State of Illinois
2023 and 2024


Introduced 2/7/2023, by Sen. Napoleon Harris, III


215 ILCS 5/1510
215 ILCS 5/1550
215 ILCS 5/1555
215 ILCS 5/1560
215 ILCS 5/1575
215 ILCS 5/1585
215 ILCS 5/1586 new
215 ILCS 5/1590
815 ILCS 625/Act rep.

    Amends the Public Adjuster Article of the Illinois Insurance Code. Provides that the Director of Insurance, upon finding that an applicant for a public adjuster license was previously convicted of any felony or a misdemeanor involving dishonesty or fraud (rather than a felony or misdemeanor involving dishonesty or fraud), shall consider any mitigating factors and evidence of rehabilitation contained in the applicant's record to determine if a license may be denied. Provides that the Director may place on probation, suspend, revoke, deny, or refuse to issue or renew a public adjuster's license or may levy a civil penalty for having been convicted of any felony or a misdemeanor involving dishonesty or fraud (rather than a felony or misdemeanor involving dishonesty or fraud), and failing to comply with specified provisions concerning associated contractors. Provides that an applicant's surety bond or irrevocable letter of credit shall be in the minimum amount of $50,000 (rather than $20,000). Provides that public adjusters shall ensure that all contracts for their services contain an email address and a scope of damages. Sets forth language required to be contained in a written disclosure provided to the insured. Provides that a public adjuster may provide emergency services before a written contract with the insured has been executed. Sets forth provisions concerning associated contractors. Makes other changes. Repeals the Fire Damage Representation Agreement Act.

LRB103 05818 BMS 50838 b





SB1495LRB103 05818 BMS 50838 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Insurance Code is amended by
5changing Sections 1510, 1550, 1555, 1560, 1575, 1585, and 1590
6and by adding Section 1586 as follows:
7    (215 ILCS 5/1510)
8    Sec. 1510. Definitions. In this Article:
9    "Adjusting a claim for loss or damage covered by an
10insurance contract" means negotiating values, damages, or
11depreciation or applying the loss circumstances to insurance
12policy provisions.
13    "Adjusting insurance claims" means representing an insured
14with an insurer for compensation and, while representing that
15insured, either negotiating values, damages, or depreciation
16or applying the loss circumstances to insurance policy
18    "Associated contractor" means any contractor or related
19service provider owned or operated by:
20        (1) the named public adjuster, spouse, or any family
21    member; or
22        (2) any contractor recommended by the public adjuster
23    if the fee stated in the public adjuster contract is



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1    waived when the recommended contractor is utilized by the
2    insured.
3    "Business entity" means a corporation, association,
4partnership, limited liability company, limited liability
5partnership, or other legal entity.
6    "Department" means the Department of Insurance.
7    "Director" means the Director of Insurance.
8    "Fingerprints" means an impression of the lines on the
9finger taken for the purpose of identification. The impression
10may be electronic or in ink converted to electronic format.
11    "Home state" means the District of Columbia and any state
12or territory of the United States where the public adjuster's
13principal place of residence or principal place of business is
14located. If neither the state in which the public adjuster
15maintains the principal place of residence nor the state in
16which the public adjuster maintains the principal place of
17business has a substantially similar law governing public
18adjusters, the public adjuster may declare another state in
19which it becomes licensed and acts as a public adjuster to be
20the home state.
21    "Individual" means a natural person.
22    "Person" means an individual or a business entity.
23    "Public adjuster" means any person who, for compensation
24or any other thing of value on behalf of the insured:
25        (i) acts, or aids, or represents the insured solely in
26    relation to first party claims arising under insurance



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1    contracts that insure the real or personal property of the
2    insured, on behalf of an insured in adjusting a claim for
3    loss or damage covered by an insurance contract;
4        (ii) advertises for employment as a public adjuster of
5    insurance claims or solicits business or represents
6    himself or herself to the public as a public adjuster of
7    first party insurance claims for losses or damages arising
8    out of policies of insurance that insure real or personal
9    property; or
10        (iii) directly or indirectly solicits business,
11    investigates or adjusts losses, or advises an insured
12    about first party claims for losses or damages arising out
13    of policies of insurance that insure real or personal
14    property for another person engaged in the business of
15    adjusting losses or damages covered by an insurance policy
16    for the insured.
17    "Scope of damages" means a document that describes the
18amount and type of damage to a structure and includes, at
19minimum, an itemized description of the materials to be used
20in the repair estimates of the quantity and costs of the
22    "Uniform individual application" means the current version
23of the National Association of Directors (NAIC) Uniform
24Individual Application for resident and nonresident
26    "Uniform business entity application" means the current



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1version of the National Association of Insurance Commissioners
2(NAIC) Uniform Business Entity Application for resident and
3nonresident business entities.
4    "Webinar" means an online educational presentation during
5which a live and participating instructor and participating
6viewers, whose attendance is periodically verified throughout
7the presentation, actively engage in discussion and in the
8submission and answering of questions.
9(Source: P.A. 102-135, eff. 7-23-21.)
10    (215 ILCS 5/1550)
11    Sec. 1550. Applicant convictions.
12    (a) The Director and the Department shall not require
13applicants to report the following information and shall not
14collect or consider the following criminal history records in
15connection with a public adjuster license application:
16        (1) Juvenile adjudications of delinquent minors as
17    defined in Section 5-105 of the Juvenile Court Act of
18    1987, subject to the restrictions set forth in Section
19    5-130 of that Act.
20        (2) Law enforcement records, court records, and
21    conviction records of an individual who was 17 years old
22    at the time of the offense and before January 1, 2014,
23    unless the nature of the offense required the individual
24    to be tried as an adult.
25        (3) Records of arrest not followed by a formal charge



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1    or conviction.
2        (4) Records of arrest where charges were dismissed
3    unless related to the duties and responsibilities of a
4    public adjuster. However, applicants shall not be asked to
5    report any arrests, and any arrest not followed by a
6    conviction shall not be the basis of a denial and may be
7    used only to assess an applicant's rehabilitation.
8        (5) Convictions overturned by a higher court.
9        (6) Convictions or arrests that have been sealed or
10    expunged.
11    (b) The Director, upon a finding that an applicant for a
12license under this Act was previously convicted of any a
13felony or a misdemeanor involving dishonesty or fraud, shall
14consider any mitigating factors and evidence of rehabilitation
15contained in the applicant's record, including any of the
16following factors and evidence, to determine if a license may
17be denied because the prior conviction will impair the ability
18of the applicant to engage in the position for which a license
19is sought:
20        (1) the bearing, if any, of the offense for which the
21    applicant was previously convicted on the duties,
22    functions, and responsibilities of the position for which
23    a license is sought;
24        (2) whether the conviction suggests a future
25    propensity to endanger the safety and property of others
26    while performing the duties and responsibilities for which



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1    a license is sought;
2        (3) if the applicant was previously licensed or
3    employed in this State or other states or jurisdictions,
4    then the lack of prior misconduct arising from or related
5    to the licensed position or position of employment;
6        (4) whether 5 years since a felony conviction or 3
7    years since release from confinement for the conviction,
8    whichever is later, have passed without a subsequent
9    conviction;
10        (5) successful completion of sentence and, for
11    applicants serving a term of parole or probation, a
12    progress report provided by the applicant's probation or
13    parole officer that documents the applicant's compliance
14    with conditions of supervision;
15        (6) evidence of the applicant's present fitness and
16    professional character;
17        (7) evidence of rehabilitation or rehabilitative
18    effort during or after incarceration or during or after a
19    term of supervision, including, but not limited to, a
20    certificate of good conduct under Section 5-5.5-25 of the
21    Unified Code of Corrections or certificate of relief from
22    disabilities under Section 5-5.5-10 of the Unified Code of
23    Corrections; and
24        (8) any other mitigating factors that contribute to
25    the person's potential and current ability to perform the
26    duties and responsibilities of a public adjuster.



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1    (c) If a nonresident licensee meets the standards set
2forth in items (1) through (4) of subsection (a) of Section
31540 and has received consent pursuant to 18 U.S.C. 1033(e)(2)
4from his or her home state, the Director shall grant the
5nonresident licensee a license.
6    (d) If the Director refuses to issue a license to an
7applicant based on a conviction or convictions, in whole or in
8part, then the Director shall notify the applicant of the
9denial in writing with the following included in the notice of
11        (1) a statement about the decision to refuse to issue
12    a license;
13        (2) a list of convictions that the Director determined
14    will impair the applicant's ability to engage in the
15    position for which a license is sought;
16        (3) a list of the convictions that were the sole or
17    partial basis for the refusal to issue a license; and
18        (4) a summary of the appeal process or the earliest
19    the applicant may reapply for a license, whichever is
20    applicable.
21(Source: P.A. 100-286, eff. 1-1-18.)
22    (215 ILCS 5/1555)
23    Sec. 1555. License denial, nonrenewal, or revocation.
24    (a) The Director may place on probation, suspend, revoke,
25deny, or refuse to issue or renew a public adjuster's license



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1or may levy a civil penalty or any combination of actions, for
2any one or more of the following causes:
3        (1) providing incorrect, misleading, incomplete, or
4    materially untrue information in the license application;
5        (2) violating any insurance laws, or violating any
6    regulation, subpoena, or order of the Director or of
7    another state's Director;
8        (3) obtaining or attempting to obtain a license
9    through misrepresentation or fraud;
10        (4) improperly withholding, misappropriating, or
11    converting any monies or properties received in the course
12    of doing insurance business;
13        (5) intentionally misrepresenting the terms of an
14    actual or proposed insurance contract or application for
15    insurance;
16        (6) having been convicted of any a felony or a
17    misdemeanor involving dishonesty or fraud, unless the
18    individual demonstrates to the Director sufficient
19    rehabilitation to warrant the public trust; consideration
20    of such conviction of an applicant shall be in accordance
21    with Section 1550;
22        (7) having admitted or been found to have committed
23    any insurance unfair trade practice or insurance fraud;
24        (8) using fraudulent, coercive, or dishonest
25    practices; or demonstrating incompetence,
26    untrustworthiness, or financial irresponsibility in the



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1    conduct of business in this State or elsewhere;
2        (9) having an insurance license or public adjuster
3    license or its equivalent, denied, suspended, or revoked
4    in any other state, province, district, or territory;
5        (10) forging another's name to an application for
6    insurance or to any document related to an insurance
7    transaction;
8        (11) cheating, including improperly using notes or any
9    other reference material, to complete an examination for
10    an insurance license or public adjuster license;
11        (12) knowingly accepting insurance business from or
12    transacting business with an individual who is not
13    licensed but who is required to be licensed by the
14    Director;
15        (13) failing to comply with an administrative or court
16    order imposing a child support obligation;
17        (14) failing to pay State income tax or comply with
18    any administrative or court order directing payment of
19    State income tax;
20        (15) failing to comply with or having violated any of
21    the standards set forth in Section 1590 of this Law; or
22        (16) failing to maintain the records required by
23    Section 1585 of this Law; or .
24        (17) failing to comply with Section 1586 of this Law.
25    (b) If the action by the Director is to nonrenew, suspend,
26or revoke a license or to deny an application for a license,



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1the Director shall notify the applicant or licensee and
2advise, in writing, the applicant or licensee of the reason
3for the suspension, revocation, denial, or nonrenewal of the
4applicant's or licensee's license. The applicant or licensee
5may make written demand upon the Director within 30 days after
6the date of mailing for a hearing before the Director to
7determine the reasonableness of the Director's action. The
8hearing must be held within not fewer than 20 days nor more
9than 30 days after the mailing of the notice of hearing and
10shall be held pursuant to 50 Ill. Adm. Code 2402.
11    (c) The license of a business entity may be suspended,
12revoked, or refused if the Director finds, after hearing, that
13an individual licensee's violation was known or should have
14been known by one or more of the partners, officers, or
15managers acting on behalf of the business entity and the
16violation was neither reported to the Director, nor corrective
17action taken.
18    (d) In addition to or in lieu of any applicable denial,
19suspension or revocation of a license, a person may, after
20hearing, be subject to a civil penalty. In addition to or
21instead of any applicable denial, suspension, or revocation of
22a license, a person may, after hearing, be subject to a civil
23penalty of up to $10,000 for each cause for denial,
24suspension, or revocation, however, the civil penalty may
25total no more than $100,000.
26    (e) The Director shall retain the authority to enforce the



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1provisions of and impose any penalty or remedy authorized by
2this Article against any person who is under investigation for
3or charged with a violation of this Article even if the
4person's license or registration has been surrendered or has
5lapsed by operation of law.
6    (f) Any individual whose public adjuster's license is
7revoked or whose application is denied pursuant to this
8Section shall be ineligible to apply for a public adjuster's
9license for 5 years. A suspension pursuant to this Section may
10be for any period of time up to 5 years.
11(Source: P.A. 100-286, eff. 1-1-18.)
12    (215 ILCS 5/1560)
13    Sec. 1560. Bond or letter of credit.
14    (a) Prior to the issuance of a license as a public adjuster
15and for the duration of the license, the applicant shall
16secure evidence of financial responsibility in a format
17prescribed by the Director through a surety bond or
18irrevocable letter of credit, subject to all of the following
20        (1) A surety bond executed and issued by an insurer
21    authorized to issue surety bonds in this State, which
22    bond:
23            (A) shall be in the minimum amount of $50,000
24        $20,000;
25            (B) shall be in favor of this State and shall



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1        specifically authorize recovery by the Director on
2        behalf of any person in this State who sustained
3        damages as the result of erroneous acts, failure to
4        act, conviction of fraud, or conviction of unfair
5        practices in his or her capacity as a public adjuster;
6        and
7            (C) shall not be terminated unless at least 30
8        days' prior written notice will have been filed with
9        the Director and given to the licensee; and
10        (2) An irrevocable letter of credit issued by a
11    qualified financial institution, which letter of credit:
12            (A) shall be in the minimum amount of $50,000
13        $20,000;
14            (B) shall be to an account to the Director and
15        subject to lawful levy of execution on behalf of any
16        person to whom the public adjuster has been found to be
17        legally liable as the result of erroneous acts,
18        failure to act, fraudulent acts, or unfair practices
19        in his or her capacity as a public adjuster; and
20            (C) shall not be terminated unless at least 30
21        days' prior written notice will have been filed with
22        the and given to the licensee.
23    (b) The issuer of the evidence of financial responsibility
24shall notify the Director upon termination of the bond or
25letter of credit, unless otherwise directed by the Director.
26    (c) The Director may ask for the evidence of financial



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1responsibility at any time he or she deems relevant.
2    (d) The authority to act as a public adjuster shall
3automatically terminate if the evidence of financial
4responsibility terminates or becomes impaired.
5(Source: P.A. 96-1332, eff. 1-1-11.)
6    (215 ILCS 5/1575)
7    Sec. 1575. Contract between public adjuster and insured.
8    (a) Public adjusters shall ensure that all contracts for
9their services are in writing and contain the following terms:
10        (1) legible full name of the adjuster signing the
11    contract, as specified in Department records;
12        (2) permanent home state business address, email
13    address, and phone number;
14        (3) license number;
15        (4) title of "Public Adjuster Contract";
16        (5) the insured's full name, street address, insurance
17    company name, and policy number, if known or upon
18    notification;
19        (6) a description of the loss and its location and a
20    scope of damages , if applicable;
21        (7) description of services to be provided to the
22    insured;
23        (8) signatures of the public adjuster and the insured;
24        (9) date and time the contract was signed by the
25    public adjuster and date and time the contract was signed



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1    by the insured;
2        (10) attestation language stating that the public
3    adjuster is fully bonded pursuant to State law; and
4        (11) full salary, fee, commission, compensation, or
5    other considerations the public adjuster is to receive for
6    services.
7    (b) The contract may specify that the public adjuster
8shall be named as a co-payee on an insurer's payment of a
10        (1) If the compensation is based on a share of the
11    insurance settlement, the exact percentage shall be
12    specified.
13        (2) Initial expenses to be reimbursed to the public
14    adjuster from the proceeds of the claim payment shall be
15    specified by type, with dollar estimates set forth in the
16    contract and with any additional expenses first approved
17    by the insured.
18        (3) Compensation provisions in a public adjuster
19    contract shall not be redacted in any copy of the contract
20    provided to the Director.
21    (c) If the insurer, not later than 5 business days after
22the date on which the loss is reported to the insurer, either
23pays or commits in writing to pay to the insured the policy
24limit of the insurance policy, the public adjuster shall:
25        (1) not receive a commission consisting of a
26    percentage of the total amount paid by an insurer to



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1    resolve a claim;
2        (2) inform the insured that loss recovery amount might
3    not be increased by insurer; and
4        (3) be entitled only to reasonable compensation from
5    the insured for services provided by the public adjuster
6    on behalf of the insured, based on the time spent on a
7    claim and expenses incurred by the public adjuster, until
8    the claim is paid or the insured receives a written
9    commitment to pay from the insurer.
10    (d) A public adjuster shall provide the insured a written
11disclosure concerning any direct or indirect financial
12interest that the public adjuster has with any other party or
13associated contractor who is involved in any aspect of the
14claim, other than the salary, fee, commission, or other
15consideration established in the written contract with the
16insured, including, but not limited to, any ownership of or
17any compensation expected to be received from, any
18construction firm, salvage firm, building appraisal firm,
19board-up company, or any other firm that provides estimates
20for work, or that performs any work, in conjunction with
21damages caused by the insured loss on which the public
22adjuster is engaged. The word "firm" shall include any
23corporation, partnership, association, joint-stock company, or
24person. The written disclosure must contain, at a minimum, the
26        (1) A statement clarifying the amount of ownership in



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1    the recommended contractor by the public adjuster and the
2    name and relation of the family member that owns or
3    operates the recommended contractor, if applicable.
4        (2) The specific amount of compensation the public
5    adjuster will receive from the recommended contractor;
6    this disclosure of compensation may be stated in an actual
7    dollar amount or as a percentage of the payment.
8    (e) A public adjuster contract may not contain any
9contract term that:
10        (1) allows the public adjuster's percentage fee to be
11    collected when money is due from an insurance company, but
12    not paid, or that allows a public adjuster to collect the
13    entire fee from the first check issued by an insurance
14    company, rather than as a percentage of each check issued
15    by an insurance company;
16        (2) requires the insured to authorize an insurance
17    company to issue a check only in the name of the public
18    adjuster;
19        (3) precludes a public adjuster or an insured from
20    pursuing civil remedies;
21        (4) includes any hold harmless agreement that provides
22    indemnification to the public adjuster by the insured for
23    liability resulting from the public adjuster's negligence;
24    or
25        (5) provides power of attorney by which the public
26    adjuster can act in the place and instead of the insured.



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1    (f) The following provisions apply to a contract between a
2public adjuster and an insured:
3        (1) Prior to the signing of the contract, the public
4    adjuster shall provide the insured with a separate signed
5    and dated disclosure document regarding the claim process
6    that states:
7    "Property insurance policies obligate the insured to
8    present a claim to his or her insurance company for
9    consideration. There are 3 types of adjusters that could
10    be involved in that process. The definitions of the 3
11    types are as follows:
12            (A) "Company adjuster" means the insurance
13        adjusters who are employees of an insurance company.
14        They represent the interest of the insurance company
15        and are paid by the insurance company. They will not
16        charge you a fee.
17            (B) "Independent adjuster" means the insurance
18        adjusters who are hired on a contract basis by an
19        insurance company to represent the insurance company's
20        interest in the settlement of the claim. They are paid
21        by your insurance company. They will not charge you a
22        fee.
23            (C) "Public adjuster" means the insurance
24        adjusters who do not work for any insurance company.
25        They represent work for the insured to assist in the
26        preparation, presentation and settlement of the claim.



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1        The insured hires them by signing a contract agreeing
2        to pay them a fee or commission based on a percentage
3        of the settlement, or other method of compensation.".
4        (2) The insured is not required to hire a public
5    adjuster to help the insured meet his or her obligations
6    under the policy, but has the right to do so.
7        (3) The public adjuster is not a representative or
8    employee of the insurer or the Department of Insurance.
9        (4) The salary, fee, commission, or other
10    consideration is the obligation of the insured, not the
11    insurer, except when rights have been assigned to the
12    public adjuster by the insured.
13    (g) The contracts shall be executed in duplicate to
14provide an original contract to the public adjuster, and an
15original contract to the insured. The public adjuster's
16original contract shall be available at all times for
17inspection without notice by the Director.
18    (h) The public adjuster shall provide the insurer or its
19authorized representative for receiving notice of loss or
20damage with an exact copy of the contract with by the insured
21by email after execution of the contract, authorizing the
22public adjuster to represent the insured's interest.
23    (i) The public adjuster shall give the insured written
24notice of the insured's rights as a consumer under the law of
25this State.
26    (j) A public adjuster shall not provide services, other



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1than emergency services, until a written contract with the
2insured has been executed, on a form filed with and approved by
3the Director, and an exact copy of the contract has been
4provided to the insurer in accordance with subsection (h). At
5the option of the insured, any such contract shall be voidable
6for 5 business days after execution. The insured may void the
7contract by notifying the public adjuster in writing by (i)
8registered or certified mail, return receipt requested, to the
9address shown on the contract, or (ii) personally serving the
10notice on the public adjuster, or (iii) sending an email to the
11email address shown on the contract.
12    (k) If the insured exercises the right to rescind the
13contract, anything of value given by the insured under the
14contract will be returned to the insured within 15 business
15days following the receipt by the public adjuster of the
16cancellation notice.
17(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.)
18    (215 ILCS 5/1585)
19    Sec. 1585. Record retention.
20    (a) A public adjuster shall maintain a complete record of
21each transaction as a public adjuster. The records required by
22this Section shall include the following:
23        (1) name of the insured;
24        (2) date, location and amount of the loss;
25        (3) a copy of the contract between the public adjuster



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1    and insured, a copy of the scope of work document, and a
2    copy of the separate disclosure documents document;
3        (4) name of the insurer, amount, expiration date and
4    number of each policy carried with respect to the loss;
5        (5) itemized statement of the insured's recoveries;
6        (6) itemized statement of all compensation received by
7    the public adjuster, from any source whatsoever, in
8    connection with the loss;
9        (7) a register of all monies received, deposited,
10    disbursed, or withdrawn in connection with a transaction
11    with an insured, including fees transfers and
12    disbursements from a trust account and all transactions
13    concerning all interest bearing accounts;
14        (8) name of public adjuster who executed the contract;
15        (9) name of the attorney representing the insured, if
16    applicable, and the name of the claims representatives of
17    the insurance company; and
18        (10) evidence of financial responsibility in a format
19    prescribed by the Director.
20    (b) Records shall be maintained for at least 7 years after
21the termination of the transaction with an insured and shall
22be open to examination by the Director at all times.
23    (c) Records submitted to the Director in accordance with
24this Section that contain information identified in writing as
25proprietary by the public adjuster shall be treated as
26confidential by the Director and shall not be subject to the



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1Freedom of Information Act.
2(Source: P.A. 96-1332, eff. 1-1-11.)
3    (215 ILCS 5/1586 new)
4    Sec. 1586. Associated contractors.
5    (a) A public adjuster license may be denied, suspended, or
6revoked under Section 1555 if the Director determines that,
7during either of the 2 calendar years following the issuance
8or extension date of the license, the aggregate amount of
9insureds' recoveries that were referred to associated
10contractors exceeded the aggregate amount of insureds'
11recoveries that were not referred to associated contractors of
12the licensee.
13    (b) A public adjuster who refers any insured to an
14associated contractor shall be responsible for tracking and
15maintaining current lists of all insureds' recoveries that
16were referred to associated contractors and all insureds'
17recoveries that were not referred to an associated contractor.
18    (215 ILCS 5/1590)
19    Sec. 1590. Standards of conduct of public adjuster.
20    (a) A public adjuster is obligated, under his or her
21license, to serve with objectivity and complete loyalty for
22the interests of his client alone, and to render to the insured
23such information, counsel, and service, as within the
24knowledge, understanding, and opinion in good faith of the



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1licensee, as will best serve the insured's insurance claim
2needs and interest.
3    (b) A public adjuster may not propose or attempt to
4propose to any person that the public adjuster represent that
5person while a loss-producing occurrence is continuing, nor
6while the fire department or its representatives are engaged
7at the damaged premises, nor between the hours of 7:00 p.m. and
88:00 a.m.
9    (c) A public adjuster shall not permit an unlicensed
10employee or representative of the public adjuster to conduct
11business for which a license is required under this Article.
12    (d) A public adjuster shall not have a direct or indirect
13financial interest in any aspect of the claim, other than the
14salary, fee, commission, or other consideration established in
15the written contract with the insured, unless full written
16disclosure has been made to the insured as set forth in
17subsection (d) (g) of Section 1575.
18    (e) A public adjuster shall not acquire any interest in
19the salvage of property subject to the contract with the
20insured unless the public adjuster obtains written permission
21from the insured after settlement of the claim with the
22insurer as set forth in subsection (d) (g) of Section 1575 of
23this Article.
24    (f) The public adjuster shall abstain from referring or
25directing the insured to get needed repairs or services in
26connection with a loss from any person, unless disclosed to



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1the insured:
2        (1) with whom the public adjuster has a financial
3    interest or who is an associated contractor of the public
4    adjuster; or
5        (2) from whom the public adjuster may receive direct
6    or indirect compensation for the referral.
7    (g) The public adjuster shall disclose to an insured if he
8or she has any interest or will be compensated by any
9construction firm, salvage firm, building appraisal firm,
10board-up company, or any other firm that performs any work in
11conjunction with damages caused by the insured loss. The word
12"firm" shall include any corporation, partnership,
13association, joint-stock company or individual as set forth in
14Section 1575 of this Article.
15    (h) Any compensation or anything of value in connection
16with an insured's specific loss that will be received by a
17public adjuster shall be disclosed by the public adjuster to
18the insured in writing including the source and amount of any
19such compensation.
20    (i) In all cases where the loss giving rise to the claim
21for which the public adjuster was retained arise from damage
22to a personal residence, the insurance proceeds shall be
23delivered to the named insured or his or her designee. Where
24proceeds paid by an insurance company are paid jointly to the
25insured and the public adjuster, the insured shall release
26such portion of the proceeds that are due the public adjuster



SB1495- 24 -LRB103 05818 BMS 50838 b

1within 30 calendar days after the insured's receipt of the
2insurance company's check, money order, draft, or release of
3funds. If the proceeds are not so released to the public
4adjuster within 30 calendar days, the insured shall provide
5the public adjuster with a written explanation of the reason
6for the delay.
7    (j) Public adjusters shall adhere to the following general
8ethical requirements:
9        (1) a public adjuster shall not undertake the
10    adjustment of any claim if the public adjuster is not
11    competent and knowledgeable as to the terms and conditions
12    of the insurance coverage, or which otherwise exceeds the
13    public adjuster's current expertise;
14        (2) a public adjuster shall not knowingly make any
15    oral or written material misrepresentations or statements
16    which are false or maliciously critical and intended to
17    injure any person engaged in the business of insurance to
18    any insured client or potential insured client;
19        (3) no public adjuster, while so licensed by the
20    Department, may represent or act as a company adjuster or
21    independent adjuster on the same claim;
22        (4) the contract shall not be construed to prevent an
23    insured from pursuing any civil remedy after the
24    5-business day revocation or cancellation period;
25        (5) a public adjuster shall not enter into a contract
26    or accept a power of attorney that vests in the public



SB1495- 25 -LRB103 05818 BMS 50838 b

1    adjuster the effective authority to choose the persons who
2    shall perform repair work;
3        (6) a public adjuster shall ensure that all contracts
4    for the public adjuster's services are in writing and set
5    forth all terms and conditions of the engagement; and
6        (7) a public adjuster shall not advance money or any
7    valuable consideration, except emergency services to an
8    insured pending adjustment of a claim.
9    (k) A public adjuster may not agree to any loss settlement
10without the insured's knowledge and consent and shall, upon
11the insured's request, provide the insured with a document
12setting forth the scope, amount, and value of the damages
13prior to request by the insured for authority to settle the
15    (l) A public adjuster shall not provide legal advice or
16representation to the insured or engage in the unauthorized
17practice of law.
18    (m) A public adjuster shall not represent that he or she is
19a representative of an insurance company, a fire department,
20or the State of Illinois, that he or she is a fire
21investigator, that his or her services are required for the
22insured to submit a claim to the insured's insurance company,
23or that he or she may provide legal advice or representation to
24the insured. A public adjuster may represent that he or she has
25been licensed by the State of Illinois.
26(Source: P.A. 96-1332, eff. 1-1-11.)



SB1495- 26 -LRB103 05818 BMS 50838 b

1    (815 ILCS 625/Act rep.)
2    Section 10. The Fire Damage Representation Agreement Act
3is repealed.