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91_SB0363enr
SB363 Enrolled LRB9100321JSpcB
1 AN ACT concerning the licensing of insurance producers.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Insurance Code is amended by
5 changing Sections 491.1, 492.2, 494.1, 496.2, 497.1, 499.1,
6 505.1, 508.2, 509.1, and 510.2 and adding Section 495.2 as
7 follows:
8 (215 ILCS 5/491.1) (from Ch. 73, par. 1065.38-1)
9 Sec. 491.1. Definitions. In addition to the definitions
10 in Section 2, the following definitions apply to this
11 Article.
12 "Car rental limited licensee" means a person authorized
13 pursuant to the provisions of Section 495.2 to sell certain
14 coverages relating to the rental of vehicles.
15 (a) Insurance. Insurance is any of the classes of
16 insurance found in Section 4.
17 (b) Insurance producer. An insurance producer is an
18 individual who solicits, negotiates, effects, procures,
19 renews, continues or binds policies of insurance covering
20 property or risks located in Illinois.
21 (c) License. A license is a document authorizing an
22 individual to act as an insurance producer, limited insurance
23 representative or temporary insurance producer, as specified
24 in such document.
25 (d) Limited insurance representative. A limited
26 insurance representative is an individual appointed by an
27 insurance company, health maintenance organization, or
28 limited health service organization to represent that company
29 or organization regarding the types of insurance set forth in
30 Section 495.1.
31 (e) Registered firm. A registered firm is a
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1 corporation, partnership, or limited liability company which
2 transacts the business of insurance as an insurance agency.
3 "Rental agreement" means a written agreement setting
4 forth the terms and conditions governing the use of a vehicle
5 provided by a rental company for rental or lease.
6 "Rental company" means a person, or a franchisee of such
7 person, in the business of providing primarily private
8 passenger vehicles to the public under a rental agreement for
9 a period not to exceed 30 days.
10 "Rental period" means the term of the rental agreement.
11 "Renter" means a person obtaining the use of a vehicle
12 from a rental company under the terms of a rental agreement
13 for a period not to exceed 30 days.
14 "Vehicle" or "rental vehicle" means a motor vehicle of
15 (1) the private passenger type, including passenger vans,
16 minivans, and sport utility vehicles or (2) the cargo type,
17 including cargo vans, pickup trucks, and trucks with a gross
18 vehicle weight of less than 26,000 pounds the operation of
19 which does not require the operator to possess a commercial
20 driver's license.
21 (Source: P.A. 90-499, eff. 8-19-97.)
22 (215 ILCS 5/492.2) (from Ch. 73, par. 1065.39-2)
23 Sec. 492.2. License Required.
24 (a) No person shall act as or hold himself out to be an
25 insurance producer unless duly licensed in accordance with
26 this Article for the class or classes of insurance as to
27 which he acts or holds himself out as an insurance producer.
28 (b) No person shall, for a fee, engage in the business
29 of offering any advice, counsel, opinion or service with
30 respect to the benefits, advantages or disadvantages under
31 any policy of insurance that could be issued in Illinois,
32 unless that person is
33 (1) engaged or employed as an attorney licensed to
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1 practice law and performing duties incidental to that
2 position;
3 (2) a licensed insurance producer, limited insurance
4 representative or temporary insurance producer offering
5 advice concerning a class of insurance as to which he is
6 licensed to transact business;
7 (3) a trust officer of a bank performing duties
8 incidental to his position;
9 (4) an actuary or a certified public accountant engaged
10 or employed in a consulting capacity, performing duties
11 incidental to that position; or
12 (5) a licensed public adjuster acting within the scope
13 of his license.
14 (c) In addition to any other penalty set forth in this
15 Article, any individual violating paragraph (a) or (b) is
16 guilty of a Class A misdemeanor. Any individual violating
17 paragraph (a) or (b) and misappropriating or converting any
18 monies collected in conjunction with such violation is guilty
19 of a Class 4 felony.
20 (Source: P.A. 83-801.)
21 (215 ILCS 5/494.1) (from Ch. 73, par. 1065.41-1)
22 Sec. 494.1. Insurance producer license; application and
23 examination.
24 (a) Each application for an insurance producer license
25 shall be made on a form specified by the Director, and shall
26 be signed by the applicant declaring under penalty of
27 refusal, suspension or revocation of the license that the
28 statements made in the application are true, correct and
29 complete to the best of the applicant's knowledge and belief.
30 Before approving the application, the Director shall satisfy
31 himself that the applicant (1) is at least 18 years of age;
32 (2) is competent, trustworthy and of good business
33 reputation; (3) has completed a pre-licensing course of
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1 study; and (4) has certified that the, pursuant to Section
2 508.2, filed a bond required by Section 508.2 which is in
3 force and effect or that the applicant is exempt from the
4 requirement of obtaining filing such bond; and (5) has paid
5 the fees required by Section 509.1. A pre-licensing course
6 of study for each class of insurance for which an insurance
7 producer license is requested shall be established in
8 accordance with rules and regulations prescribed by the
9 Director and shall consist of the following minimum hours:
10 Class of Insurance Number of Hours
11 Life (Class 1 (a)) 15
12 Accident/Health (Class 1(b) or 2(a)) 15
13 Fire (Class 3) 15
14 Casualty (Class 2) 15
15 Motor Vehicle (Class 2(b) or 3(e)) 7 1/2
16 (b) Applicants for an insurance producer license shall
17 pass, within 90 days of each other, both part one and part 2
18 of a written examination unless exempt pursuant to Section
19 498.1. The examination shall reasonably test the knowledge
20 of the applicant concerning the class or classes of insurance
21 for which a license is applied, the duties and
22 responsibilities of an insurance producer and the insurance
23 laws and rules of Illinois. The examinations provided for by
24 this Section shall be conducted under rules and regulations
25 prescribed by the Director. The Director may make
26 arrangements, including contracting with an outside testing
27 service, for administering such examinations and collecting
28 the non-refundable application fee provided for by Section
29 509.1.
30 Each applicant required to take an examination shall, at
31 the time of request for examination, enclose with the
32 application a non-refundable application fee payable to the
33 Director, as provided for in Section 509.1, plus a separate
34 remittance payable to the designated testing service for the
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1 total fees the testing service charges for each of the
2 various services being requested by the applicant. An
3 applicant who fails to appear for the examination as
4 scheduled, or appears but fails to pass, shall not be
5 entitled to any refund, and shall be required to submit a new
6 request for examination together with all of the requisite
7 fees before being rescheduled for another examination at a
8 later date.
9 (c) Before each license renewal, an insurance producer
10 shall satisfactorily complete at least 30 15 hours of course
11 study in accordance with rules prescribed by the Director.
12 The Director may not approve a course of study unless the
13 course provides for classroom, seminar, or self-study
14 instruction methods. A course given in a combination
15 instruction method of classroom or seminar and self-study
16 shall be deemed to be a self-study course unless the
17 classroom or seminar certified hours meets or exceeds
18 two-thirds of total hours certified for the course. The
19 self-study material used in the combination course must be
20 directly related to and complement the classroom portion of
21 the course in order to be considered for credit. An
22 instruction method other than classroom or seminar shall be
23 considered as self-study methodology. Self-study credit
24 hours require the successful completion of an examination
25 covering the self-study material, which shall not be
26 self-evaluated. Provided, however, that if the self-study
27 material is completed through the use of an approved
28 computerized interactive format whereby the computer
29 validates the successful completion of the self-study
30 material, no additional examination shall be required. The
31 self-study credit hours contained in a certified course shall
32 be considered classroom hours when at least two-thirds of the
33 hours are given as classroom or seminar instruction.
34 (d) An insurance producer license shall automatically
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1 terminate when an insurance producer fails to successfully
2 meet the requirements of paragraph (c) of this Section.
3 (e) The holder of an insurance producer license shall
4 inform the Director in writing of a change in his residential
5 address within 30 days of such change.
6 (f) Each provider of a prelicensing or continuing
7 education course required by this Section shall pay a
8 registration fee and a course certification fee for each
9 course being certified as provided by Section 509.1.
10 (Source: P.A. 89-152, eff. 1-1-97.)
11 (215 ILCS 5/495.2 new)
12 Sec. 495.2. Car rental limited license for rental
13 companies.
14 (a) A rental company must obtain a producer license,
15 become a registered firm, or obtain a car rental limited
16 license before offering or selling insurance in connection
17 with and incidental to the rental of vehicles. The sale of
18 the insurance may occur at the rental office or by
19 pre-selection of coverage in a master, corporate, group
20 rental, or individual agreement. The following general
21 categories of coverage may be offered or sold:
22 (1) personal accident insurance covering the risks
23 of travel including, but not limited to, accident and
24 health insurance that provides coverage, as applicable,
25 to renters and other rental vehicle occupants for
26 accidental death or dismemberment and reimbursement for
27 medical expenses resulting from an accident that occurs
28 during the rental period;
29 (2) liability insurance, including uninsured and
30 underinsured motorist coverage, that provides coverage,
31 as applicable, to renters and other authorized drivers of
32 rental vehicles for liability arising from the operation
33 of the rental vehicle;
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1 (3) personal effects insurance that provides
2 coverage, as applicable, to renters and other vehicle
3 occupants for the loss of, or damage to, personal effects
4 that occurs during the rental period;
5 (4) roadside assistance and emergency sickness
6 protection programs;
7 (5) any other travel or auto-related coverage that
8 a rental company offers in connection with and incidental
9 to the rental of vehicles.
10 (b) No insurance may be offered by a car rental limited
11 licensee pursuant to this Section unless:
12 (1) the rental company has applied for and obtained
13 a car rental limited license;
14 (2) the rental period of the rental agreement does
15 not exceed 30 consecutive days;
16 (3) at every rental location where rental
17 agreements are executed, brochures or other written
18 materials are readily available to the prospective renter
19 that:
20 (A) summarize clearly and correctly, the
21 material terms of coverage offered to renters,
22 including the identity of the insurer;
23 (B) disclose that the coverage offered by the
24 rental company may provide a duplication of coverage
25 already provided by a renter's personal automobile
26 insurance policy, homeowner's insurance policy,
27 personal liability insurance policy, or other source
28 of coverage;
29 (C) state that the purchase by the renter of
30 the kinds of coverage specified in this Section is
31 not required in order to rent a vehicle; and
32 (D) describe the process for filing a claim in
33 the event the renter elects to purchase coverage and
34 in the event of a claim; and
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1 (4) evidence of coverage in the rental agreement is
2 disclosed to every renter who elects to purchase such
3 coverage.
4 (c) Car rental company franchisees shall apply for a car
5 rental limited license independent of the franchisor if
6 insurance provided pursuant to this Section is offered by the
7 franchisee.
8 (d) A car rental limited license issued under this
9 Section shall also authorize any employee of the car rental
10 limited licensee to act individually on behalf and under the
11 supervision of the car rental limited licensee with respect
12 to the kinds of coverage specified in this Section.
13 (e) A rental company licensed pursuant to this Section
14 shall conduct a training program in which employees being
15 trained shall receive basic instruction about the kinds of
16 coverage specified in this Section and offered for purchase
17 by prospective renters of rental vehicles.
18 (f) Notwithstanding any other provision of this Section
19 or any rule adopted by the Director, a car rental limited
20 licensee pursuant to this Section shall not be required to
21 treat moneys collected from renters purchasing insurance when
22 renting vehicles as funds received in a fiduciary capacity,
23 provided that the charges for coverage shall be itemized and
24 be ancillary to a rental transaction.
25 (g) The sale of insurance not in conjunction with a
26 rental transaction shall not be permitted.
27 (h) No car rental limited licensee under this Section
28 shall advertise, represent, or otherwise hold itself or any
29 of its employees out as licensed insurers, insurance
30 producers, insurance agents, or insurance brokers.
31 (i) No direct commissions may be paid to rental car
32 company employees by the insurer or the customer purchasing
33 insurance products. The rental car company may include
34 insurance products in an overall employee performance
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1 compensation incentive program.
2 (j) An application for a car rental limited license
3 shall be made on a form specified by the Director.
4 (215 ILCS 5/496.2) (from Ch. 73, par. 1065.43-2)
5 Sec. 496.2. License.
6 (a) Insurance producer.
7 (1) An applicant who has met the requirements of
8 Section 494.1 shall be issued a perpetual insurance
9 producer license.
10 (2) Each insurance producer license shall remain in
11 effect as long as the holder of the license maintains in
12 force and effect the bond required by Section 508.2 and
13 pays the annual fee required by Section 509.1 by the date
14 due, unless the license is revoked or suspended pursuant
15 to Section 505.1. The annual fee required by Section
16 509.1 shall not be required of a licensed insurance
17 producer who enters the military service of the United
18 States. This waiver shall continue in effect until such
19 time as the insurance producer is discharged from the
20 military service.
21 (3) An insurance producer who does not maintain his
22 insurance producer license in effect pursuant to
23 paragraph (a)(2) of this subsection Section may, within
24 36 months from the due date of the unpaid annual fee,
25 make application for the same license without the
26 necessity of passing a written examination. Payment of
27 the annual fee and proof a bond is in force must
28 accompany the application. In addition, proof of
29 compliance with Section 494.1(c) must be received by the
30 Department before the license is issued accompany the
31 application, where 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 (4) Of the insurance producer licenses renewed
17 during the one-year period following the effective date
18 of this amendatory Act of the 91st General Assembly,
19 approximately 50% shall be for a duration of one year and
20 approximately 50% shall be for a duration of 2 years.
21 All subsequent renewals shall be for a duration of 2
22 years.
23 For the first license renewal period following the
24 effective date of this amendatory Act of the 91st General
25 Assembly, producers renewing a license for one year shall
26 have no continuing education requirement; producers renewing
27 a license for 2 years shall satisfactorily complete at least
28 15 hours of continuing education. All subsequent renewals
29 shall meet the continuing education requirements pursuant to
30 subsection (c) of Section 494.1 of this Act.
31 (b) Limited Insurance Representative.
32 (1) An applicant who has met the requirements of
33 Section 495.1 shall be issued a perpetual limited
34 insurance representative license.
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1 (2) A Each limited insurance representative license
2 shall remain in effect as long as the appointing
3 insurance company pays the respective fee required by
4 Section 509.1 prior to January 1 of each year, unless the
5 license is revoked or suspended pursuant to Section
6 505.1. Failure of the insurance company to pay the
7 license fee or to submit the required documents shall
8 cause immediate termination of the limited insurance
9 representative license regarding which such failure
10 occurs.
11 (3) A Each limited insurance representative license
12 may be terminated by the insurance company or the
13 licensee.
14 (c) Car rental limited licenses.
15 (1) An applicant who has met the requirements of
16 Section 495.2 shall be issued a car rental limited
17 license.
18 (2) A car rental limited license for a rental
19 company shall remain in effect as long as the car rental
20 limited licensee pays the respective fee required by
21 Section 509.1 prior to the next fee date unless the car
22 rental license is revoked or suspended pursuant to
23 Section 505.1. Failure of the car rental limited
24 licensee to pay the license fee or to submit the required
25 documents shall cause immediate suspension of the car
26 rental limited license.
27 (3) A car rental limited license for rental
28 companies may be voluntarily terminated by the car rental
29 limited licensee. The license fee shall not be refunded
30 upon termination of the car rental limited license by the
31 car rental limited licensee.
32 (d) (c) License Content. The Each license shall contain
33 the name, residential address and personal identification
34 number of the licensee, the date the license was issued,
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1 general conditions relative to the license's expiration or
2 termination, the class or classes of insurance covered by the
3 license, and any other information the Director considers
4 proper. A Each limited insurance representative license
5 shall also contain the name and address of the appointing
6 insurance company.
7 (Source: P.A. 88-313.)
8 (215 ILCS 5/497.1) (from Ch. 73, par. 1065.44-1)
9 Sec. 497.1. Nonresident licensing.
10 (a) A nonresident may apply for an insurance producer
11 license or limited insurance representative license if (1)
12 the applicant holds a similar license from his state of
13 residence and (2) the applicant's state of residence accepts
14 Illinois residents for licensing. Each nonresident applicant
15 shall be in compliance with the requirements of subsection
16 paragraph (a) of Section 494.1, except that requirement (3)
17 of subsection paragraph (a) shall not be applicable to
18 nonresident applicants.
19 (b) The requirements of subsection paragraph (c) of
20 Section 494.1 shall not apply to nonresident applicants. If
21 an applicant's state of residence accepts compliance with the
22 requirements of subsection paragraph (c) of Section 494.1 by
23 an Illinois insurance producer as compliance with that
24 state's continuing education requirements, a nonresident
25 applicant may fulfill the requirements of subsection
26 paragraph (c) of Section 494.1 by demonstrating compliance
27 with the continuing education requirements of the applicant's
28 state of residence. A nonresident applicant may be licensed
29 without written examination if (1) the state in which the
30 applicant resides requires no similar examination or (2) the
31 public official having supervision of insurance in the
32 applicant's state of residence certifies that the applicant
33 has passed a written examination for the classes of insurance
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1 applied for or was licensed prior to the time a written
2 examination was required.
3 (c) A nonresident applicant shall file with the Director
4 an affidavit appointing the Director and his or her successor
5 in office as such applicant's agent upon whom all lawful
6 process in any action, suit or legal proceeding against the
7 applicant may be served, and shall agree that any such lawful
8 process is of the same legal force and validity as personal
9 service of process upon such applicant. The Director shall,
10 within 10 days after receiving process, forward a copy of
11 such process by registered or certified mail to the
12 individual for whom he has received such process at the
13 individual's address of record.
14 (d) Whenever, by the laws or regulations of any other
15 state, any limitation of rights and privileges, conditions
16 precedent, or any other requirements are imposed upon
17 residents of this State who are nonresident applicants or
18 licensees of such other state in addition to, or in excess
19 of, those imposed on nonresidents under this Code, the same
20 such requirements shall be imposed upon such residents of
21 such other state.
22 (Source: P.A. 89-152, eff. 1-1-97.)
23 (215 ILCS 5/499.1) (from Ch. 73, par. 1065.46-1)
24 Sec. 499.1. Registered firms.
25 (a) Any corporation, partnership, or limited liability
26 company transacting insurance business as an insurance agency
27 shall register with the Director before transacting insurance
28 business in this State. Such registration shall remain in
29 effect as long as the firm pays the annual fee required by
30 Section 509.1 of this Code by the date due, unless the
31 registration is revoked or suspended pursuant to Section
32 505.1 of this Code.
33 (b) Each firm required to register before acting as a
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1 registered firm pursuant to this Article shall appoint one or
2 more licensed insurance producers who are officers,
3 directors, or partners in the firm to be responsible for the
4 firm's compliance with the insurance laws and Title 50 of the
5 Illinois Administrative Code. Such individual or individuals
6 shall submit to the Director a registration form and the fees
7 required by Section 509.1. The Director shall prescribe the
8 registration form and may require any documents reasonably
9 necessary to verify the information contained in the
10 registration form. Within 30 days of a change in officers,
11 directors, or partners who are appointed to be responsible
12 for the firm's compliance with the insurance laws and Title
13 50 of the Illinois Administrative Code, the firm shall report
14 the change to the Department.
15 (c) The registered firm shall inform the Director in
16 writing of a change in its business address within 30 days of
17 such change.
18 (d) Each registered firm shall disclose its members,
19 officers or directors who are authorized to act as insurance
20 producers, and report any changes in such personnel to the
21 Director within 30 days of such changes.
22 (e) (Blank).
23 (Source: P.A. 89-240, eff. 1-1-96; 90-41, eff. 10-1-97;
24 90-499, eff. 8-19-97; 90-655, eff. 7-30-98.)
25 (215 ILCS 5/505.1) (from Ch. 73, par. 1065.52-1)
26 Sec. 505.1. License suspension, revocation, or denial.
27 (a) Any license issued under this Article may be
28 suspended or revoked, and any application for a license may
29 be denied, if the Director finds that the licensee or
30 applicant:
31 (1) has wilfully violated any provision of this
32 Code or any rule or regulation promulgated by the
33 Director;
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1 (2) has intentionally made a material misstatement
2 in his application for a license;
3 (3) has obtained or attempted to obtain a license
4 through misrepresentation or fraud;
5 (4) has misappropriated or converted to his own
6 use, or improperly withheld, money required to be held in
7 a fiduciary capacity;
8 (5) has intentionally misrepresented the terms of
9 any actual or proposed insurance policy;
10 (6) has, in the transaction of business under his
11 license, used fraudulent, coercive or dishonest
12 practices, or has demonstrated incompetence,
13 untrustworthiness or financial irresponsibility;
14 (7) has been, within the past 3 years, convicted of
15 a felony, unless the individual demonstrates to the
16 Director sufficient rehabilitation to warrant the public
17 trust;
18 (8) has knowingly accepted insurance business from
19 an individual who is not licensed;
20 (9) has failed to appear without reasonable cause
21 or excuse in response to a subpoena lawfully issued by
22 the Director;
23 (10) has had his license suspended or revoked or
24 his application denied in any other State, district,
25 territory or province on grounds similar to those stated
26 in this Section;
27 (11) (Blank) has violated any of the provisions of
28 Section 504.1;
29 (12) has failed to meet the education requirements
30 of subsection paragraph (c) of Section 494.1;
31 (13) has failed to report a felony conviction, as
32 required by Section 503.1;
33 (14) has knowingly employed, contracted or engaged
34 in any insurance related capacity any person whose
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1 license as an insurance producer or limited insurance
2 representative has been revoked within the previous three
3 years or whose request for a license has been refused or
4 suspended pursuant to this Section at the time of such
5 employment, engaging or contracting; or
6 (15) has failed to make satisfactory repayment to
7 the Illinois Student Assistance Commission for a
8 delinquent or defaulted student loan.
9 (b) Suspension or revocation of a license or the denial
10 of an application pursuant to this Section shall be by
11 written order sent to the licensee or applicant by certified
12 or registered mail at the address specified in the records of
13 the Department. The licensee or applicant may in writing
14 request a hearing within 30 days from the date of mailing.
15 If no written request is made, such order shall be final upon
16 the expiration of said 30 days.
17 (c) If the licensee or applicant requests a hearing
18 pursuant to this Section the Director shall issue a written
19 notice of hearing sent to the licensee or applicant by
20 certified or registered mail at his address, as specified in
21 the records of the Department, and stating:
22 (1) the grounds, charges or conduct which justifies
23 suspension or revocation or denial under this Section;
24 (2) a specific time for the hearing, which may not
25 be less than 20 nor more than 30 days after the mailing
26 of the notice of hearing; and
27 (3) a specific place for the hearing, which may be
28 either in the City of Springfield or Chicago or in the
29 county where the licensee's principal place of business
30 is located.
31 (d) Upon the suspension or revocation of a license, the
32 licensee or other person having possession or custody of such
33 license shall promptly deliver it to the Director in person
34 or by mail. The Director shall publish all suspensions and
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1 revocations after such suspensions or revocations become
2 final in a manner designed to notify interested insurance
3 companies and other persons.
4 (e) Any individual whose license is revoked or whose
5 application is denied pursuant to this Section shall be
6 ineligible to apply for any license for 3 years. No person
7 whose license as an insurance producer or limited
8 representative has been revoked, suspended or denied shall be
9 employed, contracted or engaged in any insurance related
10 capacity during the time the revocation, suspension or denial
11 is in effect. A suspension pursuant to this Section may be
12 for a period of up to 2 years.
13 (f) In addition to or instead of a denial, suspension or
14 revocation of a license pursuant to this Section, the
15 licensee may be subjected to a civil penalty of up to $1,000
16 for each cause for denial, suspension or revocation. Such
17 penalty is enforceable under Section 403A(5) of this Code.
18 (Source: P.A. 89-318, eff. 1-1-96.)
19 (215 ILCS 5/508.2) (from Ch. 73, par. 1065.55-2)
20 Sec. 508.2. Bond required of Insurance Producers.
21 (1) Each producer and registered firm who places
22 insurance either directly or indirectly with an insurer with
23 which the producer or registered firm does not have an agent
24 contact shall maintain in force while licensed a bond in
25 favor of the people of the State of Illinois executed by an
26 authorized surety company and payable to any party injured
27 under the terms of the bond. The bond shall be continuous in
28 form and in the amount of $2,500 or 5% of the premiums
29 brokered in the previous calendar year, whichever is greater,
30 but not to exceed $50,000 total aggregate liability. The bond
31 shall be conditioned upon full accounting and due payment to
32 the person or company entitled thereto, of funds coming into
33 the insurance producer's possession as an incident to
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1 insurance transactions under the his license or surplus line
2 insurance transactions under the his license as a surplus
3 line producer.
4 (2) Authorized insurance producers of a registered firm
5 may meet the requirements of this Section with a bond in the
6 name of the registered firm, continuous in form and in the
7 amounts set forth in subsection (1) of this Section.
8 Insurance producers may meet the requirements of this
9 Section with a bond in the name of an association. An
10 individual producer remains responsible for assuring that a
11 producer bond is in effect and is for the correct amount.
12 The association must have been in existence for 5 years, have
13 common membership, and been formed for a purpose other than
14 obtaining a bond.
15 (3) Such bond shall remain in force and effect until the
16 surety is released from liability by the Director or until
17 the bond is canceled by the surety. The surety may cancel the
18 bond and be released from further liability thereunder upon
19 30 days' written notice in advance to the Principal Director.
20 Such cancellation shall not affect any liability incurred or
21 accrued thereunder before the termination of the 30-day
22 period. Upon receipt of any notice of cancellation, the
23 Director shall immediately notify the licensee.
24 (4) Such license may be revoked shall automatically
25 terminate upon there being no bond in force, or if the
26 producer acts without a bond which is required pursuant to
27 this Section, and the license shall be returned by its lawful
28 custodian to the Director for cancellation.
29 (5) If a party injured under the terms of the bond
30 requests the producer to provide the name of the surety and
31 the bond number, the producer must provide the information
32 within 3 working days after receiving the request.
33 (6) An association may meet the requirements of this
34 Section for all of its members with a bond in the name of the
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1 association that is continuous in form and in the amounts set
2 forth in subsection (1) of this Section.
3 (Source: P.A. 88-313.)
4 (215 ILCS 5/509.1) (from Ch. 73, par. 1065.56-1)
5 Sec. 509.1. Fees.
6 (a) The fees required by this Article are as follows:
7 (1) A An annual fee of $75 per year for an
8 insurance producer license;
9 (2) A fee of $25 for the issuance of a temporary
10 insurance producer license;
11 (3) A An annual registration fee of $50 payable
12 once every 2 years $25 for a business firm to register;
13 (4) An annual $25 fee for a limited insurance
14 representative license;
15 (5) A $25 application fee for the processing of
16 each request to take the written examination for an
17 insurance producer license;
18 (6) An annual registration fee of $500 for an
19 education provider to register;
20 (7) A certification fee of $25 for each certified
21 prelicensing or continuing education course and an annual
22 fee of $10 for renewing the certification of each such
23 course; and
24 (8) A license reinstatement fee of $50 for
25 reinstating a license which lapsed because the annual fee
26 was not received by the due date;.
27 (9) A registration fee of $15 for reinstating a
28 firm registration that lapsed because the annual fee was
29 not received by the due date; and.
30 (10) A fee of $50 payable once every 2 years for a
31 car rental limited license.
32 (b) Except as otherwise provided, all fees paid to and
33 collected by the Director under this Section shall be paid
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1 promptly after receipt thereof, together with a detailed
2 statement of such fees, into a special fund in the State
3 Treasury to be known as the Insurance Producer Administration
4 Fund. The monies deposited into the Insurance Producer
5 Administration Fund shall be used only for payment of the
6 expenses of the Department in the execution, administration,
7 and enforcement of the insurance laws of this State, and
8 shall be appropriated as otherwise provided by law for the
9 payment of such expenses with first priority being any
10 expenses incident to or associated with the administration
11 and enforcement of this Article.
12 (Source: P.A. 89-152, eff. 1-1-97; 90-372, eff. 7-1-98;
13 90-655, eff. 7-30-98.)
14 (215 ILCS 5/510.2) (from Ch. 73, par. 1065.57-2)
15 Sec. 510.2. Exemptions from licensing requirements. The
16 provisions of Sections 492.2, 494.1, 495.1, 495.2, 496.2,
17 497.1, 498.1, 499.1, 500.1 and 501.2 shall not apply to:
18 (a) any regularly salaried officer or employee of an
19 insurance company, who is engaged in the performance of usual
20 and customary executive, administrative or clerical duties;
21 (b) salaried employees in the office of an insurance
22 producer, limited insurance representative, car rental
23 limited licensee, or registered firm, who devote their full
24 time to clerical and administrative services, including the
25 incidental taking of insurance applications and receipt of
26 premiums in the office of their employer, as long as such
27 employees do not receive any commissions on such applications
28 and their compensation is not varied by the volume of
29 applications or premiums taken or received, except as
30 authorized under subsection (g) of Section 495.2;
31 (c) persons who secure and furnish information for the
32 purpose of group life insurance, annuities, group or blanket
33 accident and health insurance, or for the purpose of
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1 enrolling individuals under such plans, issuing certificates
2 under such plans or otherwise assisting in administering such
3 plans, where no commission is paid for such service;
4 (d) advisory organizations, according to Article VIIA of
5 this Code, or persons who furnish information for the purpose
6 of life or accident and health insurance distributed on a
7 mass merchandise basis and administered by group methods;
8 (e) employers or their officers or employees, or the
9 trustees of any employee trust plan, to the extent that such
10 employers, officers, employees or trustees are engaged in the
11 administration or operation of any program of employee
12 benefits for their own employees or the employees of their
13 subsidiaries or affiliates, which program involves the use of
14 insurance issued by an insurance company, as long as such
15 employers, officers, employees or trustees are not in any
16 manner compensated, directly or indirectly, by the company
17 issuing the contracts; or
18 (f) employees of insurance companies or organizations
19 employed by insurance companies who are engaging in the
20 inspection, rating or classification of risks, or in the
21 supervision of the training of insurance producers, limited
22 insurance representatives, car rental limited licensees, or
23 temporary insurance producers, and who are not individually
24 engaged in the solicitation or negotiation of policies or
25 contracts for insurance.
26 (Source: P.A. 83-1299.)
27 Section 99. Effective date. This Act takes effect
28 January 1, 2000.
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