(215 ILCS 5/1402)
Sec. 1402.
Definitions.
For the purposes of this Article:
"Financial institution" means:
(1) a State bank, a national bank, or an out-of-state |
| bank, as those terms are defined in the Illinois Banking Act, or any subsidiary of a State bank, a national bank, or an out-of-state bank;
|
|
(2) a foreign banking corporation, as that term is
|
| defined in the Foreign Banking Office Act, or any subsidiary of a foreign banking corporation;
|
|
(3) a corporate fiduciary, as that term is defined in
|
| the Corporate Fiduciary Act;
|
|
(4) a savings bank organized under the Savings Bank
|
| Act, an out-of-state savings bank chartered under the laws of a state other than Illinois, a territory of the United States, or the District of Columbia, or a federal savings bank organized under federal law, or any subsidiary of a savings bank, an out-of-state savings bank or a federal savings bank;
|
|
(5) an association or federal association, as those
|
| terms are defined in the Illinois Savings and Loan Act of 1985, or any subsidiary of an association or federal association;
|
|
(6) an out-of-state savings and loan association
|
| chartered under the laws of a state other than Illinois, a territory of the United States or the District of Columbia, or a federal savings and loan association organized under federal law whose principal business office is located outside of Illinois, or any subsidiary of an out-of-state savings and loan association or federal savings and loan association whose principal business office is located outside of Illinois; or
|
|
(7) a credit union as defined in the Illinois Credit
|
| Union Act, or any subsidiary of a credit union.
|
|
To the extent that any entity other than a financial institution conducts
insurance activities in this State on behalf of or on the premises of the
financial
institution, such entity shall be subject to this Article for the purposes of
those activities.
"Insurance" means all lines of insurance defined and regulated as insurance
under this Code, but for the purposes of this Article, "insurance" shall not
include the following lines of insurance, provided that this paragraph shall
not be deemed to preclude or otherwise limit regulation of the following lines
of insurance pursuant to and to the extent otherwise provided by any other
insurance law of this State:
(1) credit life, credit accident and health, credit
|
| involuntary unemployment, credit casualty and credit property insurance;
|
|
(2) extended service contracts and warranty
|
|
(3) insurance obtained by the debtor to provide
|
| payment for the difference between the remaining balance on a loan or other extension of credit and the amount of insurance coverage on the collateral securing the loan or other extension of credit;
|
|
(4) insurance placed by a financial institution on
|
| collateral used in connection with a loan or other extension of credit when a debtor breaches the contractual obligation to provide that insurance;
|
|
(5) title insurance regulated by the Title Insurance
|
|
(6) private mortgage insurance and financial
|
|
(Source: P.A. 90-41, eff. 10-1-97.)
|
(215 ILCS 5/1403)
Sec. 1403. Licensure requirements for financial institutions.
(a) A financial institution transacting insurance business in this State
shall register with the Director pursuant to the Illinois Insurance Code and
shall be subject to the laws, rules, and penalties of the Illinois Insurance
Code.
(b) The solicitation and sale of insurance by a financial institution
shall be conducted only by individuals who have been issued and maintain an
insurance producer's license pursuant to the Illinois Insurance Code and shall
be subject to the laws, rules, and penalties of the Illinois Insurance Code.
(c) For the purposes of this Section, a "financial institution" means the
subsidiary of a financial institution when the financial institution is
transacting insurance business in this State only through the subsidiary. For
the purposes of Section 499.1 of the Illinois Insurance Code, a financial
institution shall be deemed to be a corporation.
(d) Nothing in Section 500-100 of this Code shall be construed to require a limited lines producer license or any other form or class of producer's license for financial institutions, or their employees, if the financial institution has purchased or sponsored a group credit life, credit accident and health, credit casualty, credit property, or other group credit insurance policy or program under which the financial institution enrolls or performs other administrative services, or both, to enable individuals to purchase insurance coverage under the group credit insurance policy sold by a licensed producer in compliance with Section 155.56. A financial institution that performs enrollment or other administrative services, or both, with respect to its group credit insurance policies or programs shall be deemed to be in compliance with paragraph (2) of subsection (b) of Section 500-20 of this Code. (Source: P.A. 100-349, eff. 8-25-17.)
|
(215 ILCS 5/1411)
Sec. 1411.
Commissions and compensation.
No financial institution shall
pay, directly or indirectly, any commission, service fee, brokerage, or other
valuable consideration to any person for services as an insurance producer,
temporary insurance producer, or limited insurance representative, or for such
services by the person's members, officers, directors or employees, unless the
person, and any member, officer, director, or employee performing the service,
held a valid license regarding the class of insurance as to which the service
was rendered, or unless the person was a properly registered firm at the time
the service was performed. No person, other than a person properly licensed
or registered in accordance with Article XXXI of this Code at
the time the person performs services as an insurance producer, temporary
insurance producer, or limited insurance representative, shall accept any
commission, service fee, brokerage, or other valuable consideration for such
services. This Section shall not prevent payment or receipt of:
(1) renewal or other deferred commissions to or by any person entitled
thereto under this Section;
(2) fees to or by a financial institution or any other person for services
that do not require licensure as an insurance producer, temporary insurance
producer, limited insurance representative,
or registered firm; or
(3) consideration paid to a financial institution by a registered firm,
insurance producer, insurance company, or any other person pursuant to any
lease
agreement.
(Source: P.A. 90-41, eff. 10-1-97.)
|
(215 ILCS 5/1415)
Sec. 1415.
Confidential customer information.
(a) A financial institution that is a registered firm may not release a
customer's insurance information to any person other than an officer, director,
employee, agent, or affiliate of the financial institution without the written
consent of the customer. For the purposes of this Section, "insurance
information" means information concerning the premiums, terms and conditions
of
insurance coverage, insurance claims, and the insurance history of a customer
contained in the financial institution's records.
(b) Subsection (a) of this Section shall not apply to:
(1) names, addresses, and telephone numbers derived |
| in any manner from the financial institution's records, or
|
|
(2) the release of insurance information as otherwise
|
| authorized by State or federal law.
|
|
(c) A financial institution shall not require premium information when
requiring evidence of insurance in connection with a loan or extension of
credit and shall not use such premium information for the purpose of soliciting
insurance without the written consent of the customer.
(d) A financial institution may not use health information obtained from a
customer's insurance records for any purpose other than for its activities as a
registered firm pursuant to this Code.
(Source: P.A. 90-41, eff. 10-1-97.)
|
(215 ILCS 5/1510) Sec. 1510. Definitions. In this Article: "Adjusting a claim for loss or damage covered by an insurance contract" means negotiating values, damages, or depreciation or applying the loss circumstances to insurance policy provisions. "Adjusting insurance claims" means representing an insured with an insurer for compensation and, while representing that insured, either negotiating values, damages, or depreciation or applying the loss circumstances to insurance policy provisions. "Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity. "Department" means the Department of Insurance. "Director" means the Director of Insurance. "Fingerprints" means an impression of the lines on the finger taken for the purpose of identification. The impression may be electronic or in ink converted to electronic format. "Home state" means the District of Columbia and any state or territory of the United States where the public adjuster's principal place of residence or principal place of business is located. If neither the state in which the public adjuster maintains the principal place of residence nor the state in which the public adjuster maintains the principal place of business has a substantially similar law governing public adjusters, the public adjuster may declare another state in which it becomes licensed and acts as a public adjuster to be the home state. "Individual" means a natural person. "Person" means an individual or a business entity. "Public adjuster" means any person who, for compensation or any other thing of value on behalf of the insured: (i) acts, aids, or represents the insured solely in |
| relation to first party claims arising under insurance contracts that insure the real or personal property of the insured, in adjusting a claim for loss or damage covered by an insurance contract;
|
|
(ii) advertises for employment as a public adjuster
|
| of insurance claims or solicits business or represents himself or herself to the public as a public adjuster of first party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property; or
|
|
(iii) directly or indirectly solicits business,
|
| investigates or adjusts losses, or advises an insured about first party claims for losses or damages arising out of policies of insurance that insure real or personal property for another person engaged in the business of adjusting losses or damages covered by an insurance policy for the insured.
|
|
"Uniform individual application" means the current version of the National Association of Directors (NAIC) Uniform Individual Application for resident and nonresident individuals.
"Uniform business entity application" means the current version of the National Association of Insurance Commissioners (NAIC) Uniform Business Entity Application for resident and nonresident business entities.
"Webinar" means an online educational presentation during which a live and participating instructor and participating viewers, whose attendance is periodically verified throughout the presentation, actively engage in discussion and in the submission and answering of questions.
(Source: P.A. 102-135, eff. 7-23-21; 103-216, eff. 1-1-24 .)
|
(215 ILCS 5/1515) Sec. 1515. License required. (a) A person shall not act, advertise, solicit, or hold himself out as a public adjuster or to be in the business of adjusting insurance claims in this State, nor attempt to obtain a contract for public adjusting services, unless the person is licensed as a public adjuster in accordance with this Article. (b) A person licensed as a public adjuster shall not misrepresent to a claimant that he or she is an adjuster representing an insurer in any capacity, including acting as an employee of the insurer or acting as an independent adjuster unless so appointed by an insurer in writing to act on the insurer's behalf for that specific claim or purpose. A licensed public adjuster is prohibited from charging that specific claimant a fee when appointed by the insurer and the appointment is accepted by the public adjuster. (c) A business entity acting as a public adjuster is required to obtain a public adjuster license. Application shall be made using the Uniform Business Entity Application. Before approving the application, the Director shall find that: (1) the business entity has paid the required fees |
| to be registered as a business entity in this State; and
|
|
(2) all officers, shareholders, and persons with
|
| ownership interests in the business entity are licensed public adjusters responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State.
|
|
(d) Notwithstanding subsections (a) through (c) of this Section, a license as a public adjuster shall not be required of the following:
(1) an attorney admitted to practice in this State,
|
| when acting in his or her professional capacity as an attorney;
|
|
(2) a person who negotiates or settles claims arising
|
| under a life or health insurance policy or an annuity contract;
|
|
(3) a person employed only for the purpose of
|
| obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers, and handwriting experts;
|
|
(4) a licensed health care provider, or employee of a
|
| licensed health care provider, who prepares or files a health claim form on behalf of a patient; or
|
|
(5) a person who settles subrogation claims between
|
|
(e) All contracts entered into that are in violation of this Section are void and invalid.
(Source: P.A. 103-216, eff. 1-1-24 .)
|
(215 ILCS 5/1525) Sec. 1525. Resident license. (a) Before issuing a public adjuster license to an applicant under this Section, the Director shall find that the applicant: (1) is eligible to designate this State as his or her |
| home state or is a nonresident who is not eligible for a license under Section 1540;
|
|
(2) is sufficiently rehabilitated in cases in which
|
| the applicant has committed any act that is a ground for denial, suspension, or revocation of a license as set forth in Section 1555, other than convictions set forth in paragraph (6) of subsection (a) of Section 1555; with respect to applicants with convictions set forth in paragraph (6) of subsection (a) of Section 1555, the Director shall determine in accordance with Section 1550 that the conviction will not impair the ability of the applicant to engage in the position for which a license is sought;
|
|
(3) is trustworthy, reliable, competent, and of good
|
| reputation, evidence of which may be determined by the Director;
|
|
(4) is financially responsible to exercise the
|
| license and has provided proof of financial responsibility as required in Section 1560 of this Article; and
|
|
(5) maintains an office in the home state of
|
| residence with public access by reasonable appointment or regular business hours. This includes a designated office within a home state of residence.
|
|
(b) In addition to satisfying the requirements of subsection (a) of this Section, an individual shall:
(1) be at least 18 years of age;
(2) have successfully passed the public adjuster
|
|
(3) designate a licensed individual public adjuster
|
| responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State; and
|
|
(4) designate only licensed individual public
|
| adjusters to exercise the business entity's license.
|
|
(c) The Director may require any documents reasonably necessary to verify the information contained in the application.
(Source: P.A. 100-286, eff. 1-1-18 .)
|