Illinois General Assembly - Full Text of Public Act 096-0839
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Public Act 096-0839




Public Act 096-0839
HB0070 Re-Enrolled LRB096 02985 RPM 12999 b

    AN ACT concerning insurance.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Illinois Insurance Code is amended by
changing Sections 500-30 and 500-35 as follows:
    (215 ILCS 5/500-30)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 500-30. Application for license.
    (a) An individual applying for a resident insurance
producer license must make application on a form specified by
the Director and declare under penalty of refusal, suspension,
or revocation of the license that the statements made in the
application are true, correct, and complete to the best of the
individual's knowledge and belief. Before approving the
application, the Director must find that the individual:
        (1) is at least 18 years of age;
        (2) has not committed any act that is a ground for
    denial, suspension, or revocation set forth in Section
        (3) has completed, if required by the Director, a
    pre-licensing course of study before the insurance exam for
    the lines of authority for which the individual has applied
    (an individual who successfully completes the Fire and
    Casualty pre-licensing courses also meets the requirements
    for Personal Lines-Property and Casualty);
        (4) has paid the fees set forth in Section 500-135; and
        (5) has successfully passed the examinations for the
    lines of authority for which the person has applied.
    (b) A pre-licensing course of study for each class of
insurance for which an insurance producer license is requested
must be established in accordance with rules prescribed by the
Director and must consist of the following minimum hours:
Class of InsuranceNumber of
Life (Class 1 (a))20 15.0
Accident and Health (Class 1(b) or 2(a))20 15.0
Fire (Class 3)20 15.0
Casualty (Class 2)20 15.0
Personal Lines-Property Casualty20 15.0
Motor Vehicle (Class 2(b) or 3(e))12.5 7.5
    7.5 hours of each pre-licensing course must be completed in
a classroom setting, except Motor Vehicle, which would require
5 hours in a classroom setting.
    (c) A business entity acting as an insurance producer must
obtain an insurance producer license. Application must be made
using the Uniform Business Entity Application. Before
approving the application, the Director must find that:
        (1) the business entity has paid the fees set forth in
    Section 500-135; and
        (2) the business entity has designated a licensed
    producer responsible for the business entity's compliance
    with the insurance laws and rules of this State.
    (d) The Director may require any documents reasonably
necessary to verify the information contained in an
(Source: P.A. 92-386, eff. 1-1-02.)
    (215 ILCS 5/500-35)
    (Section scheduled to be repealed on January 1, 2017)
    Sec. 500-35. License.
    (a) Unless denied a license pursuant to Section 500-70,
persons who have met the requirements of Sections 500-25 and
500-30 shall be issued a 2-year insurance producer license. An
insurance producer may receive qualification for a license in
one or more of the following lines of authority:
        (1) Life: insurance coverage on human lives including
    benefits of endowment and annuities, and may include
    benefits in the event of death or dismemberment by accident
    and benefits for disability income.
        (2) Variable life and variable annuity products:
    insurance coverage provided under variable life insurance
    contracts and variable annuities.
        (3) Accident and health or sickness: insurance
    coverage for sickness, bodily injury, or accidental death
    and may include benefits for disability income.
        (4) Property: insurance coverage for the direct or
    consequential loss or damage to property of every kind.
        (5) Casualty: insurance coverage against legal
    liability, including that for death, injury, or disability
    or damage to real or personal property.
        (6) Personal lines: property and casualty insurance
    coverage sold to individuals and families for primarily
    noncommercial purposes.
        (7) Any other line of insurance permitted under State
    laws or rules.
    (b) An insurance producer license shall remain in effect
unless revoked or suspended as long as the fee set forth in
Section 500-135 is paid and education requirements for resident
individual producers are met by the due date.
        (1) Before each license renewal, an insurance producer
    must satisfactorily complete at least 24 30 hours of course
    study in accordance with rules prescribed by the Director.
    Three of the 24 hours of course study must consist of
    classroom ethics instruction. The Director may not approve
    a course of study unless the course provides for classroom,
    seminar, or self-study instruction methods. A course given
    in a combination instruction method of classroom or seminar
    and self-study shall be deemed to be a self-study course
    unless the classroom or seminar certified hours meets or
    exceeds two-thirds of total hours certified for the course.
    The self-study material used in the combination course must
    be directly related to and complement the classroom portion
    of the course in order to be considered for credit. An
    instruction method other than classroom or seminar shall be
    considered as self-study methodology. Self-study credit
    hours require the successful completion of an examination
    covering the self-study material. The examination may not
    be self-evaluated. However, if the self-study material is
    completed through the use of an approved computerized
    interactive format whereby the computer validates the
    successful completion of the self-study material, no
    additional examination is required. The self-study credit
    hours contained in a certified course shall be considered
    classroom hours when at least two-thirds of the hours are
    given as classroom or seminar instruction.
        (2) An insurance producer license automatically
    terminates when an insurance producer fails to
    successfully meet the requirements of item (1) of
    subsection (b) of this Section. The producer must complete
    the course in advance of the renewal date to allow the
    education provider time to report the credit to the
    (c) A provider of a pre-licensing or continuing education
course required by Section 500-30 and this Section must pay a
registration fee and a course certification fee for each course
being certified as provided by Section 500-135.
    (d) An individual insurance producer who allows his or her
license to lapse may, within 12 months after the due date of
the renewal fee, be issued a license without the necessity of
passing a written examination. However, a penalty in the amount
of double the unpaid renewal fee shall be required after the
due date.
    (e) A licensed insurance producer who is unable to comply
with license renewal procedures due to military service may
request a waiver of those procedures.
    (f) The license must contain the licensee's name, address,
and personal identification number, the date of issuance, the
lines of authority, the expiration date, and any other
information the Director deems necessary.
    (g) Licensees must inform the Director by any means
acceptable to the Director of a change of address within 30
days after the change.
    (h) In order to assist in the performance of the Director's
duties, the Director may contract with a non-governmental
entity including the National Association of Insurance
Commissioners (NAIC), or any affiliates or subsidiaries that
the NAIC oversees, to perform any ministerial functions,
including collection of fees, related to producer licensing
that the Director and the non-governmental entity may deem
(Source: P.A. 92-386, eff. 1-1-02.)
    Section 99. Effective date. This Act takes effect on
January 1, 2010.

Effective Date: 1/1/2010