Public Act 103-0216

Public Act 0216 103RD GENERAL ASSEMBLY

  
  
  

 


 
Public Act 103-0216
 
SB1495 EnrolledLRB103 05818 BMS 50838 b

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