INS PRODUCER COMMISSIONS
Synopsis of Bill as introduced:
Amends the Illinois Insurance Code in relation to producer
compensation that is not deductible from premiums. Provides that
records regarding notice of certain fees must be retained for 3 years
rather than indefinitely. Provides that when a contract or policy is
cancelled, the amount to be refunded to a customer shall be calculated
on a pro-rated basis for the remaining time the policy will be in
force limited to a maximum of 90 days. Provides that if a fee
disclosure to the consumer documents that the producer performed a
service corresponding to the policy and provides that the fee was
fully earned, the fee is fully earned at the inception of the
disclosure statement's execution. Effective immediately.
SENATE AMENDMENT NO. 1.
Requires producers and business entities to maintain records of
fee disclosures for 7, rather than 3, years. Provides for refunds on
cancelled policies if the policy is cancelled within 90 days following
the inception date and provides for a prorated refund. Deletes
provision limiting the refund to a period not exceeding 90 days.
FISCAL NOTE (Department of Insurance)
SB 1996 would create no fiscal impact on the Department.
Last action on Bill: PUBLIC ACT.............................. 92-0587
Last action date: JUN-26-2002
Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 1
END OF INQUIRY
Full Text Bill Status