(215 ILCS 5/500‑15)
(Section scheduled to be repealed on January 1, 2017)
Sec. 500‑15.
License required.
(a) A person may not sell, solicit, or negotiate insurance in this State for any class or classes of insurance unless the person is licensed for that line of authority in accordance with this Article.
(b) A person may not, for a fee, engage in the business of offering any advice, counsel, opinion, or service with respect to the benefits, advantages, or disadvantages under any policy of insurance that could be issued in Illinois, unless that person is:
(1) engaged or employed as an attorney licensed to
| practice law and performing duties incidental to that position; | |
(2) a licensed insurance producer, limited insurance |
| representative, or temporary insurance producer offering advice concerning a class of insurance as to which he or she is licensed to transact business; | |
(3) a trust officer of a bank performing duties |
| incidental to his or her position; | |
(4) an actuary or a certified public accountant |
| engaged or employed in a consulting capacity, performing duties incidental to that position; or | |
(5) a licensed public adjuster acting within the |
| scope of his or her license. | |
(c) In addition to any other penalty set forth in this Article, an individual who knowingly violates subsection (a) is guilty of a Class A misdemeanor.
(d) In addition to any other penalty set forth in this Article, any individual violating subsection (a) or (b) and misappropriating or converting any moneys collected in conjunction with the violation is guilty of a Class 4 felony.
(Source: P.A. 92‑386, eff. 1‑1‑02 .) |
(215 ILCS 5/500‑20)
(Section scheduled to be repealed on January 1, 2017)
Sec. 500‑20.
Exceptions to licensing.
(a) Nothing in this Article shall be construed to require an insurer to obtain an insurance producer license. In this Section, the term "insurer" does not include an insurer's officers, directors, employees, subsidiaries, or affiliates.
(b) A license as an insurance producer shall not be required of the following:
(1) an officer, director, or employee of an insurer
| or of an insurance producer, provided that the officer, director, or employee does not receive any commission on policies written or sold to insure risks residing, located, or to be performed in this State and: | |
(A) the officer's, director's, or employee's |
| activities are executive, administrative, managerial, clerical, or a combination of these, and are only indirectly related to the sale, solicitation, or negotiation of insurance; | |
(B) the officer's, director's, or employee's |
| function relates to underwriting, loss control, inspection, or the processing, adjusting, investigating, or settling of a claim on a contract of insurance; or | |
(C) the officer, director, or employee is acting |
| in the capacity of a special agent or agency supervisor assisting insurance producers if the person's activities are limited to providing technical advice and assistance to licensed insurance producers and do not include the sale, solicitation, or negotiation of insurance; | |
(2) a person who secures and furnishes information |
| for the purpose of group life insurance, group property and casualty insurance, group annuities, or group or blanket accident and health insurance or for the purpose of enrolling individuals under plans, issuing certificates under plans or otherwise assisting in administering plans or who performs administrative services related to mass marketed property and casualty insurance, if no commission is paid to the person for the service; | |
(3) an employer or association or its officers, |
| directors, employees, or the trustees of an employee trust plan, to the extent that the employers, officers, employees, directors, or trustees are engaged in the administration or operation of a program of employee benefits for the employer's or association's own employees or the employees of its subsidiaries or affiliates, which program involves the use of insurance issued by an insurer, as long as the employers, associations, officers, directors, employees, or trustees are not in any manner compensated, directly or indirectly, by the company issuing the contracts; | |
(4) employees of insurers or organizations employed |
| by insurers who are engaging in the inspection, rating, or classification of risks or in the supervision of the training of insurance producers and who are not individually engaged in the sale, solicitation, or negotiation of insurance; | |
(5) a person whose activities in this State are |
| limited to advertising without the intent to solicit insurance in this State through communications in printed publications or forms of electronic mass media whose distribution is not limited to residents of this State, provided that the person does not sell, solicit, or negotiate insurance that would insure risks residing, located, or to be performed in this State; | |
(6) a person who is not a resident of this State who |
| sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under that contract, provided that the person is otherwise licensed as an insurance producer to sell, solicit, or negotiate that insurance in the state where the insured maintains its principal place of business and the contract of insurance insures risks located in that state; or | |
(7) a salaried, full‑time employee who counsels or |
| advises his or her employer relative to the insurance interests of the employer or of the subsidiaries or business affiliates of the employer provided that the employee does not sell or solicit insurance or receive a commission. | |
(Source: P.A. 92‑386, eff. 1‑1‑02 .) |
(215 ILCS 5/500‑30)
(Section scheduled to be repealed on January 1, 2017)
Sec. 500‑30.
Application for license.
(a) An individual applying for a resident insurance producer license must make application on a form specified by the Director and declare under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the individual's knowledge and belief. Before approving the application, the Director must find that the individual:
(1) is at least 18 years of age;
(2) has not committed any act that is a ground for
| denial, suspension, or revocation set forth in Section 500‑70; | |
(3) has completed, if required by the Director, a |
| pre‑licensing course of study before the insurance exam for the lines of authority for which the individual has applied (an individual who successfully completes the Fire and Casualty pre‑licensing courses also meets the requirements for Personal Lines‑Property and Casualty); | |
(4) has paid the fees set forth in Section 500‑135; |
|
(5) has successfully passed the examinations for the |
| lines of authority for which the person has applied. | |
(b) A pre‑licensing course of study for each class of insurance for which an insurance producer license is requested must be established in accordance with rules prescribed by the Director and must consist of the following minimum hours: |
Class of Insurance | Number of | | Hours | Life (Class 1 (a)) | 20 | Accident and Health (Class 1(b) or 2(a)) | 20 | Fire (Class 3) | 20 | Casualty (Class 2) | 20 | Personal Lines‑Property Casualty | 20 | Motor Vehicle (Class 2(b) or 3(e)) | 12.5 |
|
7.5 hours of each pre‑licensing course must be completed in a classroom setting, except Motor Vehicle, which would require 5 hours in a classroom setting.
(c) A business entity acting as an insurance producer must obtain an insurance producer license. Application must be made using the Uniform Business Entity Application. Before approving the application, the Director must find that:
(1) the business entity has paid the fees set forth |
|
(2) the business entity has designated a licensed |
| producer responsible for the business entity's compliance with the insurance laws and rules of this State. | |
(d) The Director may require any documents reasonably necessary to verify the information contained in an application.
(Source: P.A. 96‑839, eff. 1‑1‑10.) |