agents, or insurance brokers.
34 (g) No direct commissions may be paid to rental car
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1 company employees by the insurer or the customer purchasing
2 insurance products. The rental car company may include
3 insurance products in an overall employee performance
4 compensation incentive program.
5 (215 ILCS 5/496.2) (from Ch. 73, par. 1065.43-2)
6 Sec. 496.2. License.
7 (a) Insurance producer.
8 (1) An applicant who has met the requirements of
9 Section 494.1 shall be issued a perpetual insurance
10 producer license.
11 (2) Each insurance producer license shall remain in
12 effect as long as the holder of the license maintains in
13 force and effect the bond required by Section 508.2 and
14 pays the annual fee required by Section 509.1 by the date
15 due, unless the license is revoked or suspended pursuant
16 to Section 505.1. The annual fee required by Section
17 509.1 shall not be required of a licensed insurance
18 producer who enters the military service of the United
19 States. This waiver shall continue in effect until such
20 time as the insurance producer is discharged from the
21 military service.
22 (3) An insurance producer who does not maintain his
23 insurance producer license in effect pursuant to
24 paragraph (a)(2) of this Section may, within 36 months
25 from the due date of the unpaid annual fee, make
26 application for the same license without the necessity of
27 passing a written examination. Payment of the annual fee
28 and proof a bond is in force must accompany the
29 application. In addition, proof of compliance with
30 Section 494.1(c) must accompany the application, where
31 applicable.
32 If an insurance producer fails to pay the annual fee
33 by the due date but applies for reinstatement of the
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1 license within 36 months of the due date, then the
2 producer shall pay the reinstatement fee required by
3 Section 509.1 of this Code and either:
4 A. The annual license fee which will cause a
5 license to be issued with a current effective date;
6 or
7 B. The annual license fee which will cause a
8 license to be dated the expiration date of the last
9 active license, provided the producer applies for
10 reinstatement within 2 months of the due date.
11 If a license is issued pursuant to option A of
12 this paragraph with a lapse in licensing, the
13 producer must sign a statement attesting that he has
14 not been active as an insurance producer during the
15 period since the last active license.
16 (b) Limited insurance representative.
17 (1) An applicant who has met the requirements of
18 Section 495.1 shall be issued a perpetual limited
19 insurance representative license.
20 (2) Each limited insurance representative license
21 shall remain in effect as long as the appointing
22 insurance company pays the respective fee required by
23 Section 509.1 prior to January 1 of each year, unless the
24 license is revoked or suspended pursuant to Section
25 505.1. Failure of the insurance company to pay the
26 license fee or to submit the required documents shall
27 cause immediate termination of the limited insurance
28 representative license regarding which such failure
29 occurs.
30 (3) Each limited insurance representative license
31 may be terminated by the insurance company or the
32 licensee.
33 (c) Car rental limited license.
34 (1) An applicant who has met the requirements of
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1 Section 495.2 shall be issued a car rental limited
2 license.
3 (2) A car rental limited license shall remain in
4 effect as long as the car rental limited licensee pays
5 the respective fee required by Section 509.1 prior to the
6 next fee date, unless the car rental limited license is
7 revoked or suspended pursuant to Section 505.1. Failure
8 of the car rental limited licensee to pay the license fee
9 or to submit the required documents shall cause immediate
10 suspension of the car rental limited license.
11 (3) A car rental limited license may be voluntarily
12 terminated by the car rental limited licensee. The
13 license fee shall not be refunded upon termination of the
14 car rental limited license by the car rental limited
15 licensee.
16 (d) (c) License content. The Each license shall contain
17 the name, residential address and personal identification
18 number of the licensee, the date the license was issued,
19 general conditions relative to the license's expiration or
20 termination, the class or classes of insurance covered by the
21 license, and any other information the Director considers
22 proper. Each limited insurance representative license shall
23 also contain the name and address of the appointing insurance
24 company.
25 (Source: P.A. 88-313.)
26 (215 ILCS 5/509.1) (from Ch. 73, par. 1065.56-1)
27 Sec. 509.1. Fees.
28 (a) The fees required by this Article are as follows:
29 (1) An annual fee of $75 for an insurance producer
30 license;
31 (2) A fee of $25 for the issuance of a temporary
32 insurance producer license;
33 (3) An annual registration fee of $25 for a
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1 business firm to register;
2 (4) An annual $25 fee for a limited insurance
3 representative license;
4 (5) A $25 application fee for the processing of
5 each request to take the written examination for an
6 insurance producer license;
7 (6) An annual registration fee of $500 for an
8 education provider to register;
9 (7) A certification fee of $25 for each certified
10 prelicensing or continuing education course and an annual
11 fee of $10 for renewing the certification of each such
12 course; and
13 (8) A license reinstatement fee of $50 for
14 reinstating a license which lapsed because the annual fee
15 was not received by the due date;.
16 (9) A registration fee of $15 for reinstating a
17 firm registration that lapsed because the annual fee was
18 not received by the due date; and.
19 (10) A fee of $50 paid once every 2 years for a car
20 rental limited license.
21 (b) Except as otherwise provided, all fees paid to and
22 collected by the Director under this Section shall be paid
23 promptly after receipt thereof, together with a detailed
24 statement of such fees, into a special fund in the State
25 Treasury to be known as the Insurance Producer Administration
26 Fund. The monies deposited into the Insurance Producer
27 Administration Fund shall be used only for payment of the
28 expenses of the Department in the execution, administration
29 and enforcement of the insurance laws of this State, and
30 shall be appropriated as otherwise provided by law for the
31 payment of such expenses with first priority being any
32 expenses incident to or associated with the administration
33 and enforcement of this Article.
34 (Source: P.A. 89-152, eff. 1-1-97; 90-372, eff. 7-1-98;
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1 90-655, eff. 7-30-98.)
2 (215 ILCS 5/510.2) (from Ch. 73, par. 1065.57-2)
3 Sec. 510.2. Exemptions from licensing requirements. The
4 provisions of Sections 492.2, 494.1, 495.1, 495.2, 496.2,
5 497.1, 498.1, 499.1, 500.1 and 501.2 shall not apply to:
6 (a) any regularly salaried officer or employee of an
7 insurance company, who is engaged in the performance of usual
8 and customary executive, administrative or clerical duties;
9 (b) salaried employees in the office of an insurance
10 producer, limited insurance representative, car rental
11 limited licensee, or registered firm, who devote their full
12 time to clerical and administrative services, including the
13 incidental taking of insurance applications and receipt of
14 premiums in the office of their employer, as long as such
15 employees do not receive any commissions on such applications
16 and their compensation is not varied by the volume of
17 applications or premiums taken or received, except as
18 authorized under subsection (g) of Section 495.2;
19 (c) persons who secure and furnish information for the
20 purpose of group life insurance, annuities, group or blanket
21 accident and health insurance, or for the purpose of
22 enrolling individuals under such plans, issuing certificates
23 under such plans or otherwise assisting in administering such
24 plans, where no commission is paid for such service;
25 (d) advisory organizations, according to Article VIIA of
26 this Code, or persons who furnish information for the purpose
27 of life or accident and health insurance distributed on a
28 mass merchandise basis and administered by group methods;
29 (e) employers or their officers or employees, or the
30 trustees of any employee trust plan, to the extent that such
31 employers, officers, employees or trustees are engaged in the
32 administration or operation of any program of employee
33 benefits for their own employees or the employees of their
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1 subsidiaries or affiliates, which program involves the use of
2 insurance issued by an insurance company, as long as such
3 employers, officers, employees or trustees are not in any
4 manner compensated, directly or indirectly, by the company
5 issuing the contracts; or
6 (f) employees of insurance companies or organizations
7 employed by insurance companies who are engaging in the
8 inspection, rating or classification of risks, or in the
9 supervision of the training of insurance producers, limited
10 insurance representatives, car rental limited licensees, or
11 temporary insurance producers, and who are not individually
12 engaged in the solicitation or negotiation of policies or
13 contracts for insurance.
14 (Source: P.A. 83-1299.)
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.