Bill Text: IL HB1957 | 2021-2022 | 102nd General Assembly | Chaptered

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Bill Title: Amends the Illinois Insurance Code. Changes the filing due date applicable to actuarial opinions as to the sufficiency of the loss and loss adjustment expense reserves for group workers' compensation pools from June 1 to March 1 of each year. In provisions concerning the bond required of insurance producers, changes a reference from "agent contact" to "agency contract". Provides that the corporate governance annual disclosure must attest to the best of the signatory's belief and knowledge that the insurer has implemented the corporate governance practices (rather than the corporate governance practices required by the provisions concerning disclosure requirements) and that a copy of the disclosure has been provided to the insurer's board of directors or the appropriate committee thereof. Provides that an insurer must ensure that it has complied with the financial requirements and treatment limitations applicable to mental, emotional, nervous, or substance use disorder or condition benefits prior to policy issuance. Provides that pre-licensing course of study hours required to be completed in a classroom setting in order to obtain an insurance producer license may also be completed in a webinar setting. Provides that 3 hours of classroom ethics instruction required for renewal of a public adjuster license may also be completed by webinar. Defines "webinar". Repeals an Article concerning public insurance adjusters and registered firms. Effective immediately, except that provisions concerning the filing due date applicable to actuarial opinions take effect January 1, 2022.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Passed) 2021-07-23 - Public Act . . . . . . . . . 102-0135 [HB1957 Detail]

Download: Illinois-2021-HB1957-Chaptered.html

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Public Act 102-0135
HB1957 Enrolled LRB102 10644 BMS 15973 b
AN ACT concerning regulation.
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 107a.12, 130.4, 370c.1, 500-30, 500-130,
1510, and 1565 as follows:
(215 ILCS 5/107a.12)
Sec. 107a.12. Annual statement.
(a) A pool authorized to do business in this State shall
file with the Director by March 1st in each year 2 copies of
its financial statement for the year ending December 31st
immediately preceding on forms prescribed by the Director,
which shall conform substantially to the form of statement
adopted by the National Association of Insurance
Commissioners. Unless the Director provides otherwise, the
annual statement is to be prepared in accordance with the
annual statement instructions and the Accounting Practices and
Procedures Manual adopted by the National Association of
Insurance Commissioners. The Director may promulgate rules for
determining which portions of the annual statement
instructions and Accounting Practices and Procedures Manual
adopted by the National Association of Insurance Commissioners
are germane for the purpose of ascertaining the condition and

affairs of a pool.
(b) The Director shall have authority to extend the time
for filing any statement by any pool for reasons that he
considers good and sufficient. The admitted assets shall be
shown in the statement at the actual values as of the last day
of the preceding year, in accordance with Section 126.7 of
this Code. The statement shall be verified by oaths of a
majority of the trustees or directors of the pool. In
addition, when the Director considers it to be necessary and
appropriate for the protection of policyholders, creditors,
shareholders, or claimants, the Director may require the pool
to file, within 60 days after mailing to the pool a notice that
a supplemental summary statement is required, a supplemental
summary statement, as of the last day of any calendar month
occurring during the 100 days next preceding the mailing of
the notice, designated by him or her on forms prescribed and
furnished by the Director. The Director may require
supplemental summary statements to be certified by an
independent actuary deemed competent by the Director or by an
independent certified public accountant.
(c) On or before June 1 of each year, a pool shall file
with the Director an audited financial statement reporting the
financial condition of the pool as of the end of the most
recent calendar year and changes in the surplus funds for the
year then ending. The annual audited financial report shall
include the following:

(1) a report of an independent certified public
accountant;
(2) a balance sheet reporting assets, as defined in
this Article, liabilities, and surplus funds;
(3) a statement of gain and loss from operations;
(4) a statement of changes in financial position;
(5) a statement of changes in surplus funds; and
(6) the notes to financial statements.
(d) The Director shall require a pool to file an
independent actuarial opinion as to the sufficiency of the
loss and loss adjustment expense reserves. This opinion shall
be due on March June 1 of each year.
(Source: P.A. 91-757, eff. 1-1-01.)
(215 ILCS 5/130.4)
Sec. 130.4. Disclosure requirement.
(a) An insurer, or the insurance group of which the
insurer is a member, shall, no later than June 1 of each
calendar year, submit to the Director a corporate governance
annual disclosure that contains the information described in
subsection (b) of Section 130.5. Notwithstanding any request
from the Director made pursuant to subsection (c), if the
insurer is a member of an insurance group, the insurer shall
submit the report required by this Section to the Director of
the lead state for the insurance group, in accordance with the
laws of the lead state, as determined by the procedures

outlined in the most recent Financial Analysis Handbook
adopted by the National Association of Insurance
Commissioners.
(b) The corporate governance annual disclosure must
include a signature of the insurer's or insurance group's
chief executive officer or corporate secretary attesting to
the best of that individual's belief and knowledge that the
insurer has implemented the corporate governance practices
required by this Section and that a copy of the disclosure has
been provided to the insurer's board of directors or the
appropriate committee thereof.
(c) An insurer not required to submit a corporate
governance annual disclosure under this Section shall do so
upon the Director's request.
(d) For purposes of completing the corporate governance
annual disclosure, the insurer or insurance group may provide
information regarding corporate governance at the ultimate
controlling parent level, an intermediate holding company
level, or the individual legal entity level, depending upon
how the insurer or insurance group has structured its system
of corporate governance. The insurer or insurance group is
encouraged to make the corporate governance annual disclosure
at the level at which the insurer's or insurance group's risk
appetite is determined, the level at which the earnings,
capital, liquidity, operations, and reputation of the insurer
are overseen collectively and at which the supervision of

those factors is coordinated and exercised, or the level at
which legal liability for failure of general corporate
governance duties would be placed. If the insurer or insurance
group determines the level of reporting based on these
criteria, it shall indicate which of the 3 criteria was used to
determine the level of reporting and explain any subsequent
changes in the level of reporting.
(e) The review of the corporate governance annual
disclosure and any additional requests for information shall
be made through the lead state as determined by the procedures
within the most recent Financial Analysis Handbook adopted by
the National Association of Insurance Commissioners.
(f) Insurers providing information substantially similar
to the information required by this Article in other documents
provided to the Director, including proxy statements filed in
conjunction with the requirements of Section 131.13 or other
State or federal filings provided to the Department, are not
required to duplicate that information in the corporate
governance annual disclosure but are only required to
cross-reference the document in which the information is
included.
(Source: P.A. 101-600, eff. 12-6-19.)
(215 ILCS 5/370c.1)
Sec. 370c.1. Mental, emotional, nervous, or substance use
disorder or condition parity.

(a) On and after the effective date of this amendatory Act
of the 102nd General Assembly this amendatory Act of the 99th
General Assembly, every insurer that amends, delivers, issues,
or renews a group or individual policy of accident and health
insurance or a qualified health plan offered through the
Health Insurance Marketplace in this State providing coverage
for hospital or medical treatment and for the treatment of
mental, emotional, nervous, or substance use disorders or
conditions shall ensure prior to policy issuance that:
(1) the financial requirements applicable to such
mental, emotional, nervous, or substance use disorder or
condition benefits are no more restrictive than the
predominant financial requirements applied to
substantially all hospital and medical benefits covered by
the policy and that there are no separate cost-sharing
requirements that are applicable only with respect to
mental, emotional, nervous, or substance use disorder or
condition benefits; and
(2) the treatment limitations applicable to such
mental, emotional, nervous, or substance use disorder or
condition benefits are no more restrictive than the
predominant treatment limitations applied to substantially
all hospital and medical benefits covered by the policy
and that there are no separate treatment limitations that
are applicable only with respect to mental, emotional,
nervous, or substance use disorder or condition benefits.

(b) The following provisions shall apply concerning
aggregate lifetime limits:
(1) In the case of a group or individual policy of
accident and health insurance or a qualified health plan
offered through the Health Insurance Marketplace amended,
delivered, issued, or renewed in this State on or after
the effective date of this amendatory Act of the 99th
General Assembly that provides coverage for hospital or
medical treatment and for the treatment of mental,
emotional, nervous, or substance use disorders or
conditions the following provisions shall apply:
(A) if the policy does not include an aggregate
lifetime limit on substantially all hospital and
medical benefits, then the policy may not impose any
aggregate lifetime limit on mental, emotional,
nervous, or substance use disorder or condition
benefits; or
(B) if the policy includes an aggregate lifetime
limit on substantially all hospital and medical
benefits (in this subsection referred to as the
"applicable lifetime limit"), then the policy shall
either:
(i) apply the applicable lifetime limit both
to the hospital and medical benefits to which it
otherwise would apply and to mental, emotional,
nervous, or substance use disorder or condition

benefits and not distinguish in the application of
the limit between the hospital and medical
benefits and mental, emotional, nervous, or
substance use disorder or condition benefits; or
(ii) not include any aggregate lifetime limit
on mental, emotional, nervous, or substance use
disorder or condition benefits that is less than
the applicable lifetime limit.
(2) In the case of a policy that is not described in
paragraph (1) of subsection (b) of this Section and that
includes no or different aggregate lifetime limits on
different categories of hospital and medical benefits, the
Director shall establish rules under which subparagraph
(B) of paragraph (1) of subsection (b) of this Section is
applied to such policy with respect to mental, emotional,
nervous, or substance use disorder or condition benefits
by substituting for the applicable lifetime limit an
average aggregate lifetime limit that is computed taking
into account the weighted average of the aggregate
lifetime limits applicable to such categories.
(c) The following provisions shall apply concerning annual
limits:
(1) In the case of a group or individual policy of
accident and health insurance or a qualified health plan
offered through the Health Insurance Marketplace amended,
delivered, issued, or renewed in this State on or after

the effective date of this amendatory Act of the 99th
General Assembly that provides coverage for hospital or
medical treatment and for the treatment of mental,
emotional, nervous, or substance use disorders or
conditions the following provisions shall apply:
(A) if the policy does not include an annual limit
on substantially all hospital and medical benefits,
then the policy may not impose any annual limits on
mental, emotional, nervous, or substance use disorder
or condition benefits; or
(B) if the policy includes an annual limit on
substantially all hospital and medical benefits (in
this subsection referred to as the "applicable annual
limit"), then the policy shall either:
(i) apply the applicable annual limit both to
the hospital and medical benefits to which it
otherwise would apply and to mental, emotional,
nervous, or substance use disorder or condition
benefits and not distinguish in the application of
the limit between the hospital and medical
benefits and mental, emotional, nervous, or
substance use disorder or condition benefits; or
(ii) not include any annual limit on mental,
emotional, nervous, or substance use disorder or
condition benefits that is less than the
applicable annual limit.

(2) In the case of a policy that is not described in
paragraph (1) of subsection (c) of this Section and that
includes no or different annual limits on different
categories of hospital and medical benefits, the Director
shall establish rules under which subparagraph (B) of
paragraph (1) of subsection (c) of this Section is applied
to such policy with respect to mental, emotional, nervous,
or substance use disorder or condition benefits by
substituting for the applicable annual limit an average
annual limit that is computed taking into account the
weighted average of the annual limits applicable to such
categories.
(d) With respect to mental, emotional, nervous, or
substance use disorders or conditions, an insurer shall use
policies and procedures for the election and placement of
mental, emotional, nervous, or substance use disorder or
condition treatment drugs on their formulary that are no less
favorable to the insured as those policies and procedures the
insurer uses for the selection and placement of drugs for
medical or surgical conditions and shall follow the expedited
coverage determination requirements for substance abuse
treatment drugs set forth in Section 45.2 of the Managed Care
Reform and Patient Rights Act.
(e) This Section shall be interpreted in a manner
consistent with all applicable federal parity regulations
including, but not limited to, the Paul Wellstone and Pete

Domenici Mental Health Parity and Addiction Equity Act of
2008, final regulations issued under the Paul Wellstone and
Pete Domenici Mental Health Parity and Addiction Equity Act of
2008 and final regulations applying the Paul Wellstone and
Pete Domenici Mental Health Parity and Addiction Equity Act of
2008 to Medicaid managed care organizations, the Children's
Health Insurance Program, and alternative benefit plans.
(f) The provisions of subsections (b) and (c) of this
Section shall not be interpreted to allow the use of lifetime
or annual limits otherwise prohibited by State or federal law.
(g) As used in this Section:
"Financial requirement" includes deductibles, copayments,
coinsurance, and out-of-pocket maximums, but does not include
an aggregate lifetime limit or an annual limit subject to
subsections (b) and (c).
"Mental, emotional, nervous, or substance use disorder or
condition" means a condition or disorder that involves a
mental health condition or substance use disorder that falls
under any of the diagnostic categories listed in the mental
and behavioral disorders chapter of the current edition of the
International Classification of Disease or that is listed in
the most recent version of the Diagnostic and Statistical
Manual of Mental Disorders.
"Treatment limitation" includes limits on benefits based
on the frequency of treatment, number of visits, days of
coverage, days in a waiting period, or other similar limits on

the scope or duration of treatment. "Treatment limitation"
includes both quantitative treatment limitations, which are
expressed numerically (such as 50 outpatient visits per year),
and nonquantitative treatment limitations, which otherwise
limit the scope or duration of treatment. A permanent
exclusion of all benefits for a particular condition or
disorder shall not be considered a treatment limitation.
"Nonquantitative treatment" means those limitations as
described under federal regulations (26 CFR 54.9812-1).
"Nonquantitative treatment limitations" include, but are not
limited to, those limitations described under federal
regulations 26 CFR 54.9812-1, 29 CFR 2590.712, and 45 CFR
146.136.
(h) The Department of Insurance shall implement the
following education initiatives:
(1) By January 1, 2016, the Department shall develop a
plan for a Consumer Education Campaign on parity. The
Consumer Education Campaign shall focus its efforts
throughout the State and include trainings in the
northern, southern, and central regions of the State, as
defined by the Department, as well as each of the 5 managed
care regions of the State as identified by the Department
of Healthcare and Family Services. Under this Consumer
Education Campaign, the Department shall: (1) by January
1, 2017, provide at least one live training in each region
on parity for consumers and providers and one webinar

training to be posted on the Department website and (2)
establish a consumer hotline to assist consumers in
navigating the parity process by March 1, 2017. By January
1, 2018 the Department shall issue a report to the General
Assembly on the success of the Consumer Education
Campaign, which shall indicate whether additional training
is necessary or would be recommended.
(2) The Department, in coordination with the
Department of Human Services and the Department of
Healthcare and Family Services, shall convene a working
group of health care insurance carriers, mental health
advocacy groups, substance abuse patient advocacy groups,
and mental health physician groups for the purpose of
discussing issues related to the treatment and coverage of
mental, emotional, nervous, or substance use disorders or
conditions and compliance with parity obligations under
State and federal law. Compliance shall be measured,
tracked, and shared during the meetings of the working
group. The working group shall meet once before January 1,
2016 and shall meet semiannually thereafter. The
Department shall issue an annual report to the General
Assembly that includes a list of the health care insurance
carriers, mental health advocacy groups, substance abuse
patient advocacy groups, and mental health physician
groups that participated in the working group meetings,
details on the issues and topics covered, and any

legislative recommendations developed by the working
group.
(3) Not later than August 1 of each year, the
Department, in conjunction with the Department of
Healthcare and Family Services, shall issue a joint report
to the General Assembly and provide an educational
presentation to the General Assembly. The report and
presentation shall:
(A) Cover the methodology the Departments use to
check for compliance with the federal Paul Wellstone
and Pete Domenici Mental Health Parity and Addiction
Equity Act of 2008, 42 U.S.C. 18031(j), and any
federal regulations or guidance relating to the
compliance and oversight of the federal Paul Wellstone
and Pete Domenici Mental Health Parity and Addiction
Equity Act of 2008 and 42 U.S.C. 18031(j).
(B) Cover the methodology the Departments use to
check for compliance with this Section and Sections
356z.23 and 370c of this Code.
(C) Identify market conduct examinations or, in
the case of the Department of Healthcare and Family
Services, audits conducted or completed during the
preceding 12-month period regarding compliance with
parity in mental, emotional, nervous, and substance
use disorder or condition benefits under State and
federal laws and summarize the results of such market

conduct examinations and audits. This shall include:
(i) the number of market conduct examinations
and audits initiated and completed;
(ii) the benefit classifications examined by
each market conduct examination and audit;
(iii) the subject matter of each market
conduct examination and audit, including
quantitative and nonquantitative treatment
limitations; and
(iv) a summary of the basis for the final
decision rendered in each market conduct
examination and audit.
Individually identifiable information shall be
excluded from the reports consistent with federal
privacy protections.
(D) Detail any educational or corrective actions
the Departments have taken to ensure compliance with
the federal Paul Wellstone and Pete Domenici Mental
Health Parity and Addiction Equity Act of 2008, 42
U.S.C. 18031(j), this Section, and Sections 356z.23
and 370c of this Code.
(E) The report must be written in non-technical,
readily understandable language and shall be made
available to the public by, among such other means as
the Departments find appropriate, posting the report
on the Departments' websites.

(i) The Parity Advancement Fund is created as a special
fund in the State treasury. Moneys from fines and penalties
collected from insurers for violations of this Section shall
be deposited into the Fund. Moneys deposited into the Fund for
appropriation by the General Assembly to the Department shall
be used for the purpose of providing financial support of the
Consumer Education Campaign, parity compliance advocacy, and
other initiatives that support parity implementation and
enforcement on behalf of consumers.
(j) The Department of Insurance and the Department of
Healthcare and Family Services shall convene and provide
technical support to a workgroup of 11 members that shall be
comprised of 3 mental health parity experts recommended by an
organization advocating on behalf of mental health parity
appointed by the President of the Senate; 3 behavioral health
providers recommended by an organization that represents
behavioral health providers appointed by the Speaker of the
House of Representatives; 2 representing Medicaid managed care
organizations recommended by an organization that represents
Medicaid managed care plans appointed by the Minority Leader
of the House of Representatives; 2 representing commercial
insurers recommended by an organization that represents
insurers appointed by the Minority Leader of the Senate; and a
representative of an organization that represents Medicaid
managed care plans appointed by the Governor.
The workgroup shall provide recommendations to the General

Assembly on health plan data reporting requirements that
separately break out data on mental, emotional, nervous, or
substance use disorder or condition benefits and data on other
medical benefits, including physical health and related health
services no later than December 31, 2019. The recommendations
to the General Assembly shall be filed with the Clerk of the
House of Representatives and the Secretary of the Senate in
electronic form only, in the manner that the Clerk and the
Secretary shall direct. This workgroup shall take into account
federal requirements and recommendations on mental health
parity reporting for the Medicaid program. This workgroup
shall also develop the format and provide any needed
definitions for reporting requirements in subsection (k). The
research and evaluation of the working group shall include,
but not be limited to:
(1) claims denials due to benefit limits, if
applicable;
(2) administrative denials for no prior authorization;
(3) denials due to not meeting medical necessity;
(4) denials that went to external review and whether
they were upheld or overturned for medical necessity;
(5) out-of-network claims;
(6) emergency care claims;
(7) network directory providers in the outpatient
benefits classification who filed no claims in the last 6
months, if applicable;

(8) the impact of existing and pertinent limitations
and restrictions related to approved services, licensed
providers, reimbursement levels, and reimbursement
methodologies within the Division of Mental Health, the
Division of Substance Use Prevention and Recovery
programs, the Department of Healthcare and Family
Services, and, to the extent possible, federal regulations
and law; and
(9) when reporting and publishing should begin.
Representatives from the Department of Healthcare and
Family Services, representatives from the Division of Mental
Health, and representatives from the Division of Substance Use
Prevention and Recovery shall provide technical advice to the
workgroup.
(k) An insurer that amends, delivers, issues, or renews a
group or individual policy of accident and health insurance or
a qualified health plan offered through the health insurance
marketplace in this State providing coverage for hospital or
medical treatment and for the treatment of mental, emotional,
nervous, or substance use disorders or conditions shall submit
an annual report, the format and definitions for which will be
developed by the workgroup in subsection (j), to the
Department, or, with respect to medical assistance, the
Department of Healthcare and Family Services starting on or
before July 1, 2020 that contains the following information
separately for inpatient in-network benefits, inpatient

out-of-network benefits, outpatient in-network benefits,
outpatient out-of-network benefits, emergency care benefits,
and prescription drug benefits in the case of accident and
health insurance or qualified health plans, or inpatient,
outpatient, emergency care, and prescription drug benefits in
the case of medical assistance:
(1) A summary of the plan's pharmacy management
processes for mental, emotional, nervous, or substance use
disorder or condition benefits compared to those for other
medical benefits.
(2) A summary of the internal processes of review for
experimental benefits and unproven technology for mental,
emotional, nervous, or substance use disorder or condition
benefits and those for other medical benefits.
(3) A summary of how the plan's policies and
procedures for utilization management for mental,
emotional, nervous, or substance use disorder or condition
benefits compare to those for other medical benefits.
(4) A description of the process used to develop or
select the medical necessity criteria for mental,
emotional, nervous, or substance use disorder or condition
benefits and the process used to develop or select the
medical necessity criteria for medical and surgical
benefits.
(5) Identification of all nonquantitative treatment
limitations that are applied to both mental, emotional,

nervous, or substance use disorder or condition benefits
and medical and surgical benefits within each
classification of benefits.
(6) The results of an analysis that demonstrates that
for the medical necessity criteria described in
subparagraph (A) and for each nonquantitative treatment
limitation identified in subparagraph (B), as written and
in operation, the processes, strategies, evidentiary
standards, or other factors used in applying the medical
necessity criteria and each nonquantitative treatment
limitation to mental, emotional, nervous, or substance use
disorder or condition benefits within each classification
of benefits are comparable to, and are applied no more
stringently than, the processes, strategies, evidentiary
standards, or other factors used in applying the medical
necessity criteria and each nonquantitative treatment
limitation to medical and surgical benefits within the
corresponding classification of benefits; at a minimum,
the results of the analysis shall:
(A) identify the factors used to determine that a
nonquantitative treatment limitation applies to a
benefit, including factors that were considered but
rejected;
(B) identify and define the specific evidentiary
standards used to define the factors and any other
evidence relied upon in designing each nonquantitative

treatment limitation;
(C) provide the comparative analyses, including
the results of the analyses, performed to determine
that the processes and strategies used to design each
nonquantitative treatment limitation, as written, for
mental, emotional, nervous, or substance use disorder
or condition benefits are comparable to, and are
applied no more stringently than, the processes and
strategies used to design each nonquantitative
treatment limitation, as written, for medical and
surgical benefits;
(D) provide the comparative analyses, including
the results of the analyses, performed to determine
that the processes and strategies used to apply each
nonquantitative treatment limitation, in operation,
for mental, emotional, nervous, or substance use
disorder or condition benefits are comparable to, and
applied no more stringently than, the processes or
strategies used to apply each nonquantitative
treatment limitation, in operation, for medical and
surgical benefits; and
(E) disclose the specific findings and conclusions
reached by the insurer that the results of the
analyses described in subparagraphs (C) and (D)
indicate that the insurer is in compliance with this
Section and the Mental Health Parity and Addiction

Equity Act of 2008 and its implementing regulations,
which includes 42 CFR Parts 438, 440, and 457 and 45
CFR 146.136 and any other related federal regulations
found in the Code of Federal Regulations.
(7) Any other information necessary to clarify data
provided in accordance with this Section requested by the
Director, including information that may be proprietary or
have commercial value, under the requirements of Section
30 of the Viatical Settlements Act of 2009.
(l) An insurer that amends, delivers, issues, or renews a
group or individual policy of accident and health insurance or
a qualified health plan offered through the health insurance
marketplace in this State providing coverage for hospital or
medical treatment and for the treatment of mental, emotional,
nervous, or substance use disorders or conditions on or after
the effective date of this amendatory Act of the 100th General
Assembly shall, in advance of the plan year, make available to
the Department or, with respect to medical assistance, the
Department of Healthcare and Family Services and to all plan
participants and beneficiaries the information required in
subparagraphs (C) through (E) of paragraph (6) of subsection
(k). For plan participants and medical assistance
beneficiaries, the information required in subparagraphs (C)
through (E) of paragraph (6) of subsection (k) shall be made
available on a publicly-available website whose web address is
prominently displayed in plan and managed care organization

informational and marketing materials.
(m) In conjunction with its compliance examination program
conducted in accordance with the Illinois State Auditing Act,
the Auditor General shall undertake a review of compliance by
the Department and the Department of Healthcare and Family
Services with Section 370c and this Section. Any findings
resulting from the review conducted under this Section shall
be included in the applicable State agency's compliance
examination report. Each compliance examination report shall
be issued in accordance with Section 3-14 of the Illinois
State Auditing Act. A copy of each report shall also be
delivered to the head of the applicable State agency and
posted on the Auditor General's website.
(Source: P.A. 99-480, eff. 9-9-15; 100-1024, eff. 1-1-19.)
(215 ILCS 5/500-30)
(Section scheduled to be repealed on January 1, 2027)
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) is sufficiently rehabilitated in cases in which
the applicant has committed any act that is a ground for
denial, suspension, or revocation set forth in Section
500-70, other than convictions set forth in paragraph (6)
of subsection (a) of Section 500-70; with respect to
applicants with convictions set forth in paragraph (6) of
subsection (a) of Section 500-70, the Director shall
determine in accordance with Section 500-76 that the
conviction will not impair the ability of the applicant to
engage in the position for which a license is sought;
(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 Insurance Number of
Hours

Life (Class 1(a)) 20
Accident and Health (Class 1(b) or 2(a)) 20
Fire (Class 3) 20
Casualty (Class 2) 20
Personal Lines-Property Casualty 20
Motor Vehicle (Class 2(b) or 3(e)) 12.5
7.5 hours of each pre-licensing course must be completed
in a classroom or webinar setting, except Motor Vehicle, which
would require 5 hours in a classroom or webinar 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
application.
(Source: P.A. 100-286, eff. 1-1-18.)
(215 ILCS 5/500-130)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-130. Bond required of insurance producers.

(a) An insurance producer who places insurance either
directly or indirectly with an insurer with which the
insurance producer does not have an agency contract agent
contact must maintain in force while licensed a bond in favor
of the people of the State of Illinois executed by an
authorized surety company and payable to any party injured
under the terms of the bond. The bond shall be continuous in
form and in the amount of $2,500 or 5% of the premiums brokered
in the previous calendar year, whichever is greater, but not
to exceed $50,000 total aggregate liability. The bond shall be
conditioned upon full accounting and due payment to the person
or company entitled thereto, of funds coming into the
insurance producer's possession as an incident to insurance
transactions under the license or surplus line insurance
transactions under the license as a surplus line producer.
(b) Authorized insurance producers of a business entity
may meet the requirements of this Section with a bond in the
name of the business entity, continuous in form, and in the
amounts set forth in subsection (a) of this Section. Insurance
producers may meet the requirements of this Section with a
bond in the name of an association. An individual producer
remains responsible for assuring that a producer bond is in
effect and is for the correct amount. The association must
have been in existence for 5 years, have common membership,
and been formed for a purpose other than obtaining a bond.
(c) The surety may cancel the bond and be released from

further liability thereunder upon 30 days' written notice in
advance to the principal. The cancellation does not affect any
liability incurred or accrued under the bond before the
termination of the 30-day period.
(d) The producer's license may be revoked if the producer
acts without a bond that is required under this Section.
(e) If a party injured under the terms of the bond requests
the producer to provide the name of the surety and the bond
number, the producer must provide the information within 3
working days after receiving the request.
(f) An association may meet the requirements of this
Section for all of its members with a bond in the name of the
association that is continuous in form and in the amounts set
forth in subsection (a) of this Section.
(Source: P.A. 92-386, eff. 1-1-02.)
(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.
"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 or aids, solely in relation to first party
claims arising under insurance contracts that insure the
real or personal property of the insured, on behalf of an
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. 96-1332, eff. 1-1-11.)
(215 ILCS 5/1565)

Sec. 1565. Continuing education.
(a) An individual who holds a public adjuster license and
who is not exempt under subsection (b) of this Section shall
satisfactorily complete a minimum of 24 hours of continuing
education courses, including 3 hours of classroom or webinar
ethics instruction, reported on a biennial basis in
conjunction with the license renewal cycle.
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 the
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.
The public adjuster must complete the course in advance of
the renewal date to allow the education provider time to
report the credit to the Department.
(b) This Section shall not apply to:
(1) licensees not licensed for one full year prior to
the end of the applicable continuing education biennium;
or
(2) licensees holding nonresident public adjuster
licenses who have met the continuing education
requirements of their home state and whose home state
gives credit to residents of this State on the same basis.
(c) Only continuing education courses approved by the
Director shall be used to satisfy the continuing education
requirement of subsection (a) of this Section.
(Source: P.A. 96-1332, eff. 1-1-11.)
(215 ILCS 5/Art. XXXI.75 rep.)
Section 10. The Illinois Insurance Code is amended by
repealing Article XXXI 3/4.
Section 99. Effective date. This Act takes effect upon
becoming law, except that the changes to Section 107a.12 of
the Illinois Insurance Code take effect January 1, 2022.