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| Public Act 098-1165 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Sections 500-10 and 500-100 and by adding Section | ||||
500-108 as follows:
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(215 ILCS 5/500-10)
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(Section scheduled to be repealed on January 1, 2017)
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Sec. 500-10. Definitions. In addition to the definitions in | ||||
Section 2 of
the
Code, the following
definitions apply to this | ||||
Article:
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"Business entity" means a corporation, association, | ||||
partnership, limited
liability
company, limited liability | ||||
partnership, or other legal entity.
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"Car rental limited line licensee" means a person | ||||
authorized under the
provisions of
Section 500-105 to sell | ||||
certain coverages relating to the rental of vehicles.
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"Home state" means the District of Columbia and any state | ||||
or territory of the
United
States in which an insurance | ||||
producer maintains his or her principal place of
residence or
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principal place of business and is licensed to act as an | ||||
insurance producer.
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"Insurance" means any of the lines of authority in Section | ||||
500-35, any health
care plan
under the Health Maintenance | ||
Organization Act, or any limited health care plan
under the
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Limited Health Service Organization Act.
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"Insurance producer" means a person required to be licensed | ||
under the laws of
this State
to sell, solicit, or negotiate | ||
insurance.
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"Insurer" means a company as defined in subsection (e) of | ||
Section 2 of this
Code, a
health maintenance organization as | ||
defined in the Health Maintenance
Organization Act, or a
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limited health service organization as defined in the Limited | ||
Health
Service Organization Act.
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"License" means a document issued by the Director | ||
authorizing an individual
to act as an
insurance producer for | ||
the lines of authority specified in the document or
authorizing | ||
a business
entity to act as an insurance producer. The license | ||
itself does not create any
authority, actual,
apparent, or | ||
inherent, in the holder to represent or commit
an insurance | ||
carrier.
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"Limited lines insurance" means those lines of insurance | ||
defined in Section
500-100 or
any other line of insurance that | ||
the Director may deem it necessary to
recognize for the | ||
purposes
of complying with subsection (e) of Section 500-40.
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"Limited lines producer" means a person authorized by the | ||
Director to sell,
solicit, or
negotiate limited lines | ||
insurance.
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"Negotiate" means the act of conferring directly with or | ||
offering advice
directly to a
purchaser or prospective | ||
purchaser of a particular contract of insurance
concerning any
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of the substantive benefits, terms, or conditions of the | ||
contract, provided
that the person
engaged in that act either | ||
sells insurance or obtains insurance from
insurers for | ||
purchasers.
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"Person" means an individual or a business entity.
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"Rental agreement" means a written agreement setting forth | ||
the terms and
conditions
governing the use of a vehicle | ||
provided by a rental company for
rental or lease.
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"Rental company" means a person, or a franchisee of the | ||
person, in the
business of
providing primarily private | ||
passenger vehicles to the public under a
rental agreement for a | ||
period
not to exceed 30 days.
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"Rental period" means the term of the rental agreement.
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"Renter" means a person obtaining the use of a vehicle from | ||
a
rental company under the
terms of a rental agreement for a | ||
period not to exceed 30 days.
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"Self-service storage facility limited line licensee" | ||
means a person
authorized under the provisions of Section | ||
500-107 to sell certain coverages
relating to the rental of | ||
self-service storage facilities.
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"Sell" means to exchange a contract of insurance by any | ||
means, for
money or its equivalent, on
behalf of an insurance | ||
company.
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"Solicit" means attempting to
sell insurance or asking or | ||
urging a person to apply for a
particular kind of insurance | ||
from a particular company.
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"Terminate" means the cancellation of the relationship | ||
between an insurance
producer and the
insurer or the | ||
termination of a producer's authority to transact insurance.
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"Travel insurance" means insurance coverage for personal | ||
risks incident to planned travel, including, but not limited | ||
to: (1) the interruption or cancellation of a trip or event, | ||
(2) the loss of baggage or personal effects, (3) damages to | ||
accommodations or rental vehicles, or (4) sickness, accident, | ||
disability, or death occurring during travel. "Travel | ||
insurance" does not include major medical plans that provide | ||
comprehensive medical protection for travelers with trips | ||
lasting 6 months or longer, including those working overseas as | ||
an ex-patriot or as military personnel on deployment. | ||
"Uniform Business Entity Application" means the current | ||
version of the
National Association of Insurance | ||
Commissioners' Uniform
Business Entity Application for | ||
nonresident business entities.
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"Uniform Application" means the current version of the | ||
National Association
of Insurance Commissioners' Uniform
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Application for
nonresident producer licensing.
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"Vehicle" or "rental vehicle" means a motor vehicle of (1) | ||
the private
passenger
type, including passenger vans, mini | ||
vans, and sport utility vehicles or (2)
the cargo type,
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including cargo vans, pickup trucks, and trucks with a gross | ||
vehicle
weight of less than
26,000 pounds the operation of | ||
which does not require the operator to possess a
commercial
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driver's license.
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"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. 97-113, eff. 7-14-11.)
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(215 ILCS 5/500-100)
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(Section scheduled to be repealed on January 1, 2017)
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Sec. 500-100. Limited lines producer license.
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(a) An individual who is at least 18 years of age and whom | ||
the Director
considers to
be competent, trustworthy, and of | ||
good business reputation may obtain a limited
lines producer
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license for one or more of the following classes:
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(1) travel insurance, as defined in Section 500-10 of | ||
this Article on baggage or limited travel health, accident, | ||
or trip
cancellation
insurance sold in connection with | ||
transportation provided by a common carrier;
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(2) industrial life insurance, as defined in Section | ||
228 of this Code;
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(3) industrial accident and health insurance, as | ||
defined in
Section 368 of this
Code;
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(4) insurance issued by a company organized under the | ||
Farm Mutual
Insurance Company Act of 1986;
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(5) legal expense insurance;
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(6) enrollment of recipients of public aid or medicare | ||
in a health
maintenance
organization;
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(7) a limited health care plan issued by an | ||
organization having a
certificate of
authority under the | ||
Limited Health Service Organization Act;
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(8) credit life and credit accident and health | ||
insurance and other credit insurance policies approved or | ||
permitted by the Director; a credit insurance company must | ||
conduct a training program in which an applicant shall | ||
receive basic instruction about the credit insurance | ||
products that he or she will be selling. | ||
(b) The application for a limited lines producer license | ||
must be submitted
on a form
prescribed by the Director by a | ||
designee of the insurance company, health
maintenance
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organization, or limited health service organization | ||
appointing the limited
insurance
representative. The insurance | ||
company, health maintenance organization, or
limited health
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service organization must pay the fee required by Section | ||
500-135.
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(c) A limited lines producer may represent more than one | ||
insurance company,
health
maintenance organization, or limited | ||
health service organization.
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(d) An applicant who has met the requirements of this | ||
Section shall be
issued a
perpetual limited lines producer | ||
license.
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(e) A limited lines producer license shall remain in effect | ||
as long as the
appointing
insurance company pays the respective | ||
fee required by Section 500-135 prior to
January 1 of
each | ||
year, unless the license is revoked or suspended pursuant to
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Section 500-70. Failure of the
insurance company to pay the | ||
license fee or to submit the required documents
shall cause
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immediate termination of the limited line insurance producer | ||
license with
respect to which the
failure occurs.
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(f) A limited lines producer license may be terminated by | ||
the insurance
company or
the licensee.
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(g) A person whom the Director considers to be competent, | ||
trustworthy, and
of
good
business reputation may be issued a | ||
car rental limited line license. A car
rental limited line
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license for a rental company shall remain in effect as long as | ||
the car rental
limited line licensee
pays the respective fee | ||
required by Section 500-135 prior to the next fee date
unless | ||
the car rental
license is revoked or suspended pursuant to | ||
Section 500-70. Failure of the car
rental limited line
licensee | ||
to pay the license fee or to submit the required documents | ||
shall cause
immediate
suspension of the car rental limited line | ||
license. A car rental limited line
license for rental
companies | ||
may be voluntarily
terminated by the car rental limited line | ||
licensee. The license fee
shall not be refunded upon | ||
termination of the car rental limited line license
by the car | ||
rental
limited line licensee.
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(h) A limited lines producer issued a license pursuant to | ||
this Section is
not
subject to
the requirements of Section | ||
500-30.
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(i) A limited lines producer license must contain the name, | ||
address and
personal
identification number of the licensee, the | ||
date the license was issued,
general conditions relative
to the | ||
license's expiration or termination, and any other information | ||
the
Director considers
proper. A limited line producer license, | ||
if applicable, must also contain the
name and address of
the | ||
appointing insurance company.
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(Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14.)
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(215 ILCS 5/500-108 new) | ||
Sec. 500-108. Travel insurance business entity license. | ||
(a) As used in this Section: | ||
"Offering and disseminating" means the following: | ||
(1) Providing information to a prospective or current | ||
policyholder on behalf of a limited lines travel insurance | ||
entity, including brochures, buyer guides, descriptions of | ||
coverage, and price. | ||
(2) Referring specific questions regarding coverage | ||
features and benefits from a prospective or current | ||
policyholder to a limited lines travel insurance entity. | ||
(3) Disseminating and processing applications for | ||
coverage, coverage selection forms, or other similar forms | ||
in response to a request from a prospective or current | ||
policyholder. | ||
(4) Collecting premiums from a prospective or current | ||
policyholder on behalf of a limited lines travel insurance | ||
entity. | ||
(5) Receiving and recording information from a | ||
policyholder to share with a limited lines travel insurance | ||
entity. | ||
"Travel insurance business entity" means a licensed | ||
insurance producer designated
by an insurer as set forth in | ||
subsection (i) of this Section. | ||
"Travel retailer" means a business organization that | ||
makes, arranges, or offers travel services and, with respect to | ||
travel insurance, is limited to offering and disseminating as | ||
defined in this Section, unless otherwise licensed under | ||
subsection (c) of this Section. | ||
(b) The Director may issue to a travel insurance business | ||
entity that registers travel
retailers under its license as | ||
described in paragraph (2) of subsection (d) of this Section a | ||
producer license as provided in paragraph (6) of subsection (a) | ||
of Section 500-35 of this Code. A travel insurance business | ||
entity license issued under this Section shall also authorize | ||
any employee of the travel insurance business entity to act | ||
individually on behalf and under the supervision of the travel | ||
insurance business entity licensee with respect to the coverage | ||
specified in this Section. Each travel insurance business | ||
entity licensed under this Section shall pay the Department a | ||
fee of $500 for its initial license and $500 for each renewal | ||
license, payable on May 31 annually. | ||
(c) The Director may issue to a travel retailer a limited | ||
lines producer license. A travel retailer license issued under | ||
this Section shall also authorize any employee of the travel | ||
retailer limited line licensee to act individually on behalf | ||
and under the supervision of the travel retailer limited line | ||
licensee with respect to the coverage specified in this | ||
Section. | ||
(d) Notwithstanding any other provision of law, a travel | ||
retailer may do the limited activities of offering and | ||
disseminating travel insurance on behalf of and under the | ||
license of a supervising travel insurance business entity if | ||
the following conditions are met: | ||
(1) the travel insurance business entity or travel | ||
retailer provides to purchasers of travel insurance: | ||
(A) a description of the material terms or the | ||
actual material terms of the
insurance coverage; | ||
(B) a description of the process for filing a | ||
claim; | ||
(C) a description of the review or cancellation | ||
process for the travel insurance policy; and | ||
(D) the identity and contact information of the | ||
insurer and travel insurance business entity; | ||
(2) at the time of licensure, the travel insurance | ||
business entity shall establish and maintain a register on | ||
a form prescribed by the Director of each travel retailer | ||
that offers travel insurance on the travel insurance | ||
business entity's behalf; the register shall be maintained | ||
and updated continuously by the travel insurance business | ||
entity and shall include the name, address, and contact | ||
information of the travel retailer and an officer or person | ||
who directs or controls the travel retailer's operations | ||
and the travel retailer's federal tax identification | ||
number; the travel insurance business entity shall submit | ||
the register to the Director annually on a form and in a | ||
manner approved by the Director; the limited lines producer | ||
shall also certify that the travel retailer personnel who | ||
is offering and disseminating insurance under the travel | ||
retailer's registration complies with 18 U.S.C. 1033; | ||
(3) the travel insurance business entity has | ||
designated one of its employees as a licensed individual | ||
producer (a designated responsible producer or DRP) | ||
responsible for the travel insurance business entity's and | ||
its travel retailer's compliance with the travel insurance | ||
laws, rules, and regulations of the State; | ||
(4) the travel insurance business entity has paid all | ||
applicable insurance producer licensing fees as set forth | ||
in this Code; and | ||
(5) the travel insurance business entity requires each | ||
employee and authorized representative of the travel | ||
retailer whose duties include offering and disseminating | ||
travel insurance to receive a program of instruction or | ||
training that shall be subject to review by the Director; | ||
the training material shall, at a minimum, contain | ||
instructions on the types of insurance offered, ethical | ||
sales practices, and required disclosures to prospective | ||
customers. | ||
(e) Any travel retailer offering or disseminating travel | ||
insurance shall make available to prospective purchasers | ||
brochures or other written materials that: | ||
(1) provide the identity and contact information of the | ||
insurer and the travel
insurance business entity; | ||
(2) explain that the purchase of travel insurance is | ||
not required in order to
purchase any other product or | ||
service from the travel retailer; and | ||
(3) explain that an unlicensed travel retailer is | ||
permitted to provide general information about the | ||
insurance offered by the travel retailer, including a | ||
description of the coverage and price, but is not qualified | ||
or authorized to answer technical questions about the terms | ||
and conditions of the insurance offered by the travel | ||
retailer or to evaluate the adequacy of the customer's | ||
existing insurance coverage. | ||
(f) A travel retailer's employee or authorized | ||
representative who is not licensed as an insurance producer may | ||
not: | ||
(1) evaluate or interpret the technical terms, | ||
benefits, and conditions of the
offered travel insurance | ||
coverage; | ||
(2) evaluate or provide advice concerning a | ||
prospective purchaser's existing
insurance coverage; or | ||
(3) hold himself, herself, or itself out as a licensed | ||
insurer, licensed producer, or insurance expert. | ||
(g) A travel retailer whose insurance-related activities, | ||
and those of its employees and authorized representatives, are | ||
limited to offering and disseminating travel insurance on | ||
behalf of and under the direction of a travel insurance | ||
business entity meeting the conditions stated in this Section | ||
is authorized to do so and receive related compensation upon | ||
registration by the travel insurance business entity as | ||
described in paragraph (2) of subsection (d) of this Section. | ||
(h) Travel insurance may be provided under an individual | ||
policy or under a group or master policy. | ||
(i) As the insurer designee, the travel insurance business | ||
entity is responsible for the acts of the travel retailer that | ||
is registered under its license. | ||
(j) Any entity that violates any provision of this Article | ||
shall be subject to all appropriate regulatory action as set | ||
forth in this Code.
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