Full Text of SB2979 98th General Assembly
SB2979enr 98TH GENERAL ASSEMBLY |
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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 Sections 500-10 and 500-100 and by adding Section | 6 | | 500-108 as follows:
| 7 | | (215 ILCS 5/500-10)
| 8 | | (Section scheduled to be repealed on January 1, 2017)
| 9 | | Sec. 500-10. Definitions. In addition to the definitions in | 10 | | Section 2 of
the
Code, the following
definitions apply to this | 11 | | Article:
| 12 | | "Business entity" means a corporation, association, | 13 | | partnership, limited
liability
company, limited liability | 14 | | partnership, or other legal entity.
| 15 | | "Car rental limited line licensee" means a person | 16 | | authorized under the
provisions of
Section 500-105 to sell | 17 | | certain coverages relating to the rental of vehicles.
| 18 | | "Home state" means the District of Columbia and any state | 19 | | or territory of the
United
States in which an insurance | 20 | | producer maintains his or her principal place of
residence or
| 21 | | principal place of business and is licensed to act as an | 22 | | insurance producer.
| 23 | | "Insurance" means any of the lines of authority in Section |
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| 1 | | 500-35, any health
care plan
under the Health Maintenance | 2 | | Organization Act, or any limited health care plan
under the
| 3 | | Limited Health Service Organization Act.
| 4 | | "Insurance producer" means a person required to be licensed | 5 | | under the laws of
this State
to sell, solicit, or negotiate | 6 | | insurance.
| 7 | | "Insurer" means a company as defined in subsection (e) of | 8 | | Section 2 of this
Code, a
health maintenance organization as | 9 | | defined in the Health Maintenance
Organization Act, or a
| 10 | | limited health service organization as defined in the Limited | 11 | | Health
Service Organization Act.
| 12 | | "License" means a document issued by the Director | 13 | | authorizing an individual
to act as an
insurance producer for | 14 | | the lines of authority specified in the document or
authorizing | 15 | | a business
entity to act as an insurance producer. The license | 16 | | itself does not create any
authority, actual,
apparent, or | 17 | | inherent, in the holder to represent or commit
an insurance | 18 | | carrier.
| 19 | | "Limited lines insurance" means those lines of insurance | 20 | | defined in Section
500-100 or
any other line of insurance that | 21 | | the Director may deem it necessary to
recognize for the | 22 | | purposes
of complying with subsection (e) of Section 500-40.
| 23 | | "Limited lines producer" means a person authorized by the | 24 | | Director to sell,
solicit, or
negotiate limited lines | 25 | | insurance.
| 26 | | "Negotiate" means the act of conferring directly with or |
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| 1 | | offering advice
directly to a
purchaser or prospective | 2 | | purchaser of a particular contract of insurance
concerning any
| 3 | | of the substantive benefits, terms, or conditions of the | 4 | | contract, provided
that the person
engaged in that act either | 5 | | sells insurance or obtains insurance from
insurers for | 6 | | purchasers.
| 7 | | "Person" means an individual or a business entity.
| 8 | | "Rental agreement" means a written agreement setting forth | 9 | | the terms and
conditions
governing the use of a vehicle | 10 | | provided by a rental company for
rental or lease.
| 11 | | "Rental company" means a person, or a franchisee of the | 12 | | person, in the
business of
providing primarily private | 13 | | passenger vehicles to the public under a
rental agreement for a | 14 | | period
not to exceed 30 days.
| 15 | | "Rental period" means the term of the rental agreement.
| 16 | | "Renter" means a person obtaining the use of a vehicle from | 17 | | a
rental company under the
terms of a rental agreement for a | 18 | | period not to exceed 30 days.
| 19 | | "Self-service storage facility limited line licensee" | 20 | | means a person
authorized under the provisions of Section | 21 | | 500-107 to sell certain coverages
relating to the rental of | 22 | | self-service storage facilities.
| 23 | | "Sell" means to exchange a contract of insurance by any | 24 | | means, for
money or its equivalent, on
behalf of an insurance | 25 | | company.
| 26 | | "Solicit" means attempting to
sell insurance or asking or |
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| 1 | | urging a person to apply for a
particular kind of insurance | 2 | | from a particular company.
| 3 | | "Terminate" means the cancellation of the relationship | 4 | | between an insurance
producer and the
insurer or the | 5 | | termination of a producer's authority to transact insurance.
| 6 | | "Travel insurance" means insurance coverage for personal | 7 | | risks incident to planned travel, including, but not limited | 8 | | to: (1) the interruption or cancellation of a trip or event, | 9 | | (2) the loss of baggage or personal effects, (3) damages to | 10 | | accommodations or rental vehicles, or (4) sickness, accident, | 11 | | disability, or death occurring during travel. "Travel | 12 | | insurance" does not include major medical plans that provide | 13 | | comprehensive medical protection for travelers with trips | 14 | | lasting 6 months or longer, including those working overseas as | 15 | | an ex-patriot or as military personnel on deployment. | 16 | | "Uniform Business Entity Application" means the current | 17 | | version of the
National Association of Insurance | 18 | | Commissioners' Uniform
Business Entity Application for | 19 | | nonresident business entities.
| 20 | | "Uniform Application" means the current version of the | 21 | | National Association
of Insurance Commissioners' Uniform
| 22 | | Application for
nonresident producer licensing.
| 23 | | "Vehicle" or "rental vehicle" means a motor vehicle of (1) | 24 | | the private
passenger
type, including passenger vans, mini | 25 | | vans, and sport utility vehicles or (2)
the cargo type,
| 26 | | including cargo vans, pickup trucks, and trucks with a gross |
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| 1 | | vehicle
weight of less than
26,000 pounds the operation of | 2 | | which does not require the operator to possess a
commercial
| 3 | | driver's license.
| 4 | | "Webinar" means an online educational presentation during | 5 | | which a live and participating instructor and participating | 6 | | viewers, whose attendance is periodically verified throughout | 7 | | the presentation, actively engage in discussion and in the | 8 | | submission and answering of questions. | 9 | | (Source: P.A. 97-113, eff. 7-14-11.)
| 10 | | (215 ILCS 5/500-100)
| 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 on baggage or limited travel health, accident, | 19 | | or trip
cancellation
insurance sold in connection with | 20 | | transportation provided by a common carrier ;
| 21 | | (2) industrial life insurance, as defined in Section | 22 | | 228 of this Code;
| 23 | | (3) industrial accident and health insurance, as | 24 | | defined in
Section 368 of this
Code;
| 25 | | (4) insurance issued by a company organized under the |
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| 1 | | Farm Mutual
Insurance Company Act of 1986;
| 2 | | (5) legal expense insurance;
| 3 | | (6) enrollment of recipients of public aid or medicare | 4 | | in a health
maintenance
organization;
| 5 | | (7) a limited health care plan issued by an | 6 | | organization having a
certificate of
authority under the | 7 | | Limited Health Service Organization Act;
| 8 | | (8) credit life and credit accident and health | 9 | | insurance and other credit insurance policies approved or | 10 | | permitted by the Director; a credit insurance company must | 11 | | conduct a training program in which an applicant shall | 12 | | receive basic instruction about the credit insurance | 13 | | products that he or she will be selling. | 14 | | (b) The application for a limited lines producer license | 15 | | must be submitted
on a form
prescribed by the Director by a | 16 | | designee of the insurance company, health
maintenance
| 17 | | organization, or limited health service organization | 18 | | appointing the limited
insurance
representative. The insurance | 19 | | company, health maintenance organization, or
limited health
| 20 | | service organization must pay the fee required by Section | 21 | | 500-135.
| 22 | | (c) A limited lines producer may represent more than one | 23 | | insurance company,
health
maintenance organization, or limited | 24 | | health service organization.
| 25 | | (d) An applicant who has met the requirements of this | 26 | | Section shall be
issued a
perpetual limited lines producer |
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| 1 | | license.
| 2 | | (e) A limited lines producer license shall remain in effect | 3 | | as long as the
appointing
insurance company pays the respective | 4 | | fee required by Section 500-135 prior to
January 1 of
each | 5 | | year, unless the license is revoked or suspended pursuant to
| 6 | | Section 500-70. Failure of the
insurance company to pay the | 7 | | license fee or to submit the required documents
shall cause
| 8 | | immediate termination of the limited line insurance producer | 9 | | license with
respect to which the
failure occurs.
| 10 | | (f) A limited lines producer license may be terminated by | 11 | | the insurance
company or
the licensee.
| 12 | | (g) A person whom the Director considers to be competent, | 13 | | trustworthy, and
of
good
business reputation may be issued a | 14 | | car rental limited line license. A car
rental limited line
| 15 | | license for a rental company shall remain in effect as long as | 16 | | the car rental
limited line licensee
pays the respective fee | 17 | | required by Section 500-135 prior to the next fee date
unless | 18 | | the car rental
license is revoked or suspended pursuant to | 19 | | Section 500-70. Failure of the car
rental limited line
licensee | 20 | | to pay the license fee or to submit the required documents | 21 | | shall cause
immediate
suspension of the car rental limited line | 22 | | license. A car rental limited line
license for rental
companies | 23 | | may be voluntarily
terminated by the car rental limited line | 24 | | licensee. The license fee
shall not be refunded upon | 25 | | termination of the car rental limited line license
by the car | 26 | | rental
limited line licensee.
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| 1 | | (h) A limited lines producer issued a license pursuant to | 2 | | this Section is
not
subject to
the requirements of Section | 3 | | 500-30.
| 4 | | (i) A limited lines producer license must contain the name, | 5 | | address and
personal
identification number of the licensee, the | 6 | | date the license was issued,
general conditions relative
to the | 7 | | license's expiration or termination, and any other information | 8 | | the
Director considers
proper. A limited line producer license, | 9 | | if applicable, must also contain the
name and address of
the | 10 | | appointing insurance company.
| 11 | | (Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14.)
| 12 | | (215 ILCS 5/500-108 new) | 13 | | Sec. 500-108. Travel insurance business entity license. | 14 | | (a) As used in this Section: | 15 | | "Offering and disseminating" means the following: | 16 | | (1) Providing information to a prospective or current | 17 | | policyholder on behalf of a limited lines travel insurance | 18 | | entity, including brochures, buyer guides, descriptions of | 19 | | coverage, and price. | 20 | | (2) Referring specific questions regarding coverage | 21 | | features and benefits from a prospective or current | 22 | | policyholder to a limited lines travel insurance entity. | 23 | | (3) Disseminating and processing applications for | 24 | | coverage, coverage selection forms, or other similar forms | 25 | | in response to a request from a prospective or current |
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| 1 | | policyholder. | 2 | | (4) Collecting premiums from a prospective or current | 3 | | policyholder on behalf of a limited lines travel insurance | 4 | | entity. | 5 | | (5) Receiving and recording information from a | 6 | | policyholder to share with a limited lines travel insurance | 7 | | entity. | 8 | | "Travel insurance business entity" means a licensed | 9 | | insurance producer designated
by an insurer as set forth in | 10 | | subsection (i) of this Section. | 11 | | "Travel retailer" means a business organization that | 12 | | makes, arranges, or offers travel services and, with respect to | 13 | | travel insurance, is limited to offering and disseminating as | 14 | | defined in this Section, unless otherwise licensed under | 15 | | subsection (c) of this Section. | 16 | | (b) The Director may issue to a travel insurance business | 17 | | entity that registers travel
retailers under its license as | 18 | | described in paragraph (2) of subsection (d) of this Section a | 19 | | producer license as provided in paragraph (6) of subsection (a) | 20 | | of Section 500-35 of this Code. A travel insurance business | 21 | | entity license issued under this Section shall also authorize | 22 | | any employee of the travel insurance business entity to act | 23 | | individually on behalf and under the supervision of the travel | 24 | | insurance business entity licensee with respect to the coverage | 25 | | specified in this Section. Each travel insurance business | 26 | | entity licensed under this Section shall pay the Department a |
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| 1 | | fee of $500 for its initial license and $500 for each renewal | 2 | | license, payable on May 31 annually. | 3 | | (c) The Director may issue to a travel retailer a limited | 4 | | lines producer license. A travel retailer license issued under | 5 | | this Section shall also authorize any employee of the travel | 6 | | retailer limited line licensee to act individually on behalf | 7 | | and under the supervision of the travel retailer limited line | 8 | | licensee with respect to the coverage specified in this | 9 | | Section. | 10 | | (d) Notwithstanding any other provision of law, a travel | 11 | | retailer may do the limited activities of offering and | 12 | | disseminating travel insurance on behalf of and under the | 13 | | license of a supervising travel insurance business entity if | 14 | | the following conditions are met: | 15 | | (1) the travel insurance business entity or travel | 16 | | retailer provides to purchasers of travel insurance: | 17 | | (A) a description of the material terms or the | 18 | | actual material terms of the
insurance coverage; | 19 | | (B) a description of the process for filing a | 20 | | claim; | 21 | | (C) a description of the review or cancellation | 22 | | process for the travel insurance policy; and | 23 | | (D) the identity and contact information of the | 24 | | insurer and travel insurance business entity; | 25 | | (2) at the time of licensure, the travel insurance | 26 | | business entity shall establish and maintain a register on |
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| 1 | | a form prescribed by the Director of each travel retailer | 2 | | that offers travel insurance on the travel insurance | 3 | | business entity's behalf; the register shall be maintained | 4 | | and updated continuously by the travel insurance business | 5 | | entity and shall include the name, address, and contact | 6 | | information of the travel retailer and an officer or person | 7 | | who directs or controls the travel retailer's operations | 8 | | and the travel retailer's federal tax identification | 9 | | number; the travel insurance business entity shall submit | 10 | | the register to the Director annually on a form and in a | 11 | | manner approved by the Director; the limited lines producer | 12 | | shall also certify that the travel retailer personnel who | 13 | | is offering and disseminating insurance under the travel | 14 | | retailer's registration complies with 18 U.S.C. 1033; | 15 | | (3) the travel insurance business entity has | 16 | | designated one of its employees as a licensed individual | 17 | | producer (a designated responsible producer or DRP) | 18 | | responsible for the travel insurance business entity's and | 19 | | its travel retailer's compliance with the travel insurance | 20 | | laws, rules, and regulations of the State; | 21 | | (4) the travel insurance business entity has paid all | 22 | | applicable insurance producer licensing fees as set forth | 23 | | in this Code; and | 24 | | (5) the travel insurance business entity requires each | 25 | | employee and authorized representative of the travel | 26 | | retailer whose duties include offering and disseminating |
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| 1 | | travel insurance to receive a program of instruction or | 2 | | training that shall be subject to review by the Director; | 3 | | the training material shall, at a minimum, contain | 4 | | instructions on the types of insurance offered, ethical | 5 | | sales practices, and required disclosures to prospective | 6 | | customers. | 7 | | (e) Any travel retailer offering or disseminating travel | 8 | | insurance shall make available to prospective purchasers | 9 | | brochures or other written materials that: | 10 | | (1) provide the identity and contact information of the | 11 | | insurer and the travel
insurance business entity; | 12 | | (2) explain that the purchase of travel insurance is | 13 | | not required in order to
purchase any other product or | 14 | | service from the travel retailer; and | 15 | | (3) explain that an unlicensed travel retailer is | 16 | | permitted to provide general information about the | 17 | | insurance offered by the travel retailer, including a | 18 | | description of the coverage and price, but is not qualified | 19 | | or authorized to answer technical questions about the terms | 20 | | and conditions of the insurance offered by the travel | 21 | | retailer or to evaluate the adequacy of the customer's | 22 | | existing insurance coverage. | 23 | | (f) A travel retailer's employee or authorized | 24 | | representative who is not licensed as an insurance producer may | 25 | | not: | 26 | | (1) evaluate or interpret the technical terms, |
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| 1 | | benefits, and conditions of the
offered travel insurance | 2 | | coverage; | 3 | | (2) evaluate or provide advice concerning a | 4 | | prospective purchaser's existing
insurance coverage; or | 5 | | (3) hold himself, herself, or itself out as a licensed | 6 | | insurer, licensed producer, or insurance expert. | 7 | | (g) A travel retailer whose insurance-related activities, | 8 | | and those of its employees and authorized representatives, are | 9 | | limited to offering and disseminating travel insurance on | 10 | | behalf of and under the direction of a travel insurance | 11 | | business entity meeting the conditions stated in this Section | 12 | | is authorized to do so and receive related compensation upon | 13 | | registration by the travel insurance business entity as | 14 | | described in paragraph (2) of subsection (d) of this Section. | 15 | | (h) Travel insurance may be provided under an individual | 16 | | policy or under a group or master policy. | 17 | | (i) As the insurer designee, the travel insurance business | 18 | | entity is responsible for the acts of the travel retailer that | 19 | | is registered under its license. | 20 | | (j) Any entity that violates any provision of this Article | 21 | | shall be subject to all appropriate regulatory action as set | 22 | | forth in this Code.
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