HB0759 EngrossedLRB100 06797 SMS 16845 b


  
1    AN ACT concerning regulation.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  



 
 
4    Section 5. The Illinois Insurance Code is amended  by 
5changing Section 1403 as follows:
 



6    (215 ILCS 5/1403)



7    Sec. 1403. Licensure requirements for financial 
8institutions. 

9    (a)  A financial institution transacting insurance business 
10in this State
shall register with the Director pursuant to the 
11Illinois Insurance Code and
shall be subject to the laws, 
12rules, and penalties of the Illinois Insurance
Code.

13    (b) The solicitation and sale of insurance by a financial 
14institution
shall be conducted only by individuals who have 
15been issued and maintain an
insurance producer's license 
16pursuant to the Illinois Insurance Code and shall
be subject to 
17the laws, rules, and penalties of the Illinois Insurance Code.

18    (c)  For the purposes of this Section, a "financial 
19institution" means the
subsidiary of a financial institution 
20when the financial institution is
transacting insurance 
21business in this State only through the subsidiary.  For
the 
22purposes of Section 499.1 of the Illinois Insurance Code, a 
23financial
institution shall be deemed to be a corporation.

 
 
HB0759 Engrossed- 2 -LRB100 06797 SMS 16845 b

1    (d) Nothing in Section 500-100 of this Code shall be 
2construed to require a limited lines producer license or any 
3other form or class of producer's license for financial 
4institutions, or their employees, if the financial institution 
5has purchased or sponsored a group credit life, credit accident 
6and health, credit casualty, credit property, or other group 
7credit insurance policy or program under which the financial 
8institution enrolls or performs other administrative services, 
9or both, to enable individuals to purchase insurance coverage 
10under the group credit insurance policy sold by a licensed 
11producer in compliance with Section 155.56.  A financial 
12institution that performs enrollment or other administrative 
13services, or both, with respect to its group credit insurance 
14policies or programs shall be deemed to be in compliance with 
15paragraph (2) of subsection (b) of Section 500-20 of this Code. 
16(Source: P.A. 90-41, eff. 10-1-97.)

 
 
17    Section 99. Effective date. This Act takes effect upon 
18becoming law.