Section 3121.10  Purpose

 

The purpose of this Part is to establish requirements for individual insurance producers and business entity producers that the Director deems necessary to carry out the provisions of Sections 500-10 through 500-155 of the Illinois Insurance Code.  Failure to adhere to the standards set forth in this Part will subject the offender, in addition to any other penalties or remedies provided by law, to proceedings under Article XXXI of the Code.  Specifically, this Part establishes the following:

 

a)         defines the term "resident";

 

b)         requires the Designated Responsible Licensed Producer (DRLP) of a business entity to be an owner, member, partner, officer or director of the business entity;

 

c)         sets the expiration date of a business entity license to be reciprocal with the NAIC resident business rules;

 

d)         defines the expiration date of a first time individual insurance license as that person's birth month;

 

e)         allows the Department five business days to receive and distribute reported pre-licensing and continuing education before an applicant can apply or renew a license;

 

f)         requires individual and business entities to provide an email address on their Insurance Producer and Business Entity Producer applications; and

 

g)         requires that the individual or business entity notify the Director within 30 days after an email address change.

 

(Source:  Amended at 43 Ill. Reg. 409, effective December 21, 2018)

 

Section 3121.20  Definitions

 

For the purposes of this Part, the following definitions shall apply:

 

"Business Entity Producer" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.

 

"Code" means the Illinois Insurance Code [215 ILCS 5].

 

"Department" means the Department of Insurance.

 

"Designated Responsible Licensed Producer" or "DRLP" means the individual responsible for the business entity's compliance with the insurance laws, rules and regulations of this State.

 

"Director" means the Director of the Department of Insurance of the State of Illinois or anyone to whom the Director's responsibilities and authority are lawfully delegated.

 

"Insurance Producer" means a person required to be licensed under the laws of this State to sell, solicit or negotiate insurance.

 

"Resident" means an individual who is in this State for other than a temporary or transitory purpose during the taxable year for at least 51% of the year.

 

Section 3121.30  Insurance Producer

 

a)         A first time applicant for an insurance producer license will receive a prorated fee for the initial insurance license so that the license's biennial expiration date can be set for the applicant's birth month. This date shall be no less than 18 months and no more than 29 months after the date of issuance.

 

b)         All individual applicants must allow five business days for the Department to receive and distribute reported pre-licensing and continuing education documentation before an applicant can apply or renew a license with the Department.

 

c)         Applicants must provide an email address on their insurance producer applications and notify the Director, through U.S. mail sent to the Department of Insurance, Licensing Unit, 320 West Washington Street, Springfield, Illinois 62767 and/or through contacting NIPR.com, of a change of email address within 30 days after the change.

 

Section 3121.40  Business Entity Producer

 

a)         A business entity producer license will expire on May 31 biennially.

 

b)         Each business entity, at the time of application, shall designate at least one individual as the entity's DRLP.  The DRLP must have an active resident or nonresident producer license in Illinois and must be an owner, member, partner, officer or director of the business entity who is responsible for the business entity's compliance with the insurance laws and rules of this State.

 

c)         If the business entity or its officers, directors, members or partners acting in behalf of the business entity commits an act or acts that could cause an insurance producer to be subject to the provisions of Section 500-70 of the Code, then any officer, director, member or partner engaged in those acts will be subject to the terms set forth in Section 500-70.

 

(Source:  Amended at 43 Ill. Reg. 409, effective December 21, 2018)

 

Section 3121.50  Severability

 

If any Section or portion of a Section of this Part, or the applicability thereof to any person or

circumstance is held invalid by a court, the remainder of the Part, or the applicability to other persons or circumstances, shall not be affected.