Full Text of HB4015 99th General Assembly
HB4015 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB4015 Introduced , by Rep. Frank J. Mautino SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Insurance Code. Provides that a business entity may be issued a limited lines producer license for credit life and credit accident and health insurance and other credit insurance policies approved or permitted by the Director of Insurance, provided certain requirements are met. Prohibits a business entity holding a limited lines license from advertising, representing, or otherwise holding itself or any of its employees out as licensed insurers, insurance producers, insurance agents, or insurance brokers.
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| | A BILL FOR |
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| | | HB4015 | | LRB099 07126 MLM 27213 b |
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| 1 | | AN ACT concerning regulation.
| 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 Section 500-100 as follows:
| 6 | | (215 ILCS 5/500-100)
| 7 | | (Text of Section before amendment by P.A. 98-1165 ) | 8 | | (Section scheduled to be repealed on January 1, 2017)
| 9 | | Sec. 500-100. Limited lines producer license.
| 10 | | (a) An individual who is at least 18 years of age and whom | 11 | | the Director
considers to
be competent, trustworthy, and of | 12 | | good business reputation may obtain a limited
lines producer
| 13 | | license for one or more of the following classes:
| 14 | | (1) insurance on baggage or limited travel health, | 15 | | accident, or trip
cancellation
insurance sold in | 16 | | connection with transportation provided by a common | 17 | | carrier;
| 18 | | (2) industrial life insurance, as defined in Section | 19 | | 228 of this Code;
| 20 | | (3) industrial accident and health insurance, as | 21 | | defined in
Section 368 of this
Code;
| 22 | | (4) insurance issued by a company organized under the | 23 | | Farm Mutual
Insurance Company Act of 1986;
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| 1 | | (5) legal expense insurance;
| 2 | | (6) enrollment of recipients of public aid or medicare | 3 | | in a health
maintenance
organization;
| 4 | | (7) a limited health care plan issued by an | 5 | | organization having a
certificate of
authority under the | 6 | | Limited Health Service Organization Act;
| 7 | | (8) credit life and credit accident and health | 8 | | insurance and other credit insurance policies approved or | 9 | | permitted by the Director; a credit insurance company must | 10 | | conduct a training program in which an applicant shall | 11 | | receive basic instruction about the credit insurance | 12 | | products that he or she will be selling. | 13 | | (b) The application for a limited lines producer license | 14 | | must be submitted
on a form
prescribed by the Director by a | 15 | | designee of the insurance company, health
maintenance
| 16 | | organization, or limited health service organization | 17 | | appointing the limited
insurance
representative. The insurance | 18 | | company, health maintenance organization, or
limited health
| 19 | | service organization must pay the fee required by Section | 20 | | 500-135.
| 21 | | (c) A limited lines producer may represent more than one | 22 | | insurance company,
health
maintenance organization, or limited | 23 | | health service organization.
| 24 | | (d) An applicant who has met the requirements of this | 25 | | Section shall be
issued a
perpetual limited lines producer | 26 | | license.
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| 1 | | (e) A limited lines producer license shall remain in effect | 2 | | as long as the
appointing
insurance company pays the respective | 3 | | fee required by Section 500-135 prior to
January 1 of
each | 4 | | year, unless the license is revoked or suspended pursuant to
| 5 | | Section 500-70. Failure of the
insurance company to pay the | 6 | | license fee or to submit the required documents
shall cause
| 7 | | immediate termination of the limited line insurance producer | 8 | | license with
respect to which the
failure occurs.
| 9 | | (f) A limited lines producer license may be terminated by | 10 | | the insurance
company or
the licensee.
| 11 | | (g) A person whom the Director considers to be competent, | 12 | | trustworthy, and
of
good
business reputation may be issued a | 13 | | car rental limited line license. A car
rental limited line
| 14 | | license for a rental company shall remain in effect as long as | 15 | | the car rental
limited line licensee
pays the respective fee | 16 | | required by Section 500-135 prior to the next fee date
unless | 17 | | the car rental
license is revoked or suspended pursuant to | 18 | | Section 500-70. Failure of the car
rental limited line
licensee | 19 | | to pay the license fee or to submit the required documents | 20 | | shall cause
immediate
suspension of the car rental limited line | 21 | | license. A car rental limited line
license for rental
companies | 22 | | may be voluntarily
terminated by the car rental limited line | 23 | | licensee. The license fee
shall not be refunded upon | 24 | | termination of the car rental limited line license
by the car | 25 | | rental
limited line licensee.
| 26 | | (g-5) A business entity may be issued a limited lines |
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| 1 | | producer license for credit life and credit accident and health | 2 | | insurance and other credit insurance policies approved or | 3 | | permitted by the Director, provided that: | 4 | | (1) application for the limited lines producer license | 5 | | for credit insurance is made on a form specified by the | 6 | | Director; | 7 | | (2) the appointing insurance company has paid the | 8 | | application fee amount required by the Director for the | 9 | | business entity's application; and | 10 | | (3) the business entity has designated an individual | 11 | | with an in force limited license producer license issued | 12 | | under paragraph (8) of subsection (a) of this Section to be | 13 | | responsible for the business entity's compliance with the | 14 | | insurance laws and regulations of this State related to | 15 | | credit life and credit accident and health insurance and | 16 | | other credit insurance policies approved or permitted by | 17 | | the Director that are offered or sold by that business | 18 | | entity. | 19 | | Except as specifically authorized by paragraph (8) of | 20 | | subsection (a) of this Section or this subsection (g-5), a | 21 | | business entity holding a limited lines license under this | 22 | | subsection (g-5) may not advertise, represent, or otherwise | 23 | | hold itself or any of its employees out as licensed insurers, | 24 | | insurance producers, insurance agents, or insurance brokers. | 25 | | (h) A limited lines producer issued a license pursuant to | 26 | | this Section is
not
subject to
the requirements of Section |
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| 1 | | 500-30.
| 2 | | (i) A limited lines producer license must contain the name, | 3 | | address and
personal
identification number of the licensee, the | 4 | | date the license was issued,
general conditions relative
to the | 5 | | license's expiration or termination, and any other information | 6 | | the
Director considers
proper. A limited line producer license, | 7 | | if applicable, must also contain the
name and address of
the | 8 | | appointing insurance company.
| 9 | | (Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14.)
| 10 | | (Text of Section after amendment by P.A. 98-1165 ) | 11 | | (Section scheduled to be repealed on January 1, 2017)
| 12 | | Sec. 500-100. Limited lines producer license.
| 13 | | (a) An individual who is at least 18 years of age and whom | 14 | | the Director
considers to
be competent, trustworthy, and of | 15 | | good business reputation may obtain a limited
lines producer
| 16 | | license for one or more of the following classes:
| 17 | | (1) travel insurance, as defined in Section 500-10 of | 18 | | this Article;
| 19 | | (2) industrial life insurance, as defined in Section | 20 | | 228 of this Code;
| 21 | | (3) industrial accident and health insurance, as | 22 | | defined in
Section 368 of this
Code;
| 23 | | (4) insurance issued by a company organized under the | 24 | | Farm Mutual
Insurance Company Act of 1986;
| 25 | | (5) legal expense insurance;
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| 1 | | (6) enrollment of recipients of public aid or medicare | 2 | | in a health
maintenance
organization;
| 3 | | (7) a limited health care plan issued by an | 4 | | organization having a
certificate of
authority under the | 5 | | Limited Health Service Organization Act;
| 6 | | (8) credit life and credit accident and health | 7 | | insurance and other credit insurance policies approved or | 8 | | permitted by the Director; a credit insurance company must | 9 | | conduct a training program in which an applicant shall | 10 | | receive basic instruction about the credit insurance | 11 | | products that he or she will be selling. | 12 | | (b) The application for a limited lines producer license | 13 | | must be submitted
on a form
prescribed by the Director by a | 14 | | designee of the insurance company, health
maintenance
| 15 | | organization, or limited health service organization | 16 | | appointing the limited
insurance
representative. The insurance | 17 | | company, health maintenance organization, or
limited health
| 18 | | service organization must pay the fee required by Section | 19 | | 500-135.
| 20 | | (c) A limited lines producer may represent more than one | 21 | | insurance company,
health
maintenance organization, or limited | 22 | | health service organization.
| 23 | | (d) An applicant who has met the requirements of this | 24 | | Section shall be
issued a
perpetual limited lines producer | 25 | | license.
| 26 | | (e) A limited lines producer license shall remain in effect |
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| 1 | | as long as the
appointing
insurance company pays the respective | 2 | | fee required by Section 500-135 prior to
January 1 of
each | 3 | | year, unless the license is revoked or suspended pursuant to
| 4 | | Section 500-70. Failure of the
insurance company to pay the | 5 | | license fee or to submit the required documents
shall cause
| 6 | | immediate termination of the limited line insurance producer | 7 | | license with
respect to which the
failure occurs.
| 8 | | (f) A limited lines producer license may be terminated by | 9 | | the insurance
company or
the licensee.
| 10 | | (g) A person whom the Director considers to be competent, | 11 | | trustworthy, and
of
good
business reputation may be issued a | 12 | | car rental limited line license. A car
rental limited line
| 13 | | license for a rental company shall remain in effect as long as | 14 | | the car rental
limited line licensee
pays the respective fee | 15 | | required by Section 500-135 prior to the next fee date
unless | 16 | | the car rental
license is revoked or suspended pursuant to | 17 | | Section 500-70. Failure of the car
rental limited line
licensee | 18 | | to pay the license fee or to submit the required documents | 19 | | shall cause
immediate
suspension of the car rental limited line | 20 | | license. A car rental limited line
license for rental
companies | 21 | | may be voluntarily
terminated by the car rental limited line | 22 | | licensee. The license fee
shall not be refunded upon | 23 | | termination of the car rental limited line license
by the car | 24 | | rental
limited line licensee.
| 25 | | (g-5) A business entity may be issued a limited lines | 26 | | producer license for credit life and credit accident and health |
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| 1 | | insurance and other credit insurance policies approved or | 2 | | permitted by the Director, provided that: | 3 | | (1) application for the limited lines producer license | 4 | | for credit insurance is made on a form specified by the | 5 | | Director; | 6 | | (2) the appointing insurance company has paid the | 7 | | application fee amount required by the Director for the | 8 | | business entity's application; and | 9 | | (3) the business entity has designated an individual | 10 | | with an in force limited license producer license issued | 11 | | under paragraph (8) of subsection (a) of this Section to be | 12 | | responsible for the business entity's compliance with the | 13 | | insurance laws and regulations of this State related to | 14 | | credit life and credit accident and health insurance and | 15 | | other credit insurance policies approved or permitted by | 16 | | the Director that are offered or sold by that business | 17 | | entity. | 18 | | Except as specifically authorized by paragraph (8) of | 19 | | subsection (a) of this Section or this subsection (g-5), a | 20 | | business entity holding a limited lines license under this | 21 | | subsection (g-5) may not advertise, represent, or otherwise | 22 | | hold itself or any of its employees out as licensed insurers, | 23 | | insurance producers, insurance agents, or insurance brokers. | 24 | | (h) A limited lines producer issued a license pursuant to | 25 | | this Section is
not
subject to
the requirements of Section | 26 | | 500-30.
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| 1 | | (i) A limited lines producer license must contain the name, | 2 | | address and
personal
identification number of the licensee, the | 3 | | date the license was issued,
general conditions relative
to the | 4 | | license's expiration or termination, and any other information | 5 | | the
Director considers
proper. A limited line producer license, | 6 | | if applicable, must also contain the
name and address of
the | 7 | | appointing insurance company.
| 8 | | (Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14; | 9 | | 98-1165, eff. 6-1-15.)
| 10 | | Section 95. No acceleration or delay. Where this Act makes | 11 | | changes in a statute that is represented in this Act by text | 12 | | that is not yet or no longer in effect (for example, a Section | 13 | | represented by multiple versions), the use of that text does | 14 | | not accelerate or delay the taking effect of (i) the changes | 15 | | made by this Act or (ii) provisions derived from any other | 16 | | Public Act.
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