Illinois

DOL Fiduciary Rule Update on Rollovers Postponed to January 31, 2020

Under the Department of Labor’s (DOL) new policies, all producers (agents) that rollover funds from a  Individual Retirement Account (IRA), Pension or other similar plans to an IRA annuity or other Defined Contribution/Benefit plans must meet the 5-part test under the Prohibited Transaction Exemption (PTE).  Those requirements can be found in PTE84-24 put out by …

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Business Entity License being suspended

If the Designated Responsible Licensed Producer (DRLP) fails to renew their producer’s license, the insurance regulators will suspend the Business Entity License.  Insurers can not pay commissions to  suspected Business Entity.  In order to protect against that happening make certain the DRLP renews their license early.  The other solution is to have 2nd DRLP for …

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Business Entity License

Any organization or individual can apply for a Business Entity License provided they have named a “Designated Responsible Licensed Producer”.  This individual is held responsible for the activities of others working for the Business Entity to insure insurance laws and regulations are followed.  When an individual is listed under a Business Entity, that producer can …

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How many hours of insurance continuing education is required to renew my license?

The standard continuing education rules adopted by many states is 24 hours every two years including 3 hours of ethics. Illinois requires classroom ethics including webinars taught by an experience licensed producer. Illinois permits an open book testing for self study courses.   If hours are earned in a classroom, 50 minutes constitutes an hour and students …

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I have the start of dementia, how do I protect my family from lost of coverage because I failed to pay my life insurance premiums on time?

In Illinois, The law provides that a life company issuing an individual life insurance contract on or after January 1, 2022, shall notify an applicant, in writing of the applicant’s right to designate a secondary addressee to receive notice of cancellation of the policy based on nonpayment of premium. The applicant may make such a …

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Payment of Interest on a Life Insurance policy

When an insurer delays payment on a life or annuity contract, they have deprived the insured or beneficiaries of the use of the money.  To stop unnecessary delays in payment of proceeds, states have enacted laws requiring the payment of interest to those effected by the delays.  Below is the Illinois Law: 215 ILCS 5/224 …

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New Illinois Director of Insurance

On January 4, 2021 Governor Pritzker nominated Dana Popish Severinghaus to serve as Director of Insurance.  Popish Severinghaus has extensive legal, policy, government relations and insurance related experience.  She awaits the confirmation by Illinois Senate.

Lost Policy Locator

The National Association of Insurance Commissioners (NAIC) has established a search engine to find lost policies for families of a deceased love one.  That website is:   https://eapps.naic.org/life-policy-locator/#/welcome.   This website shares the information with all life insurers in the country.  It is recommended to have a copy of the death certificate and information on prior …

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Changes in Required Minimum Distributions to Age 72

The SECURE Act signed into law by President Trump made a major change in Required Minimum Distributions(RMD). Those individuals with the Traditional Individual Retirement Accounts (IRA) who turned 70 1/2 in 2020, can delay their first RMD until April 1 of the year that  they reach age 72. Those individuals with the Traditional IRA who …

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If a register representative is fined by FINRA, is the requirement to notify my home state Insurance Regulators?

Each month FINRA notifies Insurance Regulators about their actions against register representatives whether they hold an insurance license or not.  Insurance producers are required to notify the Insurance Regulators of any violations within 30 days.   At the time of a license application or license renewal, producers are required to list all violations by any regularity …

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