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CE Rules FAQ

Your Strength is Knowledge...

Are you up-to-date on the new two-year producer licensing renewal legislation?

Q: Can anyone attend the Dynamics of Services, William T. Hold & CIC James K. Ruble Graduate seminars?

A: Anyone can attend Dynamics of Service.  But if you are a CISR and want it to count for update credit, you must be a dues-paid Member of the National Alliance.  For William T. Hold, only dues-paid CISRs can attend, just like dues-paid CICs only for Ruble Seminars.

Q: What are the new fee increases?

A: Please visit: http://www.ins.state.il.us/producer/producer_fees_2003.htm

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Q
: What's this I'm hearing about a two-year renewal?

A: Beginning January 1, 2000, all producer licenses will be renewed on a two-year cycle. However, the law allows for a phase-in period. Therefore, commencing with the January 2000 renewals, one half of producers will renew their licenses for one year and one half will renew their licenses for two years. Producers whose renewal dates are the 1st through the 15th of the month will renew their licenses for one year in 2000. If their renewal dates are the 16th through the 31st of the month, they will renew their licenses for two years in 2000. Commencing in 2001, all licenses will be issued for a two-year period. In 2000, all new licenses will be issued for two years.

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Q
: Does this change the CE requirement too?

A: The bill makes a corresponding change in the CE requirement. Producers will have to earn 30 hours of CE during the two-year renewal period. However, there is also a transition period for the CE hours. If producers renew for one year in 2000, no CE will be removed from their records. If producers renew for two years in 2000, 15 hours of CE will be removed from their records. Commencing in 2001, all renewals will be for two years and 30 hours of CE will be required prior to each renewal. (In effect, you only need 15 hours of CE until your second renewal after January 2000). With the new law, the Department of Insurance will now allow for 15 hours of CE credits to be carried over into the next renewal period. Starting in 2000, producers will be able to accumulate up to 45 hours of CE in their records. Producers who do accumulate 45 hours still have to obtain at least 15 hours of CE in every renewal cycle.


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Q
: Is there still a bonding requirement?

A:The bonding requirement remains in place, but the bond no longer has to be filed with the Department. The law authorizes associations to provide the bonding coverage requirement for their members. The PIIAI will secure the bond coverages for all member agencies. If a producer brokers insurance business, the producer must maintain a bond in the amount of $2,500 or 5 percent of the premium brokered in the previous calendar year, whichever is greater, with a maximum of $50,000. The producer will have to certify, by signing the renewal application, that if a bond is required the producer will maintain the required bond. Failure to maintain a required bond is grounds for revocation. Insurers providing the bond no longer have to notify the director of the Department of Insurance when the bond is canceled. The insurer providing the bond does have to give the producer 30 days' notice if the bond is being canceled. It is the producer's responsibility to replace the bond if required. Producers are required to inform any consumer or client who requests the name of the bonding company and bond number with that information within three working days.

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Q
: Where will I be able to get approved classes to meet this CE requirement?

A: Currently there are over 450 approved education providers in the state of Illinois. The PIIAI has typically offered a broad and varied curriculum both in courses taught and in locations of these classes. We constantly strive to broaden our curriculum and provide more learning opportunities for our members.

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Q
: Do I have to take a test?

A: Only with self-study courses and on-line courses will you be required to take a test. If you take a self-study course, the examination does not have to be administered in a monitored environment by an independent third party. If you take an on-line class, the exam will need to be a proctored exam.

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Q
: What types of courses will I be permitted to take?

A: At this time the Department of Insurance will permit any class whose primary purpose is to provide basic technical information on policy forms, coverages, sales, marketing, automation, etc. Other courses may be approved based on the review and approval of the Department of Insurance.

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Q
: How long does it take to transfer my credits to the Illinois Department of Insurance?

A: That depends on the type of class you attend.

CIC and CISR courses are processed by The Society of Certified Insurance Counselors and The Society of Certified Insurance Service Representatives. These classes normally take 6 weeks to process and turn in to the Illinois Department of Insurance.

If you take a home study course that the PIIAI grades we can usually process it in 1 week. If you take a home study course that Pictorial grades, they can usually process it in 4 weeks.

Please allow at least 2 weeks for processing for any other classes sponsored by the PIIAI.


Approximate Processing Time for C.E. Credit
CIC - 6 weeks
CISR - 6 weeks
Home Study - PIIAI Grades 1 week
Home Study - Pictorial Grades 4 weeks
General Classes - 2 week