Bill Text: IL SB2417 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Illinois Insurance Code. Makes a technical change in a Section concerning the short title.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed) 2024-05-31 - Rule 19(a) / Re-referred to Rules Committee [SB2417 Detail]

Download: Illinois-2023-SB2417-Engrossed.html

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SB2417 Engrossed LRB103 27618 BMS 53994 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Department of Natural Resources
(Conservation) Law of the Civil Administrative Code of
Illinois is amended by adding Section 805-570 as follows:
(20 ILCS 805/805-570 new)
Sec. 805-570. Flood insurance training course. The
Department shall create a biennial training course for
Illinois insurance producers regarding the eligibility for and
availability of the National Flood Insurance Program that
shall count towards an insurance producer's flood insurance
continuing education requirements under Section 500-35 of the
Illinois Insurance Code. The Department of Insurance shall
review and approve the training course under its normal course
approval process.
Section 10. The Illinois Insurance Code is amended by
changing Section 500-35 as follows:
(215 ILCS 5/500-35)
(Section scheduled to be repealed on January 1, 2027)
Sec. 500-35. License.

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(a) Unless denied a license pursuant to Section 500-70,
persons who have met the requirements of Sections 500-25 and
500-30 shall be issued a 2-year insurance producer license. An
insurance producer may receive qualification for a license in
one or more of the following lines of authority:
(1) Life: insurance coverage on human lives including
benefits of endowment and annuities, and may include
benefits in the event of death or dismemberment by
accident and benefits for disability income.
(2) Variable life and variable annuity products:
insurance coverage provided under variable life insurance
contracts and variable annuities.
(3) Accident and health or sickness: insurance
coverage for sickness, bodily injury, or accidental death
and may include benefits for disability income.
(4) Property: insurance coverage for the direct or
consequential loss or damage to property of every kind.
(5) Casualty: insurance coverage against legal
liability, including that for death, injury, or disability
or damage to real or personal property.
(6) Personal lines: property and casualty insurance
coverage sold to individuals and families for primarily
noncommercial purposes.
(7) Any other line of insurance permitted under State
laws or rules.
(b) An insurance producer license shall remain in effect

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unless revoked or suspended as long as the fee set forth in
Section 500-135 is paid and education requirements for
resident individual producers are met by the due date.
(1) Before each license renewal, an insurance producer
must satisfactorily complete at least 24 hours of course
study or participation in a professional insurance
association under paragraph (3) of this subsection in
accordance with rules prescribed by the Director. Three of
the 24 hours of course study must consist of classroom or
webinar ethics instruction. Beginning January 1, 2025, for
any insurance producer who is licensed in the property
insurance line of authority, one of the 24 hours of course
study must be related to flood insurance, which may be
satisfied by the training course developed by the
Department of Natural Resources pursuant to Section
805-570 of the Department of Natural Resources
(Conservation) Law of the Civil Administrative Code of
Illinois. The Director may not approve a course of study
unless the course provides for classroom, seminar,
webinar, or self-study instruction methods. A course given
in a combination instruction method of classroom, seminar,
webinar, or self-study shall be deemed to be a self-study
course unless the classroom, seminar, or webinar certified
hours meets or exceeds two-thirds of total hours certified
for the course. The self-study material used in the
combination course must be directly related to and

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complement the classroom portion of the course in order to
be considered for credit. An instruction method other than
classroom or seminar shall be considered as self-study
methodology. Self-study credit hours require the
successful completion of an examination covering the
self-study material. The examination may not be
self-evaluated. However, if the self-study material is
completed through the use of an approved computerized
interactive format whereby the computer validates the
successful completion of the self-study material, no
additional examination is required. The self-study credit
hours contained in a certified course shall be considered
classroom hours when at least two-thirds of the hours are
given as classroom or seminar instruction.
(2) An insurance producer license automatically
terminates when an insurance producer fails to
successfully meet the requirements of item (1) of
subsection (b) of this Section. The producer must complete
the course in advance of the renewal date to allow the
education provider time to report the credit to the
Department.
(3) An insurance producer's active participation in a
State or national professional insurance association may
be approved by the Director for up to 4 hours of continuing
education credit per biennial reporting period. Credit
shall be provided on an hour-for-hour basis. These hours

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shall be verified and submitted by the association on
behalf of the insurance producer and credited upon timely
filing with the Director or his or her designee on a
biennial basis. Any association submitting continuing
education credit hours on behalf of insurance producers
must be registered as an education provider under Section
500-135. Credit granted under these provisions shall not
be used to satisfy ethics education requirements. Active
participation in a State or national professional
insurance association is defined by one of the following
methods:
(A) service on a board of directors of a State or
national chapter of the association;
(B) service on a formal committee of a State or
national chapter of the association; or
(C) service on a formal subcommittee or task force
of a State or national chapter of the association.
(c) A provider of a pre-licensing or continuing education
course required by Section 500-30 and this Section must pay a
registration fee and a course certification fee for each
course being certified as provided by Section 500-135.
(d) An individual insurance producer who allows his or her
license to lapse may, within 12 months after the due date of
the renewal fee, be issued a license without the necessity of
passing a written examination. However, a penalty in the
amount of double the unpaid renewal fee shall be required

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after the due date.
(e) A licensed insurance producer who is unable to comply
with license renewal procedures due to military service may
request a waiver of those procedures.
(f) The license must contain the licensee's name, address,
and personal identification number, the date of issuance, the
lines of authority, the expiration date, and any other
information the Director deems necessary.
(g) Licensees must inform the Director by any means
acceptable to the Director of a change of address within 30
days after the change.
(h) In order to assist in the performance of the
Director's duties, the Director may contract with a
non-governmental entity including the National Association of
Insurance Commissioners (NAIC), or any affiliates or
subsidiaries that the NAIC oversees, to perform any
ministerial functions, including collection of fees, related
to producer licensing that the Director and the
non-governmental entity may deem appropriate.
(Source: P.A. 102-766, eff. 1-1-23.)
Section 99. Effective date. This Act takes effect January
1, 2024.