Sen. Napoleon Harris, III

Filed: 3/3/2023





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2    AMENDMENT NO. ______. Amend Senate Bill 1495 by replacing
3everything after the enacting clause with the following:
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



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2    "Associated contractor" means any contractor or related
3service provider owned or operated by:
4        (1) the named public adjuster, spouse, or any family
5    member; or
6        (2) any contractor recommended by the public adjuster
7    if the fee stated in the public adjuster contract is
8    waived when the recommended contractor is utilized by the
9    insured.
10    "Business entity" means a corporation, association,
11partnership, limited liability company, limited liability
12partnership, or other legal entity.
13    "Department" means the Department of Insurance.
14    "Director" means the Director of Insurance.
15    "Fingerprints" means an impression of the lines on the
16finger taken for the purpose of identification. The impression
17may be electronic or in ink converted to electronic format.
18    "Home state" means the District of Columbia and any state
19or territory of the United States where the public adjuster's
20principal place of residence or principal place of business is
21located. If neither the state in which the public adjuster
22maintains the principal place of residence nor the state in
23which the public adjuster maintains the principal place of
24business has a substantially similar law governing public
25adjusters, the public adjuster may declare another state in
26which it becomes licensed and acts as a public adjuster to be



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1the home state.
2    "Individual" means a natural person.
3    "Person" means an individual or a business entity.
4    "Public adjuster" means any person who, for compensation
5or any other thing of value on behalf of the insured:
6        (i) acts, or aids, or represents the insured solely in
7    relation to first party claims arising under insurance
8    contracts that insure the real or personal property of the
9    insured, on behalf of an insured in adjusting a claim for
10    loss or damage covered by an insurance contract;
11        (ii) advertises for employment as a public adjuster of
12    insurance claims or solicits business or represents
13    himself or herself to the public as a public adjuster of
14    first party insurance claims for losses or damages arising
15    out of policies of insurance that insure real or personal
16    property; or
17        (iii) directly or indirectly solicits business,
18    investigates or adjusts losses, or advises an insured
19    about first party claims for losses or damages arising out
20    of policies of insurance that insure real or personal
21    property for another person engaged in the business of
22    adjusting losses or damages covered by an insurance policy
23    for the insured.
24    "Scope of damages" means a document that describes the
25amount and type of damage to a structure and includes, at
26minimum, an itemized description of the materials to be used



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1in the repair estimates of the quantity and costs of the
3    "Uniform individual application" means the current version
4of the National Association of Directors (NAIC) Uniform
5Individual Application for resident and nonresident
7    "Uniform business entity application" means the current
8version of the National Association of Insurance Commissioners
9(NAIC) Uniform Business Entity Application for resident and
10nonresident business entities.
11    "Webinar" means an online educational presentation during
12which a live and participating instructor and participating
13viewers, whose attendance is periodically verified throughout
14the presentation, actively engage in discussion and in the
15submission and answering of questions.
16(Source: P.A. 102-135, eff. 7-23-21.)
17    (215 ILCS 5/1550)
18    Sec. 1550. Applicant convictions.
19    (a) The Director and the Department shall not require
20applicants to report the following information and shall not
21collect or consider the following criminal history records in
22connection with a public adjuster license application:
23        (1) Juvenile adjudications of delinquent minors as
24    defined in Section 5-105 of the Juvenile Court Act of
25    1987, subject to the restrictions set forth in Section



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1    5-130 of that Act.
2        (2) Law enforcement records, court records, and
3    conviction records of an individual who was 17 years old
4    at the time of the offense and before January 1, 2014,
5    unless the nature of the offense required the individual
6    to be tried as an adult.
7        (3) Records of arrest not followed by a formal charge
8    or conviction.
9        (4) Records of arrest where charges were dismissed
10    unless related to the duties and responsibilities of a
11    public adjuster. However, applicants shall not be asked to
12    report any arrests, and any arrest not followed by a
13    conviction shall not be the basis of a denial and may be
14    used only to assess an applicant's rehabilitation.
15        (5) Convictions overturned by a higher court.
16        (6) Convictions or arrests that have been sealed or
17    expunged.
18    (b) The Director, upon a finding that an applicant for a
19license under this Act was previously convicted of any a
20felony or a misdemeanor involving dishonesty or fraud, shall
21consider any mitigating factors and evidence of rehabilitation
22contained in the applicant's record, including any of the
23following factors and evidence, to determine if a license may
24be denied because the prior conviction will impair the ability
25of the applicant to engage in the position for which a license
26is sought:



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1        (1) the bearing, if any, of the offense for which the
2    applicant was previously convicted on the duties,
3    functions, and responsibilities of the position for which
4    a license is sought;
5        (2) whether the conviction suggests a future
6    propensity to endanger the safety and property of others
7    while performing the duties and responsibilities for which
8    a license is sought;
9        (3) if the applicant was previously licensed or
10    employed in this State or other states or jurisdictions,
11    then the lack of prior misconduct arising from or related
12    to the licensed position or position of employment;
13        (4) whether 5 years since a felony conviction or 3
14    years since release from confinement for the conviction,
15    whichever is later, have passed without a subsequent
16    conviction;
17        (5) successful completion of sentence and, for
18    applicants serving a term of parole or probation, a
19    progress report provided by the applicant's probation or
20    parole officer that documents the applicant's compliance
21    with conditions of supervision;
22        (6) evidence of the applicant's present fitness and
23    professional character;
24        (7) evidence of rehabilitation or rehabilitative
25    effort during or after incarceration or during or after a
26    term of supervision, including, but not limited to, a



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1    certificate of good conduct under Section 5-5.5-25 of the
2    Unified Code of Corrections or certificate of relief from
3    disabilities under Section 5-5.5-10 of the Unified Code of
4    Corrections; and
5        (8) any other mitigating factors that contribute to
6    the person's potential and current ability to perform the
7    duties and responsibilities of a public adjuster.
8    (c) If a nonresident licensee meets the standards set
9forth in items (1) through (4) of subsection (a) of Section
101540 and has received consent pursuant to 18 U.S.C. 1033(e)(2)
11from his or her home state, the Director shall grant the
12nonresident licensee a license.
13    (d) If the Director refuses to issue a license to an
14applicant based on a conviction or convictions, in whole or in
15part, then the Director shall notify the applicant of the
16denial in writing with the following included in the notice of
18        (1) a statement about the decision to refuse to issue
19    a license;
20        (2) a list of convictions that the Director determined
21    will impair the applicant's ability to engage in the
22    position for which a license is sought;
23        (3) a list of the convictions that were the sole or
24    partial basis for the refusal to issue a license; and
25        (4) a summary of the appeal process or the earliest
26    the applicant may reapply for a license, whichever is



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1    applicable.
2(Source: P.A. 100-286, eff. 1-1-18.)
3    (215 ILCS 5/1555)
4    Sec. 1555. License denial, nonrenewal, or revocation.
5    (a) The Director may place on probation, suspend, revoke,
6deny, or refuse to issue or renew a public adjuster's license
7or may levy a civil penalty or any combination of actions, for
8any one or more of the following causes:
9        (1) providing incorrect, misleading, incomplete, or
10    materially untrue information in the license application;
11        (2) violating any insurance laws, or violating any
12    regulation, subpoena, or order of the Director or of
13    another state's Director;
14        (3) obtaining or attempting to obtain a license
15    through misrepresentation or fraud;
16        (4) improperly withholding, misappropriating, or
17    converting any monies or properties received in the course
18    of doing insurance business;
19        (5) intentionally misrepresenting the terms of an
20    actual or proposed insurance contract or application for
21    insurance;
22        (6) having been convicted of any a felony or a
23    misdemeanor involving dishonesty or fraud, unless the
24    individual demonstrates to the Director sufficient
25    rehabilitation to warrant the public trust; consideration



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1    of such conviction of an applicant shall be in accordance
2    with Section 1550;
3        (7) having admitted or been found to have committed
4    any insurance unfair trade practice or insurance fraud;
5        (8) using fraudulent, coercive, or dishonest
6    practices; or demonstrating incompetence,
7    untrustworthiness, or financial irresponsibility in the
8    conduct of business in this State or elsewhere;
9        (9) having an insurance license or public adjuster
10    license or its equivalent, denied, suspended, or revoked
11    in any other state, province, district, or territory;
12        (10) forging another's name to an application for
13    insurance or to any document related to an insurance
14    transaction;
15        (11) cheating, including improperly using notes or any
16    other reference material, to complete an examination for
17    an insurance license or public adjuster license;
18        (12) knowingly accepting insurance business from or
19    transacting business with an individual who is not
20    licensed but who is required to be licensed by the
21    Director;
22        (13) failing to comply with an administrative or court
23    order imposing a child support obligation;
24        (14) failing to pay State income tax or comply with
25    any administrative or court order directing payment of
26    State income tax;



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1        (15) failing to comply with or having violated any of
2    the standards set forth in Section 1590 of this Law; or
3        (16) failing to maintain the records required by
4    Section 1585 of this Law; or .
5        (17) failing to comply with Section 1586 of this Law.
6    (b) If the action by the Director is to nonrenew, suspend,
7or revoke a license or to deny an application for a license,
8the Director shall notify the applicant or licensee and
9advise, in writing, the applicant or licensee of the reason
10for the suspension, revocation, denial, or nonrenewal of the
11applicant's or licensee's license. The applicant or licensee
12may make written demand upon the Director within 30 days after
13the date of mailing for a hearing before the Director to
14determine the reasonableness of the Director's action. The
15hearing must be held within not fewer than 20 days nor more
16than 30 days after the mailing of the notice of hearing and
17shall be held pursuant to 50 Ill. Adm. Code 2402.
18    (c) The license of a business entity may be suspended,
19revoked, or refused if the Director finds, after hearing, that
20an individual licensee's violation was known or should have
21been known by one or more of the partners, officers, or
22managers acting on behalf of the business entity and the
23violation was neither reported to the Director, nor corrective
24action taken.
25    (d) In addition to or in lieu of any applicable denial,
26suspension or revocation of a license, a person may, after



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1hearing, be subject to a civil penalty. In addition to or
2instead of any applicable denial, suspension, or revocation of
3a license, a person may, after hearing, be subject to a civil
4penalty of up to $10,000 for each cause for denial,
5suspension, or revocation, however, the civil penalty may
6total no more than $100,000.
7    (e) The Director shall retain the authority to enforce the
8provisions of and impose any penalty or remedy authorized by
9this Article against any person who is under investigation for
10or charged with a violation of this Article even if the
11person's license or registration has been surrendered or has
12lapsed by operation of law.
13    (f) Any individual whose public adjuster's license is
14revoked or whose application is denied pursuant to this
15Section shall be ineligible to apply for a public adjuster's
16license for 5 years. A suspension pursuant to this Section may
17be for any period of time up to 5 years.
18(Source: P.A. 100-286, eff. 1-1-18.)
19    (215 ILCS 5/1560)
20    Sec. 1560. Bond or letter of credit.
21    (a) Prior to the issuance of a license as a public adjuster
22and for the duration of the license, the applicant shall
23secure evidence of financial responsibility in a format
24prescribed by the Director through a surety bond or
25irrevocable letter of credit, subject to all of the following



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



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1            (C) shall not be terminated unless at least 30
2        days' prior written notice will have been filed with
3        the and given to the licensee.
4    (b) The issuer of the evidence of financial responsibility
5shall notify the Director upon termination of the bond or
6letter of credit, unless otherwise directed by the Director.
7    (c) The Director may ask for the evidence of financial
8responsibility at any time he or she deems relevant.
9    (d) The authority to act as a public adjuster shall
10automatically terminate if the evidence of financial
11responsibility terminates or becomes impaired.
12(Source: P.A. 96-1332, eff. 1-1-11.)
13    (215 ILCS 5/1575)
14    Sec. 1575. Contract between public adjuster and insured.
15    (a) Public adjusters shall ensure that all contracts for
16their services are in writing and contain the following terms:
17        (1) legible full name of the adjuster signing the
18    contract, as specified in Department records;
19        (2) permanent home state business address, email
20    address, and phone number;
21        (3) license number;
22        (4) title of "Public Adjuster Contract";
23        (5) the insured's full name, street address, insurance
24    company name, and policy number, if known or upon
25    notification;



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1        (6) a description of the loss and its location and a
2    scope of damages , if applicable;
3        (7) description of services to be provided to the
4    insured;
5        (8) signatures of the public adjuster and the insured;
6        (9) date and time the contract was signed by the
7    public adjuster and date and time the contract was signed
8    by the insured;
9        (10) attestation language stating that the public
10    adjuster is fully bonded pursuant to State law; and
11        (11) full salary, fee, commission, compensation, or
12    other considerations the public adjuster is to receive for
13    services.
14    (b) The contract may specify that the public adjuster
15shall be named as a co-payee on an insurer's payment of a
17        (1) If the compensation is based on a share of the
18    insurance settlement, the exact percentage shall be
19    specified.
20        (2) Initial expenses to be reimbursed to the public
21    adjuster from the proceeds of the claim payment shall be
22    specified by type, with dollar estimates set forth in the
23    contract and with any additional expenses first approved
24    by the insured.
25        (3) Compensation provisions in a public adjuster
26    contract shall not be redacted in any copy of the contract



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1    provided to the Director.
2    (c) If the insurer, not later than 5 business days after
3the date on which the loss is reported to the insurer, either
4pays or commits in writing to pay to the insured the policy
5limit of the insurance policy, the public adjuster shall:
6        (1) not receive a commission consisting of a
7    percentage of the total amount paid by an insurer to
8    resolve a claim;
9        (2) inform the insured that loss recovery amount might
10    not be increased by insurer; and
11        (3) be entitled only to reasonable compensation from
12    the insured for services provided by the public adjuster
13    on behalf of the insured, based on the time spent on a
14    claim and expenses incurred by the public adjuster, until
15    the claim is paid or the insured receives a written
16    commitment to pay from the insurer.
17    (d) A public adjuster shall provide the insured a written
18disclosure concerning any direct or indirect financial
19interest that the public adjuster has with any other party or
20associated contractor who is involved in any aspect of the
21claim, other than the salary, fee, commission, or other
22consideration established in the written contract with the
23insured, including, but not limited to, any ownership of or
24any compensation expected to be received from, any
25construction firm, salvage firm, building appraisal firm,
26board-up company, or any other firm that provides estimates



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1for work, or that performs any work, in conjunction with
2damages caused by the insured loss on which the public
3adjuster is engaged. The word "firm" shall include any
4corporation, partnership, association, joint-stock company, or
5person. The written disclosure must contain, at a minimum, the
7        (1) A statement clarifying the amount of ownership in
8    the recommended contractor by the public adjuster and the
9    name and relation of the family member that owns or
10    operates the recommended contractor, if applicable.
11        (2) The specific amount of compensation the public
12    adjuster will receive from the recommended contractor;
13    this disclosure of compensation may be stated in an actual
14    dollar amount or as a percentage of the payment.
15    (e) A public adjuster contract may not contain any
16contract term that:
17        (1) allows the public adjuster's percentage fee to be
18    collected when money is due from an insurance company, but
19    not paid, or that allows a public adjuster to collect the
20    entire fee from the first check issued by an insurance
21    company, rather than as a percentage of each check issued
22    by an insurance company;
23        (2) requires the insured to authorize an insurance
24    company to issue a check only in the name of the public
25    adjuster;
26        (3) precludes a public adjuster or an insured from



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1    pursuing civil remedies;
2        (4) includes any hold harmless agreement that provides
3    indemnification to the public adjuster by the insured for
4    liability resulting from the public adjuster's negligence;
5    or
6        (5) provides power of attorney by which the public
7    adjuster can act in the place and instead of the insured.
8    (f) The following provisions apply to a contract between a
9public adjuster and an insured:
10        (1) Prior to the signing of the contract, the public
11    adjuster shall provide the insured with a separate signed
12    and dated disclosure document regarding the claim process
13    that states:
14    "Property insurance policies obligate the insured to
15    present a claim to his or her insurance company for
16    consideration. There are 3 types of adjusters that could
17    be involved in that process. The definitions of the 3
18    types are as follows:
19            (A) "Company adjuster" means the insurance
20        adjusters who are employees of an insurance company.
21        They represent the interest of the insurance company
22        and are paid by the insurance company. They will not
23        charge you a fee.
24            (B) "Independent adjuster" means the insurance
25        adjusters who are hired on a contract basis by an
26        insurance company to represent the insurance company's



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1        interest in the settlement of the claim. They are paid
2        by your insurance company. They will not charge you a
3        fee.
4            (C) "Public adjuster" means the insurance
5        adjusters who do not work for any insurance company.
6        They represent work for the insured to assist in the
7        preparation, presentation and settlement of the claim.
8        The insured hires them by signing a contract agreeing
9        to pay them a fee or commission based on a percentage
10        of the settlement, or other method of compensation.".
11        (2) The insured is not required to hire a public
12    adjuster to help the insured meet his or her obligations
13    under the policy, but has the right to do so.
14        (3) The public adjuster is not a representative or
15    employee of the insurer or the Department of Insurance.
16        (4) The salary, fee, commission, or other
17    consideration is the obligation of the insured, not the
18    insurer, except when rights have been assigned to the
19    public adjuster by the insured.
20    (g) The contracts shall be executed in duplicate to
21provide an original contract to the public adjuster, and an
22original contract to the insured. The public adjuster's
23original contract shall be available at all times for
24inspection without notice by the Director.
25    (h) The public adjuster shall provide the insurer or its
26authorized representative for receiving notice of loss or



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1damage with an exact copy of the contract with by the insured
2by email within 2 business days after execution of the
3contract, authorizing the public adjuster to represent the
4insured's interest.
5    (i) The public adjuster shall give the insured written
6notice of the insured's rights as a consumer under the law of
7this State.
8    (j) A public adjuster shall not provide services, other
9than emergency services, until a written contract with the
10insured has been executed, on a form filed with and approved by
11the Director, and an exact copy of the contract has been
12provided to the insurer in accordance with subsection (h). At
13the option of the insured, any such contract shall be voidable
14for 5 business days after the copy has been received by the
15insurer execution. The insured may void the contract by
16notifying the public adjuster in writing by (i) registered or
17certified mail, return receipt requested, to the address shown
18on the contract, or (ii) personally serving the notice on the
19public adjuster, or (iii) sending an email to the email
20address shown on the contract.
21    (k) If the insured exercises the right to rescind the
22contract, anything of value given by the insured under the
23contract will be returned to the insured within 15 business
24days following the receipt by the public adjuster of the
25cancellation notice.
26(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.)



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1    (215 ILCS 5/1585)
2    Sec. 1585. Record retention.
3    (a) A public adjuster shall maintain a complete record of
4each transaction as a public adjuster. The records required by
5this Section shall include the following:
6        (1) name of the insured;
7        (2) date, location and amount of the loss;
8        (3) a copy of the contract between the public adjuster
9    and insured, a copy of the scope of work document, and a
10    copy of the separate disclosure documents document;
11        (4) name of the insurer, amount, expiration date and
12    number of each policy carried with respect to the loss;
13        (5) itemized statement of the insured's recoveries;
14        (6) itemized statement of all compensation received by
15    the public adjuster, from any source whatsoever, in
16    connection with the loss;
17        (7) a register of all monies received, deposited,
18    disbursed, or withdrawn in connection with a transaction
19    with an insured, including fees transfers and
20    disbursements from a trust account and all transactions
21    concerning all interest bearing accounts;
22        (8) name of public adjuster who executed the contract;
23        (9) name of the attorney representing the insured, if
24    applicable, and the name of the claims representatives of
25    the insurance company; and



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1        (10) evidence of financial responsibility in a format
2    prescribed by the Director.
3    (b) Records shall be maintained for at least 7 years after
4the termination of the transaction with an insured and shall
5be open to examination by the Director at all times.
6    (c) Records submitted to the Director in accordance with
7this Section that contain information identified in writing as
8proprietary by the public adjuster shall be treated as
9confidential by the Director and shall not be subject to the
10Freedom of Information Act.
11(Source: P.A. 96-1332, eff. 1-1-11.)
12    (215 ILCS 5/1586 new)
13    Sec. 1586. Associated contractors.
14    (a) A public adjuster license may be denied, suspended, or
15revoked under Section 1555 if the Director determines that,
16during either of the 2 calendar years following the issuance
17or extension date of the license, the aggregate amount of
18insureds' recoveries that were referred to associated
19contractors exceeded the aggregate amount of insureds'
20recoveries that were not referred to associated contractors of
21the licensee.
22    (b) A public adjuster who refers any insured to an
23associated contractor shall be responsible for tracking and
24maintaining current lists of all insureds' recoveries that
25were referred to associated contractors and all insureds'



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1recoveries that were not referred to an associated contractor.
2    (215 ILCS 5/1590)
3    Sec. 1590. Standards of conduct of public adjuster.
4    (a) A public adjuster is obligated, under his or her
5license, to serve with objectivity and complete loyalty for
6the interests of his client alone, and to render to the insured
7such information, counsel, and service, as within the
8knowledge, understanding, and opinion in good faith of the
9licensee, as will best serve the insured's insurance claim
10needs and interest.
11    (b) A public adjuster may not propose or attempt to
12propose to any person that the public adjuster represent that
13person while a loss-producing occurrence is continuing, nor
14while the fire department or its representatives are engaged
15at the damaged premises, nor between the hours of 7:00 p.m. and
168:00 a.m.
17    (c) A public adjuster shall not permit an unlicensed
18employee or representative of the public adjuster to conduct
19business for which a license is required under this Article.
20    (d) A public adjuster shall not have a direct or indirect
21financial interest in any aspect of the claim, other than the
22salary, fee, commission, or other consideration established in
23the written contract with the insured, unless full written
24disclosure has been made to the insured as set forth in
25subsection (d) (g) of Section 1575.



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1    (e) A public adjuster shall not acquire any interest in
2the salvage of property subject to the contract with the
3insured unless the public adjuster obtains written permission
4from the insured after settlement of the claim with the
5insurer as set forth in subsection (d) (g) of Section 1575 of
6this Article.
7    (f) The public adjuster shall abstain from referring or
8directing the insured to get needed repairs or services in
9connection with a loss from any person, unless disclosed to
10the insured:
11        (1) with whom the public adjuster has a financial
12    interest or who is an associated contractor of the public
13    adjuster; or
14        (2) from whom the public adjuster may receive direct
15    or indirect compensation for the referral.
16    (g) The public adjuster shall disclose to an insured if he
17or she has any interest or will be compensated by any
18construction firm, salvage firm, building appraisal firm,
19board-up company, or any other firm that performs any work in
20conjunction with damages caused by the insured loss. The word
21"firm" shall include any corporation, partnership,
22association, joint-stock company or individual as set forth in
23Section 1575 of this Article.
24    (h) Any compensation or anything of value in connection
25with an insured's specific loss that will be received by a
26public adjuster shall be disclosed by the public adjuster to



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1the insured in writing including the source and amount of any
2such compensation.
3    (i) In all cases where the loss giving rise to the claim
4for which the public adjuster was retained arise from damage
5to a personal residence, the insurance proceeds shall be
6delivered to the named insured or his or her designee. Where
7proceeds paid by an insurance company are paid jointly to the
8insured and the public adjuster, the insured shall release
9such portion of the proceeds that are due the public adjuster
10within 30 calendar days after the insured's receipt of the
11insurance company's check, money order, draft, or release of
12funds. If the proceeds are not so released to the public
13adjuster within 30 calendar days, the insured shall provide
14the public adjuster with a written explanation of the reason
15for the delay.
16    (j) Public adjusters shall adhere to the following general
17ethical requirements:
18        (1) a public adjuster shall not undertake the
19    adjustment of any claim if the public adjuster is not
20    competent and knowledgeable as to the terms and conditions
21    of the insurance coverage, or which otherwise exceeds the
22    public adjuster's current expertise;
23        (2) a public adjuster shall not knowingly make any
24    oral or written material misrepresentations or statements
25    which are false or maliciously critical and intended to
26    injure any person engaged in the business of insurance to



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1    any insured client or potential insured client;
2        (3) no public adjuster, while so licensed by the
3    Department, may represent or act as a company adjuster or
4    independent adjuster on the same claim;
5        (4) the contract shall not be construed to prevent an
6    insured from pursuing any civil remedy after the
7    5-business day revocation or cancellation period;
8        (5) a public adjuster shall not enter into a contract
9    or accept a power of attorney that vests in the public
10    adjuster the effective authority to choose the persons who
11    shall perform repair work;
12        (6) a public adjuster shall ensure that all contracts
13    for the public adjuster's services are in writing and set
14    forth all terms and conditions of the engagement; and
15        (7) a public adjuster shall not advance money or any
16    valuable consideration, except emergency services to an
17    insured pending adjustment of a claim.
18    (k) A public adjuster may not agree to any loss settlement
19without the insured's knowledge and consent and shall, upon
20the insured's request, provide the insured with a document
21setting forth the scope, amount, and value of the damages
22prior to request by the insured for authority to settle the
24    (l) A public adjuster shall not provide legal advice or
25representation to the insured or engage in the unauthorized
26practice of law.



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1    (m) A public adjuster shall not represent that he or she is
2a representative of an insurance company, a fire department,
3or the State of Illinois, that he or she is a fire
4investigator, that his or her services are required for the
5insured to submit a claim to the insured's insurance company,
6or that he or she may provide legal advice or representation to
7the insured. A public adjuster may represent that he or she has
8been licensed by the State of Illinois.
9    (n) A public adjuster shall not act in the place and
10instead of the insured.
11(Source: P.A. 96-1332, eff. 1-1-11.)
12    (815 ILCS 625/Act rep.)
13    Section 10. The Fire Damage Representation Agreement Act
14is repealed.".