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




SB1495 EnrolledLRB103 05818 BMS 50838 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Insurance Code is amended by
5changing Sections 1510, 1515, 1550, 1555, 1560, 1570, 1575,
61585, 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
10insurance contract" means negotiating values, damages, or
11depreciation or applying the loss circumstances to insurance
12policy provisions.
13    "Adjusting insurance claims" means representing an insured
14with an insurer for compensation and, while representing that
15insured, either negotiating values, damages, or depreciation
16or applying the loss circumstances to insurance policy
18    "Business entity" means a corporation, association,
19partnership, limited liability company, limited liability
20partnership, 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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1finger taken for the purpose of identification. The impression
2may be electronic or in ink converted to electronic format.
3    "Home state" means the District of Columbia and any state
4or territory of the United States where the public adjuster's
5principal place of residence or principal place of business is
6located. If neither the state in which the public adjuster
7maintains the principal place of residence nor the state in
8which the public adjuster maintains the principal place of
9business has a substantially similar law governing public
10adjusters, the public adjuster may declare another state in
11which it becomes licensed and acts as a public adjuster to be
12the 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
16or 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
10of the National Association of Directors (NAIC) Uniform
11Individual Application for resident and nonresident
13    "Uniform business entity application" means the current
14version of the National Association of Insurance Commissioners
15(NAIC) Uniform Business Entity Application for resident and
16nonresident business entities.
17    "Webinar" means an online educational presentation during
18which a live and participating instructor and participating
19viewers, whose attendance is periodically verified throughout
20the presentation, actively engage in discussion and in the
21submission 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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1himself out as a public adjuster or to be in the business of
2adjusting insurance claims in this State, nor attempt to
3obtain a contract for public adjusting services, unless the
4person is licensed as a public adjuster in accordance with
5this Article.
6    (b) A person licensed as a public adjuster shall not
7misrepresent to a claimant that he or she is an adjuster
8representing an insurer in any capacity, including acting as
9an employee of the insurer or acting as an independent
10adjuster unless so appointed by an insurer in writing to act on
11the insurer's behalf for that specific claim or purpose. A
12licensed public adjuster is prohibited from charging that
13specific claimant a fee when appointed by the insurer and the
14appointment is accepted by the public adjuster.
15    (c) A business entity acting as a public adjuster is
16required to obtain a public adjuster license. Application
17shall be made using the Uniform Business Entity Application.
18Before approving the application, the Director shall find
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
2Section, a license as a public adjuster shall not be required
3of 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
21this 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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1applicants to report the following information and shall not
2collect or consider the following criminal history records in
3connection 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
25license under this Act was previously convicted of any a
26felony or a misdemeanor involving dishonesty or fraud, shall



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1consider any mitigating factors and evidence of rehabilitation
2contained in the applicant's record, including any of the
3following factors and evidence, to determine if a license may
4be denied because the prior conviction will impair the ability
5of the applicant to engage in the position for which a license
6is 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
15forth in items (1) through (4) of subsection (a) of Section
161540 and has received consent pursuant to 18 U.S.C. 1033(e)(2)
17from his or her home state, the Director shall grant the
18nonresident licensee a license.
19    (d) If the Director refuses to issue a license to an
20applicant based on a conviction or convictions, in whole or in
21part, then the Director shall notify the applicant of the
22denial in writing with the following included in the notice of
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,
12deny, or refuse to issue or renew a public adjuster's license
13or may levy a civil penalty or any combination of actions, for
14any 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,
12or revoke a license or to deny an application for a license,
13the Director shall notify the applicant or licensee and
14advise, in writing, the applicant or licensee of the reason
15for the suspension, revocation, denial, or nonrenewal of the
16applicant's or licensee's license. The applicant or licensee
17may make written demand upon the Director within 30 days after
18the date of mailing for a hearing before the Director to
19determine the reasonableness of the Director's action. The
20hearing must be held within not fewer than 20 days nor more
21than 30 days after the mailing of the notice of hearing and
22shall be held pursuant to 50 Ill. Adm. Code 2402.
23    (c) The license of a business entity may be suspended,
24revoked, or refused if the Director finds, after hearing, that
25an individual licensee's violation was known or should have
26been known by one or more of the partners, officers, or



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1managers acting on behalf of the business entity and the
2violation was neither reported to the Director, nor corrective
3action taken.
4    (d) In addition to or in lieu of any applicable denial,
5suspension or revocation of a license, a person may, after
6hearing, be subject to a civil penalty. In addition to or
7instead of any applicable denial, suspension, or revocation of
8a license, a person may, after hearing, be subject to a civil
9penalty of up to $10,000 for each cause for denial,
10suspension, or revocation, however, the civil penalty may
11total no more than $100,000.
12    (e) The Director shall retain the authority to enforce the
13provisions of and impose any penalty or remedy authorized by
14this Article against any person who is under investigation for
15or charged with a violation of this Article even if the
16person's license or registration has been surrendered or has
17lapsed by operation of law.
18    (f) Any individual whose public adjuster's license is
19revoked or whose application is denied pursuant to this
20Section shall be ineligible to apply for a public adjuster's
21license for 5 years. A suspension pursuant to this Section may
22be 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
2and for the duration of the license, the applicant shall
3secure evidence of financial responsibility in a format
4prescribed by the Director through a surety bond or
5irrevocable letter of credit, subject to all of the following
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
10shall notify the Director upon termination of the bond or
11letter of credit, unless otherwise directed by the Director.
12    (c) The Director may ask for the evidence of financial
13responsibility at any time he or she deems relevant.
14    (d) The authority to act as a public adjuster shall
15automatically terminate if the evidence of financial
16responsibility 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
21fee, or other valuable consideration to a person for
22investigating or settling claims in this State if that person
23is required to be licensed under this Article and is not so
25    (b) A person shall not accept a commission, service fee,



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1or other valuable consideration for investigating or settling
2claims in this State if that person is required to be licensed
3under this Article and is not so licensed.
4    (c) A public adjuster may pay or assign commission,
5service fees, or other valuable consideration to persons who
6do not investigate or settle claims in this State, unless the
7payment would violate State law.
8    (d) If the loss giving rise to the claim for which the
9public adjuster was retained arises from damage to property
10that is anything but a personal residence, a A public adjuster
11may not charge, agree to, or accept any compensation, payment,
12commission commissions, fee, or other valuable consideration
13in excess of 10% of the amount of the insurance settlement
14claim paid by the insurer on any claim resulting from a
15catastrophic event, unless approved in writing by the
16Director. Application for exception to the 10% limit must be
17made in writing. The request must contain specific reasons as
18to why the consideration should be in excess of 10% and proof
19that the policyholder would accept the consideration. The
20Director must act on any request within 5 business days after
21receipt of the request.
22    For the purpose of this subsection (d), "catastrophic
23event" means an occurrence of widespread or severe damage or
24loss of property producing an overwhelming demand on State and
25local response resources and mechanisms and a severe long-term
26effect on general economic activity, and that severely affects



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1State, local, and private sector capabilities to begin to
2sustain response activities resulting from any catastrophic
3cause, including, but not limited to, fire, including arson
4(provided the fire was not caused by the willful action of an
5owner or resident of the property), flood, earthquake, wind,
6storm, explosion, or extended periods of severe inclement
7weather as determined by declaration of a State of disaster by
8the Governor. This declaration may be made on a
9county-by-county basis and shall be in effect for 90 days, but
10may be renewed for 30-day intervals thereafter.
11    (e) If the loss giving rise to the claim for which the
12public adjuster was retained arises from damage to a personal
13residence, a public adjuster may not charge, agree to, or
14accept any compensation, payment, commission, fee, or other
15valuable consideration in excess of 10% of the amount of the
16insurance 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
21their 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
20shall be named as a co-payee on an insurer's payment of a
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
8the date on which the loss is reported to the insurer, either
9pays or commits in writing to pay to the insured the policy
10limit 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
23disclosure concerning any direct or indirect financial
24interest that the public adjuster has with any other party who
25is involved in any aspect of the claim, other than the salary,
26fee, commission, or other consideration established in the



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1written contract with the insured, including, but not limited
2to, any ownership of or any compensation expected to be
3received from, any construction firm, salvage firm, building
4appraisal firm, board-up company, or any other firm that
5provides estimates for work, or that performs any work, in
6conjunction with damages caused by the insured loss on which
7the public adjuster is engaged. The word "firm" shall include
8any corporation, partnership, association, joint-stock
9company, or person.
10    (e) A public adjuster contract may not contain any
11contract 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
4public 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
16provide an original contract to the public adjuster, and an
17original contract to the insured. The public adjuster's
18original contract shall be available at all times for
19inspection without notice by the Director.
20    (h) The public adjuster shall provide the insurer or its
21authorized representative for receiving notice of loss or
22damage with an exact copy of the contract with by the insured
23by email no later than 5 business days after execution of the
24contract, authorizing the public adjuster to represent the
25insured's interest.
26    (i) The public adjuster shall give the insured written



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1notice of the insured's rights as a consumer under the law of
2this State.
3    (j) A public adjuster shall not provide services, other
4than emergency services, until a written contract with the
5insured has been executed, on a form filed with and approved by
6the Director, and an exact copy of the contract has been
7provided to the insurer in accordance with subsection (h). At
8the option of the insured, any such contract shall be voidable
9for 5 business days after the contract is received by the
10insurer execution. The insured may void the contract by
11notifying the public adjuster in writing by (i) registered or
12certified mail, return receipt requested, to the address shown
13on the contract, or (ii) personally serving the notice on the
14public adjuster, or (iii) sending an email to the email
15address shown on the contract.
16    (k) If the insured exercises the right to rescind the
17contract, anything of value given by the insured under the
18contract will be returned to the insured within 15 business
19days following the receipt by the public adjuster of the
20cancellation notice.
21    (l) All contracts entered into that are in violation of
22this 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
2each transaction as a public adjuster. The records required by
3this 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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1the termination of the transaction with an insured and shall
2be open to examination by the Director at all times.
3    (c) Records submitted to the Director in accordance with
4this Section that contain information identified in writing as
5proprietary by the public adjuster shall be treated as
6confidential by the Director and shall not be subject to the
7Freedom 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
12license, to serve with objectivity and complete loyalty for
13the interests of his client alone, and to render to the insured
14such information, counsel, and service, as within the
15knowledge, understanding, and opinion in good faith of the
16licensee, as will best serve the insured's insurance claim
17needs and interest.
18    (b) A public adjuster may not propose or attempt to
19propose to any person that the public adjuster represent that
20person while a loss-producing occurrence is continuing, nor
21while the fire department or its representatives are engaged
22at the damaged premises, nor between the hours of 7:00 p.m. and
238:00 a.m.
24    (c) A public adjuster shall not permit an unlicensed
25employee or representative of the public adjuster to conduct



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1business for which a license is required under this Article.
2    (d) A public adjuster shall not have a direct or indirect
3financial interest in any aspect of the claim, other than the
4salary, fee, commission, or other consideration established in
5the written contract with the insured, unless full written
6disclosure has been made to the insured as set forth in
7subsection (d) (g) of Section 1575.
8    (e) A public adjuster shall not acquire any interest in
9the salvage of property subject to the contract with the
10insured unless the public adjuster obtains written permission
11from the insured after settlement of the claim with the
12insurer as set forth in subsection (d) (g) of Section 1575 of
13this Article.
14    (f) The public adjuster shall abstain from referring or
15directing the insured to get needed repairs or services in
16connection with a loss from any person, unless disclosed to
17the 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
23or she has any interest or will be compensated by any
24construction firm, salvage firm, building appraisal firm,
25board-up company, or any other firm that performs any work in
26conjunction with damages caused by the insured loss. The word



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1"firm" shall include any corporation, partnership,
2association, joint-stock company or individual as set forth in
3Section 1575 of this Article.
4    (h) Any compensation or anything of value in connection
5with an insured's specific loss that will be received by a
6public adjuster shall be disclosed by the public adjuster to
7the insured in writing including the source and amount of any
8such compensation.
9    (i) In all cases where the loss giving rise to the claim
10for which the public adjuster was retained arise from damage
11to a personal residence, the insurance proceeds shall be
12delivered to the named insured or his or her designee. Where
13proceeds paid by an insurance company are paid jointly to the
14insured and the public adjuster, the insured shall release
15such portion of the proceeds that are due the public adjuster
16within 30 calendar days after the insured's receipt of the
17insurance company's check, money order, draft, or release of
18funds. If the proceeds are not so released to the public
19adjuster within 30 calendar days, the insured shall provide
20the public adjuster with a written explanation of the reason
21for the delay.
22    (j) Public adjusters shall adhere to the following general
23ethical 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
25without the insured's knowledge and consent and shall, upon
26the insured's request, provide the insured with a document



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1setting forth the scope, amount, and value of the damages
2prior to request by the insured for authority to settle the
4    (l) A public adjuster shall not provide legal advice or
5representation to the insured or engage in the unauthorized
6practice of law.
7    (m) A public adjuster shall not represent that he or she is
8a representative of an insurance company, a fire department,
9or the State of Illinois, that he or she is a fire
10investigator, that his or her services are required for the
11insured to submit a claim to the insured's insurance company,
12or that he or she may provide legal advice or representation to
13the insured. A public adjuster may represent that he or she has
14been 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
18is repealed.