Bill Text: IL HB4429 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Improving Access to Flood Insurance Act. Provides that each insurance producer, public adjuster, managing broker, broker, and employee of a lender shall participate in at least 3 hours of National Flood Insurance Program training. Provides that the insurance producer, public adjuster, managing broker, broker, or lender shall submit evidence of satisfaction of the requirement to the entity that regulates that profession. Requires the Department of Insurance to: provide a list of pre-approved courses available through the Federal Emergency Management Agency's Emergency Management Institute and other educational institutions the Department determines provide information and training equivalent to the Federal Emergency Management Agency's Emergency Management Institute; and to provide instructions for an insurance producer, public adjuster, managing broker, broker, lender, or employee of a lender to apply and secure credit for course work that meets equivalent educational goals but that is not included on the pre-approved list. Provides that a violation of the Act shall be considered a violation of any other law under which the insurance producer, public adjuster, managing broker, broker, or lender is licensed, chartered, or organized. Makes conforming changes in the Illinois Insurance Code and the Real Estate License Act of 2000. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4429 Detail]

Download: Illinois-2023-HB4429-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4429 Introduced , by Rep. Thaddeus Jones SYNOPSIS AS INTRODUCED:
New Act
215 ILCS 5/500-35
215 ILCS 5/1565
225 ILCS 454/5-70
Creates the Improving Access to Flood Insurance Act. Provides that each insurance producer, public adjuster, managing broker, broker, and employee of a lender shall participate in at least 3 hours of National Flood Insurance Program training. Provides that the insurance producer, public adjuster, managing broker, broker, or lender shall submit evidence of satisfaction of the requirement to the entity that regulates that profession. Requires the Department of Insurance to: provide a list of pre-approved courses available through the Federal Emergency Management Agency's Emergency Management Institute and other educational institutions the Department determines provide information and training equivalent to the Federal Emergency Management Agency's Emergency Management Institute; and to provide instructions for an insurance producer, public adjuster, managing broker, broker, lender, or employee of a lender to apply and secure credit for course work that meets equivalent educational goals but that is not included on the pre-approved list. Provides that a violation of the Act shall be considered a violation of any other law under which the insurance producer, public adjuster, managing broker, broker, or lender is licensed, chartered, or organized. Makes conforming changes in the Illinois Insurance Code and the Real Estate License Act of 2000. Effective immediately.
LRB103 36050 RPS 66137 b
A BILL FOR
HB4429 LRB103 36050 RPS 66137 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Improving Access to Flood Insurance Act.
Section 5. Definitions. As used in this Act:
"Broker" has the meaning given to that term in the Real
Estate License Act of 2000.
"Lender" means a bank, a savings bank, or a credit union
chartered or organized under the laws of the State of Illinois
that engages in real estate lending.
"Managing broker" has the meaning given to that term in
the Real Estate License Act of 2000.
"National Flood Insurance Program training" means any
class or continuing education opportunity where the main
topics include:
(1) the National Flood Insurance Program;
(2) elements of the National Flood Insurance Program;
or
(3) flood insurance premium reduction strategies, such
as floodplain management, flood risk reduction, or flood
hazard mitigation.

HB4429 - 2 - LRB103 36050 RPS 66137 b
Section 10. National Flood Insurance Program training
requirement. In addition to any other continuing education
requirements that may apply for that profession, each
insurance producer, public adjuster, managing broker, broker,
and employee of a lender shall participate in at least 3 hours
of National Flood Insurance Program training. The insurance
producer, public adjuster, managing broker, broker, or lender
shall submit evidence of satisfaction of the requirements of
this Section to the entity that regulates that profession. The
Department of Insurance shall provide a list of pre-approved
courses available through the Federal Emergency Management
Agency's Emergency Management Institute and other educational
institutions the Department determines provide information and
training equivalent to the Federal Emergency Management
Agency's Emergency Management Institute. The Department of
Insurance shall also provide instructions for an insurance
producer, public adjuster, managing broker, broker, lender, or
employee of a lender to apply and secure credit for course work
that meets equivalent educational goals but that is not
included on the pre-approved list.
Section 15. Violation of the Act. A violation of this Act
shall be considered a violation of any other law under which
the insurance producer, public adjuster, managing broker,
broker, or lender is licensed, chartered, or organized.

HB4429 - 3 - LRB103 36050 RPS 66137 b
Section 105. 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, 2027)
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.
(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.

HB4429 - 4 - LRB103 36050 RPS 66137 b
(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 or participation in a professional insurance
association under paragraph (3) of this subsection in
accordance with rules prescribed by the Director. Three of
the 24 hours of course study must consist of classroom or
webinar 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
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

HB4429 - 5 - LRB103 36050 RPS 66137 b
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. In addition to
any other requirements under this Section, an insurance
producer shall comply with the Improving Access to Flood
Insurance Act.
(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.
(3) An insurance producer's active participation in a
State or national professional insurance association may
be approved by the Director for up to 4 hours of continuing
education credit per biennial reporting period. Credit

HB4429 - 6 - LRB103 36050 RPS 66137 b
shall be provided on an hour-for-hour basis. These hours
shall be verified and submitted by the association on
behalf of the insurance producer and credited upon timely
filing with the Director or his or her designee on a
biennial basis. Any association submitting continuing
education credit hours on behalf of insurance producers
must be registered as an education provider under Section
500-135. Credit granted under these provisions shall not
be used to satisfy ethics education requirements. Active
participation in a State or national professional
insurance association is defined by one of the following
methods:
(A) service on a board of directors of a State or
national chapter of the association;
(B) service on a formal committee of a State or
national chapter of the association; or
(C) service on a formal subcommittee or task force
of a State or national chapter of the association.
(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.
(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

HB4429 - 7 - LRB103 36050 RPS 66137 b
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. 102-766, eff. 1-1-23.)
(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

HB4429 - 8 - LRB103 36050 RPS 66137 b
satisfactorily complete a minimum of 24 hours of continuing
education courses, including 3 hours of classroom or webinar
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 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

HB4429 - 9 - LRB103 36050 RPS 66137 b
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.
(d) In addition to any other requirements under this
Section, a public adjuster shall comply with the Improving
Access to Flood Insurance Act.
(Source: P.A. 102-135, eff. 7-23-21.)
Section 110. The Real Estate License Act of 2000 is
amended by changing Section 5-70 as follows:
(225 ILCS 454/5-70)
(Section scheduled to be repealed on January 1, 2030)
Sec. 5-70. Continuing education requirement; managing
broker or broker.
(a) The requirements of this Section apply to all managing

HB4429 - 10 - LRB103 36050 RPS 66137 b
brokers and brokers.
(b) Except as otherwise provided in this Section, each
person who applies for renewal of a license as a managing
broker or broker must successfully complete 12 hours of real
estate continuing education courses recommended by the Board
and approved by the Department during the current term of the
license. In addition, those licensees renewing or obtaining a
managing broker's license must successfully complete a 12-hour
broker management continuing education course approved by the
Department during the current term of the license. The broker
management continuing education course must be completed in
the classroom or through a live, interactive webinar or online
distance education format. No license may be renewed except
upon the successful completion of the required courses or
their equivalent or upon a waiver of those requirements for
good cause shown as determined by the Secretary upon the
recommendation of the Board. The requirements of this Article
are applicable to all managing brokers and brokers except
those managing brokers and brokers who, during the current
term of licensure:
(1) serve in the armed services of the United States;
(2) serve as an elected State or federal official;
(3) serve as a full-time employee of the Department;
or
(4) are admitted to practice law pursuant to Illinois
Supreme Court rule.

HB4429 - 11 - LRB103 36050 RPS 66137 b
(c) (Blank).
(d) A person receiving an initial license during the 90
days before the renewal date shall not be required to complete
the continuing education courses provided for in subsection
(b) of this Section as a condition of initial license renewal.
(e) The continuing education requirement for brokers and
managing brokers shall consist of a single core curriculum and
an elective curriculum, to be recommended by the Board and
approved by the Department in accordance with this subsection.
The core curriculum shall not be further divided into
subcategories or divisions of instruction. The core curriculum
shall consist of 4 hours during the current term of the license
on subjects that may include, but are not limited to,
advertising, agency, disclosures, escrow, fair housing,
residential leasing agent management, and license law. The
amount of time allotted to each of these subjects shall be
recommended by the Board and determined by the Department. The
Department, upon the recommendation of the Board, shall review
the core curriculum every 4 years, at a minimum, and shall
revise the curriculum if necessary. However, the core
curriculum's total hourly requirement shall only be subject to
change by amendment of this subsection, and any change to the
core curriculum shall not be effective for a period of 6 months
after such change is made by the Department. The Department
shall provide notice to all approved education providers of
any changes to the core curriculum. When determining whether

HB4429 - 12 - LRB103 36050 RPS 66137 b
revisions of the core curriculum's subjects or specific time
requirements are necessary, the Board shall consider recent
changes in applicable laws, new laws, and areas of the license
law and the Department policy that the Board deems
appropriate, and any other subject areas the Board deems
timely and applicable in order to prevent violations of this
Act and to protect the public. In establishing a
recommendation to the Department regarding the elective
curriculum, the Board shall consider subjects that cover the
various aspects of the practice of real estate that are
covered under the scope of this Act.
(f) The subject areas of continuing education courses
recommended by the Board and approved by the Department shall
be meant to protect the professionalism of the industry, the
consumer, and the public and prevent violations of this Act
and may include without limitation the following:
(1) license law and escrow;
(2) antitrust;
(3) fair housing;
(4) agency;
(5) appraisal;
(6) property management;
(7) residential brokerage;
(8) farm property management;
(9) transaction management rights and duties of
parties in a transaction;

HB4429 - 13 - LRB103 36050 RPS 66137 b
(10) commercial brokerage and leasing;
(11) real estate financing;
(12) disclosures;
(13) residential leasing agent management;
(14) advertising;
(15) broker supervision and designated managing broker
responsibility;
(16) professional conduct; and
(17) use of technology.
(g) In lieu of credit for those courses listed in
subsection (f) of this Section, credit may be earned for
serving as a licensed instructor in an approved course of
continuing education. The amount of credit earned for teaching
a course shall be the amount of continuing education credit
for which the course is approved for licensees taking the
course.
(h) Credit hours may be earned for self-study programs
approved by the Department.
(i) A managing broker or broker may earn credit for a
specific continuing education course only once during the
current term of the license.
(j) No more than 12 hours of continuing education credit
may be taken in one calendar day.
(k) To promote the offering of a uniform and consistent
course content, the Department may provide for the development
of a single broker management course to be offered by all

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education providers who choose to offer the broker management
continuing education course. The Department may contract for
the development of the 12-hour broker management continuing
education course with an outside vendor or consultant and, if
the course is developed in this manner, the Department or the
outside consultant shall license the use of that course to all
approved education providers who wish to provide the course.
(l) Except as specifically provided in this Act,
continuing education credit hours may not be earned for
completion of pre-license or post-license courses. The courses
comprising the approved 45-hour post-license curriculum for
broker licensees shall satisfy the continuing education
requirement for the initial broker license term. The approved
45-hour managing broker pre-license brokerage administration
and management course shall satisfy the 12-hour broker
management continuing education requirement for the initial
managing broker license term.
(m) In addition to any other requirements of this Section,
a managing broker or broker shall comply with the Improving
Access to Flood Insurance Act.
(Source: P.A. 101-357, eff. 8-9-19; 102-970, eff. 5-27-22.)