Bill Text: IL HB2355 | 2013-2014 | 98th General Assembly | Engrossed
Bill Title: Amends the Illinois Insurance Code. Sets forth a definition of "travel insurance". Makes a change in the provision concerning limited lines producer licenses. Provides that notwithstanding any other provision of law, a travel retailer may offer and disseminate travel insurance on behalf of and under a limited lines producer business entity license only if certain conditions are met. Provides that any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers brochures or other written materials that contain certain information and explanations. Prohibits a travel retailer's employee or authorized representative who is not licensed as an insurance producer from certain actions. Provides that 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 limited lines producer meeting certain conditions is authorized to do so and receive related compensation, upon registration by the limited lines producer. Provides that travel insurance may be provided under an individual policy or under a group or master policy. Provides that as the insurer designee, the limited lines producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with the provision concerning travel insurance limited line license for limited lines travel insurance producers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB2355 Detail]
Download: Illinois-2013-HB2355-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 500-10 as follows:
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6 | (215 ILCS 5/500-10)
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7 | (Section scheduled to be repealed on January 1, 2017)
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8 | Sec. 500-10. Definitions. In addition to the definitions in | ||||||
9 | Section 2 of
the
Code, the following
definitions apply to this | ||||||
10 | Article:
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11 | "Business entity" means a corporation, association, | ||||||
12 | partnership, limited
liability
company, limited liability | ||||||
13 | partnership, or other legal entity.
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14 | "Car rental limited line licensee" means a person | ||||||
15 | authorized under the
provisions of
Section 500-105 to sell | ||||||
16 | certain coverages relating to the rental of vehicles.
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17 | "Home state" means the District of Columbia and any state | ||||||
18 | or territory of the
United
States in which an insurance | ||||||
19 | producer maintains his or her principal place of
residence or
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20 | principal place of business and is licensed to act as an | ||||||
21 | insurance producer.
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22 | "Insurance" means any of the lines of authority in Section | ||||||
23 | 500-35, any health
care plan
under the Health Maintenance |
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1 | Organization Act, or any limited health care plan
under the
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2 | Limited Health Service Organization Act.
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3 | "Insurance producer" means a person required to be licensed | ||||||
4 | under the laws of
this State
to sell, solicit, or negotiate | ||||||
5 | insurance.
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6 | "Insurer" means a company as defined in subsection (e) of | ||||||
7 | Section 2 of this
Code, a
health maintenance organization as | ||||||
8 | defined in the Health Maintenance
Organization Act, or a
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9 | limited health service organization as defined in the Limited | ||||||
10 | Health
Service Organization Act.
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11 | "License" means a document issued by the Director | ||||||
12 | authorizing an individual
to act as an
insurance producer for | ||||||
13 | the lines of authority specified in the document or
authorizing | ||||||
14 | a business
entity to act as an insurance producer. The license | ||||||
15 | itself does not create any
authority, actual,
apparent, or | ||||||
16 | inherent, in the holder to represent or commit
an insurance | ||||||
17 | carrier.
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18 | "Limited lines insurance" means those lines of insurance | ||||||
19 | defined in Section
500-100 or
any other line of insurance that | ||||||
20 | the Director may deem it necessary to
recognize for the | ||||||
21 | purposes
of complying with subsection (e) of Section 500-40.
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22 | "Limited lines producer" means a person authorized by the | ||||||
23 | Director to sell,
solicit, or
negotiate limited lines | ||||||
24 | insurance.
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25 | "Negotiate" means the act of conferring directly with or | ||||||
26 | offering advice
directly to a
purchaser or prospective |
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1 | purchaser of a particular contract of insurance
concerning any
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2 | of the substantive benefits, terms, or conditions of the | ||||||
3 | contract, provided
that the person
engaged in that act either | ||||||
4 | sells insurance or obtains insurance from
insurers for | ||||||
5 | purchasers.
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6 | "Person" means an individual or a business entity.
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7 | "Rental agreement" means a written agreement setting forth | ||||||
8 | the terms and
conditions
governing the use of a vehicle | ||||||
9 | provided by a rental company for
rental or lease.
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10 | "Rental company" means a person, or a franchisee of the | ||||||
11 | person, in the
business of
providing primarily private | ||||||
12 | passenger vehicles to the public under a
rental agreement for a | ||||||
13 | period
not to exceed 30 days.
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14 | "Rental period" means the term of the rental agreement.
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15 | "Renter" means a person obtaining the use of a vehicle from | ||||||
16 | a
rental company under the
terms of a rental agreement for a | ||||||
17 | period not to exceed 30 days.
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18 | "Self-service storage facility limited line licensee" | ||||||
19 | means a person
authorized under the provisions of Section | ||||||
20 | 500-107 to sell certain coverages
relating to the rental of | ||||||
21 | self-service storage facilities.
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22 | "Sell" means to exchange a contract of insurance by any | ||||||
23 | means, for
money or its equivalent, on
behalf of an insurance | ||||||
24 | company.
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25 | "Solicit" means attempting to
sell insurance or asking or | ||||||
26 | urging a person to apply for a
particular kind of insurance |
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1 | from a particular company.
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2 | "Terminate" means the cancellation of the relationship | ||||||
3 | between an insurance
producer and the
insurer or the | ||||||
4 | termination of a producer's authority to transact insurance.
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5 | "Travel insurance" means insurance coverage for personal | ||||||
6 | risks incident to planned travel, including, but not limited to | ||||||
7 | (1) interruption or cancellation of a trip or event, (2) loss | ||||||
8 | of baggage or personal effects, (3) damages to accommodations | ||||||
9 | or rental vehicles, or (4) sickness, accident, disability, or | ||||||
10 | death occurring during travel. "Travel insurance" does not | ||||||
11 | include major medical plans that provide comprehensive medical | ||||||
12 | protection for travelers with trips lasting 6 months or longer, | ||||||
13 | including those working overseas as an ex-patriot or as | ||||||
14 | military personnel on deployment. | ||||||
15 | "Uniform Business Entity Application" means the current | ||||||
16 | version of the
National Association of Insurance | ||||||
17 | Commissioners' Uniform
Business Entity Application for | ||||||
18 | nonresident business entities.
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19 | "Uniform Application" means the current version of the | ||||||
20 | National Association
of Insurance Commissioners' Uniform
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21 | Application for
nonresident producer licensing.
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22 | "Vehicle" or "rental vehicle" means a motor vehicle of (1) | ||||||
23 | the private
passenger
type, including passenger vans, mini | ||||||
24 | vans, and sport utility vehicles or (2)
the cargo type,
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25 | including cargo vans, pickup trucks, and trucks with a gross | ||||||
26 | vehicle
weight of less than
26,000 pounds the operation of |
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1 | which does not require the operator to possess a
commercial
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2 | driver's license.
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3 | "Webinar" means an online educational presentation during | ||||||
4 | which a live and participating instructor and participating | ||||||
5 | viewers, whose attendance is periodically verified throughout | ||||||
6 | the presentation, actively engage in discussion and in the | ||||||
7 | submission and answering of questions. | ||||||
8 | (Source: P.A. 97-113, eff. 7-14-11.)
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