Illinois General Assembly - Full Text of SB1495
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Full Text of SB1495  103rd General Assembly


Sen. Napoleon Harris, III

Filed: 3/24/2023





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2    AMENDMENT NO. ______. Amend Senate Bill 1495, AS AMENDED,
3by replacing everything after the enacting clause with the
5    "Section 5. The Illinois Insurance Code is amended by
6changing Sections 1510, 1515, 1550, 1555, 1560, 1570, 1575,
71585, and 1590 as follows:
8    (215 ILCS 5/1510)
9    Sec. 1510. Definitions. In this Article:
10    "Adjusting a claim for loss or damage covered by an
11insurance contract" means negotiating values, damages, or
12depreciation or applying the loss circumstances to insurance
13policy provisions.
14    "Adjusting insurance claims" means representing an insured
15with an insurer for compensation and, while representing that
16insured, either negotiating values, damages, or depreciation



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1or applying the loss circumstances to insurance policy
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    "Uniform individual application" means the current version
18of the National Association of Directors (NAIC) Uniform
19Individual Application for resident and nonresident
21    "Uniform business entity application" means the current
22version of the National Association of Insurance Commissioners
23(NAIC) Uniform Business Entity Application for resident and
24nonresident business entities.
25    "Webinar" means an online educational presentation during
26which a live and participating instructor and participating



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1viewers, whose attendance is periodically verified throughout
2the presentation, actively engage in discussion and in the
3submission and answering of questions.
4(Source: P.A. 102-135, eff. 7-23-21.)
5    (215 ILCS 5/1515)
6    Sec. 1515. License required.
7    (a) A person shall not act, advertise, solicit, or hold
8himself out as a public adjuster or to be in the business of
9adjusting insurance claims in this State, nor attempt to
10obtain a contract for public adjusting services, unless the
11person is licensed as a public adjuster in accordance with
12this Article.
13    (b) A person licensed as a public adjuster shall not
14misrepresent to a claimant that he or she is an adjuster
15representing an insurer in any capacity, including acting as
16an employee of the insurer or acting as an independent
17adjuster unless so appointed by an insurer in writing to act on
18the insurer's behalf for that specific claim or purpose. A
19licensed public adjuster is prohibited from charging that
20specific claimant a fee when appointed by the insurer and the
21appointment is accepted by the public adjuster.
22    (c) A business entity acting as a public adjuster is
23required to obtain a public adjuster license. Application
24shall be made using the Uniform Business Entity Application.
25Before approving the application, the Director shall find



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2        (1) the business entity has paid the required fees to
3    be registered as a business entity in this State; and
4        (2) all officers, shareholders, and persons with
5    ownership interests in the business entity are licensed
6    public adjusters responsible for the business entity's
7    compliance with the insurance laws, rules, and regulations
8    of this State.
9    (d) Notwithstanding subsections (a) through (c) of this
10Section, a license as a public adjuster shall not be required
11of the following:
12        (1) an attorney admitted to practice in this State,
13    when acting in his or her professional capacity as an
14    attorney;
15        (2) a person who negotiates or settles claims arising
16    under a life or health insurance policy or an annuity
17    contract;
18        (3) a person employed only for the purpose of
19    obtaining facts surrounding a loss or furnishing technical
20    assistance to a licensed public adjuster, including
21    photographers, estimators, private investigators,
22    engineers, and handwriting experts;
23        (4) a licensed health care provider, or employee of a
24    licensed health care provider, who prepares or files a
25    health claim form on behalf of a patient; or
26        (5) a person who settles subrogation claims between



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1    insurers.
2    (e) All contracts entered into that are in violation of
3this Section are void and invalid.
4(Source: P.A. 96-1332, eff. 1-1-11.)
5    (215 ILCS 5/1550)
6    Sec. 1550. Applicant convictions.
7    (a) The Director and the Department shall not require
8applicants to report the following information and shall not
9collect or consider the following criminal history records in
10connection with a public adjuster license application:
11        (1) Juvenile adjudications of delinquent minors as
12    defined in Section 5-105 of the Juvenile Court Act of
13    1987, subject to the restrictions set forth in Section
14    5-130 of that Act.
15        (2) Law enforcement records, court records, and
16    conviction records of an individual who was 17 years old
17    at the time of the offense and before January 1, 2014,
18    unless the nature of the offense required the individual
19    to be tried as an adult.
20        (3) Records of arrest not followed by a formal charge
21    or conviction.
22        (4) Records of arrest where charges were dismissed
23    unless related to the duties and responsibilities of a
24    public adjuster. However, applicants shall not be asked to
25    report any arrests, and any arrest not followed by a



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



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1        (4) whether 5 years since a felony conviction or 3
2    years since release from confinement for the conviction,
3    whichever is later, have passed without a subsequent
4    conviction;
5        (5) successful completion of sentence and, for
6    applicants serving a term of parole or probation, a
7    progress report provided by the applicant's probation or
8    parole officer that documents the applicant's compliance
9    with conditions of supervision;
10        (6) evidence of the applicant's present fitness and
11    professional character;
12        (7) evidence of rehabilitation or rehabilitative
13    effort during or after incarceration or during or after a
14    term of supervision, including, but not limited to, a
15    certificate of good conduct under Section 5-5.5-25 of the
16    Unified Code of Corrections or certificate of relief from
17    disabilities under Section 5-5.5-10 of the Unified Code of
18    Corrections; and
19        (8) any other mitigating factors that contribute to
20    the person's potential and current ability to perform the
21    duties and responsibilities of a public adjuster.
22    (c) If a nonresident licensee meets the standards set
23forth in items (1) through (4) of subsection (a) of Section
241540 and has received consent pursuant to 18 U.S.C. 1033(e)(2)
25from his or her home state, the Director shall grant the
26nonresident licensee a license.



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1    (d) If the Director refuses to issue a license to an
2applicant based on a conviction or convictions, in whole or in
3part, then the Director shall notify the applicant of the
4denial in writing with the following included in the notice of
6        (1) a statement about the decision to refuse to issue
7    a license;
8        (2) a list of convictions that the Director determined
9    will impair the applicant's ability to engage in the
10    position for which a license is sought;
11        (3) a list of the convictions that were the sole or
12    partial basis for the refusal to issue a license; and
13        (4) a summary of the appeal process or the earliest
14    the applicant may reapply for a license, whichever is
15    applicable.
16(Source: P.A. 100-286, eff. 1-1-18.)
17    (215 ILCS 5/1555)
18    Sec. 1555. License denial, nonrenewal, or revocation.
19    (a) The Director may place on probation, suspend, revoke,
20deny, or refuse to issue or renew a public adjuster's license
21or may levy a civil penalty or any combination of actions, for
22any one or more of the following causes:
23        (1) providing incorrect, misleading, incomplete, or
24    materially untrue information in the license application;
25        (2) violating any insurance laws, or violating any



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1    regulation, subpoena, or order of the Director or of
2    another state's Director;
3        (3) obtaining or attempting to obtain a license
4    through misrepresentation or fraud;
5        (4) improperly withholding, misappropriating, or
6    converting any monies or properties received in the course
7    of doing insurance business;
8        (5) intentionally misrepresenting the terms of an
9    actual or proposed insurance contract or application for
10    insurance;
11        (6) having been convicted of any a felony or a
12    misdemeanor involving dishonesty or fraud, unless the
13    individual demonstrates to the Director sufficient
14    rehabilitation to warrant the public trust; consideration
15    of such conviction of an applicant shall be in accordance
16    with Section 1550;
17        (7) having admitted or been found to have committed
18    any insurance unfair trade practice or insurance fraud;
19        (8) using fraudulent, coercive, or dishonest
20    practices; or demonstrating incompetence,
21    untrustworthiness, or financial irresponsibility in the
22    conduct of business in this State or elsewhere;
23        (9) having an insurance license or public adjuster
24    license or its equivalent, denied, suspended, or revoked
25    in any other state, province, district, or territory;
26        (10) forging another's name to an application for



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1    insurance or to any document related to an insurance
2    transaction;
3        (11) cheating, including improperly using notes or any
4    other reference material, to complete an examination for
5    an insurance license or public adjuster license;
6        (12) knowingly accepting insurance business from or
7    transacting business with an individual who is not
8    licensed but who is required to be licensed by the
9    Director;
10        (13) failing to comply with an administrative or court
11    order imposing a child support obligation;
12        (14) failing to pay State income tax or comply with
13    any administrative or court order directing payment of
14    State income tax;
15        (15) failing to comply with or having violated any of
16    the standards set forth in Section 1590 of this Law; or
17        (16) failing to maintain the records required by
18    Section 1585 of this Law.
19    (b) If the action by the Director is to nonrenew, suspend,
20or revoke a license or to deny an application for a license,
21the Director shall notify the applicant or licensee and
22advise, in writing, the applicant or licensee of the reason
23for the suspension, revocation, denial, or nonrenewal of the
24applicant's or licensee's license. The applicant or licensee
25may make written demand upon the Director within 30 days after
26the date of mailing for a hearing before the Director to



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1determine the reasonableness of the Director's action. The
2hearing must be held within not fewer than 20 days nor more
3than 30 days after the mailing of the notice of hearing and
4shall be held pursuant to 50 Ill. Adm. Code 2402.
5    (c) The license of a business entity may be suspended,
6revoked, or refused if the Director finds, after hearing, that
7an individual licensee's violation was known or should have
8been known by one or more of the partners, officers, or
9managers acting on behalf of the business entity and the
10violation was neither reported to the Director, nor corrective
11action taken.
12    (d) In addition to or in lieu of any applicable denial,
13suspension or revocation of a license, a person may, after
14hearing, be subject to a civil penalty. In addition to or
15instead of any applicable denial, suspension, or revocation of
16a license, a person may, after hearing, be subject to a civil
17penalty of up to $10,000 for each cause for denial,
18suspension, or revocation, however, the civil penalty may
19total no more than $100,000.
20    (e) The Director shall retain the authority to enforce the
21provisions of and impose any penalty or remedy authorized by
22this Article against any person who is under investigation for
23or charged with a violation of this Article even if the
24person's license or registration has been surrendered or has
25lapsed by operation of law.
26    (f) Any individual whose public adjuster's license is



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1revoked or whose application is denied pursuant to this
2Section shall be ineligible to apply for a public adjuster's
3license for 5 years. A suspension pursuant to this Section may
4be for any period of time up to 5 years.
5(Source: P.A. 100-286, eff. 1-1-18.)
6    (215 ILCS 5/1560)
7    Sec. 1560. Bond or letter of credit.
8    (a) Prior to the issuance of a license as a public adjuster
9and for the duration of the license, the applicant shall
10secure evidence of financial responsibility in a format
11prescribed by the Director through a surety bond or
12irrevocable letter of credit, subject to all of the following
14        (1) A surety bond executed and issued by an insurer
15    authorized to issue surety bonds in this State, which
16    bond:
17            (A) shall be in the minimum amount of $50,000
18        $20,000;
19            (B) shall be in favor of this State and shall
20        specifically authorize recovery by the Director on
21        behalf of any person in this State who sustained
22        damages as the result of erroneous acts, failure to
23        act, conviction of fraud, or conviction of unfair
24        practices in his or her capacity as a public adjuster;
25        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 Director and given to the licensee; and
4        (2) An irrevocable letter of credit issued by a
5    qualified financial institution, which letter of credit:
6            (A) shall be in the minimum amount of $50,000
7        $20,000;
8            (B) shall be to an account to the Director and
9        subject to lawful levy of execution on behalf of any
10        person to whom the public adjuster has been found to be
11        legally liable as the result of erroneous acts,
12        failure to act, fraudulent acts, or unfair practices
13        in his or her capacity as a public adjuster; and
14            (C) shall not be terminated unless at least 30
15        days' prior written notice will have been filed with
16        the and given to the licensee.
17    (b) The issuer of the evidence of financial responsibility
18shall notify the Director upon termination of the bond or
19letter of credit, unless otherwise directed by the Director.
20    (c) The Director may ask for the evidence of financial
21responsibility at any time he or she deems relevant.
22    (d) The authority to act as a public adjuster shall
23automatically terminate if the evidence of financial
24responsibility terminates or becomes impaired.
25(Source: P.A. 96-1332, eff. 1-1-11.)



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1    (215 ILCS 5/1570)
2    Sec. 1570. Public adjuster fees.
3    (a) A public adjuster shall not pay a commission, service
4fee, or other valuable consideration to a person for
5investigating or settling claims in this State if that person
6is required to be licensed under this Article and is not so
8    (b) A person shall not accept a commission, service fee,
9or other valuable consideration for investigating or settling
10claims in this State if that person is required to be licensed
11under this Article and is not so licensed.
12    (c) A public adjuster may pay or assign commission,
13service fees, or other valuable consideration to persons who
14do not investigate or settle claims in this State, unless the
15payment would violate State law.
16    (d) If the loss giving rise to the claim for which the
17public adjuster was retained arises from damage to property
18that is anything but a personal residence, a A public adjuster
19may not charge, agree to, or accept any compensation, payment,
20commission commissions, fee, or other valuable consideration
21in excess of 10% of the amount of the insurance settlement
22claim paid by the insurer on any claim resulting from a
23catastrophic event, unless approved in writing by the
24Director. Application for exception to the 10% limit must be
25made in writing. The request must contain specific reasons as
26to why the consideration should be in excess of 10% and proof



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1that the policyholder would accept the consideration. The
2Director must act on any request within 5 business days after
3receipt of the request.
4    For the purpose of this subsection (d), "catastrophic
5event" means an occurrence of widespread or severe damage or
6loss of property producing an overwhelming demand on State and
7local response resources and mechanisms and a severe long-term
8effect on general economic activity, and that severely affects
9State, local, and private sector capabilities to begin to
10sustain response activities resulting from any catastrophic
11cause, including, but not limited to, fire, including arson
12(provided the fire was not caused by the willful action of an
13owner or resident of the property), flood, earthquake, wind,
14storm, explosion, or extended periods of severe inclement
15weather as determined by declaration of a State of disaster by
16the Governor. This declaration may be made on a
17county-by-county basis and shall be in effect for 90 days, but
18may be renewed for 30-day intervals thereafter.
19    (e) If the loss giving rise to the claim for which the
20public adjuster was retained arises from damage to a personal
21residence, a public adjuster may not charge, agree to, or
22accept any compensation, payment, commission, fee, or other
23valuable consideration in excess of 10% of the amount of the
24insurance settlement claim paid by the insurer on any claim.
25(Source: P.A. 98-701, eff. 1-1-15.)



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1    (215 ILCS 5/1575)
2    Sec. 1575. Contract between public adjuster and insured.
3    (a) Public adjusters shall ensure that all contracts for
4their services are in writing and contain the following terms:
5        (1) legible full name of the adjuster signing the
6    contract, as specified in Department records;
7        (2) permanent home state business address, email
8    address, and phone number;
9        (3) license number;
10        (4) title of "Public Adjuster Contract";
11        (5) the insured's full name, street address, insurance
12    company name, and policy number, if known or upon
13    notification;
14        (6) a description of the loss and its location, if
15    applicable;
16        (7) description of services to be provided to the
17    insured;
18        (8) signatures of the public adjuster and the insured;
19        (9) date and time the contract was signed by the
20    public adjuster and date and time the contract was signed
21    by the insured;
22        (10) attestation language stating that the public
23    adjuster is fully bonded pursuant to State law; and
24        (11) full salary, fee, commission, compensation, or
25    other considerations the public adjuster is to receive for
26    services, including any applicable cap under Section 1570.



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



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1    claim and expenses incurred by the public adjuster, until
2    the claim is paid or the insured receives a written
3    commitment to pay from the insurer.
4    (d) A public adjuster shall provide the insured a written
5disclosure concerning any direct or indirect financial
6interest that the public adjuster has with any other party who
7is involved in any aspect of the claim, other than the salary,
8fee, commission, or other consideration established in the
9written contract with the insured, including, but not limited
10to, any ownership of or any compensation expected to be
11received from, any construction firm, salvage firm, building
12appraisal firm, board-up company, or any other firm that
13provides estimates for work, or that performs any work, in
14conjunction with damages caused by the insured loss on which
15the public adjuster is engaged. The word "firm" shall include
16any corporation, partnership, association, joint-stock
17company, or person.
18    (e) A public adjuster contract may not contain any
19contract term that:
20        (1) allows the public adjuster's percentage fee to be
21    collected when money is due from an insurance company, but
22    not paid, or that allows a public adjuster to collect the
23    entire fee from the first check issued by an insurance
24    company, rather than as a percentage of each check issued
25    by an insurance company;
26        (2) requires the insured to authorize an insurance



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



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1            (B) "Independent adjuster" means the insurance
2        adjusters who are hired on a contract basis by an
3        insurance company to represent the insurance company's
4        interest in the settlement of the claim. They are paid
5        by your insurance company. They will not charge you a
6        fee.
7            (C) "Public adjuster" means the insurance
8        adjusters who do not work for any insurance company.
9        They represent work for the insured to assist in the
10        preparation, presentation and settlement of the claim.
11        The insured hires them by signing a contract agreeing
12        to pay them a fee or commission based on a percentage
13        of the settlement, or other method of compensation.".
14        (2) The insured is not required to hire a public
15    adjuster to help the insured meet his or her obligations
16    under the policy, but has the right to do so.
17        (3) The public adjuster is not a representative or
18    employee of the insurer or the Department of Insurance.
19        (4) The salary, fee, commission, or other
20    consideration is the obligation of the insured, not the
21    insurer, except when rights have been assigned to the
22    public adjuster by the insured.
23    (g) The contracts shall be executed in duplicate to
24provide an original contract to the public adjuster, and an
25original contract to the insured. The public adjuster's
26original contract shall be available at all times for



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1inspection without notice by the Director.
2    (h) The public adjuster shall provide the insurer or its
3authorized representative for receiving notice of loss or
4damage with an exact copy of the contract with by the insured
5by email no later than 5 business days after execution of the
6contract, authorizing the public adjuster to represent the
7insured's interest.
8    (i) The public adjuster shall give the insured written
9notice of the insured's rights as a consumer under the law of
10this State.
11    (j) A public adjuster shall not provide services, other
12than emergency services, until a written contract with the
13insured has been executed, on a form filed with and approved by
14the Director, and an exact copy of the contract has been
15provided to the insurer in accordance with subsection (h). At
16the option of the insured, any such contract shall be voidable
17for 5 business days after the contract is received by the
18insurer execution. The insured may void the contract by
19notifying the public adjuster in writing by (i) registered or
20certified mail, return receipt requested, to the address shown
21on the contract, or (ii) personally serving the notice on the
22public adjuster, or (iii) sending an email to the email
23address shown on the contract.
24    (k) If the insured exercises the right to rescind the
25contract, anything of value given by the insured under the
26contract will be returned to the insured within 15 business



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1days following the receipt by the public adjuster of the
2cancellation notice.
3    (l) All contracts entered into that are in violation of
4this Section are void and invalid.
5(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.)
6    (215 ILCS 5/1585)
7    Sec. 1585. Record retention.
8    (a) A public adjuster shall maintain a complete record of
9each transaction as a public adjuster. The records required by
10this Section shall include the following:
11        (1) name of the insured;
12        (2) date, location and amount of the loss;
13        (3) a copy of the contract between the public adjuster
14    and insured and a copy of the separate disclosure
15    documents document;
16        (4) name of the insurer, amount, expiration date and
17    number of each policy carried with respect to the loss;
18        (5) itemized statement of the insured's recoveries;
19        (6) itemized statement of all compensation received by
20    the public adjuster, from any source whatsoever, in
21    connection with the loss;
22        (7) a register of all monies received, deposited,
23    disbursed, or withdrawn in connection with a transaction
24    with an insured, including fees transfers and
25    disbursements from a trust account and all transactions



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1    concerning all interest bearing accounts;
2        (8) name of public adjuster who executed the contract;
3        (9) name of the attorney representing the insured, if
4    applicable, and the name of the claims representatives of
5    the insurance company; and
6        (10) evidence of financial responsibility in a format
7    prescribed by the Director.
8    (b) Records shall be maintained for at least 7 years after
9the termination of the transaction with an insured and shall
10be open to examination by the Director at all times.
11    (c) Records submitted to the Director in accordance with
12this Section that contain information identified in writing as
13proprietary by the public adjuster shall be treated as
14confidential by the Director and shall not be subject to the
15Freedom of Information Act.
16(Source: P.A. 96-1332, eff. 1-1-11.)
17    (215 ILCS 5/1590)
18    Sec. 1590. Standards of conduct of public adjuster.
19    (a) A public adjuster is obligated, under his or her
20license, to serve with objectivity and complete loyalty for
21the interests of his client alone, and to render to the insured
22such information, counsel, and service, as within the
23knowledge, understanding, and opinion in good faith of the
24licensee, as will best serve the insured's insurance claim
25needs and interest.



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1    (b) A public adjuster may not propose or attempt to
2propose to any person that the public adjuster represent that
3person while a loss-producing occurrence is continuing, nor
4while the fire department or its representatives are engaged
5at the damaged premises, nor between the hours of 7:00 p.m. and
68:00 a.m.
7    (c) A public adjuster shall not permit an unlicensed
8employee or representative of the public adjuster to conduct
9business for which a license is required under this Article.
10    (d) A public adjuster shall not have a direct or indirect
11financial interest in any aspect of the claim, other than the
12salary, fee, commission, or other consideration established in
13the written contract with the insured, unless full written
14disclosure has been made to the insured as set forth in
15subsection (d) (g) of Section 1575.
16    (e) A public adjuster shall not acquire any interest in
17the salvage of property subject to the contract with the
18insured unless the public adjuster obtains written permission
19from the insured after settlement of the claim with the
20insurer as set forth in subsection (d) (g) of Section 1575 of
21this Article.
22    (f) The public adjuster shall abstain from referring or
23directing the insured to get needed repairs or services in
24connection with a loss from any person, unless disclosed to
25the insured:
26        (1) with whom the public adjuster has a direct or



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1    indirect financial interest; or
2        (2) from whom the public adjuster may receive direct
3    or indirect compensation for the referral.
4    (g) The public adjuster shall disclose to an insured if he
5or she has any interest or will be compensated by any
6construction firm, salvage firm, building appraisal firm,
7board-up company, or any other firm that performs any work in
8conjunction with damages caused by the insured loss. The word
9"firm" shall include any corporation, partnership,
10association, joint-stock company or individual as set forth in
11Section 1575 of this Article.
12    (h) Any compensation or anything of value in connection
13with an insured's specific loss that will be received by a
14public adjuster shall be disclosed by the public adjuster to
15the insured in writing including the source and amount of any
16such compensation.
17    (i) In all cases where the loss giving rise to the claim
18for which the public adjuster was retained arise from damage
19to a personal residence, the insurance proceeds shall be
20delivered to the named insured or his or her designee. Where
21proceeds paid by an insurance company are paid jointly to the
22insured and the public adjuster, the insured shall release
23such portion of the proceeds that are due the public adjuster
24within 30 calendar days after the insured's receipt of the
25insurance company's check, money order, draft, or release of
26funds. If the proceeds are not so released to the public



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



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1    for the public adjuster's services are in writing and set
2    forth all terms and conditions of the engagement; and
3        (7) a public adjuster shall not advance money or any
4    valuable consideration, except emergency services to an
5    insured pending adjustment of a claim.
6    (k) A public adjuster may not agree to any loss settlement
7without the insured's knowledge and consent and shall, upon
8the insured's request, provide the insured with a document
9setting forth the scope, amount, and value of the damages
10prior to request by the insured for authority to settle the
12    (l) A public adjuster shall not provide legal advice or
13representation to the insured or engage in the unauthorized
14practice of law.
15    (m) A public adjuster shall not represent that he or she is
16a representative of an insurance company, a fire department,
17or the State of Illinois, that he or she is a fire
18investigator, that his or her services are required for the
19insured to submit a claim to the insured's insurance company,
20or that he or she may provide legal advice or representation to
21the insured. A public adjuster may represent that he or she has
22been licensed by the State of Illinois.
23(Source: P.A. 96-1332, eff. 1-1-11.)
24    (815 ILCS 625/Act rep.)
25    Section 10. The Fire Damage Representation Agreement Act



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1is repealed.".