Full Text of SB1607 97th General Assembly
SB1607enr 97TH GENERAL ASSEMBLY |
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| 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 224 and 424 and by adding Section 155.43 as | 6 | | follows: | 7 | | (215 ILCS 5/155.43 new) | 8 | | Sec. 155.43. Misrepresentation of Senior-Specific | 9 | | Certification. | 10 | | (a) No insurance producer shall use a senior-specific | 11 | | certification or professional designation that indicates or | 12 | | implies in such a way as to mislead a purchaser or prospective | 13 | | purchaser that the insurance producer has a special | 14 | | certification or training in advising or servicing seniors in | 15 | | connection with the solicitation, sale, or purchase of a life | 16 | | insurance or annuity product or in the provision of advice as | 17 | | to the value of or the advisability of purchasing or selling a | 18 | | life insurance or annuity product, either directly or | 19 | | indirectly through publications, writings, or by issuing or | 20 | | promulgating analyses or reports related to a life insurance or | 21 | | annuity product. | 22 | | (b) "Use of senior-specific certifications or professional | 23 | | designations" includes, but is not limited to, all of the |
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| 1 | | following: | 2 | | (1) Use of a certification or professional designation | 3 | | by an insurance producer who has not actually earned or is | 4 | | otherwise ineligible to use such certification or | 5 | | designation. | 6 | | (2) Use of a nonexistent or self-conferred | 7 | | certification or professional designation. | 8 | | (3) Use of a certification or professional designation | 9 | | that indicates or implies a level of occupational | 10 | | qualifications obtained through education, training, or | 11 | | experience that the insurance producer using the | 12 | | certification or designation does not have. | 13 | | (4) Use of a certification or professional designation | 14 | | that was obtained from a certifying or designating | 15 | | organization that: | 16 | | (i) is primarily engaged in the business of | 17 | | instruction in sales or marketing; | 18 | | (ii) does not have reasonable standards or | 19 | | procedures for assuring the competency of its | 20 | | certificate holders or designees; | 21 | | (iii) does not have reasonable standards or | 22 | | procedures for monitoring and disciplining its | 23 | | certificate holders or designees for improper or | 24 | | unethical conduct; or | 25 | | (iv) does not have reasonable continuing education | 26 | | requirements for its certificate holders or designees |
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| 1 | | in order to maintain the certificate or designation. | 2 | | (c) There is a rebuttable presumption that a certifying or | 3 | | designating organization is not disqualified under this | 4 | | Section if the certification or designation issued from the | 5 | | organization does not primarily apply to sales or marketing and | 6 | | if the organization or the certification or designation in | 7 | | question has been accredited by any of the following entities: | 8 | | (i) the American National Standards Institute; | 9 | | (ii) the National Commission for Certifying Agencies; | 10 | | or | 11 | | (iii) any organization included on the list | 12 | | "Accrediting Agencies Recognized for Title IV Purposes" | 13 | | prepared by the United States Department of Education. | 14 | | (d) In determining whether a combination of words or an | 15 | | acronym standing for a combination of words constitutes a | 16 | | certification or professional designation indicating or | 17 | | implying that a person has a special certification or training | 18 | | in advising or servicing seniors, the Department of Insurance | 19 | | shall consider all of the following: | 20 | | (1) Use of one or more words, such as "senior", | 21 | | "retirement", "elder", or like words combined with one or | 22 | | more words, such as "certified", "registered", | 23 | | "chartered", "advisor", "specialist", "consultant", | 24 | | "planner", or like words in the name of the certification | 25 | | or professional designation. | 26 | | (2) The manner in which the words listed in paragraph |
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| 1 | | (1) of subsection (b) are combined. | 2 | | (e) For purposes of this Section, a job title within an | 3 | | organization that is licensed or registered by a State or | 4 | | federal financial services regulatory agency is not a | 5 | | certification or professional designation, unless it is used in | 6 | | a manner that would confuse or mislead a reasonable consumer, | 7 | | if the job title indicates seniority or standing within the | 8 | | organization or specifies an individual's area of | 9 | | specialization within the organization. For purposes of this | 10 | | subsection (e), "financial services regulatory agency" | 11 | | includes, but is not limited to, an agency that regulates | 12 | | insurers, insurance producers, broker-dealers, investment | 13 | | advisers, or investment companies.
| 14 | | (215 ILCS 5/224) (from Ch. 73, par. 836)
| 15 | | Sec. 224. Standard provisions for life policies.
| 16 | | (1) After the
first day of July, 1937, no policy of life | 17 | | insurance other than
industrial, group or annuities and pure | 18 | | endowments with or without
return of premiums or of premiums | 19 | | and interest, may be issued or
delivered in this State, unless | 20 | | such policy contains in substance the
following provisions:
| 21 | | (a) A provision that all premiums after the first shall | 22 | | be payable
in advance either at the home office of the | 23 | | company or to an agent of
the company, upon delivery of a | 24 | | receipt signed by one or more of the
officers who shall be | 25 | | designated in the policy, when such receipt is
requested by |
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| 1 | | the policyholder.
| 2 | | (b) A provision that the insured is entitled to a grace | 3 | | period
either of 30 days or of one month within which the | 4 | | payment of any
premium after the first may be made, subject | 5 | | at the option of the
company to an interest charge not in | 6 | | excess of 6% per annum for the
number of days of grace | 7 | | elapsing before the payment of the premium,
during which | 8 | | period of grace the policy shall continue in force, but in
| 9 | | case the policy becomes a claim during the grace period | 10 | | before the
overdue premium is paid, or the deferred | 11 | | premiums of the current policy
year, if any, are paid, the | 12 | | amount of such premium or premiums with
interest thereon | 13 | | may be deducted in any settlement under the policy.
| 14 | | (c) A provision that the policy, together with the | 15 | | application
therefor, a copy of which shall be endorsed | 16 | | upon or attached to the
policy and made a part thereof, | 17 | | shall constitute the entire contract
between the parties | 18 | | and that after it has been in force during the
lifetime of | 19 | | the insured a specified time, not later than 2 years from
| 20 | | its date, it shall be incontestable except for nonpayment | 21 | | of premiums
and except at the option of the company, with | 22 | | respect to provisions
relative to benefits in the event of | 23 | | total and permanent disability, and
provisions which grant | 24 | | additional insurance specifically against death
by | 25 | | accident and except for violations of the conditions of the | 26 | | policy
relating to naval or military service in time of war |
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| 1 | | or for violation of
an express condition, if any, relating | 2 | | to aviation, (except riding as a
fare-paying passenger of a | 3 | | commercial air line flying on regularly
scheduled routes | 4 | | between definitely established airports) in which case
the | 5 | | liability of the company shall be fixed at a definitely | 6 | | determined
amount not less than the full reserve for the | 7 | | policy and any dividend
additions; provided that the | 8 | | application therefor need not be attached
to or made a part | 9 | | of any policy containing a clause making the policy
| 10 | | incontestable from date of issue.
| 11 | | (d) A provision that if it is found at any time before | 12 | | final
settlement under the policy that the age of the | 13 | | insured (or the age of
the beneficiary, if considered in | 14 | | determining the premium) has been
misstated, the amount | 15 | | payable under the policy shall be such as the
premium would | 16 | | have purchased at the correct age or ages, according to
the | 17 | | company's published rate at date of issue.
| 18 | | (e) A provision that the policy shall participate | 19 | | annually in the
surplus of the company beginning not later | 20 | | than the end of the third
policy year; and any policy | 21 | | containing provision for annual
participation beginning at | 22 | | the end of the first policy year, may also
provide that | 23 | | each dividend be paid subject to the payment of the
| 24 | | premiums for the next ensuing year; and the insured under | 25 | | any annual
dividend policy shall have the right each year | 26 | | to have the dividend
arising from such participation either |
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| 1 | | paid in cash, or applied in
reduction of premiums, or | 2 | | applied to the purchase of paid-up additional
insurance, or | 3 | | be left to accumulate to the credit of the policy, with
| 4 | | interest at such rate as may be determined from time to | 5 | | time by the
company, but not less than a guaranteed minimum | 6 | | rate specified in the
policy, and payable at the maturity | 7 | | of the policy, but withdrawable on
any anniversary date, | 8 | | subject to such further provisions as the policy may
| 9 | | provide regarding the application of dividends toward the | 10 | | payment of any
premiums unpaid at the end of the grace | 11 | | period; and if the insured fails
to notify the company in
| 12 | | writing of his election within the period of grace allowed | 13 | | for the
payment of premium, the policy shall further | 14 | | provide which of such
options are effective.
| 15 | | (f) A provision that after the policy has been in force | 16 | | 3 full years
the company at any time, while the policy is | 17 | | in force, will advance, on
proper assignment or pledge of | 18 | | the policy and on the sole security
thereof, at a specified | 19 | | maximum fixed or adjusted rate of interest in
accordance
| 20 | | with Section 229.5, a sum equal to, or at the
option of the | 21 | | insured less than the amount required by Section 229.3
| 22 | | under the conditions specified thereby and with | 23 | | notification as required
by Section 229.5; and that the | 24 | | company will deduct
from such loan value any indebtedness | 25 | | not already deducted in
determining such value and any | 26 | | unpaid balance of the premium for the
current policy year, |
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| 1 | | and may collect interest in advance on the loan to
the end | 2 | | of the current policy year; and any policy may also provide | 3 | | that
if the interest on the loan is not paid when due it | 4 | | shall be added to
the existing loan and shall bear interest | 5 | | at the same rate. No
condition other than as provided | 6 | | herein or in Sections 229.3 and 229.5 shall be
exacted as a | 7 | | prerequisite to any such loan. This clause shall not apply
| 8 | | to term insurance.
| 9 | | (g) A provision for nonforfeiture benefits and cash | 10 | | surrender
values in accordance with the requirements of | 11 | | paragraph (1) of Section
229.1 or, Section 229.2.
| 12 | | (h) A table showing in figures the loan values and the | 13 | | options
available under the policy each year, upon default | 14 | | in premium payments,
during at least the first 20 years of | 15 | | the policy; the policy to contain
a provision that the | 16 | | company will furnish upon request an extension of
such | 17 | | table beyond the years shown in the policy.
| 18 | | (i) A provision that in event of default in premium | 19 | | payments the
value of the policy is applied to the purchase | 20 | | of other insurance as
provided in this Section, and if such | 21 | | insurance is in force and the
original policy is not | 22 | | surrendered to the company and cancelled, the
policy may be | 23 | | reinstated within 3 years from such default, upon evidence
| 24 | | of insurability satisfactory to the company and payment of | 25 | | arrears of
premiums and the payment or reinstatement of any | 26 | | other indebtedness to
the company upon the policy, with |
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| 1 | | interest on the premiums
at a rate not exceeding 6% per | 2 | | annum payable annually and with interest
on the | 3 | | indebtedness at a rate not exceeding the rate prescribed by | 4 | | Section
229.5.
| 5 | | (j) A provision that when a policy is a claim by the | 6 | | death of the
insured settlement shall be made upon receipt | 7 | | of due proof of death and
not later than 2 months after the | 8 | | receipt of such proof. The policy may require that due | 9 | | proof of the death of the insured
shall consist of a | 10 | | certified copy of the death certificate of the insured, or | 11 | | other lawful
evidence providing equivalent information, | 12 | | and proof of the claimant's interest in the
proceeds.
| 13 | | (k) If the policy provides for payment of its proceeds | 14 | | in
installments, a table showing the amount and period of | 15 | | such installments
shall be included in the policy.
| 16 | | (l) Interest shall accrue on the proceeds payable | 17 | | because of the
death of the insured, from date of death, at | 18 | | the rate of 10% annually 9% on the
total
amount payable or | 19 | | the face amount if payments are to be made in
installments | 20 | | until the total payment or first installment is paid,
| 21 | | unless payment is made within 31 fifteen (15) days from the | 22 | | latest of the
following to occur: | 23 | | (1) the date that due proof of death is received by | 24 | | the company; | 25 | | (2) the date that the company receives sufficient | 26 | | information to determine its
liability, the extent of |
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| 1 | | the liability, and the appropriate payee legally
| 2 | | entitled to the proceeds; or | 3 | | (3) the date that legal impediments to payment of | 4 | | proceeds that depend on
the action of parties other | 5 | | than the company are resolved and sufficient
evidence | 6 | | of the same is provided to the company; legal | 7 | | impediments to
payment include, but are not limited to, | 8 | | (A) the establishment of
guardianships and | 9 | | conservatorships, (B) the appointment and | 10 | | qualification
of trustees, executors, and | 11 | | administrators, and (C) the submission of
information | 12 | | required to satisfy State and federal reporting | 13 | | requirements. | 14 | | date of receipt
by the company of due proof of loss. This | 15 | | provision need not appear in
the policy, however, the | 16 | | company shall notify the beneficiary at the
time of claim | 17 | | of this provision. The payment of interest shall apply to
| 18 | | all policies now in force, as well as those written after | 19 | | the effective
date of this amendment.
| 20 | | (m) Title on the face and on the back of the policy | 21 | | briefly
describing its form.
| 22 | | (n) A provision, or a notice attached to the policy, to | 23 | | the effect
that during a period of ten days from the date | 24 | | the policy is delivered
to the policy owner, it may be | 25 | | surrendered to the insurer together with
a written request | 26 | | for cancellation of the policy and in such event, the
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| 1 | | insurer will refund any premium paid therefor, including | 2 | | any policy fees
or other charges. The Director may by rule | 3 | | exempt specific types of
policies from the requirements of | 4 | | this subsection.
| 5 | | (2) In the case of the replacement of life insurance, as | 6 | | defined in the
rule promulgated by the Director, the replacing | 7 | | insurer shall either (1)
delay the issuance of its policy for | 8 | | not less than 20 days from the date
it has transmitted a policy | 9 | | summary to the existing insurer, or (2) provide
in a form | 10 | | titled "Notice Regarding Replacement of Life Insurance", as | 11 | | well
as in its policy, or in a separate notice delivered with | 12 | | the policy, that
the insured has the right to an unconditional | 13 | | refund of all premiums paid,
and that such right may be | 14 | | exercised within a period of 20 days commencing
from the date | 15 | | of delivery of such policy. Where option (2) is exercised,
the | 16 | | replacing insurer shall also transmit a policy summary to the | 17 | | existing
insurer within 3 working days after the date the | 18 | | replacement policy is issued.
| 19 | | (3) Any of the foregoing provisions or portions thereof not
| 20 | | applicable to single premium or nonparticipating or term | 21 | | policies shall
to that extent not be incorporated therein. This | 22 | | Section shall not
apply to policies of reinsurance nor to | 23 | | policies issued or granted
pursuant to the nonforfeiture | 24 | | provisions prescribed in subparagraph (g)
of paragraph (1) of | 25 | | this Section.
| 26 | | (Source: P.A. 92-139, eff. 7-24-01.)
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| 1 | | (215 ILCS 5/424) (from Ch. 73, par. 1031)
| 2 | | Sec. 424. Unfair methods of competition and unfair or | 3 | | deceptive acts or
practices defined. The following are hereby | 4 | | defined as unfair methods of
competition and unfair and | 5 | | deceptive acts or practices in the business of
insurance:
| 6 | | (1) The commission by any person of any one or more of the | 7 | | acts
defined or prohibited by Sections 134, 143.24c, 147, 148, | 8 | | 149, 151, 155.22,
155.22a, 155.42,
236, 237, 364, and 469 of | 9 | | this Code.
| 10 | | (2) Entering into any agreement to commit, or by any | 11 | | concerted
action committing, any act of boycott, coercion or | 12 | | intimidation
resulting in or tending to result in unreasonable | 13 | | restraint of, or
monopoly in, the business of insurance.
| 14 | | (3) Making or permitting, in the case of insurance of the | 15 | | types
enumerated in Classes 1, 2, and 3 of Section 4, any | 16 | | unfair discrimination
between individuals or risks of the same | 17 | | class or of essentially the same
hazard and expense element | 18 | | because of the race, color, religion, or national
origin of | 19 | | such insurance risks or applicants. The application of this | 20 | | Article
to the types of insurance enumerated in Class 1 of | 21 | | Section 4 shall in no way
limit, reduce, or impair the | 22 | | protections and remedies already provided for by
Sections 236 | 23 | | and 364 of this Code or any other provision of this Code.
| 24 | | (4) Engaging in any of the acts or practices defined in or | 25 | | prohibited by
Sections 154.5 through 154.8 of this Code.
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| 1 | | (5) Making or charging any rate for insurance against | 2 | | losses arising
from the use or ownership of a motor vehicle | 3 | | which requires a higher
premium of any person by reason of his | 4 | | physical handicap, race, color,
religion, or national origin.
| 5 | | (Source: P.A. 92-399, eff. 8-16-01; 92-651, eff. 7-11-02; | 6 | | 92-669, eff.
1-1-03.)
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.
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