reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 50 - INSURANCE › Part 2909 - WORKERS' COMPENSATION LARGE DEDUCTIBLE BUSINESS › Section 2909.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Audited Financial Statement" means a financial statement
				audited by a certified public accountant based on the most recent fiscal year,
				but in no event no more than 15 months old, measured by the end of the audited
				period, at the time of application or renewal of the applicable large
				deductible agreement.
"Code" means the Illinois Insurance Code [ 215 ILCS 5 ].
"Collateral" shall have the meaning ascribed in Section
				155.44(a)(1) of the Code.
"Department" means the Illinois Department of Insurance.
"Exempt insurer" means any insurer licensed to write workers'
				compensation business in Illinois that either has an A- or better rating from
				A.M. Best Company or has at least $200 million in surplus. If the insurer only
				has a group rating from A.M. Best Company, the group rating shall apply. Having
				no rating from A.M. Best Company is the equivalent of having less than an A-
				rating.
"Full collateralization" means the collateral required to
				secure to the 100% level the policyholder obligations described in this
				Part.
"Large deductible credit" means the amount of credit applied to
				standard premium due to a large deductible agreement.
"Large deductible agreement" shall have the meaning ascribed in
				Section 155.44(c) of the Code.
"Net worth" means the amount by which assets exceed liabilities
				based on an audited financial statement. With respect to a public company, net
				worth is determined by shareholder equity. A loan to the policyholder can be
				included in determining net worth as long as the loan is fully funded and
				repayment is subordinated below general creditors in the event of a bankruptcy
				of the policyholder.
"Non-exempt insurer" has the meaning ascribed to the term
				"insurer" by
Section 155.44(b) of the Code.
"Standard premium" means the premium charged to a policyholder
				based on the nonexempt insurer's rates filed with the Department and before
				applying a large deductible credit. Standard premium also includes any
				adjustment due to an expense rating factor.
Illinois Administrative Code › Title 50 - INSURANCE › Part 2909 - WORKERS' COMPENSATION LARGE DEDUCTIBLE BUSINESS › Section 2909.40 - Collateral Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) Exempt
			 insurers are not required to comply with the requirements of this
			 Part.
b) As provided in this Part,
			 every nonexempt insurer writing workers' compensation policies that are subject
			 to a large deductible agreement covering employees located in Illinois must
			 require full collateralization of the policyholders' obligations under the
			 agreement, including policyholder obligations for employees located in other
			 states.
1) The initial collateral:
A) shall be determined by first computing the
			 standard premium and then determining the amount by which the standard premium
			 is reduced as a result of the large deductible credit; and
B) shall be set at the amount of the large
			 deductible credit subject to other adjustments based on the insured's financial
			 status, anticipated payment pattern of losses, the existence and attachment
			 point of an aggregate deductible limit, and the expected development above and
			 below the deductible sufficient to secure the nonexempt insurer against the
			 potential deductible reimbursement liability it is assuming.
Illinois Administrative Code › Title 50 - INSURANCE › Part 2909 - WORKERS' COMPENSATION LARGE DEDUCTIBLE BUSINESS › Section 2909.50 - Large Deductible Amount

Current through Register Vol. 48, No. 28, July 12, 2024
Each nonexempt insurer writing workers' compensation policies
				that are subject to a large deductible agreement that covers employees located
				in this State must require the policyholder to provide an audited financial
				statement during the underwriting process. The per occurrence deductible amount
				under the large deductible agreement cannot exceed 20% of the policyholder's
				net worth as determined by the audited financial statement. The aggregate limit
				of the policyholder under the large deductible agreement cannot exceed the net
				worth of the policyholder as determined by the audited financial statement. A
				new audited financial statement is required for each successive policy year and
				shall apply to determine the per occurrence cap and aggregate limits of the
				renewal policy.
Illinois Administrative Code › Title 50 - INSURANCE › Part 2909 - WORKERS' COMPENSATION LARGE DEDUCTIBLE BUSINESS › Section 2909.60 - Annual Reporting

Current through Register Vol. 48, No. 28, July 12, 2024
Every nonexempt insurer licensed to do business in Illinois
				that has issued a large deductible agreement must file an annual disclosure
				statement, as a supplement pursuant to
				215 ILCS 5/136,
				with the Department by March 1 of each year using the format provided in
				Exhibit A.
Illinois Administrative Code › Title 50 - INSURANCE › Part 2909 - WORKERS' COMPENSATION LARGE DEDUCTIBLE BUSINESS › Section 2909.70 - Fines and Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
Any nonexempt insurer found to be in violation of any provision
				of this Part or of Section 155.44 of the Code shall be subject to fines and
				penalties as provided in Section 403A of the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 2909 - WORKERS' COMPENSATION LARGE DEDUCTIBLE BUSINESS › Exhibit A - Collateral Report

Current through Register Vol. 48, No. 28, July 12, 2024
COLLATERAL REPORT
Annual Disclosure
Large Deductible
						  Supplement
215
						  ILCS 5/155.44 and 136 and
50 Ill. Adm. Code
						  2909.60
Due Date: March 1 each calendar
						  year
____________________________________________________________________
(Company Name)
By:
						  _________________________________________________________________
(Signature)
Title:
						  _________________________________________________
Date:_______
Please enter the required information:
Policyholder Name
Net Worth
Per Claim
Deductible
Open
Reserves*
Collateral
Held*
**
* As calculated pursuant to Section 2909.40(b) of this
				Part.
** Add additional rows, if needed, for each policy
				holder.
Illinois Administrative Code › Title 50 - INSURANCE › Part 2915 - NOTICE OF NON-COMPLIANCE WITH WORKERS' COMPENSATION ACT › Section 2915.10 - Notice of Non-Compliance

Current through Register Vol. 48, No. 28, July 12, 2024
a) The
			 Insurance Compliance Division of the Illinois Department of Insurance
			 ("Department") shall issue a Notice of Non-Compliance ("Notice") to any
			 employer that the Department believes has failed to comply with the provisions
			 of the Workers' Compensation Act [820 ILCS 305 ] only when the Department has
			 obtained information indicating that the employer has been non-compliant for
			 more than 30 days, that the non-compliance may be willful, or that a worker was
			 injured during a time when the employer was non-compliant. The notice will be
			 served on the employer at the employer's last known address or to the
			 employer's representative. The notice will be accompanied by a certificate of
			 service on the employer, setting forth the time and manner of
			 service.
b) The Notice of
			 Non-Compliance will be a written statement setting forth, but not limited to,
			 the following information:
1) the name and
			 address of the employer;
2) a
			 statement of the Section of the statute alleged to be violated, the periods of
			 alleged non-compliance and the penalty that may be imposed;
3) a statement that the employer must submit
			 evidence of compliance or otherwise respond within 30 days after the date of
			 receipt of the notice. Examples of evidence of compliance are:
A) a copy of the policy information page
			 required to be filed under 50 Ill. Adm. Code
			 9100.20
			 that indicates coverage for the periods of alleged non-compliance;
B) a self-insurance certificate of approval
			 covering the periods of alleged non-compliance;
C) a copy of a pooling agreement showing
			 membership in a licensed group workers' compensation pool authorized by the
			 Department during the alleged periods of non-compliance; and
4) a statement that failure to
			 respond to the Notice of Non-Compliance within the prescribed time period shall
			 cause the Workers' Compensation Commission to set this matter for hearing in
			 accordance with 50 Ill. Adm. Code
			 9100.90(c).
Illinois Administrative Code › Title 50 - INSURANCE › Part 3109 - INSURANCE PRODUCERS DOING BUSINESS UNDER AN ASSUMED NAME OR FIRM NAME › Section 3109.10 - Authority

Current through Register Vol. 48, No. 28, July 12, 2024
This Part is promulgated pursuant to Section 401 of the
				Illinois Insurance Code [215 ILCS
				5/401 ] which empowers the Director to make reasonable
				rules and regulations as may be necessary for making effective the insurance
				laws of this State. This Part implements Sections 500-30, 500-40, 500-55 and
				500-100 of the Illinois Insurance Code [215 ILCS 5/500-30, 500 -40, 500-55 and
				500-100] .
Illinois Administrative Code › Title 50 - INSURANCE › Part 3109 - INSURANCE PRODUCERS DOING BUSINESS UNDER AN ASSUMED NAME OR FIRM NAME › Section 3109.30 - Procedural Guidelines

Current through Register Vol. 48, No. 28, July 12, 2024
a) Prior to
			 a licensee transacting insurance business in this State under an assumed name,
			 the licensee shall comply with the Assumed Business Name Act [805 ILCS 405
			 ].
b) Applicants operating under an
			 assumed name shall notify the Department in writing of the assumed name under
			 which the individual will be operating prior to doing business in this State. A
			 name is not considered to be an assumed name for the purpose of this Part if it
			 includes the individual's legal name under which the individual transacts
			 business.
c) The assumed name of
			 any individual or a firm name shall not be the same as, or deceptively similar
			 to the name or designation adopted by an insurance company authorized to
			 transact business in Illinois or by a licensee of this Department. The standard
			 to be used for determining whether a name is deceptively similar is whether the
			 use of the name is reasonably likely to confuse or mislead the public into the
			 belief that the individual operating under an assumed name or a firm name is
			 one and the same or closely associated with an insurance company licensed to
			 transact insurance business in this State.
d) The words "Insurance Department,"
			 "Insurance Company," "Policy Department" and other similar words or phrases
			 shall not be used in any assumed name or firm name. The words "Underwriters"
			 and "Insurers" or other similar words or phrases shall not be used in any
			 assumed name or firm name unless the word "agency" is included in the name and
			 is appropriately positioned therein.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3110 - LICENSED PERSONS IN MILITARY SERVICE › Section 3110.10 - Application

Current through Register Vol. 48, No. 28, July 12, 2024
The following rules apply to any person who shall notify the
				Director of Insurance that while licensed other than temporarily he has entered
				any of the military services of the United States:
a) An Insurance Producer License in force on
			 the date of entering military service shall continue in full force and effect
			 without the requirements of filing the renewal application to qualify for
			 license and without the payment of any further Insurance Producer license fee
			 until the holder thereof is honorably discharged from military service. The
			 holder of such Insurance Producer license may continue to receive commissions
			 and exercise all authorities granted by such existing license.
b) By executing a proper Power of Attorney
			 and filing with the Director a certified copy thereof, any licensee in military
			 service may designate an individual to act in his stead during his absence and
			 to conduct his business for him. The individual so designated shall fulfill all
			 requirements of the law as to eligibility including the filing of an
			 application, the completion of the required examination and the payment of the
			 statutory fees.
c) If any change in
			 the status of the existing licenses, other than the renewal thereof is desired
			 while the licensee is in the military service, an application therefor shall be
			 completed and filed with the Director.
d) Any examination fee in effect on the date
			 of entering military service shall, from the date of honorable discharge,
			 continue in effect for the unexpired period.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3113 - PREMIUM FUND TRUST ACCOUNT › Section 3113.20 - Purpose and Scope

Current through Register Vol. 48, No. 28, July 12, 2024
a) The purpose
			 of this Part is:
1) To implement Sections
			 500-70, 500-110 and 500-115 of Article XXXI of the Illinois Insurance Code [215
			 ILCS 5/500-70, 500 -110 and 500-115] . Failure to adhere to the standards set
			 forth in this Part shall subject the offender, in addition to any other
			 penalties or remedies provided by law, to proceedings under Article XXXI of the
			 Illinois Insurance Code [215 ILCS 5 /Art. XXXI]; and
2) To establish minimum standards required of
			 licensees to assure the proper handling of insurance transactions specifically
			 in regard to premiums and other monies received from insurers, insureds, other
			 licensees or business entities .
Illinois Administrative Code › Title 50 - INSURANCE › Part 3113 - PREMIUM FUND TRUST ACCOUNT › Section 3113.30 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
Financial Institution means a Federal or State chartered
				bank(s) or savings and loan institution(s) which is a member of the Federal
				Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance
				Corporation (FSLIC).
Premium means any amount of money charged to the insured or to
				be returned to the insured by the insurer for the assumption of liability
				through the issuance of policies or contracts for insurance.
Premium Fund Trust Account (hereafter referred to as PFTA)
				means a special fiduciary account established and maintained by a licensee into
				which all premiums collected are to be deposited.
Primary Dealer means a financial institution or government
				securities dealer who reports daily to the Federal Reserve Bank of New York. (A
				list of primary dealers is made available by the Federal Reserve Bank of New
				York, 33 Liberty Street, New York, New York 10045.)
Quasi-Resident means a non-resident licensee who has a place of
				business in Illinois or who produces 50% or more of his or her premium volume
				on Illinois property or risks. For purposes of this definition, a place of
				business means any identification, designation or location in Illinois used by
				a Quasi-Resident for insurance purposes. Such identification, designation or
				location may include but is not limited to the use of an Illinois telephone
				number, address, post office box or lock box.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3113 - PREMIUM FUND TRUST ACCOUNT › Section 3113.40 - Premium Fund Trust Account

Current through Register Vol. 48, No. 28, July 12, 2024
a) All
			 licensees required to maintain a PFTA, pursuant to subsection (c), shall
			 establish and maintain a PFTA in a financial institution. All resident and
			 quasi-resident licensees required to maintain a PFTA pursuant to this Section
			 shall maintain such PFTA with one or more financial institutions located within
			 the State of Illinois and subject to the jurisdiction of the Illinois courts.
			 Licensees are not required to maintain a separate PFTA for each insurer unless
			 required by an insurer(s).
b) All
			 licensees required to maintain a PFTA, pursuant to subsection (c), shall
			 certify at each license renewal or reinstatement date that premiums are held in
			 a PFTA. The account must be designated as a Premium Fund Trust Account on the
			 bank records and those words shall be displayed on the face of the checks of
			 that account.
c) A PFTA must be
			 established and maintained if a licensee:
1)
			 Holds any premiums for 15 days or more before remitting to an insurer or other
			 licensee.
2) Deposits any collected
			 premiums into a financial institution account or other account or uses the
			 premiums, even though the premiums are remitted within 15 days.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3113 - PREMIUM FUND TRUST ACCOUNT › Section 3113.50 - Minimum Record Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Licensees shall maintain books and records which reflect all insurance
			 transactions, specifically in regard to premiums and other monies received and
			 deposited into the PFTA and lawfully withdrawn from the PFTA. The preparation,
			 journalizing and posting of such books and records must be performed no less
			 than every 30 days.
b) Failure to
			 maintain on a timely basis the minimum books and records pursuant to this Part
			 shall be deemed evidence of untrustworthiness, incompetence and financial
			 irresponsibility. For the purpose of this subsection timely means not less than
			 every 30 days.
c) All books and
			 records for a calendar or fiscal year shall be maintained for at least 7 years
			 thereafter.
d) Licensees shall
			 maintain a cash receipts register of all monies received. The minimum detail
			 required in the register shall be:
1) Date
			 monies received and date deposited. If the licensee records the date of deposit
			 of each cash receipt elsewhere in his books and records the date of deposit is
			 not required in the cash receipts register.
2) Amount received - If the amount received
			 does not agree with the amount billed, the licensee shall prepare a written
			 record of the application of the amount received.
3) Name of insured, licensee or insurer
			 making the payment.
4) Policy
			 number or other description of the receipt. The description shall be in such
			 detail as to permit the Department's examiner to identify the source document
			 substantiating the receipt.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3113 - PREMIUM FUND TRUST ACCOUNT › Section 3113.60 - Return Premium

Current through Register Vol. 48, No. 28, July 12, 2024
a) Return
			 premiums must be paid to the insured or credited to the insured's account
			 within 15 days after receipt from the insurer or other licensee. If the return
			 premium is reflected as a credit on the licensee's billing statement from the
			 insurer or other licensee, the licensee must pay the return premium or credit
			 the insured's account within 15 days subsequent to payment of the statement or
			 the due date of the statement whichever is sooner. If the return premium is to
			 be credited to the insured's account, the credit must be shown and applied to
			 the next billing statement sent to the insured.
b) If the credit results in a credit balance
			 on the insured's account the credit must be returned within 15 days unless the
			 licensee receives written authorization from the insured to retain the credit
			 balance and other developed credit balances for a period of no more than 12
			 months from the date of authorization. Such authorization must contain a
			 notification to the insured that he has the right to withdraw the authorization
			 in writing and that the return premium will be refunded within 15 days of the
			 authorization withdrawal. A copy of the authorization must be maintained in the
			 licensee's file and a file must be given to the insured at the time that the
			 authorization is obtained. If authorization is obtained, the licensee must send
			 monthly written notification to the insured which clearly reflects a credit
			 owed to the insured.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3113 - PREMIUM FUND TRUST ACCOUNT › Section 3113.70 - Severability

Current through Register Vol. 48, No. 28, July 12, 2024
If any provision of this Part or the application thereof to any
				person or circumstance is for any reason held to be invalid, the remainder of
				the Part and the application of such provision to other persons or
				circumstances shall not be affected thereby.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3113 - PREMIUM FUND TRUST ACCOUNT › Exhibit A - Consent and Authorization Form

Current through Register Vol. 48, No. 28, July 12, 2024
I
_______________________
hereby give
___________________
written (or)
principal
licensee
permission and authorization to place on deposit with any
				Federal or State chartered bank(s) money which represents premium to be held or
				held on my behalf pursuant to 50 Ill. Adm. Code 3113 for interest or income
				producing purposes. I further waive any right to ownership in any interest or
				revenue produced from this deposit.
I agree and consent to the above
____________________
_______________
principal
licensee
Date: _______________________________
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.25 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Code"
				means the Illinois Insurance Code [215 ILCS 5
				].
"Department" means the Illinois Department of Insurance.
"Director" means the Director of the Illinois Department of
				Insurance.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.45 - Fingerprinting

Current through Register Vol. 48, No. 28, July 12, 2024
Prior to the Department's issuance of a public adjuster's
				license or a renewal of the existing license, the applicant or adjuster
				(resident and non-resident) must have his or her fingerprints on file with the
				Department in accordance with Section 1520 of the Code.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.50 - Records Material

Current through Register Vol. 48, No. 28, July 12, 2024
As used in Section 1585 of the Code, records material means all
				books, papers, and documentary materials regardless of physical form or
				characteristics made, produced, executed, or received by any public adjuster
				pursuant to a law or in connection with the transaction of its business and
				preserved or appropriate for preservation by that adjuster or its successors as
				evidence of the organization, function, policies, decisions, procedures,
				obligations, and business of the adjuster or because of the informational data
				contained therein.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.65 - Resident License

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each public
			 adjuster shall complete continuing education in accordance with Section 1565 of
			 the Code. The public adjuster must complete the continuing education no later
			 than 30 days prior to the license renewal date to allow time for the continuing
			 education provider to submit proof of completion to the Department;
b) Courses completed prior to the original
			 issue date of the license shall not be used to meet the continuing education
			 requirements.
c) The public
			 adjuster may accumulate a maximum of 36 credit hours on file with the
			 Department. Ethics instruction hours shall not be accumulated to meet the next
			 compliance period, and must be completed in the continuing education compliance
			 period for the renewal.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.80 - Contract Between Public Adjuster and Insured

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each public adjuster shall file with and
			 secure the approval of the Director of each contract before it is used in the
			 State of Illinois.
b) Each contract
			 form filing submitted for approval must include provisions required by Section
			 1575 of the Code and must be consistent with the provisions of Article XLV of
			 the Code. Contract form filings must include:
1) The names and license numbers of the
			 public adjusters making the filing;
2) Notification as to whether the filing is
			 new or supersedes a current filing. Identification of all changes in all
			 superseding filings, as well as identification of all superseded forms, is
			 required; and
3) The effective date
			 of use.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.85 - Financial Disclosure and Consumer Rights Notice

Current through Register Vol. 48, No. 28, July 12, 2024
a) Public adjusters must provide full written
			 financial disclosure consistent with Sections 1575(d) and 1590(d), (f), (g),
			 and (h) of the Code. The financial disclosure must contain, at a minimum, the
			 following wording in 10-point font:
1) "You
			 are not required to use any person recommended to you by the public adjuster.
			 You have a right to receive quotes or estimates from other contractors or
			 vendors. You are free to hire the contractor or vendor of your choice.";
			 and
2) A statement clarifying the
			 amount of ownership in the recommended contractor by the public adjuster or any
			 immediate family and/or the specific amount of compensation the public adjuster
			 will receive from the recommended contractor if the client uses the recommended
			 contractor. This disclosure may be stated in an actual dollar amount or a
			 percentage of the payment.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.90 - Charges for Services

Current through Register Vol. 48, No. 28, July 12, 2024
a) A public
			 adjuster client shall not be required by the licensed public adjuster, or its
			 agent, to pay higher fees to the public adjuster if the client does not elect
			 to work with the contractor or vendor preferred or primarily recommended by the
			 public adjuster.
b) A public
			 adjuster commission, charges or fee shall not include the deductible amount and
			 shall only be based on net claim payment made by the insurer.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3118 - LICENSING OF PUBLIC ADJUSTERS › Section 3118.115 - Performance Standards Applicable to All Public Adjusters

Current through Register Vol. 48, No. 28, July 12, 2024
a) A public adjuster shall not allow any
			 unlicensed individual or entity in which the public adjuster has any interest,
			 or that will compensate the adjuster, to solicit a loss in violation of Section
			 1590(b) of the Code.
b) A public
			 adjuster shall not recommend any contractor unless the public adjuster first
			 receives confirmation from the contractor that the contractor has liability
			 insurance, a performance bond, any necessary licenses required to perform the
			 particular work, and a written warranty of workmanship in the contractor's
			 contract.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
The purpose of this Part is to establish pre-licensing
				education requirements for applicants for an insurance producer license,
				establish continuing education requirements for licensed insurance producers,
				and establish requirements for providers and instructors of pre-licensing and
				continuing education courses. Additionally, this Part establishes
				disqualification and non-compliance penalty provisions for
				providers.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.20 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
For the purposes of this Part, the following definitions shall
				apply:
Code means the Illinois Insurance Code [215 ILCS 5 ].
Contact instruction means a course presented in a classroom or
				seminar format.
Course means any course of study certified to the Director that
				meets the requirements of this Part, including but not limited to seminar,
				classroom, and self-study formats.
Date of Original Issue means the date of the issuance of a
				producer's license. Any lapse or suspension of 1 year or more shall establish a
				new date of original issue and subject the person to this Part.
Department means the Department of Insurance.
Director means the Director of the Department of Insurance of
				the State of Illinois or anyone to whom the Director's responsibilities and
				authority are lawfully delegated.
Interactive Online means self-study courses only presented on
				the Internet that do not require a proctored final exam.
Long Term Care Training (LTCT) means prescribed training
				required by licensed producers prior to the producer being allowed to sell long
				term care insurance coverage. This training is required pursuant to 50 Ill.
				Adm. Code
				2012.121
				and may satisfy a part of the continuing education requirement if the course is
				filed with the Department as a continuing education course.
Provider means any person who offers a course for which
				certification has been received by the Director.
Successful Completion means passing an examination with a score
				of 70% or above in accordance with criteria established by the provider.
Supervised Examination means a proctored, timed and closed book
				examination.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.30 - Provider Responsibilities

Current through Register Vol. 48, No. 28, July 12, 2024
a) Each
			 provider shall submit a certification to the Director for each course it
			 intends to offer for pre-licensing or continuing education credit.
			 Certification is to be submitted to the Department of Insurance at least 30
			 days prior to the first date the course will be offered. Certification must be
			 accompanied by the appropriate fee (see
			 215
			 ILCS 5/500-135(a)(6) or (7) ), be
			 signed and dated by the provider, and contain: the provider's name; Federal
			 Employer Identification Number (FEIN) and/or Social Security number of the
			 individual provider; contact person and that person's telephone number;
			 published provider telephone number; course title; first date course will be
			 offered; whether the course is for public education; class of insurance to
			 which the course is applicable; and type of course instruction (see
			 215
			 ILCS 5/500-35(b)(1) ). The
			 certification format and content have also been posted to the Department's
			 website at: www.insurance.illinois.gov/Producer/producer_information.as [File
			 Link Not Available] and will be made available upon request from the
			 Department. Use of the National Association of Insurance Commissioners (NAIC)
			 Midwest Zone Form is also permissible for purposes of certification.
b) Each provider shall submit a new
			 certification when there is a significant change in the course. No provider
			 shall submit the same or substantially the same course content for more than
			 one course.
c) Each provider shall
			 maintain a copy of all instructional materials for each course. If the provider
			 ceases to offer a course or makes a significant change in the course materials,
			 the provider shall maintain the original material for 1 year from the date the
			 course was terminated or significantly changed.
d) Each provider shall maintain the following
			 records for 3 years at a central location:
1)
			 Classroom or seminar - roster for each classroom course or seminar identifying
			 the instructors, the student, the course, the location, the date and hours of
			 attendance, the completion date, the examinations and the results of any
			 examinations administered.
2)
			 Self-study online - name of student, name of course, date of completion, the
			 examinations, the results of examinations, and other applicable proof of
			 completion.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.45 - Responsibilities of the Applicant for Insurance Producer Licenses and the Licensed Insurance Producers

Current through Register Vol. 48, No. 28, July 12, 2024
a)
			 Applicants for Insurance Producer Licenses
1)
			 Prior to taking the licensing examination, each applicant shall complete the
			 pre-licensing education requirements for each class of insurance for which an
			 examination is being taken. The pre-licensing education course must be used
			 within 1 year after completion.
2)
			 Applicants who either have earned a college degree in insurance or hold any of
			 the designations listed in this subsection (a)(2) will be exempt from the
			 pre-licensing requirement of this Part. A copy of the college degree or
			 certification for the following designations must be provided to the Department
			 at the time of licensure application.
Class of Insurance
Designation
Life
CEBS, ChFC, CIC, CFP, CLU, FLMI, and LUTCF
Accident and Health
RHU, CEBS, REBC, and HIA
Property and Casualty
AAI, ARM, CIC, and CPCU
3) The
			 following abbreviations and acronyms are used in subsection (a)(2):
Life Designations
CEBS
Certified Employee Benefits Specialist
ChFC
Chartered Financial Consultant
CIC
Certified Insurance Counselor
CFP
Certified Financial Planner
CLU
Chartered Life Underwriter
FLMI
Fellow Life Management Institute
LUTCF
Life Underwriting Training Council Fellow
Accident and Health Designations
RHU
Registered Health Underwriter
CEBS
Certified Employee Benefits Specialist
REBC
Registered Employee Benefits Consultant
HIA
Health Insurance Associate
Property and Casualty Designations
AAI
Accredited Advisor Insurance
ARM
Associate in Risk Management
CIC
Certified Insurance Counselor
CPCU
Chartered Property and Casualty Underwriter
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.50 - Pre-Licensing - Course of Study Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) The certification form must be received by
			 the Director at least 30 days prior to any course being offered.
b) A course to be certified by the provider
			 as a pre-licensing course of study shall meet the content requirements of
			 Section 500-30(b) of the Code and time distribution requirements as set forth
			 in Exhibit E, F, G or H of this Part, whichever is applicable.
c) For purposes of this Section, the minimum
			 number of hours may be made up of any combination of classroom, seminar, or
			 self-study hours. A self-study course must have an examination.
d) One credit will be awarded for each 50
			 minutes of contact instruction.
e)
			 No credit shall be given for a self-study course if the student does not
			 successfully complete the examination. If the student fails an examination and
			 successive examinations are given, the successive examinations must be
			 substantially different from each other. Self-study courses are subject to the
			 following additional requirements:
1) No
			 students shall evaluate their own examination. The evaluation of the
			 examination must be completed by the provider;
2) No provider shall furnish the answers to
			 an examination prior to the student completing the examination;
3) Self-study exams must contain at least 25
			 questions. The number of questions must increase proportionately as the amount
			 of material increases;
4) No more
			 than a third of the questions shall be true/false;
5) Credit hours shall be determined by the
			 time it may take a student to study the material using 10 81/2" by 11" full
			 pages per credit hour (10-12 point font text), single line spacing with 1"
			 margins; and
6) Graphs, charts,
			 forms and pictures may be used in course materials; however, only a total of 10
			 percent will count toward the course content. The graphs, charts, forms and
			 pictures must pertain to the course content.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.60 - Continuing Education Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) The certification must be received by the
			 Director at least 30 days prior to any course being offered.
b) For purposes of this Section, "full
			 credit" shall mean the reasonable amount of time, as certified by the provider,
			 that is necessary for a student to study for and pass an examination, or in the
			 case of a course with no examination, the number of documented classroom
			 attendance hours.
c) Courses shall
			 be intended to increase the knowledge and understanding of insurance principles
			 and coverages, applicable laws, insurance regulations, agency management,
			 customer service and sales. The following courses shall not be considered for
			 continuing education:
1) Courses used for
			 insurance pre-licensing training or insurance qualifying examination
			 preparation.
2) Courses with less
			 than 1 hour of certified continuing education credit.
3) Courses in excess of 12 hours of certified
			 continuing education credit.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.65 - Course Credit

Current through Register Vol. 48, No. 28, July 12, 2024
The value of course credit for purposes of this Section shall
				be determined as follows:
a)
			 Supervised Examinations
1) Successful
			 Completion
Students who successfully complete a supervised examination
				will receive full credit for the course.
2) Unsuccessful Completion
Students who do not successfully complete a supervised
				continuing education examination shall receive one hour of credit for each hour
				of documented classroom attendance not to exceed 50% of full credit.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.70 - Course and Provider Disqualification

Current through Register Vol. 48, No. 28, July 12, 2024
a) The Director may disqualify any provider
			 and/or any provider's courses if the Director finds that:
1) the provider or course has not met the
			 requirements of this Part;
2) the
			 provider has made a material misstatement or intentional misrepresentation on a
			 certification form filed with the Director; a misstatement will be considered
			 material if the course would not have been certified in the absence of such
			 statement;
3) the provider has
			 intentionally misrepresented itself or its course to students or prospective
			 students;
4) the provider has
			 violated any commitment made in the request for certification and supplementary
			 attachments to the certification, including failure to maintain the standards
			 and method of operation set forth in the request for certification and any
			 supplementary attachments;
5) the
			 provider has employed instructors who do not meet the requirements of Section
			 3119.30(f);
6) the provider is deemed by the Director to
			 have failed to act in good faith in providing a course. A failure to act in
			 good faith may be evidenced by the following:
A) a student pass/fail ratio inconsistent
			 with those of other providers for courses which are similar in content and
			 difficulty;
B) the number of
			 complaints received by the Director that specifically relate to the provider's
			 courses;
C) provides to the student
			 a proof of completion form that contains false or incomplete
			 information;
D) provides to the
			 student a partially completed proof of completion form;
7) the provider has failed to maintain the
			 materials and records pursuant to Section 3119.30;
8) the provider failed to furnish the
			 Director with information and records required by Section 3119.30, or the
			 provider supplied false or incomplete information or records;
9) the provider fails to furnish the Director
			 with an accurate student proof of completion list required by Section
			 3119.30(e)
			  within 10 days following the end of the week
			 in which the course was completed;
10) The provider has, while conducting
			 business as a provider, used fraudulent or dishonest practices, or has
			 demonstrated incompetence or untrustworthiness.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.75 - Additional Penalties

Current through Register Vol. 48, No. 28, July 12, 2024
In addition to, or instead of, course and provider
				disqualifications as set forth in Section
				3119.70,
				the Director may take any appropriate regulatory action authorized by Article
				XXIV of the Code or any other provision of the Code or rule against a provider
				who fails to meet the requirements of this Part.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Section 3119.80 - Severability

Current through Register Vol. 48, No. 28, July 12, 2024
If any provision of this Part or the application thereof to any
				person or circumstance is for any reason held to be invalid, the remainder of
				the Part and the application of such provision to other persons or
				circumstances shall not be affected thereby.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Exhibit E - COURSOF STUDY - LIFE

Current through Register Vol. 48, No. 28, July 12, 2024
Course of Study Content
						  Requirements
Time Distribution Requirements
I.
Types of policies and coverages
32%
A.
Endowment
B.
Term
1.
Level term
2.
Decreasing term
C.
Whole Life
D.
Limited Pay policies
E.
Combination plan
F.
Other types of policies:
1.
Modified life
2.
Family plans
3.
Deposit term
4.
Universal life
G.
Annuity
H.
Accidental death and dismemberment
I.
Uses for term insurance
J.
Uses for whole life insurance
K.
Group life
L.
Industrial insurance
II.
Policy provisions, options and benefits
40%
A.
Entire contract
B.
Insuring clause
C.
Free look
D.
Consideration clause
E.
Owner's rights
F.
Primary and contingent beneficiaries
G.
Change of beneficiary
H.
Grace period
I.
Automatic premium loan
J.
Reinstatement
K.
Policy loan
L.
Nonforfeiture options
M.
Dividends and dividends options
N.
Guaranteed insurability options
O.
Incontestability
P.
Assignment
Q.
Suicide
R.
Misstatement of age
S.
Settlement options
T.
Waiver of premiums
U.
Accidental death benefit
V.
Term riders
W.
Exclusions
X.
Conversion Options (individual and group)
III.
Completing the application and delivering the
						  policy
16%
A.
Completing the application and obtaining necessary
						  signatures
B.
Warranties and Representations
C.
Complying with provision of Fair Credit Reporting Act
						  and Illinois Insurance Privacy Act
D.
Explaining the effect of the application with
						  money
E.
Explaining the effect of the application without
						  money
F.
The underwriting process
G.
Delivery and explanation of the policy
IV.
Taxes, retirement and other insurance concepts
12%
A.
Insurable interest
B.
Third party ownership
C.
Individual tax shelter plans, IRA, Keogh and TSA
D.
Social Security benefits and taxes
E.
Tax treatment of premiums and proceeds of insurance
						  contracts
F.
Determination of premiums
1.
Mortality
2.
Interest
3.
Mortality
G.
Policy reserves
Illinois Administrative Code › Title 50 - INSURANCE › Part 3119 - PRE-LICENSING AND CONTINUING EDUCATION › Exhibit F - COURSE OSTUDY - ACCIDENT/HEALTH

Current through Register Vol. 48, No. 28, July 12, 2024
Course of Study Content
						  Requirements
Time Distribution Requirements
I.
Types of policies and coverages
30%
A.
Disability income
B.
Accidental death and dismemberment and other indemnity
						  plans
C.
Medical expense insurance
D.
Medicare and Medicare supplements
E.
Medicaid
F.
Limited coverage plans ( cancer plans and travel
						  accident)
II.
Policy provisions, options and benefits
30%
A.
Entire contract
B.
Insuring clause
C.
Free look (ten day, twenty day)
D.
Consideration clause
E.
Owner's rights
F.
Change of beneficiaries
G.
Grace period
H.
Probationary (waiting) period
I.
Reinstatement
J.
Time limit on certain defenses
K.
Misstatement of age
L.
Waiver of premiums
M.
Exclusions
N.
Payment of claims
O.
Notice of claims
P.
Claim forms
Q.
Proof of loss
R.
Legal actions
S.
Time of payment of claims
T.
Physical examinations and autopsy
U.
Change of occupation
V.
Illegal occupation
W.
Nonduplication and coordination of benefits (e.g.,
						  primary vs. excess benefits)
X.
Group conversions
III.
Completing the application and delivering the
						  policy
10%
A.
Completing the application and obtaining necessary
						  signatures
B.
Warranties and Representations
C.
Complying with provision of Fair Credit Reporting Act
						  and Illinois Insurance Privacy Act
D.
Explaining the effect of the application with
						  money
E.
Explaining the effect of the application without
						  money
F.
The underwriting process
G.
Delivery and explanation of the policy
IV.
Group insurance, taxation, and other insurance
						  concepts
16%
A.
Group insurance
B.
Occupational vs. nonoccupational coverage
C.
Total vs. partial disability
D.
Social Security benefits and taxes
E.
Service organizations (e.g., Blue Cross/Blue Shield,
						  HMO)
F.
Tax treatment of premiums and proceeds of insurance
						  contracts (e.g., disability and medical expense)
V.
Other provisions affecting insurance benefits
14%
A.
Deductibles
B.
Elimination (waiting) period
C.
Coinsurance
D.
Preexisting conditions
E.
Renewability provisions (e.g., noncancellable,
						  guaranteed renewable, conditionally renewable, optionally renewable)
F.
Covered medical expenses
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 3120.10 - Purpose

Current through Register Vol. 48, No. 28, July 12, 2024
a) The purpose of
			 this Part is to require insurance producers to act in the best interest of the
			 consumer when making a recommendation of an annuity and to require insurers to
			 establish and maintain a system to supervise recommendations so that the
			 insurance needs and financial objectives of consumers at the time of the
			 transaction are effectively addressed.
b) Nothing in this Part shall be construed to
			 create or imply a private cause of action for a violation of this Part or to
			 subject an insurance producer to civil liability under the best interest
			 standard of care outlined in Section
			 3120.50 or under standards
			 governing the conduct of a fiduciary or a fiduciary relationship.
Illinois Administrative Code › Title 50 - INSURANCE › Part 3120 - SUITABILITY IN ANNUITY TRANSACTIONS › Section 3120.30 - Exemptions

Current through Register Vol. 48, No. 28, July 12, 2024
Unless otherwise specifically included, this Part shall not
				apply to transactions involving:
a)
			 Direct response solicitations where there is no recommendation based on
			 information collected from the consumer pursuant to this Part;
b) Contracts used to fund:
1) An employee pension or welfare benefit
			 plan that is covered by the Employee Retirement and Income Security Act
			 (ERISA);
2) A plan described by
			 sections 401(a), 401(k), 403(b), 408(k) or 408(p) of the Internal Revenue Code
			 (IRC) (26 USCS 401 et seq.), as amended, if established or maintained by an
			 employer;
3) A government or church
			 plan defined in section 414 of the IRC, a government or church welfare benefit
			 plan, or a deferred compensation plan of a state or local government or tax
			 exempt organization under section 457 of the IRC; or
4) A nonqualified deferred compensation
			 arrangement established or maintained by an employer or plan sponsor;