Illinois General Assembly - Full Text of HB0241
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Full Text of HB0241  102nd General Assembly


Rep. Thaddeus Jones

Filed: 3/17/2021





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2    AMENDMENT NO. ______. Amend House Bill 241 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Insurance Code is amended by
5changing Sections 500-30, 1510, and 1565 as follows:
6    (215 ILCS 5/500-30)
7    (Section scheduled to be repealed on January 1, 2027)
8    Sec. 500-30. Application for license.
9    (a) An individual applying for a resident insurance
10producer license must make application on a form specified by
11the Director and declare under penalty of refusal, suspension,
12or revocation of the license that the statements made in the
13application are true, correct, and complete to the best of the
14individual's knowledge and belief. Before approving the
15application, the Director must find that the individual:
16        (1) is at least 18 years of age;



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1        (2) is sufficiently rehabilitated in cases in which
2    the applicant has committed any act that is a ground for
3    denial, suspension, or revocation set forth in Section
4    500-70, other than convictions set forth in paragraph (6)
5    of subsection (a) of Section 500-70; with respect to
6    applicants with convictions set forth in paragraph (6) of
7    subsection (a) of Section 500-70, the Director shall
8    determine in accordance with Section 500-76 that the
9    conviction will not impair the ability of the applicant to
10    engage in the position for which a license is sought;
11        (3) has completed, if required by the Director, a
12    pre-licensing course of study before the insurance exam
13    for the lines of authority for which the individual has
14    applied (an individual who successfully completes the Fire
15    and Casualty pre-licensing courses also meets the
16    requirements for Personal Lines-Property and Casualty);
17        (4) has paid the fees set forth in Section 500-135;
18    and
19        (5) has successfully passed the examinations for the
20    lines of authority for which the person has applied.
21    (b) A pre-licensing course of study for each class of
22insurance for which an insurance producer license is requested
23must be established in accordance with rules prescribed by the
24Director and must consist of the following minimum hours:
25Class of InsuranceNumber of



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1Life (Class 1(a))20
2Accident and Health (Class 1(b) or 2(a))20
3Fire (Class 3)20
4Casualty (Class 2)20
5Personal Lines-Property Casualty20
6Motor Vehicle (Class 2(b) or 3(e))12.5
7    7.5 hours of each pre-licensing course must be completed
8in a classroom or webinar setting, except Motor Vehicle, which
9would require 5 hours in a classroom or webinar setting.
10    (c) A business entity acting as an insurance producer must
11obtain an insurance producer license. Application must be made
12using the Uniform Business Entity Application. Before
13approving the application, the Director must find that:
14        (1) the business entity has paid the fees set forth in
15    Section 500-135; and
16        (2) the business entity has designated a licensed
17    producer responsible for the business entity's compliance
18    with the insurance laws and rules of this State.
19    (d) The Director may require any documents reasonably
20necessary to verify the information contained in an
22(Source: P.A. 100-286, eff. 1-1-18.)
23    (215 ILCS 5/1510)
24    Sec. 1510. Definitions. In this Article:
25    "Adjusting a claim for loss or damage covered by an



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1insurance contract" means negotiating values, damages, or
2depreciation or applying the loss circumstances to insurance
3policy provisions.
4    "Business entity" means a corporation, association,
5partnership, limited liability company, limited liability
6partnership, or other legal entity.
7    "Department" means the Department of Insurance.
8    "Director" means the Director of Insurance.
9    "Fingerprints" means an impression of the lines on the
10finger taken for the purpose of identification. The impression
11may be electronic or in ink converted to electronic format.
12    "Home state" means the District of Columbia and any state
13or territory of the United States where the public adjuster's
14principal place of residence or principal place of business is
15located. If neither the state in which the public adjuster
16maintains the principal place of residence nor the state in
17which the public adjuster maintains the principal place of
18business has a substantially similar law governing public
19adjusters, the public adjuster may declare another state in
20which it becomes licensed and acts as a public adjuster to be
21the home state.
22    "Individual" means a natural person.
23    "Person" means an individual or a business entity.
24    "Public adjuster" means any person who, for compensation
25or any other thing of value on behalf of the insured:
26        (i) acts or aids, solely in relation to first party



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1    claims arising under insurance contracts that insure the
2    real or personal property of the insured, on behalf of an
3    insured in adjusting a claim for loss or damage covered by
4    an insurance contract;
5        (ii) advertises for employment as a public adjuster of
6    insurance claims or solicits business or represents
7    himself or herself to the public as a public adjuster of
8    first party insurance claims for losses or damages arising
9    out of policies of insurance that insure real or personal
10    property; or
11        (iii) directly or indirectly solicits business,
12    investigates or adjusts losses, or advises an insured
13    about first party claims for losses or damages arising out
14    of policies of insurance that insure real or personal
15    property for another person engaged in the business of
16    adjusting losses or damages covered by an insurance policy
17    for the insured.
18    "Uniform individual application" means the current version
19of the National Association of Directors (NAIC) Uniform
20Individual Application for resident and nonresident
22    "Uniform business entity application" means the current
23version of the National Association of Insurance Commissioners
24(NAIC) Uniform Business Entity Application for resident and
25nonresident business entities.
26    "Webinar" means an online educational presentation during



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1which a live and participating instructor and participating
2viewers, whose attendance is periodically verified throughout
3the presentation, actively engage in discussion and in the
4submission and answering of questions.
5(Source: P.A. 96-1332, eff. 1-1-11.)
6    (215 ILCS 5/1565)
7    Sec. 1565. Continuing education.
8    (a) An individual who holds a public adjuster license and
9who is not exempt under subsection (b) of this Section shall
10satisfactorily complete a minimum of 24 hours of continuing
11education courses, including 3 hours of classroom or webinar
12ethics instruction, reported on a biennial basis in
13conjunction with the license renewal cycle.
14    The Director may not approve a course of study unless the
15course provides for classroom, seminar, or self-study
16instruction methods. A course given in a combination
17instruction method of classroom or seminar and self-study
18shall be deemed to be a self-study course unless the classroom
19or seminar certified hours meets or exceeds two-thirds of the
20total hours certified for the course. The self-study material
21used in the combination course must be directly related to and
22complement the classroom portion of the course in order to be
23considered for credit. An instruction method other than
24classroom or seminar shall be considered as self-study
25methodology. Self-study credit hours require the successful



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1completion of an examination covering the self-study material.
2The examination may not be self-evaluated. However, if the
3self-study material is completed through the use of an
4approved computerized interactive format whereby the computer
5validates the successful completion of the self-study
6material, no additional examination is required. The
7self-study credit hours contained in a certified course shall
8be considered classroom hours when at least two-thirds of the
9hours are given as classroom or seminar instruction.
10    The public adjuster must complete the course in advance of
11the renewal date to allow the education provider time to
12report the credit to the Department.
13    (b) This Section shall not apply to:
14        (1) licensees not licensed for one full year prior to
15    the end of the applicable continuing education biennium;
16    or
17        (2) licensees holding nonresident public adjuster
18    licenses who have met the continuing education
19    requirements of their home state and whose home state
20    gives credit to residents of this State on the same basis.
21    (c) Only continuing education courses approved by the
22Director shall be used to satisfy the continuing education
23requirement of subsection (a) of this Section.
24(Source: P.A. 96-1332, eff. 1-1-11.)
25    Section 99. Effective date. This Act takes effect upon



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1becoming law.".