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1 | AN ACT concerning insurance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Sections 512.52, 512.53, 512.55, 512.57, 512.58, | ||||||
6 | 512.59, 512.60, 512.61, and 512.64 as follows:
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7 | (215 ILCS 5/512.52) (from Ch. 73, par. 1065.59-52)
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8 | Sec. 512.52. Definitions. As used in this Article unless
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9 | the context clearly otherwise requires:
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10 | (a)
"Adjusting insurance claims" means representing an | ||||||
11 | insured with an
insurer for compensation, and while | ||||||
12 | representing that insured either negotiating
values, damages, | ||||||
13 | or depreciation, or applying
the loss circumstances to | ||||||
14 | insurance policy provisions.
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15 | (b) "Public Insurance Adjuster" means a person engaged in | ||||||
16 | the business
of adjusting insurance claims who is licensed | ||||||
17 | pursuant to this Article .
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18 | (c) "Registered Firm" means a person registered with the | ||||||
19 | Director under
Section 512.57.
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20 | (d) "Compensation" shall include, but need not be limited | ||||||
21 | to, the following:
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22 | 1. any assignment of insurance proceeds or a percentage | ||||||
23 | thereof;
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1 | 2. any agreement to make repairs for the amount of the | ||||||
2 | insurance proceeds
payable;
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3 | 3. assertion of any lien against insurance proceeds | ||||||
4 | payable.
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5 | (e) "Person" embraces both natural persons and business
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6 | entities of whatever type.
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7 | (Source: P.A. 84-335; 84-832.)
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8 | (215 ILCS 5/512.53) (from Ch. 73, par. 1065.59-53)
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9 | Sec. 512.53. License Required. (a) No person may engage
in | ||||||
10 | the business of adjusting insurance claims, nor advertise, | ||||||
11 | solicit or hold himself out to be in the business of adjusting | ||||||
12 | insurance claims, solicit or
hold himself out to be a Public | ||||||
13 | Insurance Adjuster, nor attempt to
obtain a contract for Public | ||||||
14 | Adjusting services, unless licensed or registered
in | ||||||
15 | accordance with the provisions of this Article, except that the | ||||||
16 | provisions
of this paragraph do not apply to a person admitted | ||||||
17 | to the practice of law
in this State, to a licensed agent | ||||||
18 | adjusting loss or damage under a policy
within his control or | ||||||
19 | to a marine surveyor or average adjuster.
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20 | (b) In addition to any other penalty set forth in this | ||||||
21 | Article, any person
violating paragraph (a) of this Section | ||||||
22 | shall be guilty of a Class A misdemeanor,
and any person | ||||||
23 | misappropriating or converting any monies collected as a
Public | ||||||
24 | Insurance Adjuster, whether licensed or not, shall be guilty of | ||||||
25 | a
Class 4 felony. |
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1 | (c) All contracts entered into by any person violating | ||||||
2 | subsection (a) of this Section are void and invalid.
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3 | (Source: P.A. 83-1362.)
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4 | (215 ILCS 5/512.55) (from Ch. 73, par. 1065.59-55)
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5 | Sec. 512.55. Public Insurance Adjuster license. (a) The | ||||||
6 | Director
shall issue a Public Insurance Adjuster license to an | ||||||
7 | applicant who has:
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8 | (1) met the requirements of Section 512.54; and
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9 | (2) paid the fee as set forth in Section 512.63; and
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10 | (3) filed with the Director a bond as prescribed in Section | ||||||
11 | 512.56.
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12 | (b) Every Public Insurance Adjuster license shall remain in | ||||||
13 | effect for
one year from the date of its issuance.
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14 | (c) Each Public Insurance Adjuster license shall contain | ||||||
15 | the name, business address, resident
address and personal | ||||||
16 | identification number of the Public Insurance Adjuster,
the | ||||||
17 | date of issue, general conditions relative to expiration or | ||||||
18 | termination
and any other information the Director considers | ||||||
19 | proper.
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20 | (d) The holder of a Public Insurance Adjuster license shall | ||||||
21 | notify the
Director, in writing, of a change of either business | ||||||
22 | or residence address within 30 days of such change.
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23 | (e) Each Public Insurance Adjuster license shall remain in | ||||||
24 | effect as
long as the holder of the license maintains in force | ||||||
25 | and effect the bond
required by Section 512.56 and pays the |
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1 | annual fee required by Section
512.63 by the date due as | ||||||
2 | prescribed by the Director, unless
the license is
revoked or | ||||||
3 | suspended pursuant to Section 512.61.
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4 | The Department may refuse to issue or may suspend the | ||||||
5 | license
of any person who fails to file a return, or to pay the | ||||||
6 | tax, penalty or
interest shown in a filed return, or to pay any | ||||||
7 | final assessment of tax,
penalty or interest, as required by | ||||||
8 | any tax Act administered by the
Illinois Department of Revenue, | ||||||
9 | until such time as the requirements of any
such tax Act are | ||||||
10 | satisfied.
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11 | (Source: P.A. 84-221; 84-832.)
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12 | (215 ILCS 5/512.57) (from Ch. 73, par. 1065.59-57)
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13 | Sec. 512.57. Registered Firms. (a) No person shall
may
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14 | engage in the business of adjusting insurance claims
employ
one | ||||||
15 | or more Public Insurance Adjustors in their professional | ||||||
16 | capacity, other
than for the purpose of using their | ||||||
17 | professional services to negotiate or
adjust such person's own | ||||||
18 | losses and insurance claims, unless such person
is licensed | ||||||
19 | pursuant to this Article and registered with the Director under | ||||||
20 | subsection (b) of this Section.
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21 | No Public Insurance Adjuster may form or participate in any | ||||||
22 | association,
partnership or other business entity with any | ||||||
23 | other Public Insurance Adjustor
for the purpose of engaging in | ||||||
24 | the business of adjusting insurance claims,
unless such | ||||||
25 | business entity is registered with the Director under |
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1 | subsection
(b) of this Section.
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2 | (b) To become a Registered Firm, a person must submit to | ||||||
3 | the Director
an application, on a form specified by the | ||||||
4 | Director, and the fee required
by Section 512.63. The Director | ||||||
5 | may require any documents reasonably
necessary to verify the | ||||||
6 | information contained in the application.
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7 | (c) Each Registered Firm must notify the Director, in | ||||||
8 | writing, of any
change in its business or residence address | ||||||
9 | within 30 days of such change.
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10 | (d) Each Registered Firm must notify the Director of each | ||||||
11 | Public Insurance
Adjuster who is a member, officer, director or | ||||||
12 | employee of the Registered
Firm, and report any changes in such | ||||||
13 | status of any such Public Insurance
Adjuster to the Director | ||||||
14 | within 30 days thereof.
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15 | (e) Each Registered Firm shall appoint one or more Public | ||||||
16 | Insurance
Adjusters who is an officer, director or member of | ||||||
17 | the Firm to be responsible
for the compliance of the Registered | ||||||
18 | Firm with the laws of this State and
the rules and regulations | ||||||
19 | of the Director. The Registered Firm shall be
responsible for | ||||||
20 | the actions of its officers, directors, members and employees.
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21 | (f) Each Registered Firm which, for any of the causes | ||||||
22 | listed in Section
512.61, terminates its relationship with a | ||||||
23 | Public Insurance Adjuster who
is an officer, director, employee | ||||||
24 | or member of the Registered Firm shall
notify the Director, in | ||||||
25 | writing, within 30 days of such termination of the
specific | ||||||
26 | reasons for such termination. The Registered Firm shall provide
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1 | the Director with information, documents, records or | ||||||
2 | statements pertaining
to the termination. Any materials | ||||||
3 | provided may be used by the Director
in any action taken | ||||||
4 | pursuant to Section 512.62. There shall be no liability
on the | ||||||
5 | part of, nor any cause of action against, the Director or the | ||||||
6 | Registered
Firm, or any authorized representative of either, | ||||||
7 | for any statement made
or materials provided pursuant to this | ||||||
8 | paragraph.
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9 | (g) The Director shall terminate any registration which | ||||||
10 | does not comply
with the requirements of this Article.
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11 | (h) A registered firm may only be comprised of licensed | ||||||
12 | Public Insurance Adjusters. All shareholders, officers, and | ||||||
13 | directors of registered firms must be licensed pursuant to this | ||||||
14 | Act. Any Public Insurance Adjuster who has a license that has | ||||||
15 | been revoked, suspended, or not renewed, whether voluntarily or | ||||||
16 | not, must withdraw from a registered firm within 30 days and | ||||||
17 | give written notice of his or her resignation to the licensed | ||||||
18 | firm within 30 days.
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19 | (Source: P.A. 84-832.)
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20 | (215 ILCS 5/512.58) (from Ch. 73, par. 1065.59-58)
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21 | Sec. 512.58. Rate Schedules and Contract Forms. (a) A | ||||||
22 | Public
Insurance Adjuster shall not provide services until a | ||||||
23 | written contract with the insured
has been executed, on a form | ||||||
24 | filed with and approved by the Director. At
the option of the | ||||||
25 | insured, any such contract which is executed within 5
business
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1 | days after conclusion of the loss-producing occurrence shall be | ||||||
2 | voidable
for 10 days after execution. The insured may void the | ||||||
3 | contract by notifying
the Public Insurance Adjuster in writing | ||||||
4 | by (i) registered or certified
mail, return receipt requested, | ||||||
5 | to the address shown on the contract; or
(ii) personally | ||||||
6 | serving the notice on the Public Insurance Adjuster.
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7 | (b) The written contract required by paragraph (a) shall | ||||||
8 | constitute the
entire agreement between the Public Insurance | ||||||
9 | Adjuster and the insured.
A copy of the contract shall be given | ||||||
10 | to the insured when the contract is
executed. Such contract | ||||||
11 | forms may not include any
hold harmless agreement which | ||||||
12 | provides indemnification to the Public Insurance
Adjuster by | ||||||
13 | the insured for liability resulting from the Public Insurance
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14 | Adjuster's negligence, nor any
power-of-attorney by which the | ||||||
15 | Public Insurance Adjuster can act in the
place and instead of | ||||||
16 | the insured.
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17 | (Source: P.A. 83-1362.)
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18 | (215 ILCS 5/512.59) (from Ch. 73, par. 1065.59-59)
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19 | Sec. 512.59. Performance standards applicable to all | ||||||
20 | Public
Insurance Adjusters. | ||||||
21 | (a) A Public Insurance Adjuster shall
may not represent | ||||||
22 | that
he is a representative of an insurance company, a fire | ||||||
23 | department, or the
State of Illinois, or that he is a fire | ||||||
24 | investigator, or that his services
are required for the insured | ||||||
25 | to submit a claim to the insured's insurance
company, or that |
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1 | he may provide legal advice or representation to the
insured. A | ||||||
2 | Public Insurance Adjuster may represent that he has been | ||||||
3 | licensed
by the State of Illinois.
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4 | (b) A Public Insurance Adjuster shall
may not agree to any | ||||||
5 | loss settlement without
the insured's knowledge and consent and | ||||||
6 | shall provide the insured with a document setting forth the | ||||||
7 | scope, amount, and value of the damages prior to requesting the | ||||||
8 | insured for authority to settling any loss .
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9 | (c)
If the Public Insurance Adjuster refers the insured to | ||||||
10 | a contractor,
the Public Insurance Adjuster warrants that all | ||||||
11 | work will be performed in
a workmanlike manner and conform to | ||||||
12 | all statutes, ordinances and codes.
Should the work not be | ||||||
13 | completed in a workmanlike manner, the Public Insurance
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14 | Adjuster shall be responsible for any and all costs and expense | ||||||
15 | required
to complete or repair the work in a workmanlike | ||||||
16 | manner.
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17 | (d) In all cases where the loss giving rise to the claim | ||||||
18 | for which the Public Insurance Adjuster was retained arise from | ||||||
19 | damage to a personal residence, the insurance proceeds shall be | ||||||
20 | delivered in person to the named insured or his or her | ||||||
21 | designee. Where proceeds paid by an insurance company are paid | ||||||
22 | jointly to the
insured and the Public Insurance Adjuster, the | ||||||
23 | insured
Public Insurance Adjuster
shall release such portion of | ||||||
24 | the proceeds which are due the Public Insurance Adjuster
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25 | insured within
30 calendar days after the insured's
Public | ||||||
26 | Insurance Adjuster's receipt of the insurance
company's check, |
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1 | money order, draft, or release of funds. If the proceeds
are | ||||||
2 | not so released to the insured within 30 calendar days, the | ||||||
3 | insured
Public Insurance
Adjuster
shall provide the Public | ||||||
4 | Insurance Adjuster
insured and the Illinois Department of | ||||||
5 | Insurance
with a written explanation of the reason for the | ||||||
6 | delay.
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7 | (e)
A Public Insurance Adjuster
may not propose or attempt | ||||||
8 | to propose
to any person that the Public Insurance Adjuster | ||||||
9 | represent that person
while
a loss-producing occurrence is | ||||||
10 | continuing nor while the fire department
or its representatives | ||||||
11 | are engaged at the damaged premises nor between the
hours of | ||||||
12 | 7:00 p.m. and 8:00 a.m..
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13 | (f) A Public Insurance Adjuster shall
may not advance money | ||||||
14 | or any valuable
consideration , except emergency services or the | ||||||
15 | commencement of repairs,
to an insured pending adjustment of a | ||||||
16 | claim.
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17 | (g) A Public Insurance Adjuster shall
may not provide legal | ||||||
18 | advice or
representation to the insured, or engage in the | ||||||
19 | unauthorized practice of law.
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20 | (Source: P.A. 84-335.)
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21 | (215 ILCS 5/512.60) (from Ch. 73, par. 1065.59-60)
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22 | Sec. 512.60. Maintenance of records. (a) All Public | ||||||
23 | Insurance
Adjusters
shall maintain a complete record of each of | ||||||
24 | their transactions as a Public
Insurance Adjuster. The records | ||||||
25 | required by this Section shall include:
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1 | (1) name of the insured;
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2 | (2) date, location and amount of loss;
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3 | (3) copy of the contract between the Public Insurance | ||||||
4 | Adjuster and insured;
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5 | (4) name of the insurer, amount, expiration date and number | ||||||
6 | of each policy
carried with respect to the loss;
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7 | (5) itemized statement of the insured's recoveries;
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8 | (6) name of the Public Insurance Adjuster who executed the | ||||||
9 | contract; and
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10 | (7) name of the attorney representing the insured, if | ||||||
11 | applicable, and
the name of the representative of the insurance | ||||||
12 | company ; and .
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13 | (8) copy of the statement provided to the insured | ||||||
14 | explaining the amount and value of the damages to the insured | ||||||
15 | premises, the amount of insurance proceeds recovered from the | ||||||
16 | insured, and the amount and values of all expenses incurred to | ||||||
17 | adjust the claim and the amount and value of the Public | ||||||
18 | Insurance Adjuster's fees and charges.
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19 | (b) Records shall be maintained for at least three years | ||||||
20 | after the termination
of the transaction with an insured and | ||||||
21 | shall be open to examination by the
Director at any time.
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22 | (c) A Public Insurance Adjuster shall not divulge | ||||||
23 | information regarding
any insured without written consent from | ||||||
24 | the insured, except that the Public
Insurance Adjuster may | ||||||
25 | divulge such information to an insurance company
or its | ||||||
26 | representative which insures the insured, to the Department of |
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1 | Insurance,
or upon a court order or an Internal Revenue Service | ||||||
2 | subpoena.
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3 | (d) Where a Public Insurance Adjuster is engaged or | ||||||
4 | employed by a Registered
Firm, the records required by this | ||||||
5 | Section may be maintained by such Registered
Firm on behalf of | ||||||
6 | the Public Insurance Adjuster.
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7 | (Source: P.A. 84-335.)
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8 | (215 ILCS 5/512.61) (from Ch. 73, par. 1065.59-61)
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9 | Sec. 512.61. License suspension, revocation or denial. (a) | ||||||
10 | Any license issued under this Article may, after notice to the | ||||||
11 | licensee and hearing
as provided by Section 402, be suspended | ||||||
12 | or revoked, and any application
for a license may be denied, if | ||||||
13 | the Director finds that the holder of or
applicant for a | ||||||
14 | license has:
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15 | (1) willfully violated any provision of this Code or any | ||||||
16 | rule or regulation
promulgated by the Director; or
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17 | (2) intentionally made a material misstatement in an | ||||||
18 | application for a
license as a Public Insurance Adjuster; or
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19 | (3) obtained or attempted to obtain a license as a Public | ||||||
20 | Insurance Adjuster
through misrepresentation or fraud; or
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21 | (4) misappropriated, converted to his own use or improperly | ||||||
22 | withheld money
due others; or
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23 | (5) intentionally misrepresented the terms of any | ||||||
24 | insurance policy; or
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25 | (6) used fraudulent, coercive or dishonest practices, or |
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1 | demonstrated
incompetence, untrustworthiness or financial | ||||||
2 | irresponsibility in the transaction
of business as a Public | ||||||
3 | Insurance Adjuster; or
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4 | (7) been convicted of any
a felony or misdemeanor involving | ||||||
5 | dishonesty or fraud , unless the individual demonstrates to
the | ||||||
6 | Director sufficient rehabilitation to warrant the public | ||||||
7 | trust; or
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8 | (8) knowingly transacted the business of a Public Insurance | ||||||
9 | Adjuster in
conjunction with an individual who was not licensed | ||||||
10 | at the time; or
| ||||||
11 | (9) failed to appear without reasonable cause or excuse in | ||||||
12 | response to
a subpoena lawfully issued by the Director; or
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13 | (10) a license as a Public Insurance Adjuster suspended or | ||||||
14 | revoked or
an application denied in any other state, district, | ||||||
15 | territory or province
on a ground similar to one of the grounds | ||||||
16 | stated in this Section; or
| ||||||
17 | (11) failed to comply with or violated any of the standards | ||||||
18 | set forth
in Section 512.59; or
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19 | (12) failed to maintain the records required by Section | ||||||
20 | 512.60; or
| ||||||
21 | (13) engaged in the unauthorized practice of law.
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22 | (b) Revocation, suspension, or the denial
Denial of an | ||||||
23 | application pursuant to this Section shall be by written
notice | ||||||
24 | served upon the applicant by certified or registered mail sent | ||||||
25 | to
the address specified in the application. The applicant may | ||||||
26 | request a hearing in writing
within 30 days from the date of |
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1 | mailing as provided in Section 402. The hearing shall be held | ||||||
2 | pursuant to Section 2402 of Title 50 of the Code.
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3 | (c) Upon notification of the issuance of an order | ||||||
4 | suspending or revoking
a Public Insurance Adjuster's license, | ||||||
5 | the licensee or other person having
possession or custody of | ||||||
6 | such license shall promptly deliver it to the Director
in | ||||||
7 | person or by mail. The Director shall publish the name of each | ||||||
8 | Public
Insurance Adjuster whose license is suspended or | ||||||
9 | revoked, after such suspension
or revocation becomes final, in | ||||||
10 | a manner designed to notify interested insurance
companies and | ||||||
11 | other persons.
| ||||||
12 | (d) Any individual whose Public Insurance Adjuster's | ||||||
13 | license is revoked
or whose application is denied pursuant to | ||||||
14 | this Section shall be ineligible
to apply for a Public | ||||||
15 | Insurance Adjuster's license for 5
2 years. A suspension
| ||||||
16 | pursuant to this Section may be for any period of time up to 5
2
| ||||||
17 | years.
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18 | (Source: P.A. 84-335; 84-832.)
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19 | (215 ILCS 5/512.64) (from Ch. 73, par. 1065.59-64)
| ||||||
20 | Sec. 512.64. Injunctive Relief. Any person who acts as
or | ||||||
21 | holds himself out to be either engaged in the business of | ||||||
22 | adjusting insurance claims or a Public Insurance Adjuster | ||||||
23 | without holding a
valid and current Public Insurance Adjuster's
| ||||||
24 | license to do so is hereby declared to be inimical to
the | ||||||
25 | public welfare and to constitute a public nuisance. The |
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| |||||||
1 | Director may
report such practice to the Attorney General of | ||||||
2 | the State of Illinois, whose
duty it is to apply forthwith by | ||||||
3 | complaint on relation of the Director in
the name of the people | ||||||
4 | of the State of Illinois, as plaintiff, for injunctive
relief | ||||||
5 | in the circuit court of the county where such practice occurred | ||||||
6 | to
enjoin such person from engaging in such practice; and, upon | ||||||
7 | the filing of a
verified petition in such court, the court, if | ||||||
8 | satisfied by affidavit or
otherwise that such person has been | ||||||
9 | engaged in such practice without a valid
and current license to | ||||||
10 | do so, may enter a temporary restraining order without
notice | ||||||
11 | or bond, enjoining the defendant from such further practice.
A | ||||||
12 | copy of the verified complaint shall be served upon the | ||||||
13 | defendant and
the proceedings shall thereafter be conducted as | ||||||
14 | in other civil cases.
If it is established that the defendant | ||||||
15 | has been or is engaged in such
unlawful practice, the court may | ||||||
16 | enter an order or
judgment perpetually enjoining the defendant | ||||||
17 | from further such practice.
In all proceedings hereunder the | ||||||
18 | court, in its discretion, may apportion
the costs among the | ||||||
19 | parties interested in the action, including cost of filing
the | ||||||
20 | complaint, service of process, witness fees and expenses, court | ||||||
21 | reporter
charges and reasonable attorney fees. In case of | ||||||
22 | violation of any
injunctive order entered under the provisions | ||||||
23 | of this Section, the court
may try and punish the offender for | ||||||
24 | contempt of court. Such injunction
proceedings shall be in | ||||||
25 | addition to, and not in lieu of, all penalties and
other | ||||||
26 | remedies.
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1 | (Source: P.A. 84-548.)
|