Illinois General Assembly - Full Text of Public Act 100-0876
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Public Act 100-0876


 

Public Act 0876 100TH GENERAL ASSEMBLY

  
  
  

 


 
Public Act 100-0876
 
SB2513 EnrolledLRB100 17072 SMS 32223 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    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.
 
    (215 ILCS 5/500-35)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-35. License.
    (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:
        (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.
        (2) Variable life and variable annuity products:
    insurance coverage provided under variable life insurance
    contracts and variable annuities.
        (3) Accident and health or sickness: insurance
    coverage for sickness, bodily injury, or accidental death
    and may include benefits for disability income.
        (4) Property: insurance coverage for the direct or
    consequential loss or damage to property of every kind.
        (5) Casualty: insurance coverage against legal
    liability, including that for death, injury, or disability
    or damage to real or personal property.
        (6) Personal lines: property and casualty insurance
    coverage sold to individuals and families for primarily
    noncommercial purposes.
        (7) Any other line of insurance permitted under State
    laws or rules.
    (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
individual producers are met by the due date.
        (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
    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
    classroom hours when at least two-thirds of the hours are
    given as classroom or seminar instruction.
        (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.
    (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
being certified as provided by Section 500-135.
    (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.
    (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.
    (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
information the Director deems necessary.
    (g) Licensees must inform the Director by any means
acceptable to the Director of a change of address within 30
days after the change.
    (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
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.
(Source: P.A. 96-839, eff. 1-1-10; 97-113, eff. 7-14-11.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/14/2018