|
|||||||
| |||||||
| |||||||
1 | AN ACT concerning insurance.
| ||||||
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 500-30 and 500-35 as follows:
| ||||||
6 | (215 ILCS 5/500-30)
| ||||||
7 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
8 | Sec. 500-30. Application for license.
| ||||||
9 | (a) An individual applying for a resident insurance | ||||||
10 | producer license must
make
application on a form specified by | ||||||
11 | the Director and declare under penalty of
refusal, suspension,
| ||||||
12 | or revocation of the license that the statements made in the | ||||||
13 | application are
true, correct, and
complete to the best of the | ||||||
14 | individual's knowledge and belief. Before
approving the | ||||||
15 | application,
the Director must find that the individual:
| ||||||
16 | (1) is at least 18 years of age;
| ||||||
17 | (2) has not committed any act that is a ground for | ||||||
18 | denial, suspension, or
revocation set forth in Section | ||||||
19 | 500-70;
| ||||||
20 | (3) has completed, if required by the Director, a | ||||||
21 | pre-licensing course
of
study before the insurance exam for | ||||||
22 | the lines of authority for which the individual has applied | ||||||
23 | (an
individual who
successfully completes the Fire and |
| ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
1 | Casualty pre-licensing courses also meets
the
requirements | |||||||||||||||||||||||||||||||||
2 | for Personal Lines-Property and Casualty);
| |||||||||||||||||||||||||||||||||
3 | (4) has paid the fees set forth in Section 500-135; and
| |||||||||||||||||||||||||||||||||
4 | (5) has successfully passed the examinations for the | |||||||||||||||||||||||||||||||||
5 | lines of authority
for
which the person has applied.
| |||||||||||||||||||||||||||||||||
6 | (b) A pre-licensing course of study for each class of | |||||||||||||||||||||||||||||||||
7 | insurance for which
an insurance
producer license is requested | |||||||||||||||||||||||||||||||||
8 | must be established in accordance with rules
prescribed by the
| |||||||||||||||||||||||||||||||||
9 | Director and must consist of the following minimum hours:
| |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
18 | 7.5 hours of each pre-licensing course must be completed in | |||||||||||||||||||||||||||||||||
19 | a classroom setting, except Motor Vehicle, which would require | |||||||||||||||||||||||||||||||||
20 | 5 hours in a classroom setting. | |||||||||||||||||||||||||||||||||
21 | (c) A business entity acting as an insurance producer must | |||||||||||||||||||||||||||||||||
22 | obtain an
insurance
producer license. Application must be made | |||||||||||||||||||||||||||||||||
23 | using the Uniform Business Entity
Application.
Before | |||||||||||||||||||||||||||||||||
24 | approving the application, the Director must find that:
| |||||||||||||||||||||||||||||||||
25 | (1) the business entity has paid the fees set forth in | |||||||||||||||||||||||||||||||||
26 | Section 500-135;
and
|
| |||||||
| |||||||
1 | (2) the business entity has designated a licensed | ||||||
2 | producer responsible for
the
business entity's compliance | ||||||
3 | with the insurance laws and rules of this State.
| ||||||
4 | (d) The Director may require any documents reasonably | ||||||
5 | necessary to verify
the
information contained in an | ||||||
6 | application.
| ||||||
7 | (Source: P.A. 92-386, eff. 1-1-02 .)
| ||||||
8 | (215 ILCS 5/500-35)
| ||||||
9 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
10 | Sec. 500-35. License.
| ||||||
11 | (a) Unless denied a license pursuant to Section 500-70, | ||||||
12 | persons who have met
the
requirements of Sections 500-25 and | ||||||
13 | 500-30 shall be issued a 2-year insurance
producer license.
An | ||||||
14 | insurance producer may receive qualification for a license in | ||||||
15 | one or more of
the following
lines of authority:
| ||||||
16 | (1) Life: insurance coverage on human lives including | ||||||
17 | benefits of
endowment
and annuities, and may include | ||||||
18 | benefits in the event of death or dismemberment
by
accident | ||||||
19 | and benefits for disability income.
| ||||||
20 | (2) Variable life and variable annuity products: | ||||||
21 | insurance coverage
provided
under variable life insurance | ||||||
22 | contracts and variable annuities.
| ||||||
23 | (3) Accident and health or sickness: insurance | ||||||
24 | coverage for sickness,
bodily
injury, or accidental death | ||||||
25 | and may include benefits for disability income.
|
| |||||||
| |||||||
1 | (4) Property: insurance coverage for the direct or | ||||||
2 | consequential loss or
damage to property of every kind.
| ||||||
3 | (5) Casualty: insurance coverage against legal | ||||||
4 | liability, including that
for
death, injury, or disability | ||||||
5 | or damage to real or personal property.
| ||||||
6 | (6) Personal lines: property and casualty insurance | ||||||
7 | coverage sold to
individuals and families for primarily | ||||||
8 | noncommercial purposes.
| ||||||
9 | (7) Any other line of insurance permitted under State | ||||||
10 | laws or rules.
| ||||||
11 | (b) An insurance producer license shall remain in effect | ||||||
12 | unless revoked or
suspended
as long as the fee set forth in | ||||||
13 | Section 500-135 is paid and education
requirements for resident
| ||||||
14 | individual producers are met by the due date.
| ||||||
15 | (1) Before each license renewal, an insurance producer | ||||||
16 | must satisfactorily
complete at least 24 30 hours of course | ||||||
17 | study in accordance with rules prescribed
by the
Director. | ||||||
18 | Three of the 24 hours of course study must consist of | ||||||
19 | classroom ethics instruction. The Director may not approve | ||||||
20 | a course of study unless the course
provides for
classroom, | ||||||
21 | seminar, or self-study instruction methods. A course given | ||||||
22 | in a
combination
instruction method of classroom or seminar | ||||||
23 | and self-study shall be deemed to
be a self-study course | ||||||
24 | unless the classroom or seminar certified hours meets
or | ||||||
25 | exceeds two-thirds
of total hours certified for the course. | ||||||
26 | The self-study material used in the
combination
course must |
| |||||||
| |||||||
1 | be directly related to and complement the classroom portion | ||||||
2 | of the
course in
order to be considered for credit. An | ||||||
3 | instruction method other than classroom
or seminar
shall be | ||||||
4 | considered as self-study methodology. Self-study credit | ||||||
5 | hours
require the
successful completion of an examination | ||||||
6 | covering the self-study material. The
examination may not | ||||||
7 | be self-evaluated. However, if the self-study material is
| ||||||
8 | completed
through the use of an approved computerized | ||||||
9 | interactive format whereby the
computer
validates the | ||||||
10 | successful completion of the self-study material, no | ||||||
11 | additional
examination
is required. The self-study credit | ||||||
12 | hours contained in a certified course shall
be considered
| ||||||
13 | classroom hours when at least two-thirds of the hours are | ||||||
14 | given as classroom or
seminar
instruction.
| ||||||
15 | (2) An insurance producer license automatically | ||||||
16 | terminates when an
insurance
producer fails to | ||||||
17 | successfully meet the requirements of item (1) of | ||||||
18 | subsection
(b) of this
Section. The producer must complete | ||||||
19 | the course in advance of the renewal date
to allow
the | ||||||
20 | education provider time to report the credit to the | ||||||
21 | Department.
| ||||||
22 | (c) A provider of a pre-licensing or continuing education | ||||||
23 | course required
by Section
500-30 and this Section must pay a | ||||||
24 | registration fee and a course certification
fee for each course
| ||||||
25 | being certified as provided by Section 500-135.
| ||||||
26 | (d) An individual insurance producer who allows his or her |
| |||||||
| |||||||
1 | license to lapse
may,
within 12 months after the due date of | ||||||
2 | the renewal fee, be issued a license
without the necessity
of | ||||||
3 | passing a written examination. However, a penalty in the amount | ||||||
4 | of double
the unpaid renewal
fee shall be required after the | ||||||
5 | due date.
| ||||||
6 | (e) A licensed insurance producer who is unable to comply | ||||||
7 | with license
renewal
procedures due to military service may | ||||||
8 | request a waiver of those procedures.
| ||||||
9 | (f) The license must contain the licensee's name, address, | ||||||
10 | and personal
identification
number, the date of issuance, the | ||||||
11 | lines of authority, the expiration date, and
any other
| ||||||
12 | information the Director deems necessary.
| ||||||
13 | (g) Licensees must inform the Director by any means | ||||||
14 | acceptable to the
Director of a
change of address within 30 | ||||||
15 | days after the change.
| ||||||
16 | (h) In order to assist in the performance of the Director's | ||||||
17 | duties, the
Director may
contract with a non-governmental | ||||||
18 | entity including the National Association of
Insurance
| ||||||
19 | Commissioners (NAIC), or any affiliates or subsidiaries that | ||||||
20 | the NAIC oversees,
to perform any
ministerial functions, | ||||||
21 | including collection of fees, related to producer
licensing | ||||||
22 | that the Director
and the non-governmental entity may deem | ||||||
23 | appropriate.
| ||||||
24 | (Source: P.A. 92-386, eff. 1-1-02 .)
| ||||||
25 | Section 99. Effective date. This Act takes effect on | ||||||
26 | January 1, 2010. |