Bill Text: IL HB3705 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. With regard to insurance producers' license renewal requirements and public adjusters' continuing education requirements for licensure, provides that 3 of the required 24 hours of course study or continuing education must consist of ethics instruction (rather than classroom ethics instruction). Makes conforming changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Failed) 2014-12-03 - Session Sine Die [HB3705 Detail]

Download: Illinois-2013-HB3705-Introduced.html

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98TH GENERAL ASSEMBLY State of Illinois 2013 and 2014 HB3705 Introduced , by Rep. La Shawn K. Ford SYNOPSIS AS INTRODUCED:
215 ILCS 5/500-35
215 ILCS 5/1565
Amends the Illinois Insurance Code. With regard to insurance producers' license renewal requirements and public adjusters' continuing education requirements for licensure, provides that 3 of the required 24 hours of course study or continuing education must consist of ethics instruction (rather than classroom ethics instruction). Makes conforming changes.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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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 500-35 and 1565 as follows:
(215 ILCS 5/500-35)
(Section scheduled to be repealed on January 1, 2017)
Sec. 500-35. License.
(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.

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(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
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 in accordance with rules prescribed by the Director.
Three of the 24 hours of course study must consist of
classroom ethics instruction. 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

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material used in the combination course must be directly
related to and 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.
(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.

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(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 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. 96-839, eff. 1-1-10; 97-113, eff. 7-14-11.)

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(215 ILCS 5/1565)
Sec. 1565. Continuing education.
(a) An individual who holds a public adjuster license and
who is not exempt under subsection (b) of this Section shall
satisfactorily complete a minimum of 24 hours of continuing
education courses, including 3 hours of classroom ethics
instruction, reported on a biennial basis in conjunction with
the license renewal cycle.
The Director may not approve a course of study unless the
course provides for classroom, seminar, or self-study
instruction methods. A course given in a combination
instruction method of classroom or seminar and self-study shall
be deemed to be a self-study course unless the classroom or
seminar certified hours meets or exceeds two-thirds of the
total hours certified for the course. The self-study material
used in the combination course must be directly related to and
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

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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.
The public adjuster must complete the course in advance of
the renewal date to allow the education provider time to report
the credit to the Department.
(b) This Section shall not apply to:
(1) licensees not licensed for one full year prior to
the end of the applicable continuing education biennium; or
(2) licensees holding nonresident public adjuster
licenses who have met the continuing education
requirements of their home state and whose home state gives
credit to residents of this State on the same basis.
(c) Only continuing education courses approved by the
Director shall be used to satisfy the continuing education
requirement of subsection (a) of this Section.
(Source: P.A. 96-1332, eff. 1-1-11.)