Bill Text: IL SB3024 | 2015-2016 | 99th General Assembly | Engrossed
Bill Title: Amends the Illinois Insurance Code. In a provision concerning limited lines producer licenses, provides that nothing in the Code shall be construed to require a limited lines producer license or any other form or class of producer's license for financial institutions, or their employees, if the financial institution has purchased or sponsored a group credit life, credit accident and health, credit casualty, or credit property insurance policy or program, under which the financial institution enrolls or performs other administrative services to enable individuals to purchase insurance coverage under the group credit insurance policy from a licensed producer in compliance with provisions concerning license exceptions and credit life and credit accident and health insurance policies under the Code. In a provision concerning licensure requirements for financial institutions, provides that nothing in the Code or in any other law of this State shall be construed to require a financial institution, or the officers or employees of the financial institution, to become licensed under the Code in order to offer any line of insurance that is excluded from the definition of insurance under the Code if that line of insurance is offered in relation to the financial institution's banking business. Provides that for limited purposes, a financial institution, or its officers or employees, that perform administrative services related to lines of insurance excluded from the definition of insurance under the Code, including, but not limited to, marketing, sponsorship, enrollment, and insurance plan certificate issuance services, shall be deemed to be offering insurance related to the financial institution's banking business. Effective immediately.
Sponsorship: Partisan Bill (Democrat 3)
Status: (Engrossed - Dead) 2016-05-31 - Added as Co-Sponsor Sen. Laura M. Murphy [SB3024 Detail]
Download: Illinois-2015-SB3024-Engrossed.html
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| 1 | AN ACT concerning regulation.
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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 Section 1403 as follows:
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| 6 | (215 ILCS 5/1403)
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| 7 | Sec. 1403. Licensure requirements for financial | ||||||
| 8 | institutions.
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| 9 | (a) A financial institution transacting insurance business | ||||||
| 10 | in this State
shall register with the Director pursuant to the | ||||||
| 11 | Illinois Insurance Code and
shall be subject to the laws, | ||||||
| 12 | rules, and penalties of the Illinois Insurance
Code.
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| 13 | (b) The solicitation and sale of insurance by a financial | ||||||
| 14 | institution
shall be conducted only by individuals who have | ||||||
| 15 | been issued and maintain an
insurance producer's license | ||||||
| 16 | pursuant to the Illinois Insurance Code and shall
be subject to | ||||||
| 17 | the laws, rules, and penalties of the Illinois Insurance Code.
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| 18 | (c) For the purposes of this Section, a "financial | ||||||
| 19 | institution" means the
subsidiary of a financial institution | ||||||
| 20 | when the financial institution is
transacting insurance | ||||||
| 21 | business in this State only through the subsidiary. For
the | ||||||
| 22 | purposes of Section 499.1 of the Illinois Insurance Code, a | ||||||
| 23 | financial
institution shall be deemed to be a corporation.
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| 1 | (d) Nothing in Section 500-100 of this Code shall be | ||||||
| 2 | construed to require a limited lines producer license or any | ||||||
| 3 | other form or class of producer's license for financial | ||||||
| 4 | institutions, or their employees, if the financial institution | ||||||
| 5 | has purchased or sponsored a group or individual credit life, | ||||||
| 6 | credit accident and health, credit casualty, credit property, | ||||||
| 7 | or other credit insurance policy or program under which the | ||||||
| 8 | financial institution enrolls or performs other administrative | ||||||
| 9 | services to enable individuals to purchase insurance coverage | ||||||
| 10 | under the group or individual credit insurance policy from a | ||||||
| 11 | licensed producer in compliance with Section 155.56 and | ||||||
| 12 | paragraph (2) of subsection (b) of Section 500-20 of this Code. | ||||||
| 13 | (Source: P.A. 90-41, eff. 10-1-97.)
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| 14 | Section 99. Effective date. This Act takes effect upon | ||||||
| 15 | becoming law.
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