Director Mark Boozell has won a key ruling from the U.S. Federal District Court in Chicago in the most important "superpriority" case since the Supreme Court's Fabe decision in 1993.
In a dispute against the United States involving the Reserve Insurance Company liquidation estate (Boozell v. United States), the Court agreed with Boozell that claims brought by the federal government against the Reserve estate are subject to Illinois receivership law, and are not entitled to "superpriority" ranking ahead of consumers' claims. The Court rejected an argument by the U.S. Department of Justice that the federal government need not follow state court procedural requirements, such as claim-filing deadlines (the Court declined to follow the 1993 Garcia decision from the First Circuit). The Court also rejected an argument that the statutory role of guaranty associations invalidates state receivership laws.
Relying on the McCarran-Ferguson Act and the Fabe decision, Judge Ruben Castillo concluded, "(T)he provisions of the Illinois liquidation statute which conflict with the federal priority act relate to the business of insurance pursuant to the Supreme Court's analysis in Fabe. . . . Moreover, this Court believes . . . that the Fabe majority opinion was correct in its application of the plain wording of the McCarran-Ferguson Act."
"We believe that Judge Castillo's common-sense conclusions are tremendously helpful to insurance consumers, not only in Illinois, but across the country," Boozell observed. "Congress intended under the McCarran-Ferguson Act that state law would govern the business of insurance, from cradle to grave. The state laws on liquidation priorities, the court procedures, and the role of the guaranty associations are all part of the system of state regulation protected by McCarran. Our laws treat federal government claims no better — and no worse — than any other claims. We only ask that the federal government live by the same rules that apply to all other claimants, so that we can close these estates and pay the consumers. We thought that had all been settled by the Fabe decision, but if it was not, Judge Castillo's reasoning should resolve any unanswered questions."
If the federal government does not appeal the decision, Boozell is prepared to close the Reserve estate and make a final distribution of the assets he has marshalled to Reserve's creditors.
Boozell was represented by attorneys Peter Gallanis and Kevin Baldwin of the Office of the Special Deputy Receiver in Chicago, and by Carlisle Herbert of Hopkins & Sutter.
Back to the topThe Circuit Court of Cook County declared Inland American Insurance Company, Oak Brook, IL, insolvent and placed it in liquidation on September 19, 1997. The company had approximately $1.7 million in direct premium as of December 31, 1996, but had not written new business since April 1997.
Inland American wrote exclusively a special business owners policy for apartment buildings in the Chicago metropolitan area. The insurer's policyholder surplus was impaired in excess of $1 million.
Policyholders were notified that all policies protected by the Illinois Insurance Guaranty Fund would be canceled as of 12:01 a.m. October 20, 1997, unless they expired or were terminated at an earlier date. The fund will be responsible for the covered claims of Illinois policyholders.
Inland American had been under a sequestered conservation order since September 11, 1997, and will continue under the Director's control. The liquidation is being handled by the Office of the Special Deputy Receiver, 222 Merchandise Mart Plaza, Ste. 1450, Chicago, IL; (312) 836-9500.
Back to the topThe Plan of Rehabilitation for American Mutual Reinsurance Company (AMRECO) continues to produce favorable results. The eighth annual report of the company's operations was filed in the Circuit Court of Cook County by Illinois Insurance Director, Mark Boozell, as rehabilitator.
Headquartered in Chicago, AMRECO was placed in rehabilitation in February 1988 due to its declining financial position. In September 1988, the court approved an amended Plan of Rehabilitation that calls for AMRECO to pay an annually determined percentage of its net paid claim obligations in cash, and the remainder through the issuance of non-recourse, simple interest bearing instruments called surplus drafts. The plan also provides for the progressive redemption of the outstanding surplus drafts as the cash portion of the payment formula increases over time.
The payment formula approved in February 1989 was 37.50% cash and 62.50% surplus drafts. Effective January 1, 1991, the payment formula was increased to 41.25% cash and 58.75% surplus drafts and on January 1, 1994, to 46.25% cash and 53.75% surplus drafts. In the latest increase, January 1, 1997, the payment formula was increased to 49.25% cash and 50.75% surplus drafts. All payments have been made on schedule, and the changes in the payment formula from the inception of the Plan through December 31, 1996, have resulted in the redemption of approximately $15.1 million of outstanding surplus drafts.
Through August 31, 1997, AMRECO has settled nearly $321 million of paid claim obligations in the form of cash and surplus drafts pursuant to the terms of the rehabilitation plan. Supplementary increases in the payment formula may be recommended, subject to AMRECO's ongoing results of operation and financial condition.
Questions should be directed to the Office of the Special Deputy Receiver in Chicago at (312) 836-9500.
Back to the topby Pamela Donnewald, CPCU, CIE
No one knows better than the property and casualty insurance industry how strong winds can cause bodily injury and property damage. After all, they pay for these damages all the time. Now there is a tool that provides insight into mitigating against windstorm damage to light frame construction.
Wind forces are the most common source of damage to light frame construction, sometimes resulting in total destruction. Tornadoes represent the most extreme and violent type of wind produced by nature. Buildings are not typically designed for such wind conditions, but are designed according to building codes to handle wind speeds in the range of 70-110 miles per hour, depending on geographic location.
Why then does so much wind damage and destruction happen to light frame construction buildings during wind storms? Are the building codes inadequate? Are the construction methods inadequate? The answers to these questions are addressed in "Windstorm Mitigation Manual for Light Frame Construction," authored by Dr. David Wickersheimer, Professor of Architecture, University of Illinois and President of Wickersheimer Engineers, Inc.
The manual was a joint Hazard Mitigation Grant Program with the University of Illinois Building Research Council, funded by FEMA (Federal Emergency Management Agency) and State Farm Fire and Casualty Company, and implemented by IEMA (Illinois Emergency Management Agency). As a result of hurricanes along the Atlantic coast, similar manuals have been prepared; however, according to FEMA Region V, this is the first manual that concentrates on wind as the primary risk in the Midwest.
The manual explains in laymen's terms "how to keep the roof attached to the walls, the walls to the floor, and the floor to the foundation."
For a free copy of the manual, call IEMA at (217) 782-8719.
Back to the topThe full text of Department rules is printed in the Illinois Register published weekly by the Illinois Secretary of State's Index Department, 111 E. Monroe St., Springfield, IL 62756. Subscriptions are available from that source for an annual fee of $290. Issue numbers and a Department contact person are listed below after each rule summary.
Copies of rules are also available upon written request to the Department of Insurance at a $1 per page charge. Adopted rules are codified in Title 50 of the Illinois Administrative Code.
Rule 2018 (Long Term Care Partnership Insurance) was amended October 21, 1997, to incorporate recent statutory changes found in Public Act 89-525. The definition of "asset protection" found in Section 2018.30 is being amended to allow an individual who purchased and has received all of the qualifying insurance benefits under that long term care partnership policy to receive total asset protection in an amount equal to the average cost of four years of long term care services. (Vol. 21, #44; Chuck Budinger)
Rule 3119 (Pre-licensing and Continuing Education) was amended October 15, 1997, to require continuing education providers to report on computer diskette, rosters of individuals who have successfully completed their education courses. For those providers who do not have the programming capability to comply, the Department intends to make available a formatted diskette which can be completed by a "fill in the blanks" process.
In addition to the new electronic filing requirement, the rule also requires producers to keep their own records of completed courses, including the name of the provider, the course title and the date of completion. And finally, the rule expands the type of course content that is allowed as continuing education credit to include management, customer service, and sales. (Vol. 21, #42; Bruce Cassens.)
Back to the topFinancial Health Direct Insurance, Inc. 05-28-97 Financial American Life Insurance Company 06-12-97 Illinois Founders Insurance Company 06-12-97 Gallant Insurance Company 06-30-97 Reliance Insurance Company of Illinois 07-02-97 PersonalCare Insurance of Illinois, Inc. 07-15-97 Western Catholic Union 07-15-97 Argonaut Great Central Insurance Company 09-26-97 Independent Order of Vikings 09-26-97 Knights of Pythias of North America, South America, Europe, Asia, Africa and Australia, Jurisdiction of Illinois 09-26-97 Stronghurst Mutual County Fire Insurance Company 09-26-97 UIHMO, Inc. 09-26-97 Grand Lodge of the State of Illinois of Order Sons of Italy in America 09-30-97 The Fireman's Mutual Aid and Benefit Association of the City of Chicago 10-01-97 Aetna Health Plans of Illinois, Inc. 10-02-97 Principal Health Care of Illinois, Inc. 10-02-97 Slovenian Women's Union of America 10-02-97 Valor Insurance Company 10-08-97 NYLCare Health Plans of the Midwest, Inc. 10-09-97 The Russian Independent Mutual Aid Society 10-09-97 AAI Syndicate #1, Ltd. 10-16-97 The St. Paul Insurance Company of Illinois 10-16-97 Connecticut National Life Insurance Company 10-17-97 Health and Life Insurance Company of America 10-17-97 Manhattan National Life Insurance Company 10-17-97 National Group Life Insurance Company 10-17-97 Pioneer Life Insurance Company of Illinois 10-17-97 Humana Health Plan, Inc. 10-20-97 Reliance Standard Life Insurance Company 10-20-97 American Combined Life Insurance Company 10-29-97 Combined Insurance Company of America 10-29-97 The Municipal Insurance Company of America 10-29-97 Continental Life & Accident Company 10-30-97 Acstar Insurance Company 11-12-97 Apollo Casualty Company 11-12-97 Green Garden Mutual Insurance Company 11-12-97 Reassure America Life Insurance Company 11-12-97 Universal Health Services, Inc. 11-12-97 Market Conduct Milwaukee Mutual Insurance Company 09-18-97 The Northwestern Mutual Life Insurance Company 09-18-97 Liberty Life Insurance Company 09-18-97 American General Life Insurance Company 09-18-97 National Guardian Life Insurance Company 09-22-97 Academy Life Insurance Company 09-30-97 American Service Insurance Company 10-07-97 Aetna Health & Life Insurance Company 10-17-97 Back to the topCompany action
New Admissions The Catholic Aid Association, MN, 9/19/97 United Midwest Insurance Company, IL, 9/19/97 Wellmark Health Plan of Northern Illinois, Inc., IL, 9/19/97 Allstate Floridian Indemnity Company, IL, 10/1/97 Mid-State Surety Corporation, MI, 10/1/97 Penn-America Insurance Company, PA, 10/10/97 Penn-Star Insurance Company, PA, 10/10/97 ARAG Insurance Company, IA, 10/15/97 CORE Insurance Company, VT, 10/15/97 Michigan Physicians Mutual Liability Company, MI, 10/15/97 Nationsbanc Insurance Company, Inc., SC, 10/15/97 Rocky Mountain Life Insurance Company, CO, 10/15/97 Oxford Health Plans (IL), Inc., IL, 10/16/97 Preferred National Insurance Company, FL, 10/22/97 Allstate New Jersey Insurance Company, IL, 10/30/97 MHS Insurance Company, WI, 10/30/97 USF&G Family Insurance Company, MD, 10/30/97 USF&G Business Insurance Company, MD, 10/30/97 USF&G Insurance Company of Mississippi, MS, 10/30/97 Trans-General Casualty Insurance Company, Inc., PA, 11/6/97 USF&G Insurance Company of Wisconsin, WI, 11/6/97 Terminations Confederation Life Insurance and Annuity Company, GA, voluntary withdrawal; certificate of authority canceled 9/5/97 Confederation Life Insurance Company, Canada, voluntary withdrawal; certificate of authority canceled 9/5/97 Inland American Insurance Company, IL, placed in liquidation 9/19/97 Back to the topHearings
Scheduled Hearings: Denise A. Foster 11/13/97 Hearing No. 3602 Revocation of Licensing Authority William M. Shaver 11/13/97 Hearing No. 3601 Revocation of Licensing Authority Andy King 11/18/97 Hearing No. 3608 Request for License Doris Nicholson Nationwide Mutual Insurance Company 11/19/97 Hearing No. 3605 Nonrenewal Auto Help Line of America 11/19/97 Hearing No. 3604 Cease and Desist T. Korzen Corp. d/b/a Carl D. Campbell and Associates, Inc. vs. National Council on Compensation Insurance 11/19/97 Hearing No. 3603 Workers Compensation Rate Classification Michael Thomas Mourek 11/19/97 Hearing No. 3612 Revocation of Licensing Authority American Union Life Insurance Company 11/20/97 Hearing No. 3607 Cease and Desist Central Reserve Life Insurance Company 11/20/97 Hearing No. 3606 Unfair Trade Practices Wendy J. Pollard (on behalf of Rosie Pollard) Allstate Insurance Company 11/25/97 Hearing No. 3611 Nonrenewal Anipals, Inc. 11/26/97 Hearing No. 3609 Cease and Desist Robert H. Norris 12/4/97 Hearing No. 3615 Revocation of Licensing Authority George Gukich 12/9/97 Hearing No. 3618 Suspension of Licensing Authority Ownerguard 12/9/97 Hearing No. 3614 Cease and Desist David P. Slavens 12/11/97 Hearing No. 3617 Revocation of Licensing Authority John B. Bova 12/15/97 Hearing No. 3610 Denial of Renewal of Licensing Authority Monumental Life Insurance Company 12/22/97 Hearing No. 3559 Cease and Desist Matters Settled without Hearing: Sydney Arthur Washington Hearing No. 3562 Dismissed 8/26/97 IMBI, Ltd. Hearing No. 3489 Stipulation and Consent Order 8/27/97 Reuven and Edie Bogoff American Family Mutual Insurance Company Hearing No. 3566 Dismissed 9/10/97 D2 Trucking, Inc. Canal Insurance Company Hearing No. 3572 Dismissed 9/11/97 Joan M. McKinney Hearing No. 3568 Stipulation and Consent Order 9/17/97 Jerome E. Brand Hearing No. 3574 Dismissed 9/18/97 Debbie A. Mazur Hearing No. 3586 Dismissed 9/18/97 Kathleen D. Di Guadio Hearing No. 3569 Stipulation and Consent Order 9/22/97 Thomas A. Roule, Sr. Hearing No. 3541 Dismissed 9/26/97 Inder Kapur Allstate Insurance Company Hearing No. 3590 Dismissed 10/15/97 Apollo Casualty Company Hearing No. 2560 Dismissed 10/29/97 Illinois Life and Health Insurance Guaranty Association denial of coverage for Inter-American Insurance Company Hearing No. 3490 Dismissed 11/5/97 Completed Hearings: Hartford's Twin City Fire Insurance Company Hearing No. 3563 Decision of the Auto Insurance Plan's Governing Committee to select Liberty Mutual Insurance Company as a commercial auto servicing carrier is upheld 9/26/97 Daniel G. Kasprzak, President Physicians Resource Management, Inc. Allied Health Investments, Inc. Health Care 2000, Inc. Hearing No. 3385 Cease and Desist Order previously issued made permanent. All respondents shall jointly nonrenew all insurance contracts sold in Illinois under Health Care 2000 Plan 9/26/97 Patrice A. Mackie Hearing No. 3544 License Suspended until outstanding balance paid to Dept. of Revenue 10/1/97 Blue Island Firefighters Pension Fund Hearing No. 3526 Treasurer of City of Blue Island to submit written commitment to pay funds owed to the firefighters pension fund 10/9/97 Inter-American Insurance Company of Illinois Jeffrey I. Bleiweis The Beaven Companies, Inc. Daniel A. Orth III Hearing No. 3445 IL Life & Health Insurance Guaranty Association's claim denial affirmed 10/21/97 Thomas and Diane Murphy State Farm Mutual Insurance Company Hearing No. 3579 Nonrenewal effective 10/21/97 Gary R. Swearingen State Farm General Insurance Company Hearing No. 3584 Nonrenewal effective 10/21/97 Imogene Plate Regent Insurance Company Hearing No. 3578 Cancellation Rescinded 10/22/97 Harriet B. Murphy Hearing No. 3540 Order of Revocation Rescinded 10/30/97 Wendy Sanders Illinois Farmers Insurance Company Hearing No. 3593 Nonrenewal effective 11/6/97
Back to the top
Producer regulatory action
Revocation of Licensing Authority Chais F. Askia 7449 South Coles Avenue #3A Chicago, IL Effective 9/22/97 Sherry L. Atkins RR 5, PO Box 203 Fairfield, IL Effective 10/13/97 Henry L. Ballard 728 West Pinehill Lane #9 Peoria, IL Effective 09/22/97 Donald M. Beno 1040 East Tracy Drive Morris, IL Effective 09/08/97 Jerome E. Brand 9 Stone Haven Drive Hawthorn Woods, IL Effective 09/15/97 Linda Kathleen Brown 155 Stratford Road Des Plaines, IL Effective 10/17/97 Reginald L. Coleman 722 Adams Street Quincy, IL Effective 10/02/97 Nikol J. Ekdahl 7619 West Juniper Court Frankfort, IL Effective 09/25/97 Paul W. Ford PO Box 585 Somonauk, IL Effective 10/30/97 Don N. Fosco 2150 North Neva Chicago, IL Effective 10/23/97 Jack L. Hall 109 Delores Lane Sparta, IL Effective 09/22/97 Edward F. Hennessy 1604 Richmond Street Joliet, IL Effective 09/22/97 Katheryn C. Jones 16725 Bulger Avenue Hazelcrest, IL Effective 10/02/97 Earl L. Keller 43 Anchor Road Springfield, IL Effective 10/27/97 Reta R. LeCrone RR 3, Box 170 Sullivan, IL Effective 10/02/97 Julie M. Malench Apt. 10 - 912 North Main Street Edwardsville, IL Effective 10/02/97 John M. Massey 216 North Farnsworth Aurora, IL Effective 10/22/97 Bronny Matthews 285 East Lincoln Glendale Heights, IL Effective 10/17/97 Debbie A. Mazur 6215A North Cicero Chicago, IL Effective 09/17/97 John Joseph McCarthy 140 Majestic Drive Lombard, IL Effective 10/17/97 Gary E. McCullough 1020 West Poplar Taylorville, IL Effective 08/11/97 John T. McDonnell 3544 North Halsted Chicago, IL Effective 10/09/97 Margaret A. McGuire 140 Majestic Drive Lombard, IL Effective 10/17/97 Wayne H. McMillan 548 Fuller Lane Bolingbrook, IL Effective 10/02/97 John N. Metropulos 101 Cuttriss Place Park Ridge, Il Effective 10/17/97 Frederick Carl Meyer 7921 West 157th Street, Unit 1N Orland Park, IL Effective 10/17/97 Alan Michael Misale 12800 South 82CD Court Palos Park, IL Effective 10/17/97 John P. Moore 14447 South Kenwood Dolton, IL Effective 10/17/97 M. Malcolm Moore 960 Old Greenbay Road Winnetka, IL Effective 10/17/97 Lizbeth Morgan 571 North 18th Street East St. Louis, IL Effective 10/13/97 Roy William Mortensen 16421 Bevely Avenue Tinley Park, IL Effective 10/17/97 Jo Ann Murphy 2561 Stratford Lane Granite City, IL Effective 10/17/97 Martin John Murray 3315 Landstrom Road Rockford, IL Effective 10/17/97 Joyce S. Nadell 12607 South Meade Avenue Palos Heights, IL Effective 10/17/97 Peter G. Naples 8425 Kean Avenue Hickory Hills, IL Effective 09/25/97 Joseph Peter Piotrowicz, Jr. 7351 North Hoyne Avenue Chicago, IL Effective 10/02/97 Craig A. Schallmo 14829 Kilpatrick, Apt. 1E Midlothian, IL Effective 09/26/97 William Smith 520 Lafayette Belleville, IL Effective 09/03/97 Todd L. Stahl 11 South Catherine La Grange, IL Effective 10/15/97 William R. Sturm 913 Monticello Drive Naperville, IL Effective 10/30/97 Todd J. Wesslowski 10921 South Hamlin Chicago, IL Effective 09/22/97 Jeffrey Scott Zalay 3093 Lexington Avenue Glenview,IL Effective 10/15/97 Voluntary Revocation Alden Insurance Agency, Inc. 7300L North Western Chicago, IL Effective 10/09/97 Kathleen M. Anderson 1462 Carol Court, Unit 1A Palatine, IL Effective 10/09/97 Andres L. Castro 225 Winfield Court Vernon Hills, IL Effective 10/15/97 George Cutrer 1410 20th Street North Chicago, IL Effective 10/28/97 Herman F. Delawter 13112 Charles Road Woodstock, IL Effective 09/19/97 Samuel Burton Deneal 275 Deneal Road Harrisburg, IL Effective 09/22/97 John D. Droz 8262 Bowline Court Indianapolis, IN Effective 10/09/97 Emerson Fowler 21-B Fernwood Drive Bolingbrook, IL Effective 10/01/97 Theresa J. Giron 207 Londonberry Court Mundelein, IL Effective 10/01/97 Laurie J. Giuliano 6832 Didrikson Woodridge, IL Effective 09/18/97 Robert E. Hansen 2884 Holberg Drive Joliet, IL Effective 10/16/97 Ronald G. Harrison PO Box 729 Jonesboro, IL Effective 10/23/97 Byron Jones 10615 South Halsted Chicago, IL Effective 10/07/97 Arthur Emanuel Khano 3000 West Ardmore Chicago, IL Effective 10/09/97 Terence M. Krawcyzk 580 Turtle Pond Court Lake Zurich, IL Effective 10/16/97 Paul William Lamar 317 Sanders Bethalto, IL Effective 09/24/97 Richard A. Lau 899 South Plymouth Court, Apt. 2501 Chicago, IL Effective 10/29/97 Marvin E. Littleton 113 Riverwoods Cove East Alton, IL Effective 09/24/97 Terrence James Logan 612 West Patterson #402 Chicago, IL Effective 10/24/97 Theodore R. Malecki 260 Kay Street Manhattan, IL Effective 09/11/97 Daniel F. Marcquenski 2933 Applegate Glenview, IL Effective 10/16/97 Cicily C. Maton 320 West Illinois, Apt. 2201 Chicago, IL Effective 10/29/97 Armando R. Mazzeo 531 Lancers Drive Addison, IL Effective 10/23/97 Gary E. McCullough 1020 West Poplar Taylorville, IL Effective 09/11/97 James J. Miller 1077 Ripple Ridge Darien, IL Effective 09/25/97 Edward J. Moskal 5821 North Lacey Chicago, IL Effective 09/11/97 Edward N. Murray 8949 East River North Drive Momence, IL Effective 10/16/97 Robert G. Mytnik 524 Newberry Streamwood, IL Effective 10/22/97 Dona L. Nebelsick 2324 Centreville Avenue Belleville, IL Effective 10/20/97 Leroy Joseph Nielsen 11040 Cicero Avenue Oak Lawn, IL Effective 10/01/97 John James Patterson 1551 Black Road Joliet, IL Effective 10/07/97 Richard T. Pawelko 601 South Pine Street Mt. Prospect, IL Effective 09/15/97 Llewellyn Meister Peiffer PO Box 7521 Round Lake, IL Effective 09/11/97 Thomas M. Pepper 5156 West St. Paul Avenue Chicago, IL Effective 09/11/97 Howard L. Perry 515 South Marion Street Carthage, IL Effective 09/19/97 Joseph D. Quinn 15 Windy Hill Road Quincy, IL Effective 10/29/97 Joseph Vincent Rachunas #2 Pinto Drive Springfield, IL Effective 10/01/97 Millard D. Robbins, Jr. 4800 Chicago Beach Drive #1401 N Chicago, IL Effective 09/11/97 William A. Rogers 421 Brantley Place Wheaton, IL Effective 09/11/97 Andrew B. Ross 1224 Brookside Lane Downers Grove, IL Effective 10/29/97 Eugene I. Ross 875 Fairview Road Highland Park, IL Effective 09/15/97 Rhonda L. Sanders RR 2, Box 285 Jerseyville, IL Effective 09/22/97 Jerry J. Sarcia 624 Regency Drive Lake Zurich, IL Effective 09/16/97 John Thomas Sims 7050 Edgewood Road Palos Heights, IL Effective 09/18/97 William Robert Stanicek 3314 North View Road Rockford, IL Effective 10/01/97 Aline R. Staron PO Box 537 Island Lake, IL Effective 09/18/97 Michael G. Stein 180 North Michigan Avenue, Suite 900 Chicago, IL Effective 10/16/97 Wilson W. Steinbrecher 1172 Bauer Road Naperville, IL Effective 10/07/97 Kenneth G. Strom 510 Beverly Place Lake Forest, IL Effective 10/22/97 Stephen M. Venzon 1420 West Glen Avenue #411 Peoria, IL Effective 10/16/97 Ursula Wilson 800 Randall Court Marengo, IL Effective 09/11/97 Order of Suspension Darryl A. Johnson 16845 School Street South Holland, IL Effective 10/22/97 Patrice A. Mackie PO Box 55 Woodbury, NY 11797 Effective 10/01/97 Terry P. Straith 3327 Maple Avenue Brookfield, IL Effective 10/30/97 John M. Williams 9727 South Tripp Oak Lawn, IL Effective 09/03/97 Mark Yoder 3536 Oscar Alton, IL Effective 10/30/97 Stipulation and Consent Order - Civil Forfeiture Paid Robert M. Davis 9650 Laramie Skokie, IL Effective 09/30/97 Richard D. Hill 404 High Oak Drive East Peoria, IL Effective 10/27/97 Steven M. Levin 400 Manda Lane #516 Wheeling, IL Effective 08/22/97 Beth H. Oberto PO Box 550 Glen Carbon, IL Effective 10/27/97 Daniel R. Passarelli 12029 West Lancaster Court Orland Park, IL Effective 07/25/97 Joseph W. Risse 1332 St. Andrews Drive Schererville, IL Effective 07/25/97 Thomas A. Roule, Sr. 848 Weston Court, PO Box 8019 Elburn, IL Effective 09/18/97 Sydney Arthur Washington 2541 West 79th Street Chicago, IL Effective 08/28/97 Denial of Request for License Fred Lee Burton, Jr. 152 East 114th Place Chicago, IL Effective 10/15/97 Mary Jane Costos 2514 Caddy Lane Joliet, IL Effective 08/22/97 Demetrius L. Harris 2 Briar Lane Dover, Delaware 19904 Effective 10/22/97 Hennessy Brothers, Inc. 20 East Cass Street Joliet, IL Effective 09/22/97
by Les Jenkins
The first year of mandatory continuing education (CE) for all resident insurance producers is coming to a close. It has been a busy time for the Producer Licensing and Regulatory areas.
Many licensed professionals, other than insurance producers, are required to obtain various amounts of CE to maintain their licenses and/or designations. As such, there are education providers that offer CE courses for many different professions. For obvious reasons, the class that might qualify as CE for a CPA may not qualify for CE needed by a funeral director, chiropractor or insurance producer. However, some producers who are also members of other professions believe all CE classes should count for their insurance license.
Many insurer-provided training courses are not qualified courses which count as producer CE. In order for a course to be qualified for producer CE credit, the education provider must register the course with the Department of Insurance. The producer should be careful to make certain that the course completed is qualified for producer CE and should know the number of hours approved by the Department for that class. For example, even though a producer attends a two-day seminar at 7 ½ hours each day, that does not necessarily mean that it will qualify as a 15 hour CE course. The reason the 15 hours may not be approved is the provider may register with the Department only a portion of the 15 hour seminar or only a portion of the seminar is acceptable content for producer CE credit.
The producer should maintain a record of the approved courses and hours taken. All courses applied to a renewal should be obtained after the prior year's renewal date. No additional credit will be given to a producer for a repeated course unless three years have passed since credit was given for the course. Hours cannot be carried over from year to year and courses and hours are used in the order they are received. After CE courses are completed, producers should allow at least four weeks for the provider to report the CE hours before submitting their renewal application.
The cost of classes will vary widely, as the fee charged for a class is not regulated. Therefore the amount charged by one provider for a 15 credit hour class could be several times more expensive than another provider's 15 credit hour class.
The Department's web site on the Internet now lists the names, addresses and telephone numbers of qualified providers, as well as the type of courses offered and the instructional method used. In addition, our web site provides direct access to the Insurance Licensing Examination Candidate Handbook and a variety of producer and public adjuster applications and forms.
Readers interested in obtaining this information via the Internet can access it at insurance.illinois.gov.