102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB5450

 

Introduced 1/31/2022, by Rep. Michael Halpin

 

SYNOPSIS AS INTRODUCED:
 
New Act
215 ILCS 5/500-35
215 ILCS 5/1565
225 ILCS 454/5-70

    Creates the Improving Access to Flood Insurance Act. Provides that each insurance producer, public adjuster, managing broker, broker, and employee of a lender shall participate in at least 3 hours of National Flood Insurance Program training. Provides that the insurance producer, public adjuster, managing broker, broker, or lender shall submit evidence of satisfaction of the requirement to the entity that regulates that profession. Requires the Department of Insurance to: provide a list of pre-approved courses available through the Federal Emergency Management Agency's Emergency Management Institute and other educational institutions the Department determines provide information and training equivalent to the Federal Emergency Management Agency's Emergency Management Institute; and to provide instructions for an insurance producer, public adjuster, managing broker, broker, lender, or employee of a lender to apply and secure credit for course work that meets equivalent educational goals but that is not included on the pre-approved list. Provides that a violation of the Act shall be considered a violation any other law under which the insurance producer, public adjuster, managing broker, broker, or lender is licensed, chartered, or organized. Makes conforming changes in the Illinois Insurance Code and the Real Estate License Act of 2000.


LRB102 24154 BMS 33380 b

 

 

A BILL FOR

 

HB5450LRB102 24154 BMS 33380 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Improving Access to Flood Insurance Act.
 
6    Section 5. Definitions. As used in this Act:
7    "Broker" has the meaning given to that term in the Real
8Estate License Act of 2000.
9    "Lender" means a bank, a savings bank, or a credit union
10chartered or organized under the laws of the State of Illinois
11that engages in real estate lending.
12    "Managing broker" has the meaning given to that term in
13the Real Estate License Act of 2000.
14    "National Flood Insurance Program training" means any
15class or continuing education opportunity where the main
16topics include:
17        (1) the National Flood Insurance Program;
18        (2) elements of the National Flood Insurance Program;
19    or
20        (3) flood insurance premium reduction strategies, such
21    as floodplain management, flood risk reduction, or flood
22    hazard mitigation.
 

 

 

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1    Section 10. National Flood Insurance Program training
2requirement. In addition to any other continuing education
3requirements that may apply for that profession, each
4insurance producer, public adjuster, managing broker, broker,
5and employee of a lender shall participate in at least 3 hours
6of National Flood Insurance Program training. The insurance
7producer, public adjuster, managing broker, broker, or lender
8shall submit evidence of satisfaction of the requirements of
9this Section to the entity that regulates that profession. The
10Department of Insurance shall provide a list of pre-approved
11courses available through the Federal Emergency Management
12Agency's Emergency Management Institute and other educational
13institutions the Department determines provide information and
14training equivalent to the Federal Emergency Management
15Agency's Emergency Management Institute. The Department of
16Insurance shall also provide instructions for an insurance
17producer, public adjuster, managing broker, broker, lender, or
18employee of a lender to apply and secure credit for course work
19that meets equivalent educational goals but that is not
20included on the pre-approved list.
 
21    Section 15. Violation of the Act. A violation of this Act
22shall be considered a violation any other law under which the
23insurance producer, public adjuster, managing broker, broker,
24or lender is licensed, chartered, or organized.
 

 

 

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1    Section 105. The Illinois Insurance Code is amended by
2changing Sections 500-35 and 1565 as follows:
 
3    (215 ILCS 5/500-35)
4    (Section scheduled to be repealed on January 1, 2027)
5    Sec. 500-35. License.
6    (a) Unless denied a license pursuant to Section 500-70,
7persons who have met the requirements of Sections 500-25 and
8500-30 shall be issued a 2-year insurance producer license. An
9insurance producer may receive qualification for a license in
10one or more of the following lines of authority:
11        (1) Life: insurance coverage on human lives including
12    benefits of endowment and annuities, and may include
13    benefits in the event of death or dismemberment by
14    accident and benefits for disability income.
15        (2) Variable life and variable annuity products:
16    insurance coverage provided under variable life insurance
17    contracts and variable annuities.
18        (3) Accident and health or sickness: insurance
19    coverage for sickness, bodily injury, or accidental death
20    and may include benefits for disability income.
21        (4) Property: insurance coverage for the direct or
22    consequential loss or damage to property of every kind.
23        (5) Casualty: insurance coverage against legal
24    liability, including that for death, injury, or disability
25    or damage to real or personal property.

 

 

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1        (6) Personal lines: property and casualty insurance
2    coverage sold to individuals and families for primarily
3    noncommercial purposes.
4        (7) Any other line of insurance permitted under State
5    laws or rules.
6    (b) An insurance producer license shall remain in effect
7unless revoked or suspended as long as the fee set forth in
8Section 500-135 is paid and education requirements for
9resident individual producers are met by the due date.
10        (1) Before each license renewal, an insurance producer
11    must satisfactorily complete at least 24 hours of course
12    study in accordance with rules prescribed by the Director.
13    Three of the 24 hours of course study must consist of
14    classroom or webinar ethics instruction. The Director may
15    not approve a course of study unless the course provides
16    for classroom, seminar, webinar, or self-study instruction
17    methods. A course given in a combination instruction
18    method of classroom, seminar, webinar, or self-study shall
19    be deemed to be a self-study course unless the classroom,
20    seminar, or webinar certified hours meets or exceeds
21    two-thirds of total hours certified for the course. The
22    self-study material used in the combination course must be
23    directly related to and complement the classroom portion
24    of the course in order to be considered for credit. An
25    instruction method other than classroom or seminar shall
26    be considered as self-study methodology. Self-study credit

 

 

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1    hours require the successful completion of an examination
2    covering the self-study material. The examination may not
3    be self-evaluated. However, if the self-study material is
4    completed through the use of an approved computerized
5    interactive format whereby the computer validates the
6    successful completion of the self-study material, no
7    additional examination is required. The self-study credit
8    hours contained in a certified course shall be considered
9    classroom hours when at least two-thirds of the hours are
10    given as classroom or seminar instruction. In addition to
11    any other requirements under this Section, an insurance
12    producer shall comply with the Improving Access to Flood
13    Insurance Act.
14        (2) An insurance producer license automatically
15    terminates when an insurance producer fails to
16    successfully meet the requirements of item (1) of
17    subsection (b) of this Section. The producer must complete
18    the course in advance of the renewal date to allow the
19    education provider time to report the credit to the
20    Department.
21    (c) A provider of a pre-licensing or continuing education
22course required by Section 500-30 and this Section must pay a
23registration fee and a course certification fee for each
24course being certified as provided by Section 500-135.
25    (d) An individual insurance producer who allows his or her
26license to lapse may, within 12 months after the due date of

 

 

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1the renewal fee, be issued a license without the necessity of
2passing a written examination. However, a penalty in the
3amount of double the unpaid renewal fee shall be required
4after the due date.
5    (e) A licensed insurance producer who is unable to comply
6with license renewal procedures due to military service may
7request a waiver of those procedures.
8    (f) The license must contain the licensee's name, address,
9and personal identification number, the date of issuance, the
10lines of authority, the expiration date, and any other
11information the Director deems necessary.
12    (g) Licensees must inform the Director by any means
13acceptable to the Director of a change of address within 30
14days after the change.
15    (h) In order to assist in the performance of the
16Director's duties, the Director may contract with a
17non-governmental entity including the National Association of
18Insurance Commissioners (NAIC), or any affiliates or
19subsidiaries that the NAIC oversees, to perform any
20ministerial functions, including collection of fees, related
21to producer licensing that the Director and the
22non-governmental entity may deem appropriate.
23(Source: P.A. 100-876, eff. 8-14-18.)
 
24    (215 ILCS 5/1565)
25    Sec. 1565. Continuing education.

 

 

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1    (a) An individual who holds a public adjuster license and
2who is not exempt under subsection (b) of this Section shall
3satisfactorily complete a minimum of 24 hours of continuing
4education courses, including 3 hours of classroom or webinar
5ethics instruction, reported on a biennial basis in
6conjunction with the license renewal cycle.
7    The Director may not approve a course of study unless the
8course provides for classroom, seminar, or self-study
9instruction methods. A course given in a combination
10instruction method of classroom or seminar and self-study
11shall be deemed to be a self-study course unless the classroom
12or seminar certified hours meets or exceeds two-thirds of the
13total hours certified for the course. The self-study material
14used in the combination course must be directly related to and
15complement the classroom portion of the course in order to be
16considered for credit. An instruction method other than
17classroom or seminar shall be considered as self-study
18methodology. Self-study credit hours require the successful
19completion of an examination covering the self-study material.
20The examination may not be self-evaluated. However, if the
21self-study material is completed through the use of an
22approved computerized interactive format whereby the computer
23validates the successful completion of the self-study
24material, no additional examination is required. The
25self-study credit hours contained in a certified course shall
26be considered classroom hours when at least two-thirds of the

 

 

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1hours are given as classroom or seminar instruction.
2    The public adjuster must complete the course in advance of
3the renewal date to allow the education provider time to
4report the credit to the Department.
5    (b) This Section shall not apply to:
6        (1) licensees not licensed for one full year prior to
7    the end of the applicable continuing education biennium;
8    or
9        (2) licensees holding nonresident public adjuster
10    licenses who have met the continuing education
11    requirements of their home state and whose home state
12    gives credit to residents of this State on the same basis.
13    (c) Only continuing education courses approved by the
14Director shall be used to satisfy the continuing education
15requirement of subsection (a) of this Section.
16    (d) In addition to any other requirements under this
17Section, a public adjuster shall comply with the Improving
18Access to Flood Insurance Act.
19(Source: P.A. 102-135, eff. 7-23-21.)
 
20    Section 110. The Real Estate License Act of 2000 is
21amended by changing Section 5-70 as follows:
 
22    (225 ILCS 454/5-70)
23    (Section scheduled to be repealed on January 1, 2030)
24    Sec. 5-70. Continuing education requirement; managing

 

 

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1broker or broker.
2    (a) The requirements of this Section apply to all managing
3brokers and brokers.
4    (b) Except as otherwise provided in this Section, each
5person who applies for renewal of his or her license as a
6managing broker or broker must successfully complete 12 hours
7of real estate continuing education courses recommended by the
8Board and approved by the Department during the current term
9of the license. In addition, those licensees renewing or
10obtaining a managing broker's license must successfully
11complete a 12-hour broker management continuing education
12course approved by the Department during the current term of
13the license. The broker management continuing education course
14must be completed in the classroom or through a live,
15interactive webinar or online distance education format. No
16license may be renewed except upon the successful completion
17of the required courses or their equivalent or upon a waiver of
18those requirements for good cause shown as determined by the
19Secretary upon the recommendation of the Board. The
20requirements of this Article are applicable to all managing
21brokers and brokers except those managing brokers and brokers
22who, during the renewal period:
23        (1) serve in the armed services of the United States;
24        (2) serve as an elected State or federal official;
25        (3) serve as a full-time employee of the Department;
26    or

 

 

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1        (4) are admitted to practice law pursuant to Illinois
2    Supreme Court rule.
3    (c) (Blank).
4    (d) A person receiving an initial license during the 90
5days before the renewal date shall not be required to complete
6the continuing education courses provided for in subsection
7(b) of this Section as a condition of initial license renewal.
8    (e) The continuing education requirement for brokers and
9managing brokers shall consist of a single core curriculum and
10an elective curriculum, to be recommended by the Board and
11approved by the Department in accordance with this subsection.
12The core curriculum shall not be further divided into
13subcategories or divisions of instruction. The core curriculum
14shall consist of 4 hours during the current term of the license
15on subjects that may include, but are not limited to,
16advertising, agency, disclosures, escrow, fair housing,
17residential leasing agent management, and license law. The
18amount of time allotted to each of these subjects shall be
19recommended by the Board and determined by the Department. The
20Department, upon the recommendation of the Board, shall review
21the core curriculum every 4 years, at a minimum, and shall
22revise the curriculum if necessary. However, the core
23curriculum's total hourly requirement shall only be subject to
24change by amendment of this subsection, and any change to the
25core curriculum shall not be effective for a period of 6 months
26after such change is made by the Department. The Department

 

 

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1shall provide notice to all approved education providers of
2any changes to the core curriculum. When determining whether
3revisions of the core curriculum's subjects or specific time
4requirements are necessary, the Board shall consider recent
5changes in applicable laws, new laws, and areas of the license
6law and the Department policy that the Board deems
7appropriate, and any other subject areas the Board deems
8timely and applicable in order to prevent violations of this
9Act and to protect the public. In establishing a
10recommendation to the Department regarding the elective
11curriculum, the Board shall consider subjects that cover the
12various aspects of the practice of real estate that are
13covered under the scope of this Act.
14    (f) The subject areas of continuing education courses
15recommended by the Board and approved by the Department shall
16be meant to protect the professionalism of the industry, the
17consumer, and the public and prevent violations of this Act
18and may include without limitation the following:
19        (1) license law and escrow;
20        (2) antitrust;
21        (3) fair housing;
22        (4) agency;
23        (5) appraisal;
24        (6) property management;
25        (7) residential brokerage;
26        (8) farm property management;

 

 

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1        (9) transaction management rights and duties of
2    parties in a transaction;
3        (10) commercial brokerage and leasing;
4        (11) real estate financing;
5        (12) disclosures;
6        (13) residential leasing agent management;
7        (14) advertising;
8        (15) broker supervision and managing broker
9    responsibility;
10        (16) professional conduct; and
11        (17) use of technology.
12    (g) In lieu of credit for those courses listed in
13subsection (f) of this Section, credit may be earned for
14serving as a licensed instructor in an approved course of
15continuing education. The amount of credit earned for teaching
16a course shall be the amount of continuing education credit
17for which the course is approved for licensees taking the
18course.
19    (h) Credit hours may be earned for self-study programs
20approved by the Department.
21    (i) A managing broker or broker may earn credit for a
22specific continuing education course only once during the
23current term of the license.
24    (j) No more than 12 hours of continuing education credit
25may be taken in one calendar day.
26    (k) To promote the offering of a uniform and consistent

 

 

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1course content, the Department may provide for the development
2of a single broker management course to be offered by all
3education providers who choose to offer the broker management
4continuing education course. The Department may contract for
5the development of the 12-hour broker management continuing
6education course with an outside vendor or consultant and, if
7the course is developed in this manner, the Department or the
8outside consultant shall license the use of that course to all
9approved education providers who wish to provide the course.
10    (l) Except as specifically provided in this Act,
11continuing education credit hours may not be earned for
12completion of pre-license or post-license courses. The courses
13comprising the approved 45-hour post-license curriculum for
14broker licensees shall satisfy the continuing education
15requirement for the period in which the courses are taken. The
16approved 45-hour brokerage administration and management
17course shall satisfy the 12-hour broker management continuing
18education requirement for the license term in which the course
19is taken.
20    (m) In addition to any other requirements of this Section,
21a managing broker or broker shall comply with the Improving
22Access to Flood Insurance Act.
23(Source: P.A. 100-188, eff. 1-1-18; 101-357, eff. 8-9-19.)