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Public Act 098-1165 Public Act 1165 98TH GENERAL ASSEMBLY |
Public Act 098-1165 | SB2979 Enrolled | LRB098 19016 RPM 54166 b |
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| 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 500-10 and 500-100 and by adding Section | 500-108 as follows:
| (215 ILCS 5/500-10)
| (Section scheduled to be repealed on January 1, 2017)
| Sec. 500-10. Definitions. In addition to the definitions in | Section 2 of
the
Code, the following
definitions apply to this | Article:
| "Business entity" means a corporation, association, | partnership, limited
liability
company, limited liability | partnership, or other legal entity.
| "Car rental limited line licensee" means a person | authorized under the
provisions of
Section 500-105 to sell | certain coverages relating to the rental of vehicles.
| "Home state" means the District of Columbia and any state | or territory of the
United
States in which an insurance | producer maintains his or her principal place of
residence or
| principal place of business and is licensed to act as an | insurance producer.
| "Insurance" means any of the lines of authority in Section |
| 500-35, any health
care plan
under the Health Maintenance | Organization Act, or any limited health care plan
under the
| Limited Health Service Organization Act.
| "Insurance producer" means a person required to be licensed | under the laws of
this State
to sell, solicit, or negotiate | insurance.
| "Insurer" means a company as defined in subsection (e) of | Section 2 of this
Code, a
health maintenance organization as | defined in the Health Maintenance
Organization Act, or a
| limited health service organization as defined in the Limited | Health
Service Organization Act.
| "License" means a document issued by the Director | authorizing an individual
to act as an
insurance producer for | the lines of authority specified in the document or
authorizing | a business
entity to act as an insurance producer. The license | itself does not create any
authority, actual,
apparent, or | inherent, in the holder to represent or commit
an insurance | carrier.
| "Limited lines insurance" means those lines of insurance | defined in Section
500-100 or
any other line of insurance that | the Director may deem it necessary to
recognize for the | purposes
of complying with subsection (e) of Section 500-40.
| "Limited lines producer" means a person authorized by the | Director to sell,
solicit, or
negotiate limited lines | insurance.
| "Negotiate" means the act of conferring directly with or |
| offering advice
directly to a
purchaser or prospective | purchaser of a particular contract of insurance
concerning any
| of the substantive benefits, terms, or conditions of the | contract, provided
that the person
engaged in that act either | sells insurance or obtains insurance from
insurers for | purchasers.
| "Person" means an individual or a business entity.
| "Rental agreement" means a written agreement setting forth | the terms and
conditions
governing the use of a vehicle | provided by a rental company for
rental or lease.
| "Rental company" means a person, or a franchisee of the | person, in the
business of
providing primarily private | passenger vehicles to the public under a
rental agreement for a | period
not to exceed 30 days.
| "Rental period" means the term of the rental agreement.
| "Renter" means a person obtaining the use of a vehicle from | a
rental company under the
terms of a rental agreement for a | period not to exceed 30 days.
| "Self-service storage facility limited line licensee" | means a person
authorized under the provisions of Section | 500-107 to sell certain coverages
relating to the rental of | self-service storage facilities.
| "Sell" means to exchange a contract of insurance by any | means, for
money or its equivalent, on
behalf of an insurance | company.
| "Solicit" means attempting to
sell insurance or asking or |
| urging a person to apply for a
particular kind of insurance | from a particular company.
| "Terminate" means the cancellation of the relationship | between an insurance
producer and the
insurer or the | termination of a producer's authority to transact insurance.
| "Travel insurance" means insurance coverage for personal | risks incident to planned travel, including, but not limited | to: (1) the interruption or cancellation of a trip or event, | (2) the loss of baggage or personal effects, (3) damages to | accommodations or rental vehicles, or (4) sickness, accident, | disability, or death occurring during travel. "Travel | insurance" does not include major medical plans that provide | comprehensive medical protection for travelers with trips | lasting 6 months or longer, including those working overseas as | an ex-patriot or as military personnel on deployment. | "Uniform Business Entity Application" means the current | version of the
National Association of Insurance | Commissioners' Uniform
Business Entity Application for | nonresident business entities.
| "Uniform Application" means the current version of the | National Association
of Insurance Commissioners' Uniform
| Application for
nonresident producer licensing.
| "Vehicle" or "rental vehicle" means a motor vehicle of (1) | the private
passenger
type, including passenger vans, mini | vans, and sport utility vehicles or (2)
the cargo type,
| including cargo vans, pickup trucks, and trucks with a gross |
| vehicle
weight of less than
26,000 pounds the operation of | which does not require the operator to possess a
commercial
| driver's license.
| "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. 97-113, eff. 7-14-11.)
| (215 ILCS 5/500-100)
| (Section scheduled to be repealed on January 1, 2017)
| Sec. 500-100. Limited lines producer license.
| (a) An individual who is at least 18 years of age and whom | the Director
considers to
be competent, trustworthy, and of | good business reputation may obtain a limited
lines producer
| license for one or more of the following classes:
| (1) travel insurance , as defined in Section 500-10 of | this Article on baggage or limited travel health, accident, | or trip
cancellation
insurance sold in connection with | transportation provided by a common carrier ;
| (2) industrial life insurance, as defined in Section | 228 of this Code;
| (3) industrial accident and health insurance, as | defined in
Section 368 of this
Code;
| (4) insurance issued by a company organized under the |
| Farm Mutual
Insurance Company Act of 1986;
| (5) legal expense insurance;
| (6) enrollment of recipients of public aid or medicare | in a health
maintenance
organization;
| (7) a limited health care plan issued by an | organization having a
certificate of
authority under the | Limited Health Service Organization Act;
| (8) credit life and credit accident and health | insurance and other credit insurance policies approved or | permitted by the Director; a credit insurance company must | conduct a training program in which an applicant shall | receive basic instruction about the credit insurance | products that he or she will be selling. | (b) The application for a limited lines producer license | must be submitted
on a form
prescribed by the Director by a | designee of the insurance company, health
maintenance
| organization, or limited health service organization | appointing the limited
insurance
representative. The insurance | company, health maintenance organization, or
limited health
| service organization must pay the fee required by Section | 500-135.
| (c) A limited lines producer may represent more than one | insurance company,
health
maintenance organization, or limited | health service organization.
| (d) An applicant who has met the requirements of this | Section shall be
issued a
perpetual limited lines producer |
| license.
| (e) A limited lines producer license shall remain in effect | as long as the
appointing
insurance company pays the respective | fee required by Section 500-135 prior to
January 1 of
each | year, unless the license is revoked or suspended pursuant to
| Section 500-70. Failure of the
insurance company to pay the | license fee or to submit the required documents
shall cause
| immediate termination of the limited line insurance producer | license with
respect to which the
failure occurs.
| (f) A limited lines producer license may be terminated by | the insurance
company or
the licensee.
| (g) A person whom the Director considers to be competent, | trustworthy, and
of
good
business reputation may be issued a | car rental limited line license. A car
rental limited line
| license for a rental company shall remain in effect as long as | the car rental
limited line licensee
pays the respective fee | required by Section 500-135 prior to the next fee date
unless | the car rental
license is revoked or suspended pursuant to | Section 500-70. Failure of the car
rental limited line
licensee | to pay the license fee or to submit the required documents | shall cause
immediate
suspension of the car rental limited line | license. A car rental limited line
license for rental
companies | may be voluntarily
terminated by the car rental limited line | licensee. The license fee
shall not be refunded upon | termination of the car rental limited line license
by the car | rental
limited line licensee.
|
| (h) A limited lines producer issued a license pursuant to | this Section is
not
subject to
the requirements of Section | 500-30.
| (i) A limited lines producer license must contain the name, | address and
personal
identification number of the licensee, the | date the license was issued,
general conditions relative
to the | license's expiration or termination, and any other information | the
Director considers
proper. A limited line producer license, | if applicable, must also contain the
name and address of
the | appointing insurance company.
| (Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14.)
| (215 ILCS 5/500-108 new) | Sec. 500-108. Travel insurance business entity license. | (a) As used in this Section: | "Offering and disseminating" means the following: | (1) Providing information to a prospective or current | policyholder on behalf of a limited lines travel insurance | entity, including brochures, buyer guides, descriptions of | coverage, and price. | (2) Referring specific questions regarding coverage | features and benefits from a prospective or current | policyholder to a limited lines travel insurance entity. | (3) Disseminating and processing applications for | coverage, coverage selection forms, or other similar forms | in response to a request from a prospective or current |
| policyholder. | (4) Collecting premiums from a prospective or current | policyholder on behalf of a limited lines travel insurance | entity. | (5) Receiving and recording information from a | policyholder to share with a limited lines travel insurance | entity. | "Travel insurance business entity" means a licensed | insurance producer designated
by an insurer as set forth in | subsection (i) of this Section. | "Travel retailer" means a business organization that | makes, arranges, or offers travel services and, with respect to | travel insurance, is limited to offering and disseminating as | defined in this Section, unless otherwise licensed under | subsection (c) of this Section. | (b) The Director may issue to a travel insurance business | entity that registers travel
retailers under its license as | described in paragraph (2) of subsection (d) of this Section a | producer license as provided in paragraph (6) of subsection (a) | of Section 500-35 of this Code. A travel insurance business | entity license issued under this Section shall also authorize | any employee of the travel insurance business entity to act | individually on behalf and under the supervision of the travel | insurance business entity licensee with respect to the coverage | specified in this Section. Each travel insurance business | entity licensed under this Section shall pay the Department a |
| fee of $500 for its initial license and $500 for each renewal | license, payable on May 31 annually. | (c) The Director may issue to a travel retailer a limited | lines producer license. A travel retailer license issued under | this Section shall also authorize any employee of the travel | retailer limited line licensee to act individually on behalf | and under the supervision of the travel retailer limited line | licensee with respect to the coverage specified in this | Section. | (d) Notwithstanding any other provision of law, a travel | retailer may do the limited activities of offering and | disseminating travel insurance on behalf of and under the | license of a supervising travel insurance business entity if | the following conditions are met: | (1) the travel insurance business entity or travel | retailer provides to purchasers of travel insurance: | (A) a description of the material terms or the | actual material terms of the
insurance coverage; | (B) a description of the process for filing a | claim; | (C) a description of the review or cancellation | process for the travel insurance policy; and | (D) the identity and contact information of the | insurer and travel insurance business entity; | (2) at the time of licensure, the travel insurance | business entity shall establish and maintain a register on |
| a form prescribed by the Director of each travel retailer | that offers travel insurance on the travel insurance | business entity's behalf; the register shall be maintained | and updated continuously by the travel insurance business | entity and shall include the name, address, and contact | information of the travel retailer and an officer or person | who directs or controls the travel retailer's operations | and the travel retailer's federal tax identification | number; the travel insurance business entity shall submit | the register to the Director annually on a form and in a | manner approved by the Director; the limited lines producer | shall also certify that the travel retailer personnel who | is offering and disseminating insurance under the travel | retailer's registration complies with 18 U.S.C. 1033; | (3) the travel insurance business entity has | designated one of its employees as a licensed individual | producer (a designated responsible producer or DRP) | responsible for the travel insurance business entity's and | its travel retailer's compliance with the travel insurance | laws, rules, and regulations of the State; | (4) the travel insurance business entity has paid all | applicable insurance producer licensing fees as set forth | in this Code; and | (5) the travel insurance business entity requires each | employee and authorized representative of the travel | retailer whose duties include offering and disseminating |
| travel insurance to receive a program of instruction or | training that shall be subject to review by the Director; | the training material shall, at a minimum, contain | instructions on the types of insurance offered, ethical | sales practices, and required disclosures to prospective | customers. | (e) Any travel retailer offering or disseminating travel | insurance shall make available to prospective purchasers | brochures or other written materials that: | (1) provide the identity and contact information of the | insurer and the travel
insurance business entity; | (2) explain that the purchase of travel insurance is | not required in order to
purchase any other product or | service from the travel retailer; and | (3) explain that an unlicensed travel retailer is | permitted to provide general information about the | insurance offered by the travel retailer, including a | description of the coverage and price, but is not qualified | or authorized to answer technical questions about the terms | and conditions of the insurance offered by the travel | retailer or to evaluate the adequacy of the customer's | existing insurance coverage. | (f) A travel retailer's employee or authorized | representative who is not licensed as an insurance producer may | not: | (1) evaluate or interpret the technical terms, |
| benefits, and conditions of the
offered travel insurance | coverage; | (2) evaluate or provide advice concerning a | prospective purchaser's existing
insurance coverage; or | (3) hold himself, herself, or itself out as a licensed | insurer, licensed producer, or insurance expert. | (g) A travel retailer whose insurance-related activities, | and those of its employees and authorized representatives, are | limited to offering and disseminating travel insurance on | behalf of and under the direction of a travel insurance | business entity meeting the conditions stated in this Section | is authorized to do so and receive related compensation upon | registration by the travel insurance business entity as | described in paragraph (2) of subsection (d) of this Section. | (h) Travel insurance may be provided under an individual | policy or under a group or master policy. | (i) As the insurer designee, the travel insurance business | entity is responsible for the acts of the travel retailer that | is registered under its license. | (j) Any entity that violates any provision of this Article | shall be subject to all appropriate regulatory action as set | forth in this Code.
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Effective Date: 6/1/2015
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