Bill Text: IL SB0131 | 2009-2010 | 96th General Assembly | Introduced
Bill Title: Amends the Illinois Insurance Code. Increases the number of hours a person must complete for an insurance producer license. Provides that before each license renewal, an insurance producer must satisfactorily complete at least 24 hours (instead of 30 hours) of course study and that at lease 3 hours must consist of classroom ethics instruction. Specifies that the pre-licensing course of study must be before the insurance exam. Provides that 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. Imposes conditions on any rulemaking authority.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2009-03-13 - Rule 3-9(a) / Re-referred to Assignments [SB0131 Detail]
Download: Illinois-2009-SB0131-Introduced.html
|
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||
1 | AN ACT concerning insurance.
| ||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||||
4 | Section 5. The Illinois Insurance Code is amended by | ||||||||||||||||||||||||||
5 | changing Sections 500-30 and 500-35 as follows:
| ||||||||||||||||||||||||||
6 | (215 ILCS 5/500-30)
| ||||||||||||||||||||||||||
7 | (Section scheduled to be repealed on January 1, 2017)
| ||||||||||||||||||||||||||
8 | Sec. 500-30. Application for license.
| ||||||||||||||||||||||||||
9 | (a) An individual applying for a resident insurance | ||||||||||||||||||||||||||
10 | producer license must
make
application on a form specified by | ||||||||||||||||||||||||||
11 | the Director and declare under penalty of
refusal, suspension,
| ||||||||||||||||||||||||||
12 | or revocation of the license that the statements made in the | ||||||||||||||||||||||||||
13 | application are
true, correct, and
complete to the best of the | ||||||||||||||||||||||||||
14 | individual's knowledge and belief. Before
approving the | ||||||||||||||||||||||||||
15 | application,
the Director must find that the individual:
| ||||||||||||||||||||||||||
16 | (1) is at least 18 years of age;
| ||||||||||||||||||||||||||
17 | (2) has not committed any act that is a ground for | ||||||||||||||||||||||||||
18 | denial, suspension, or
revocation set forth in Section | ||||||||||||||||||||||||||
19 | 500-70;
| ||||||||||||||||||||||||||
20 | (3) has completed, if required by the Director, a | ||||||||||||||||||||||||||
21 | pre-licensing course
of
study before the insurance exam for | ||||||||||||||||||||||||||
22 | the lines of authority for which the individual has applied | ||||||||||||||||||||||||||
23 | (an
individual who
successfully completes the Fire and |
| ||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
1 | Casualty pre-licensing courses also meets
the
requirements | |||||||||||||||||||||||||||||||||
2 | for Personal Lines-Property and Casualty);
| |||||||||||||||||||||||||||||||||
3 | (4) has paid the fees set forth in Section 500-135; and
| |||||||||||||||||||||||||||||||||
4 | (5) has successfully passed the examinations for the | |||||||||||||||||||||||||||||||||
5 | lines of authority
for
which the person has applied.
| |||||||||||||||||||||||||||||||||
6 | (b) A pre-licensing course of study for each class of | |||||||||||||||||||||||||||||||||
7 | insurance for which
an insurance
producer license is requested | |||||||||||||||||||||||||||||||||
8 | must be established in accordance with rules
prescribed by the
| |||||||||||||||||||||||||||||||||
9 | Director and must consist of the following minimum hours:
| |||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||
18 | 7.5 hours of each pre-licensing course must be completed in | |||||||||||||||||||||||||||||||||
19 | a classroom setting, except Motor Vehicle, which would require | |||||||||||||||||||||||||||||||||
20 | 5 hours in a classroom setting. | |||||||||||||||||||||||||||||||||
21 | Rulemaking authority to implement this amendatory Act of | |||||||||||||||||||||||||||||||||
22 | the 96th General Assembly, if any, is conditioned on the rules | |||||||||||||||||||||||||||||||||
23 | being adopted in accordance with all provisions of the Illinois | |||||||||||||||||||||||||||||||||
24 | Administrative Procedure Act and all rules and procedures of | |||||||||||||||||||||||||||||||||
25 | the Joint Committee on Administrative Rules; any purported rule | |||||||||||||||||||||||||||||||||
26 | not so adopted, for whatever reason, is unauthorized. |
| |||||||
| |||||||
1 | (c) A business entity acting as an insurance producer must | ||||||
2 | obtain an
insurance
producer license. Application must be made | ||||||
3 | using the Uniform Business Entity
Application.
Before | ||||||
4 | approving the application, the Director must find that:
| ||||||
5 | (1) the business entity has paid the fees set forth in | ||||||
6 | Section 500-135;
and
| ||||||
7 | (2) the business entity has designated a licensed | ||||||
8 | producer responsible for
the
business entity's compliance | ||||||
9 | with the insurance laws and rules of this State.
| ||||||
10 | (d) The Director may require any documents reasonably | ||||||
11 | necessary to verify
the
information contained in an | ||||||
12 | application.
| ||||||
13 | (Source: P.A. 92-386, eff. 1-1-02 .)
| ||||||
14 | (215 ILCS 5/500-35)
| ||||||
15 | (Section scheduled to be repealed on January 1, 2017)
| ||||||
16 | Sec. 500-35. License.
| ||||||
17 | (a) Unless denied a license pursuant to Section 500-70, | ||||||
18 | persons who have met
the
requirements of Sections 500-25 and | ||||||
19 | 500-30 shall be issued a 2-year insurance
producer license.
An | ||||||
20 | insurance producer may receive qualification for a license in | ||||||
21 | one or more of
the following
lines of authority:
| ||||||
22 | (1) Life: insurance coverage on human lives including | ||||||
23 | benefits of
endowment
and annuities, and may include | ||||||
24 | benefits in the event of death or dismemberment
by
accident | ||||||
25 | and benefits for disability income.
|
| |||||||
| |||||||
1 | (2) Variable life and variable annuity products: | ||||||
2 | insurance coverage
provided
under variable life insurance | ||||||
3 | contracts and variable annuities.
| ||||||
4 | (3) Accident and health or sickness: insurance | ||||||
5 | coverage for sickness,
bodily
injury, or accidental death | ||||||
6 | and may include benefits for disability income.
| ||||||
7 | (4) Property: insurance coverage for the direct or | ||||||
8 | consequential loss or
damage to property of every kind.
| ||||||
9 | (5) Casualty: insurance coverage against legal | ||||||
10 | liability, including that
for
death, injury, or disability | ||||||
11 | or damage to real or personal property.
| ||||||
12 | (6) Personal lines: property and casualty insurance | ||||||
13 | coverage sold to
individuals and families for primarily | ||||||
14 | noncommercial purposes.
| ||||||
15 | (7) Any other line of insurance permitted under State | ||||||
16 | laws or rules.
| ||||||
17 | (b) An insurance producer license shall remain in effect | ||||||
18 | unless revoked or
suspended
as long as the fee set forth in | ||||||
19 | Section 500-135 is paid and education
requirements for resident
| ||||||
20 | individual producers are met by the due date.
| ||||||
21 | (1) Before each license renewal, an insurance producer | ||||||
22 | must satisfactorily
complete at least 24 30 hours of course | ||||||
23 | study in accordance with rules prescribed
by the
Director. | ||||||
24 | Three of the 24 hours of course study must consist of | ||||||
25 | classroom ethics instruction. The Director may not approve | ||||||
26 | a course of study unless the course
provides for
classroom, |
| |||||||
| |||||||
1 | seminar, or self-study instruction methods. A course given | ||||||
2 | in a
combination
instruction method of classroom or seminar | ||||||
3 | and self-study shall be deemed to
be a self-study course | ||||||
4 | unless the classroom or seminar certified hours meets
or | ||||||
5 | exceeds two-thirds
of total hours certified for the course. | ||||||
6 | The self-study material used in the
combination
course must | ||||||
7 | be directly related to and complement the classroom portion | ||||||
8 | of the
course in
order to be considered for credit. An | ||||||
9 | instruction method other than classroom
or seminar
shall be | ||||||
10 | considered as self-study methodology. Self-study credit | ||||||
11 | hours
require the
successful completion of an examination | ||||||
12 | covering the self-study material. The
examination may not | ||||||
13 | be self-evaluated. However, if the self-study material is
| ||||||
14 | completed
through the use of an approved computerized | ||||||
15 | interactive format whereby the
computer
validates the | ||||||
16 | successful completion of the self-study material, no | ||||||
17 | additional
examination
is required. The self-study credit | ||||||
18 | hours contained in a certified course shall
be considered
| ||||||
19 | classroom hours when at least two-thirds of the hours are | ||||||
20 | given as classroom or
seminar
instruction.
| ||||||
21 | Rulemaking authority to implement this amendatory Act | ||||||
22 | of the 96th General Assembly, if any, is conditioned on the | ||||||
23 | rules being adopted in accordance with all provisions of | ||||||
24 | the Illinois Administrative Procedure Act and all rules and | ||||||
25 | procedures of the Joint Committee on Administrative Rules; | ||||||
26 | any purported rule not so adopted, for whatever reason, is |
| |||||||
| |||||||
1 | unauthorized.
| ||||||
2 | (2) An insurance producer license automatically | ||||||
3 | terminates when an
insurance
producer fails to | ||||||
4 | successfully meet the requirements of item (1) of | ||||||
5 | subsection
(b) of this
Section. The producer must complete | ||||||
6 | the course in advance of the renewal date
to allow
the | ||||||
7 | education provider time to report the credit to the | ||||||
8 | Department.
| ||||||
9 | (c) A provider of a pre-licensing or continuing education | ||||||
10 | course required
by Section
500-30 and this Section must pay a | ||||||
11 | registration fee and a course certification
fee for each course
| ||||||
12 | being certified as provided by Section 500-135.
| ||||||
13 | (d) An individual insurance producer who allows his or her | ||||||
14 | license to lapse
may,
within 12 months after the due date of | ||||||
15 | the renewal fee, be issued a license
without the necessity
of | ||||||
16 | passing a written examination. However, a penalty in the amount | ||||||
17 | of double
the unpaid renewal
fee shall be required after the | ||||||
18 | due date.
| ||||||
19 | (e) A licensed insurance producer who is unable to comply | ||||||
20 | with license
renewal
procedures due to military service may | ||||||
21 | request a waiver of those procedures.
| ||||||
22 | (f) The license must contain the licensee's name, address, | ||||||
23 | and personal
identification
number, the date of issuance, the | ||||||
24 | lines of authority, the expiration date, and
any other
| ||||||
25 | information the Director deems necessary.
| ||||||
26 | (g) Licensees must inform the Director by any means |
| |||||||
| |||||||
1 | acceptable to the
Director of a
change of address within 30 | ||||||
2 | days after the change.
| ||||||
3 | (h) In order to assist in the performance of the Director's | ||||||
4 | duties, the
Director may
contract with a non-governmental | ||||||
5 | entity including the National Association of
Insurance
| ||||||
6 | Commissioners (NAIC), or any affiliates or subsidiaries that | ||||||
7 | the NAIC oversees,
to perform any
ministerial functions, | ||||||
8 | including collection of fees, related to producer
licensing | ||||||
9 | that the Director
and the non-governmental entity may deem | ||||||
10 | appropriate.
| ||||||
11 | (Source: P.A. 92-386, eff. 1-1-02 .)
|