Bill Text: IL SB1607 | 2011-2012 | 97th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Insurance Code. Provides that no insurance producer shall use a senior-specific certification or professional designation that indicates or implies in such a way as to mislead a purchaser or prospective purchaser that the insurance producer has a special certification or training in advising or servicing seniors in connection with the solicitation, sale, or purchase of a life insurance or annuity product or in the provision of advice as to the value of or the advisability of purchasing or selling a life insurance or annuity product, either directly or indirectly through publications, writings, or by issuing or promulgating analyses or reports related to a life insurance or annuity product. Defines "use of senior-specific certifications or professional designations". Makes other changes. Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 11-3)
Status: (Passed) 2011-08-23 - Public Act . . . . . . . . . 97-0527 [SB1607 Detail]
Download: Illinois-2011-SB1607-Enrolled.html
Bill Title: Amends the Illinois Insurance Code. Provides that no insurance producer shall use a senior-specific certification or professional designation that indicates or implies in such a way as to mislead a purchaser or prospective purchaser that the insurance producer has a special certification or training in advising or servicing seniors in connection with the solicitation, sale, or purchase of a life insurance or annuity product or in the provision of advice as to the value of or the advisability of purchasing or selling a life insurance or annuity product, either directly or indirectly through publications, writings, or by issuing or promulgating analyses or reports related to a life insurance or annuity product. Defines "use of senior-specific certifications or professional designations". Makes other changes. Effective immediately.
Spectrum: Moderate Partisan Bill (Democrat 11-3)
Status: (Passed) 2011-08-23 - Public Act . . . . . . . . . 97-0527 [SB1607 Detail]
Download: Illinois-2011-SB1607-Enrolled.html
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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Sections 224 and 424 and by adding Section 155.43 as | ||||||
6 | follows:
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7 | (215 ILCS 5/155.43 new) | ||||||
8 | Sec. 155.43. Misrepresentation of Senior-Specific | ||||||
9 | Certification. | ||||||
10 | (a) No insurance producer shall use a senior-specific | ||||||
11 | certification or professional designation that indicates or | ||||||
12 | implies in such a way as to mislead a purchaser or prospective | ||||||
13 | purchaser that the insurance producer has a special | ||||||
14 | certification or training in advising or servicing seniors in | ||||||
15 | connection with the solicitation, sale, or purchase of a life | ||||||
16 | insurance or annuity product or in the provision of advice as | ||||||
17 | to the value of or the advisability of purchasing or selling a | ||||||
18 | life insurance or annuity product, either directly or | ||||||
19 | indirectly through publications, writings, or by issuing or | ||||||
20 | promulgating analyses or reports related to a life insurance or | ||||||
21 | annuity product. | ||||||
22 | (b) "Use of senior-specific certifications or professional | ||||||
23 | designations" includes, but is not limited to, all of the |
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1 | following: | ||||||
2 | (1) Use of a certification or professional designation | ||||||
3 | by an insurance producer who has not actually earned or is | ||||||
4 | otherwise ineligible to use such certification or | ||||||
5 | designation. | ||||||
6 | (2) Use of a nonexistent or self-conferred | ||||||
7 | certification or professional designation. | ||||||
8 | (3) Use of a certification or professional designation | ||||||
9 | that indicates or implies a level of occupational | ||||||
10 | qualifications obtained through education, training, or | ||||||
11 | experience that the insurance producer using the | ||||||
12 | certification or designation does not have. | ||||||
13 | (4) Use of a certification or professional designation | ||||||
14 | that was obtained from a certifying or designating | ||||||
15 | organization that: | ||||||
16 | (i) is primarily engaged in the business of | ||||||
17 | instruction in sales or marketing; | ||||||
18 | (ii) does not have reasonable standards or | ||||||
19 | procedures for assuring the competency of its | ||||||
20 | certificate holders or designees; | ||||||
21 | (iii) does not have reasonable standards or | ||||||
22 | procedures for monitoring and disciplining its | ||||||
23 | certificate holders or designees for improper or | ||||||
24 | unethical conduct; or | ||||||
25 | (iv) does not have reasonable continuing education | ||||||
26 | requirements for its certificate holders or designees |
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1 | in order to maintain the certificate or designation. | ||||||
2 | (c) There is a rebuttable presumption that a certifying or | ||||||
3 | designating organization is not disqualified under this | ||||||
4 | Section if the certification or designation issued from the | ||||||
5 | organization does not primarily apply to sales or marketing and | ||||||
6 | if the organization or the certification or designation in | ||||||
7 | question has been accredited by any of the following entities: | ||||||
8 | (i) the American National Standards Institute; | ||||||
9 | (ii) the National Commission for Certifying Agencies; | ||||||
10 | or | ||||||
11 | (iii) any organization included on the list | ||||||
12 | "Accrediting Agencies Recognized for Title IV Purposes" | ||||||
13 | prepared by the United States Department of Education. | ||||||
14 | (d) In determining whether a combination of words or an | ||||||
15 | acronym standing for a combination of words constitutes a | ||||||
16 | certification or professional designation indicating or | ||||||
17 | implying that a person has a special certification or training | ||||||
18 | in advising or servicing seniors, the Department of Insurance | ||||||
19 | shall consider all of the following: | ||||||
20 | (1) Use of one or more words, such as "senior", | ||||||
21 | "retirement", "elder", or like words combined with one or | ||||||
22 | more words, such as "certified", "registered", | ||||||
23 | "chartered", "advisor", "specialist", "consultant", | ||||||
24 | "planner", or like words in the name of the certification | ||||||
25 | or professional designation. | ||||||
26 | (2) The manner in which the words listed in paragraph |
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1 | (1) of subsection (b) are combined. | ||||||
2 | (e) For purposes of this Section, a job title within an | ||||||
3 | organization that is licensed or registered by a State or | ||||||
4 | federal financial services regulatory agency is not a | ||||||
5 | certification or professional designation, unless it is used in | ||||||
6 | a manner that would confuse or mislead a reasonable consumer, | ||||||
7 | if the job title indicates seniority or standing within the | ||||||
8 | organization or specifies an individual's area of | ||||||
9 | specialization within the organization. For purposes of this | ||||||
10 | subsection (e), "financial services regulatory agency" | ||||||
11 | includes, but is not limited to, an agency that regulates | ||||||
12 | insurers, insurance producers, broker-dealers, investment | ||||||
13 | advisers, or investment companies.
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14 | (215 ILCS 5/224) (from Ch. 73, par. 836)
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15 | Sec. 224. Standard provisions for life policies.
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16 | (1) After the
first day of July, 1937, no policy of life | ||||||
17 | insurance other than
industrial, group or annuities and pure | ||||||
18 | endowments with or without
return of premiums or of premiums | ||||||
19 | and interest, may be issued or
delivered in this State, unless | ||||||
20 | such policy contains in substance the
following provisions:
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21 | (a) A provision that all premiums after the first shall | ||||||
22 | be payable
in advance either at the home office of the | ||||||
23 | company or to an agent of
the company, upon delivery of a | ||||||
24 | receipt signed by one or more of the
officers who shall be | ||||||
25 | designated in the policy, when such receipt is
requested by |
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1 | the policyholder.
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2 | (b) A provision that the insured is entitled to a grace | ||||||
3 | period
either of 30 days or of one month within which the | ||||||
4 | payment of any
premium after the first may be made, subject | ||||||
5 | at the option of the
company to an interest charge not in | ||||||
6 | excess of 6% per annum for the
number of days of grace | ||||||
7 | elapsing before the payment of the premium,
during which | ||||||
8 | period of grace the policy shall continue in force, but in
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9 | case the policy becomes a claim during the grace period | ||||||
10 | before the
overdue premium is paid, or the deferred | ||||||
11 | premiums of the current policy
year, if any, are paid, the | ||||||
12 | amount of such premium or premiums with
interest thereon | ||||||
13 | may be deducted in any settlement under the policy.
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14 | (c) A provision that the policy, together with the | ||||||
15 | application
therefor, a copy of which shall be endorsed | ||||||
16 | upon or attached to the
policy and made a part thereof, | ||||||
17 | shall constitute the entire contract
between the parties | ||||||
18 | and that after it has been in force during the
lifetime of | ||||||
19 | the insured a specified time, not later than 2 years from
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20 | its date, it shall be incontestable except for nonpayment | ||||||
21 | of premiums
and except at the option of the company, with | ||||||
22 | respect to provisions
relative to benefits in the event of | ||||||
23 | total and permanent disability, and
provisions which grant | ||||||
24 | additional insurance specifically against death
by | ||||||
25 | accident and except for violations of the conditions of the | ||||||
26 | policy
relating to naval or military service in time of war |
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1 | or for violation of
an express condition, if any, relating | ||||||
2 | to aviation, (except riding as a
fare-paying passenger of a | ||||||
3 | commercial air line flying on regularly
scheduled routes | ||||||
4 | between definitely established airports) in which case
the | ||||||
5 | liability of the company shall be fixed at a definitely | ||||||
6 | determined
amount not less than the full reserve for the | ||||||
7 | policy and any dividend
additions; provided that the | ||||||
8 | application therefor need not be attached
to or made a part | ||||||
9 | of any policy containing a clause making the policy
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10 | incontestable from date of issue.
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11 | (d) A provision that if it is found at any time before | ||||||
12 | final
settlement under the policy that the age of the | ||||||
13 | insured (or the age of
the beneficiary, if considered in | ||||||
14 | determining the premium) has been
misstated, the amount | ||||||
15 | payable under the policy shall be such as the
premium would | ||||||
16 | have purchased at the correct age or ages, according to
the | ||||||
17 | company's published rate at date of issue.
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18 | (e) A provision that the policy shall participate | ||||||
19 | annually in the
surplus of the company beginning not later | ||||||
20 | than the end of the third
policy year; and any policy | ||||||
21 | containing provision for annual
participation beginning at | ||||||
22 | the end of the first policy year, may also
provide that | ||||||
23 | each dividend be paid subject to the payment of the
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24 | premiums for the next ensuing year; and the insured under | ||||||
25 | any annual
dividend policy shall have the right each year | ||||||
26 | to have the dividend
arising from such participation either |
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1 | paid in cash, or applied in
reduction of premiums, or | ||||||
2 | applied to the purchase of paid-up additional
insurance, or | ||||||
3 | be left to accumulate to the credit of the policy, with
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4 | interest at such rate as may be determined from time to | ||||||
5 | time by the
company, but not less than a guaranteed minimum | ||||||
6 | rate specified in the
policy, and payable at the maturity | ||||||
7 | of the policy, but withdrawable on
any anniversary date, | ||||||
8 | subject to such further provisions as the policy may
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9 | provide regarding the application of dividends toward the | ||||||
10 | payment of any
premiums unpaid at the end of the grace | ||||||
11 | period; and if the insured fails
to notify the company in
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12 | writing of his election within the period of grace allowed | ||||||
13 | for the
payment of premium, the policy shall further | ||||||
14 | provide which of such
options are effective.
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15 | (f) A provision that after the policy has been in force | ||||||
16 | 3 full years
the company at any time, while the policy is | ||||||
17 | in force, will advance, on
proper assignment or pledge of | ||||||
18 | the policy and on the sole security
thereof, at a specified | ||||||
19 | maximum fixed or adjusted rate of interest in
accordance
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20 | with Section 229.5, a sum equal to, or at the
option of the | ||||||
21 | insured less than the amount required by Section 229.3
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22 | under the conditions specified thereby and with | ||||||
23 | notification as required
by Section 229.5; and that the | ||||||
24 | company will deduct
from such loan value any indebtedness | ||||||
25 | not already deducted in
determining such value and any | ||||||
26 | unpaid balance of the premium for the
current policy year, |
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1 | and may collect interest in advance on the loan to
the end | ||||||
2 | of the current policy year; and any policy may also provide | ||||||
3 | that
if the interest on the loan is not paid when due it | ||||||
4 | shall be added to
the existing loan and shall bear interest | ||||||
5 | at the same rate. No
condition other than as provided | ||||||
6 | herein or in Sections 229.3 and 229.5 shall be
exacted as a | ||||||
7 | prerequisite to any such loan. This clause shall not apply
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8 | to term insurance.
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9 | (g) A provision for nonforfeiture benefits and cash | ||||||
10 | surrender
values in accordance with the requirements of | ||||||
11 | paragraph (1) of Section
229.1 or, Section 229.2.
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12 | (h) A table showing in figures the loan values and the | ||||||
13 | options
available under the policy each year, upon default | ||||||
14 | in premium payments,
during at least the first 20 years of | ||||||
15 | the policy; the policy to contain
a provision that the | ||||||
16 | company will furnish upon request an extension of
such | ||||||
17 | table beyond the years shown in the policy.
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18 | (i) A provision that in event of default in premium | ||||||
19 | payments the
value of the policy is applied to the purchase | ||||||
20 | of other insurance as
provided in this Section, and if such | ||||||
21 | insurance is in force and the
original policy is not | ||||||
22 | surrendered to the company and cancelled, the
policy may be | ||||||
23 | reinstated within 3 years from such default, upon evidence
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24 | of insurability satisfactory to the company and payment of | ||||||
25 | arrears of
premiums and the payment or reinstatement of any | ||||||
26 | other indebtedness to
the company upon the policy, with |
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1 | interest on the premiums
at a rate not exceeding 6% per | ||||||
2 | annum payable annually and with interest
on the | ||||||
3 | indebtedness at a rate not exceeding the rate prescribed by | ||||||
4 | Section
229.5.
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5 | (j) A provision that when a policy is a claim by the | ||||||
6 | death of the
insured settlement shall be made upon receipt | ||||||
7 | of due proof of death and
not later than 2 months after the | ||||||
8 | receipt of such proof. The policy may require that due | ||||||
9 | proof of the death of the insured
shall consist of a | ||||||
10 | certified copy of the death certificate of the insured, or | ||||||
11 | other lawful
evidence providing equivalent information, | ||||||
12 | and proof of the claimant's interest in the
proceeds.
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13 | (k) If the policy provides for payment of its proceeds | ||||||
14 | in
installments, a table showing the amount and period of | ||||||
15 | such installments
shall be included in the policy.
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16 | (l) Interest shall accrue on the proceeds payable | ||||||
17 | because of the
death of the insured, from date of death, at | ||||||
18 | the rate of 10% annually 9% on the
total
amount payable or | ||||||
19 | the face amount if payments are to be made in
installments | ||||||
20 | until the total payment or first installment is paid,
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21 | unless payment is made within 31 fifteen (15) days from the | ||||||
22 | latest of the
following to occur: | ||||||
23 | (1) the date that due proof of death is received by | ||||||
24 | the company; | ||||||
25 | (2) the date that the company receives sufficient | ||||||
26 | information to determine its
liability, the extent of |
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1 | the liability, and the appropriate payee legally
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2 | entitled to the proceeds; or | ||||||
3 | (3) the date that legal impediments to payment of | ||||||
4 | proceeds that depend on
the action of parties other | ||||||
5 | than the company are resolved and sufficient
evidence | ||||||
6 | of the same is provided to the company; legal | ||||||
7 | impediments to
payment include, but are not limited to, | ||||||
8 | (A) the establishment of
guardianships and | ||||||
9 | conservatorships, (B) the appointment and | ||||||
10 | qualification
of trustees, executors, and | ||||||
11 | administrators, and (C) the submission of
information | ||||||
12 | required to satisfy State and federal reporting | ||||||
13 | requirements. | ||||||
14 | date of receipt
by the company of due proof of loss. This | ||||||
15 | provision need not appear in
the policy, however, the | ||||||
16 | company shall notify the beneficiary at the
time of claim | ||||||
17 | of this provision. The payment of interest shall apply to
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18 | all policies now in force, as well as those written after | ||||||
19 | the effective
date of this amendment.
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20 | (m) Title on the face and on the back of the policy | ||||||
21 | briefly
describing its form.
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22 | (n) A provision, or a notice attached to the policy, to | ||||||
23 | the effect
that during a period of ten days from the date | ||||||
24 | the policy is delivered
to the policy owner, it may be | ||||||
25 | surrendered to the insurer together with
a written request | ||||||
26 | for cancellation of the policy and in such event, the
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1 | insurer will refund any premium paid therefor, including | ||||||
2 | any policy fees
or other charges. The Director may by rule | ||||||
3 | exempt specific types of
policies from the requirements of | ||||||
4 | this subsection.
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5 | (2) In the case of the replacement of life insurance, as | ||||||
6 | defined in the
rule promulgated by the Director, the replacing | ||||||
7 | insurer shall either (1)
delay the issuance of its policy for | ||||||
8 | not less than 20 days from the date
it has transmitted a policy | ||||||
9 | summary to the existing insurer, or (2) provide
in a form | ||||||
10 | titled "Notice Regarding Replacement of Life Insurance", as | ||||||
11 | well
as in its policy, or in a separate notice delivered with | ||||||
12 | the policy, that
the insured has the right to an unconditional | ||||||
13 | refund of all premiums paid,
and that such right may be | ||||||
14 | exercised within a period of 20 days commencing
from the date | ||||||
15 | of delivery of such policy. Where option (2) is exercised,
the | ||||||
16 | replacing insurer shall also transmit a policy summary to the | ||||||
17 | existing
insurer within 3 working days after the date the | ||||||
18 | replacement policy is issued.
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19 | (3) Any of the foregoing provisions or portions thereof not
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20 | applicable to single premium or nonparticipating or term | ||||||
21 | policies shall
to that extent not be incorporated therein. This | ||||||
22 | Section shall not
apply to policies of reinsurance nor to | ||||||
23 | policies issued or granted
pursuant to the nonforfeiture | ||||||
24 | provisions prescribed in subparagraph (g)
of paragraph (1) of | ||||||
25 | this Section.
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26 | (Source: P.A. 92-139, eff. 7-24-01.)
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1 | (215 ILCS 5/424) (from Ch. 73, par. 1031)
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2 | Sec. 424. Unfair methods of competition and unfair or | ||||||
3 | deceptive acts or
practices defined. The following are hereby | ||||||
4 | defined as unfair methods of
competition and unfair and | ||||||
5 | deceptive acts or practices in the business of
insurance:
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6 | (1) The commission by any person of any one or more of the | ||||||
7 | acts
defined or prohibited by Sections 134, 143.24c, 147, 148, | ||||||
8 | 149, 151, 155.22,
155.22a, 155.42,
236, 237, 364, and 469 of | ||||||
9 | this Code.
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10 | (2) Entering into any agreement to commit, or by any | ||||||
11 | concerted
action committing, any act of boycott, coercion or | ||||||
12 | intimidation
resulting in or tending to result in unreasonable | ||||||
13 | restraint of, or
monopoly in, the business of insurance.
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14 | (3) Making or permitting, in the case of insurance of the | ||||||
15 | types
enumerated in Classes 1, 2, and 3 of Section 4, any | ||||||
16 | unfair discrimination
between individuals or risks of the same | ||||||
17 | class or of essentially the same
hazard and expense element | ||||||
18 | because of the race, color, religion, or national
origin of | ||||||
19 | such insurance risks or applicants. The application of this | ||||||
20 | Article
to the types of insurance enumerated in Class 1 of | ||||||
21 | Section 4 shall in no way
limit, reduce, or impair the | ||||||
22 | protections and remedies already provided for by
Sections 236 | ||||||
23 | and 364 of this Code or any other provision of this Code.
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24 | (4) Engaging in any of the acts or practices defined in or | ||||||
25 | prohibited by
Sections 154.5 through 154.8 of this Code.
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1 | (5) Making or charging any rate for insurance against | ||||||
2 | losses arising
from the use or ownership of a motor vehicle | ||||||
3 | which requires a higher
premium of any person by reason of his | ||||||
4 | physical handicap, race, color,
religion, or national origin.
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5 | (Source: P.A. 92-399, eff. 8-16-01; 92-651, eff. 7-11-02; | ||||||
6 | 92-669, eff.
1-1-03.)
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7 | Section 99. Effective date. This Act takes effect upon | ||||||
8 | becoming law.
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