Full Text of SB1495 103rd General Assembly
SB1495enr 103RD GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Insurance Code is amended by | 5 | | changing Sections 1510, 1515, 1550, 1555, 1560, 1570, 1575, | 6 | | 1585, and 1590 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 | 10 | | insurance contract" means negotiating values, damages, or | 11 | | depreciation or applying the loss circumstances to insurance | 12 | | policy provisions. | 13 | | "Adjusting insurance claims" means representing an insured | 14 | | with an insurer for compensation and, while representing that | 15 | | insured, either negotiating values, damages, or depreciation | 16 | | or applying the loss circumstances to insurance policy | 17 | | provisions. | 18 | | "Business entity" means a corporation, association, | 19 | | partnership, limited liability company, limited liability | 20 | | partnership, or other legal entity. | 21 | | "Department" means the Department of Insurance. | 22 | | "Director" means the Director of Insurance. | 23 | | "Fingerprints" means an impression of the lines on the |
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| 1 | | finger taken for the purpose of identification. The impression | 2 | | may be electronic or in ink converted to electronic format. | 3 | | "Home state" means the District of Columbia and any state | 4 | | or territory of the United States where the public adjuster's | 5 | | principal place of residence or principal place of business is | 6 | | located. If neither the state in which the public adjuster | 7 | | maintains the principal place of residence nor the state in | 8 | | which the public adjuster maintains the principal place of | 9 | | business has a substantially similar law governing public | 10 | | adjusters, the public adjuster may declare another state in | 11 | | which it becomes licensed and acts as a public adjuster to be | 12 | | the home state. | 13 | | "Individual" means a natural person. | 14 | | "Person" means an individual or a business entity. | 15 | | "Public adjuster" means any person who, for compensation | 16 | | or any other thing of value on behalf of the insured: | 17 | | (i) acts , or aids, or represents the insured solely in | 18 | | relation to first party claims arising under insurance | 19 | | contracts that insure the real or personal property of the | 20 | | insured, on behalf of an insured in adjusting a claim for | 21 | | loss or damage covered by an insurance contract; | 22 | | (ii) advertises for employment as a public adjuster of | 23 | | insurance claims or solicits business or represents | 24 | | himself or herself to the public as a public adjuster of | 25 | | first party insurance claims for losses or damages arising | 26 | | out of policies of insurance that insure real or personal |
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| 1 | | property; or | 2 | | (iii) directly or indirectly solicits business, | 3 | | investigates or adjusts losses, or advises an insured | 4 | | about first party claims for losses or damages arising out | 5 | | of policies of insurance that insure real or personal | 6 | | property for another person engaged in the business of | 7 | | adjusting losses or damages covered by an insurance policy | 8 | | for the insured. | 9 | | "Uniform individual application" means the current version | 10 | | of the National Association of Directors (NAIC) Uniform | 11 | | Individual Application for resident and nonresident | 12 | | individuals. | 13 | | "Uniform business entity application" means the current | 14 | | version of the National Association of Insurance Commissioners | 15 | | (NAIC) Uniform Business Entity Application for resident and | 16 | | nonresident business entities.
| 17 | | "Webinar" means an online educational presentation during | 18 | | which a live and participating instructor and participating | 19 | | viewers, whose attendance is periodically verified throughout | 20 | | the presentation, actively engage in discussion and in the | 21 | | submission and answering of questions. | 22 | | (Source: P.A. 102-135, eff. 7-23-21.) | 23 | | (215 ILCS 5/1515)
| 24 | | Sec. 1515. License required. | 25 | | (a) A person shall not act, advertise, solicit, or hold |
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| 1 | | himself out as a public adjuster or to be in the business of | 2 | | adjusting insurance claims in this State, nor attempt to | 3 | | obtain a contract for public adjusting services, unless the | 4 | | person is licensed as a public adjuster in accordance with | 5 | | this Article. | 6 | | (b) A person licensed as a public adjuster shall not | 7 | | misrepresent to a claimant that he or she is an adjuster | 8 | | representing an insurer in any capacity, including acting as | 9 | | an employee of the insurer or acting as an independent | 10 | | adjuster unless so appointed by an insurer in writing to act on | 11 | | the insurer's behalf for that specific claim or purpose. A | 12 | | licensed public adjuster is prohibited from charging that | 13 | | specific claimant a fee when appointed by the insurer and the | 14 | | appointment is accepted by the public adjuster. | 15 | | (c) A business entity acting as a public adjuster is | 16 | | required to obtain a public adjuster license. Application | 17 | | shall be made using the Uniform Business Entity Application. | 18 | | Before approving the application, the Director shall find | 19 | | that: | 20 | | (1) the business entity has paid the required fees to | 21 | | be registered as a business entity in this State; and | 22 | | (2) all officers, shareholders, and persons with | 23 | | ownership interests in the business entity are licensed | 24 | | public adjusters responsible for the business entity's | 25 | | compliance with the insurance laws, rules, and regulations | 26 | | of this State. |
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| 1 | | (d) Notwithstanding subsections (a) through (c) of this | 2 | | Section, a license as a public adjuster shall not be required | 3 | | of the following: | 4 | | (1) an attorney admitted to practice in this State, | 5 | | when acting in his or her professional capacity as an | 6 | | attorney; | 7 | | (2) a person who negotiates or settles claims arising | 8 | | under a life or health insurance policy or an annuity | 9 | | contract; | 10 | | (3) a person employed only for the purpose of | 11 | | obtaining facts surrounding a loss or furnishing technical | 12 | | assistance to a licensed public adjuster, including | 13 | | photographers, estimators, private investigators, | 14 | | engineers, and handwriting experts; | 15 | | (4) a licensed health care provider, or employee of a | 16 | | licensed health care provider, who prepares or files a | 17 | | health claim form on behalf of a patient; or | 18 | | (5) a person who settles subrogation claims between | 19 | | insurers. | 20 | | (e) All contracts entered into that are in violation of | 21 | | this Section are void and invalid.
| 22 | | (Source: P.A. 96-1332, eff. 1-1-11.) | 23 | | (215 ILCS 5/1550) | 24 | | Sec. 1550. Applicant convictions. | 25 | | (a) The Director and the Department shall not require |
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| 1 | | applicants to report the following information and shall not | 2 | | collect or consider the following criminal history records in | 3 | | connection with a public adjuster license application: | 4 | | (1) Juvenile adjudications of delinquent minors as | 5 | | defined in Section 5-105 of the Juvenile Court Act of | 6 | | 1987, subject to the restrictions set forth in Section | 7 | | 5-130 of that Act. | 8 | | (2) Law enforcement records, court records, and | 9 | | conviction records of an individual who was 17 years old | 10 | | at the time of the offense and before January 1, 2014, | 11 | | unless the nature of the offense required the individual | 12 | | to be tried as an adult. | 13 | | (3) Records of arrest not followed by a formal charge | 14 | | or conviction. | 15 | | (4) Records of arrest where charges were dismissed | 16 | | unless related to the duties and responsibilities of a | 17 | | public adjuster. However, applicants shall not be asked to | 18 | | report any arrests, and any arrest not followed by a | 19 | | conviction shall not be the basis of a denial and may be | 20 | | used only to assess an applicant's rehabilitation. | 21 | | (5) Convictions overturned by a higher court. | 22 | | (6) Convictions or arrests that have been sealed or | 23 | | expunged. | 24 | | (b) The Director, upon a finding that an applicant for a | 25 | | license under this Act was previously convicted of any a | 26 | | felony or a misdemeanor involving dishonesty or fraud, shall |
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| 1 | | consider any mitigating factors and evidence of rehabilitation | 2 | | contained in the applicant's record, including any of the | 3 | | following factors and evidence, to determine if a license may | 4 | | be denied because the prior conviction will impair the ability | 5 | | of the applicant to engage in the position for which a license | 6 | | is sought: | 7 | | (1) the bearing, if any, of the offense for which the | 8 | | applicant was previously convicted on the duties, | 9 | | functions, and responsibilities of the position for which | 10 | | a license is sought; | 11 | | (2) whether the conviction suggests a future | 12 | | propensity to endanger the safety and property of others | 13 | | while performing the duties and responsibilities for which | 14 | | a license is sought; | 15 | | (3) if the applicant was previously licensed or | 16 | | employed in this State or other states or jurisdictions, | 17 | | then the lack of prior misconduct arising from or related | 18 | | to the licensed position or position of employment; | 19 | | (4) whether 5 years since a felony conviction or 3 | 20 | | years since release from confinement for the conviction, | 21 | | whichever is later, have passed without a subsequent | 22 | | conviction; | 23 | | (5) successful completion of sentence and, for | 24 | | applicants serving a term of parole or probation, a | 25 | | progress report provided by the applicant's probation or | 26 | | parole officer that documents the applicant's compliance |
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| 1 | | with conditions of supervision; | 2 | | (6) evidence of the applicant's present fitness and | 3 | | professional character; | 4 | | (7) evidence of rehabilitation or rehabilitative | 5 | | effort during or after incarceration or during or after a | 6 | | term of supervision, including, but not limited to, a | 7 | | certificate of good conduct under Section 5-5.5-25 of the | 8 | | Unified Code of Corrections or certificate of relief from | 9 | | disabilities under Section 5-5.5-10 of the Unified Code of | 10 | | Corrections; and | 11 | | (8) any other mitigating factors that contribute to | 12 | | the person's potential and current ability to perform the | 13 | | duties and responsibilities of a public adjuster. | 14 | | (c) If a nonresident licensee meets the standards set | 15 | | forth in items (1) through (4) of subsection (a) of Section | 16 | | 1540 and has received consent pursuant to 18 U.S.C. 1033(e)(2) | 17 | | from his or her home state, the Director shall grant the | 18 | | nonresident licensee a license. | 19 | | (d) If the Director refuses to issue a license to an | 20 | | applicant based on a conviction or convictions, in whole or in | 21 | | part, then the Director shall notify the applicant of the | 22 | | denial in writing with the following included in the notice of | 23 | | denial: | 24 | | (1) a statement about the decision to refuse to issue | 25 | | a license; | 26 | | (2) a list of convictions that the Director determined |
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| 1 | | will impair the applicant's ability to engage in the | 2 | | position for which a license is sought; | 3 | | (3) a list of the convictions that were the sole or | 4 | | partial basis for the refusal to issue a license; and | 5 | | (4) a summary of the appeal process or the earliest | 6 | | the applicant may reapply for a license, whichever is | 7 | | applicable.
| 8 | | (Source: P.A. 100-286, eff. 1-1-18 .) | 9 | | (215 ILCS 5/1555) | 10 | | Sec. 1555. License denial, nonrenewal, or revocation. | 11 | | (a) The Director may place on probation, suspend, revoke, | 12 | | deny, or refuse to issue or renew a public adjuster's license | 13 | | or may levy a civil penalty or any combination of actions, for | 14 | | any one or more of the following causes: | 15 | | (1) providing incorrect, misleading, incomplete, or | 16 | | materially untrue information in the license application; | 17 | | (2) violating any insurance laws, or violating any | 18 | | regulation, subpoena, or order of the Director or of | 19 | | another state's Director; | 20 | | (3) obtaining or attempting to obtain a license | 21 | | through misrepresentation or fraud; | 22 | | (4) improperly withholding, misappropriating, or | 23 | | converting any monies or properties received in the course | 24 | | of doing insurance business; | 25 | | (5) intentionally misrepresenting the terms of an |
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| 1 | | actual or proposed insurance contract or application for | 2 | | insurance; | 3 | | (6) having been convicted of any a felony or a | 4 | | misdemeanor involving dishonesty or fraud, unless the | 5 | | individual demonstrates to the Director sufficient | 6 | | rehabilitation to warrant the public trust; consideration | 7 | | of such conviction of an applicant shall be in accordance | 8 | | with Section 1550; | 9 | | (7) having admitted or been found to have committed | 10 | | any insurance unfair trade practice or insurance fraud; | 11 | | (8) using fraudulent, coercive, or dishonest | 12 | | practices; or demonstrating incompetence, | 13 | | untrustworthiness, or financial irresponsibility in the | 14 | | conduct of business in this State or elsewhere; | 15 | | (9) having an insurance license or public adjuster | 16 | | license or its equivalent, denied, suspended, or revoked | 17 | | in any other state, province, district, or territory; | 18 | | (10) forging another's name to an application for | 19 | | insurance or to any document related to an insurance | 20 | | transaction; | 21 | | (11) cheating, including improperly using notes or any | 22 | | other reference material, to complete an examination for | 23 | | an insurance license or public adjuster license; | 24 | | (12) knowingly accepting insurance business from or | 25 | | transacting business with an individual who is not | 26 | | licensed but who is required to be licensed by the |
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| 1 | | Director; | 2 | | (13) failing to comply with an administrative or court | 3 | | order imposing a child support obligation; | 4 | | (14) failing to pay State income tax or comply with | 5 | | any administrative or court order directing payment of | 6 | | State income tax; | 7 | | (15) failing to comply with or having violated any of | 8 | | the standards set forth in Section 1590 of this Law; or | 9 | | (16) failing to maintain the records required by | 10 | | Section 1585 of this Law. | 11 | | (b) If the action by the Director is to nonrenew, suspend, | 12 | | or revoke a license or to deny an application for a license, | 13 | | the Director shall notify the applicant or licensee and | 14 | | advise, in writing, the applicant or licensee of the reason | 15 | | for the suspension, revocation, denial, or nonrenewal of the | 16 | | applicant's or licensee's license. The applicant or licensee | 17 | | may make written demand upon the Director within 30 days after | 18 | | the date of mailing for a hearing before the Director to | 19 | | determine the reasonableness of the Director's action. The | 20 | | hearing must be held within not fewer than 20 days nor more | 21 | | than 30 days after the mailing of the notice of hearing and | 22 | | shall be held pursuant to 50 Ill. Adm. Code 2402. | 23 | | (c) The license of a business entity may be suspended, | 24 | | revoked, or refused if the Director finds, after hearing, that | 25 | | an individual licensee's violation was known or should have | 26 | | been known by one or more of the partners, officers, or |
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| 1 | | managers acting on behalf of the business entity and the | 2 | | violation was neither reported to the Director, nor corrective | 3 | | action taken. | 4 | | (d) In addition to or in lieu of any applicable denial, | 5 | | suspension or revocation of a license, a person may, after | 6 | | hearing, be subject to a civil penalty. In addition to or | 7 | | instead of any applicable denial, suspension, or revocation of | 8 | | a license, a person may, after hearing, be subject to a civil | 9 | | penalty of up to $10,000 for each cause for denial, | 10 | | suspension, or revocation, however, the civil penalty may | 11 | | total no more than $100,000. | 12 | | (e) The Director shall retain the authority to enforce the | 13 | | provisions of and impose any penalty or remedy authorized by | 14 | | this Article against any person who is under investigation for | 15 | | or charged with a violation of this Article even if the | 16 | | person's license or registration has been surrendered or has | 17 | | lapsed by operation of law. | 18 | | (f) Any individual whose public adjuster's license is | 19 | | revoked or whose application is denied pursuant to this | 20 | | Section shall be ineligible to apply for a public adjuster's | 21 | | license for 5 years. A suspension pursuant to this Section may | 22 | | be for any period of time up to 5 years.
| 23 | | (Source: P.A. 100-286, eff. 1-1-18 .) | 24 | | (215 ILCS 5/1560)
| 25 | | Sec. 1560. Bond or letter of credit. |
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| 1 | | (a) Prior to the issuance of a license as a public adjuster | 2 | | and for the duration of the license, the applicant shall | 3 | | secure evidence of financial responsibility in a format | 4 | | prescribed by the Director through a surety bond or | 5 | | irrevocable letter of credit, subject to all of the following | 6 | | requirements: | 7 | | (1) A surety bond executed and issued by an insurer | 8 | | authorized to issue surety bonds in this State, which | 9 | | bond: | 10 | | (A) shall be in the minimum amount of $50,000 | 11 | | $20,000 ; | 12 | | (B) shall be in favor of this State and shall | 13 | | specifically authorize recovery by the Director on | 14 | | behalf of any person in this State who sustained | 15 | | damages as the result of erroneous acts, failure to | 16 | | act, conviction of fraud, or conviction of unfair | 17 | | practices in his or her capacity as a public adjuster; | 18 | | and | 19 | | (C) shall not be terminated unless at least 30 | 20 | | days' prior written notice will have been filed with | 21 | | the Director and given to the licensee; and | 22 | | (2) An irrevocable letter of credit issued by a | 23 | | qualified financial institution, which letter of credit: | 24 | | (A) shall be in the minimum amount of $50,000 | 25 | | $20,000 ; | 26 | | (B) shall be to an account to the Director and |
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| 1 | | subject to lawful levy of execution on behalf of any | 2 | | person to whom the public adjuster has been found to be | 3 | | legally liable as the result of erroneous acts, | 4 | | failure to act, fraudulent acts, or unfair practices | 5 | | in his or her capacity as a public adjuster; and | 6 | | (C) shall not be terminated unless at least 30 | 7 | | days' prior written notice will have been filed with | 8 | | the and given to the licensee. | 9 | | (b) The issuer of the evidence of financial responsibility | 10 | | shall notify the Director upon termination of the bond or | 11 | | letter of credit, unless otherwise directed by the Director. | 12 | | (c) The Director may ask for the evidence of financial | 13 | | responsibility at any time he or she deems relevant. | 14 | | (d) The authority to act as a public adjuster shall | 15 | | automatically terminate if the evidence of financial | 16 | | responsibility terminates or becomes impaired.
| 17 | | (Source: P.A. 96-1332, eff. 1-1-11.) | 18 | | (215 ILCS 5/1570) | 19 | | Sec. 1570. Public adjuster fees. | 20 | | (a) A public adjuster shall not pay a commission, service | 21 | | fee, or other valuable consideration to a person for | 22 | | investigating or settling claims in this State if that person | 23 | | is required to be licensed under this Article and is not so | 24 | | licensed. | 25 | | (b) A person shall not accept a commission, service fee, |
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| 1 | | or other valuable consideration for investigating or settling | 2 | | claims in this State if that person is required to be licensed | 3 | | under this Article and is not so licensed. | 4 | | (c) A public adjuster may pay or assign commission, | 5 | | service fees, or other valuable consideration to persons who | 6 | | do not investigate or settle claims in this State, unless the | 7 | | payment would violate State law.
| 8 | | (d) If the loss giving rise to the claim for which the | 9 | | public adjuster was retained arises from damage to property | 10 | | that is anything but a personal residence, a A public adjuster | 11 | | may not charge, agree to, or accept any compensation, payment, | 12 | | commission commissions , fee, or other valuable consideration | 13 | | in excess of 10% of the amount of the insurance settlement | 14 | | claim paid by the insurer on any claim resulting from a | 15 | | catastrophic event, unless approved in writing by the | 16 | | Director. Application for exception to the 10% limit must be | 17 | | made in writing. The request must contain specific reasons as | 18 | | to why the consideration should be in excess of 10% and proof | 19 | | that the policyholder would accept the consideration. The | 20 | | Director must act on any request within 5 business days after | 21 | | receipt of the request. | 22 | | For the purpose of this subsection (d), "catastrophic | 23 | | event" means an occurrence of widespread or severe damage or | 24 | | loss of property producing an overwhelming demand on State and | 25 | | local response resources and mechanisms and a severe long-term | 26 | | effect on general economic activity, and that severely affects |
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| 1 | | State, local, and private sector capabilities to begin to | 2 | | sustain response activities resulting from any catastrophic | 3 | | cause, including, but not limited to, fire, including arson | 4 | | (provided the fire was not caused by the willful action of an | 5 | | owner or resident of the property), flood, earthquake, wind, | 6 | | storm, explosion, or extended periods of severe inclement | 7 | | weather as determined by declaration of a State of disaster by | 8 | | the Governor. This declaration may be made on a | 9 | | county-by-county basis and shall be in effect for 90 days, but | 10 | | may be renewed for 30-day intervals thereafter. | 11 | | (e) If the loss giving rise to the claim for which the | 12 | | public adjuster was retained arises from damage to a personal | 13 | | residence, a public adjuster may not charge, agree to, or | 14 | | accept any compensation, payment, commission, fee, or other | 15 | | valuable consideration in excess of 10% of the amount of the | 16 | | insurance settlement claim paid by the insurer on any claim. | 17 | | (Source: P.A. 98-701, eff. 1-1-15 .) | 18 | | (215 ILCS 5/1575)
| 19 | | Sec. 1575. Contract between public adjuster and insured. | 20 | | (a) Public adjusters shall ensure that all contracts for | 21 | | their services are in writing and contain the following terms: | 22 | | (1) legible full name of the adjuster signing the | 23 | | contract, as specified in Department records; | 24 | | (2) permanent home state business address , email | 25 | | address, and phone number; |
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| 1 | | (3) license number; | 2 | | (4) title of "Public Adjuster Contract"; | 3 | | (5) the insured's full name, street address, insurance | 4 | | company name, and policy number, if known or upon | 5 | | notification; | 6 | | (6) a description of the loss and its location , if | 7 | | applicable ; | 8 | | (7) description of services to be provided to the | 9 | | insured; | 10 | | (8) signatures of the public adjuster and the insured; | 11 | | (9) date and time the contract was signed by the | 12 | | public adjuster and date and time the contract was signed | 13 | | by the insured; | 14 | | (10) attestation language stating that the public | 15 | | adjuster is fully bonded pursuant to State law; and | 16 | | (11) full salary, fee, commission, compensation, or | 17 | | other considerations the public adjuster is to receive for | 18 | | services , including any applicable cap under Section 1570 . | 19 | | (b) The contract may specify that the public adjuster | 20 | | shall be named as a co-payee on an insurer's payment of a | 21 | | claim. | 22 | | (1) If the compensation is based on a share of the | 23 | | insurance settlement, the exact percentage shall be | 24 | | specified. | 25 | | (2) Initial expenses to be reimbursed to the public | 26 | | adjuster from the proceeds of the claim payment shall be |
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| 1 | | specified by type, with dollar estimates set forth in the | 2 | | contract and with any additional expenses first approved | 3 | | by the insured. | 4 | | (3) Compensation provisions in a public adjuster | 5 | | contract shall not be redacted in any copy of the contract | 6 | | provided to the Director. | 7 | | (c) If the insurer, not later than 5 business days after | 8 | | the date on which the loss is reported to the insurer, either | 9 | | pays or commits in writing to pay to the insured the policy | 10 | | limit of the insurance policy, the public adjuster shall: | 11 | | (1) not receive a commission consisting of a | 12 | | percentage of the total amount paid by an insurer to | 13 | | resolve a claim; | 14 | | (2) inform the insured that loss recovery amount might | 15 | | not be increased by insurer; and | 16 | | (3) be entitled only to reasonable compensation from | 17 | | the insured for services provided by the public adjuster | 18 | | on behalf of the insured, based on the time spent on a | 19 | | claim and expenses incurred by the public adjuster, until | 20 | | the claim is paid or the insured receives a written | 21 | | commitment to pay from the insurer. | 22 | | (d) A public adjuster shall provide the insured a written | 23 | | disclosure concerning any direct or indirect financial | 24 | | interest that the public adjuster has with any other party who | 25 | | is involved in any aspect of the claim, other than the salary, | 26 | | fee, commission, or other consideration established in the |
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| 1 | | written contract with the insured, including, but not limited | 2 | | to, any ownership of or any compensation expected to be | 3 | | received from, any construction firm, salvage firm, building | 4 | | appraisal firm, board-up company, or any other firm that | 5 | | provides estimates for work, or that performs any work, in | 6 | | conjunction with damages caused by the insured loss on which | 7 | | the public adjuster is engaged. The word "firm" shall include | 8 | | any corporation, partnership, association, joint-stock | 9 | | company, or person. | 10 | | (e) A public adjuster contract may not contain any | 11 | | contract term that: | 12 | | (1) allows the public adjuster's percentage fee to be | 13 | | collected when money is due from an insurance company, but | 14 | | not paid, or that allows a public adjuster to collect the | 15 | | entire fee from the first check issued by an insurance | 16 | | company, rather than as a percentage of each check issued | 17 | | by an insurance company; | 18 | | (2) requires the insured to authorize an insurance | 19 | | company to issue a check only in the name of the public | 20 | | adjuster; | 21 | | (3) precludes a public adjuster or an insured from | 22 | | pursuing civil remedies; | 23 | | (4) includes any hold harmless agreement that provides | 24 | | indemnification to the public adjuster by the insured for | 25 | | liability resulting from the public adjuster's negligence; | 26 | | or |
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| 1 | | (5) provides power of attorney by which the public | 2 | | adjuster can act in the place and instead of the insured. | 3 | | (f) The following provisions apply to a contract between a | 4 | | public adjuster and an insured: | 5 | | (1) Prior to the signing of the contract, the public | 6 | | adjuster shall provide the insured with a separate signed | 7 | | and dated disclosure document regarding the claim process | 8 | | that states: | 9 | | "Property insurance policies obligate the insured to | 10 | | present a claim to his or her insurance company for | 11 | | consideration. There are 3 types of adjusters that could | 12 | | be involved in that process. The definitions of the 3 | 13 | | types are as follows: | 14 | | (A) "Company adjuster" means the insurance | 15 | | adjusters who are employees of an insurance company. | 16 | | They represent the interest of the insurance company | 17 | | and are paid by the insurance company. They will not | 18 | | charge you a fee. | 19 | | (B) "Independent adjuster" means the insurance | 20 | | adjusters who are hired on a contract basis by an | 21 | | insurance company to represent the insurance company's | 22 | | interest in the settlement of the claim. They are paid | 23 | | by your insurance company. They will not charge you a | 24 | | fee. | 25 | | (C) "Public adjuster" means the insurance | 26 | | adjusters who do not work for any insurance company. |
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| 1 | | They represent work for the insured to assist in the | 2 | | preparation, presentation and settlement of the claim. | 3 | | The insured hires them by signing a contract agreeing | 4 | | to pay them a fee or commission based on a percentage | 5 | | of the settlement, or other method of compensation.". | 6 | | (2) The insured is not required to hire a public | 7 | | adjuster to help the insured meet his or her obligations | 8 | | under the policy, but has the right to do so. | 9 | | (3) The public adjuster is not a representative or | 10 | | employee of the insurer or the Department of Insurance . | 11 | | (4) The salary, fee, commission, or other | 12 | | consideration is the obligation of the insured, not the | 13 | | insurer, except when rights have been assigned to the | 14 | | public adjuster by the insured. | 15 | | (g) The contracts shall be executed in duplicate to | 16 | | provide an original contract to the public adjuster, and an | 17 | | original contract to the insured. The public adjuster's | 18 | | original contract shall be available at all times for | 19 | | inspection without notice by the Director. | 20 | | (h) The public adjuster shall provide the insurer or its | 21 | | authorized representative for receiving notice of loss or | 22 | | damage with an exact copy of the contract with by the insured | 23 | | by email no later than 5 business days after execution of the | 24 | | contract , authorizing the public adjuster to represent the | 25 | | insured's interest. | 26 | | (i) The public adjuster shall give the insured written |
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| 1 | | notice of the insured's rights as a consumer under the law of | 2 | | this State. | 3 | | (j) A public adjuster shall not provide services , other | 4 | | than emergency services, until a written contract with the | 5 | | insured has been executed, on a form filed with and approved by | 6 | | the Director , and an exact copy of the contract has been | 7 | | provided to the insurer in accordance with subsection (h) . At | 8 | | the option of the insured, any such contract shall be voidable | 9 | | for 5 business days after the contract is received by the | 10 | | insurer execution . The insured may void the contract by | 11 | | notifying the public adjuster in writing by (i) registered or | 12 | | certified mail, return receipt requested, to the address shown | 13 | | on the contract , or (ii) personally serving the notice on the | 14 | | public adjuster , or (iii) sending an email to the email | 15 | | address shown on the contract . | 16 | | (k) If the insured exercises the right to rescind the | 17 | | contract, anything of value given by the insured under the | 18 | | contract will be returned to the insured within 15 business | 19 | | days following the receipt by the public adjuster of the | 20 | | cancellation notice. | 21 | | (l) All contracts entered into that are in violation of | 22 | | this Section are void and invalid.
| 23 | | (Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.) | 24 | | (215 ILCS 5/1585)
| 25 | | Sec. 1585. Record retention. |
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| 1 | | (a) A public adjuster shall maintain a complete record of | 2 | | each transaction as a public adjuster. The records required by | 3 | | this Section shall include the following: | 4 | | (1) name of the insured; | 5 | | (2) date, location and amount of the loss; | 6 | | (3) a copy of the contract between the public adjuster | 7 | | and insured and a copy of the separate disclosure | 8 | | documents document ; | 9 | | (4) name of the insurer, amount, expiration date and | 10 | | number of each policy carried with respect to the loss; | 11 | | (5) itemized statement of the insured's recoveries; | 12 | | (6) itemized statement of all compensation received by | 13 | | the public adjuster, from any source whatsoever, in | 14 | | connection with the loss; | 15 | | (7) a register of all monies received, deposited, | 16 | | disbursed, or withdrawn in connection with a transaction | 17 | | with an insured, including fees transfers and | 18 | | disbursements from a trust account and all transactions | 19 | | concerning all interest bearing accounts; | 20 | | (8) name of public adjuster who executed the contract; | 21 | | (9) name of the attorney representing the insured, if | 22 | | applicable, and the name of the claims representatives of | 23 | | the insurance company; and | 24 | | (10) evidence of financial responsibility in a format | 25 | | prescribed by the Director. | 26 | | (b) Records shall be maintained for at least 7 years after |
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| 1 | | the termination of the transaction with an insured and shall | 2 | | be open to examination by the Director at all times. | 3 | | (c) Records submitted to the Director in accordance with | 4 | | this Section that contain information identified in writing as | 5 | | proprietary by the public adjuster shall be treated as | 6 | | confidential by the Director and shall not be subject to the | 7 | | Freedom of Information Act.
| 8 | | (Source: P.A. 96-1332, eff. 1-1-11.) | 9 | | (215 ILCS 5/1590)
| 10 | | Sec. 1590. Standards of conduct of public adjuster. | 11 | | (a) A public adjuster is obligated, under his or her | 12 | | license, to serve with objectivity and complete loyalty for | 13 | | the interests of his client alone, and to render to the insured | 14 | | such information, counsel, and service, as within the | 15 | | knowledge, understanding, and opinion in good faith of the | 16 | | licensee, as will best serve the insured's insurance claim | 17 | | needs and interest. | 18 | | (b) A public adjuster may not propose or attempt to | 19 | | propose to any person that the public adjuster represent that | 20 | | person while a loss-producing occurrence is continuing, nor | 21 | | while the fire department or its representatives are engaged | 22 | | at the damaged premises, nor between the hours of 7:00 p.m. and | 23 | | 8:00 a.m. | 24 | | (c) A public adjuster shall not permit an unlicensed | 25 | | employee or representative of the public adjuster to conduct |
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| 1 | | business for which a license is required under this Article. | 2 | | (d) A public adjuster shall not have a direct or indirect | 3 | | financial interest in any aspect of the claim, other than the | 4 | | salary, fee, commission, or other consideration established in | 5 | | the written contract with the insured, unless full written | 6 | | disclosure has been made to the insured as set forth in | 7 | | subsection (d) (g) of Section 1575. | 8 | | (e) A public adjuster shall not acquire any interest in | 9 | | the salvage of property subject to the contract with the | 10 | | insured unless the public adjuster obtains written permission | 11 | | from the insured after settlement of the claim with the | 12 | | insurer as set forth in subsection (d) (g) of Section 1575 of | 13 | | this Article. | 14 | | (f) The public adjuster shall abstain from referring or | 15 | | directing the insured to get needed repairs or services in | 16 | | connection with a loss from any person, unless disclosed to | 17 | | the insured: | 18 | | (1) with whom the public adjuster has a direct or | 19 | | indirect financial interest; or | 20 | | (2) from whom the public adjuster may receive direct | 21 | | or indirect compensation for the referral. | 22 | | (g) The public adjuster shall disclose to an insured if he | 23 | | or she has any interest or will be compensated by any | 24 | | construction firm, salvage firm, building appraisal firm, | 25 | | board-up company, or any other firm that performs any work in | 26 | | conjunction with damages caused by the insured loss. The word |
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| 1 | | "firm" shall include any corporation, partnership, | 2 | | association, joint-stock company or individual as set forth in | 3 | | Section 1575 of this Article. | 4 | | (h) Any compensation or anything of value in connection | 5 | | with an insured's specific loss that will be received by a | 6 | | public adjuster shall be disclosed by the public adjuster to | 7 | | the insured in writing including the source and amount of any | 8 | | such compensation. | 9 | | (i) In all cases where the loss giving rise to the claim | 10 | | for which the public adjuster was retained arise from damage | 11 | | to a personal residence, the insurance proceeds shall be | 12 | | delivered to the named insured or his or her designee. Where | 13 | | proceeds paid by an insurance company are paid jointly to the | 14 | | insured and the public adjuster, the insured shall release | 15 | | such portion of the proceeds that are due the public adjuster | 16 | | within 30 calendar days after the insured's receipt of the | 17 | | insurance company's check, money order, draft, or release of | 18 | | funds. If the proceeds are not so released to the public | 19 | | adjuster within 30 calendar days, the insured shall provide | 20 | | the public adjuster with a written explanation of the reason | 21 | | for the delay. | 22 | | (j) Public adjusters shall adhere to the following general | 23 | | ethical requirements: | 24 | | (1) a public adjuster shall not undertake the | 25 | | adjustment of any claim if the public adjuster is not | 26 | | competent and knowledgeable as to the terms and conditions |
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| 1 | | of the insurance coverage, or which otherwise exceeds the | 2 | | public adjuster's current expertise; | 3 | | (2) a public adjuster shall not knowingly make any | 4 | | oral or written material misrepresentations or statements | 5 | | which are false or maliciously critical and intended to | 6 | | injure any person engaged in the business of insurance to | 7 | | any insured client or potential insured client; | 8 | | (3) no public adjuster, while so licensed by the | 9 | | Department, may represent or act as a company adjuster or | 10 | | independent adjuster on the same claim; | 11 | | (4) the contract shall not be construed to prevent an | 12 | | insured from pursuing any civil remedy after the | 13 | | 5-business day revocation or cancellation period; | 14 | | (5) a public adjuster shall not enter into a contract | 15 | | or accept a power of attorney that vests in the public | 16 | | adjuster the effective authority to choose the persons who | 17 | | shall perform repair work; | 18 | | (6) a public adjuster shall ensure that all contracts | 19 | | for the public adjuster's services are in writing and set | 20 | | forth all terms and conditions of the engagement; and | 21 | | (7) a public adjuster shall not advance money or any | 22 | | valuable consideration, except emergency services to an | 23 | | insured pending adjustment of a claim. | 24 | | (k) A public adjuster may not agree to any loss settlement | 25 | | without the insured's knowledge and consent and shall, upon | 26 | | the insured's request, provide the insured with a document |
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| 1 | | setting forth the scope, amount, and value of the damages | 2 | | prior to request by the insured for authority to settle the | 3 | | loss. | 4 | | (l) A public adjuster shall not provide legal advice or | 5 | | representation to the insured or engage in the unauthorized | 6 | | practice of law. | 7 | | (m) A public adjuster shall not represent that he or she is | 8 | | a representative of an insurance company, a fire department, | 9 | | or the State of Illinois, that he or she is a fire | 10 | | investigator, that his or her services are required for the | 11 | | insured to submit a claim to the insured's insurance company, | 12 | | or that he or she may provide legal advice or representation to | 13 | | the insured. A public adjuster may represent that he or she has | 14 | | been licensed by the State of Illinois.
| 15 | | (Source: P.A. 96-1332, eff. 1-1-11.)
| 16 | | (815 ILCS 625/Act rep.)
| 17 | | Section 10. The Fire Damage Representation Agreement Act | 18 | | is repealed.
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