Public Act 0216 103RD GENERAL ASSEMBLY |
Public Act 103-0216 |
SB1495 Enrolled | LRB103 05818 BMS 50838 b |
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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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)
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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 |
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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 |
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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.
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"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)
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Sec. 1515. License required. |
(a) A person shall not act, advertise, solicit, or hold |
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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. |
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(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.
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(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 |
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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 |
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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 |
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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 |
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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.
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(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 |
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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 |
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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 |
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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.
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(Source: P.A. 100-286, eff. 1-1-18 .) |
(215 ILCS 5/1560)
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Sec. 1560. Bond or letter of credit. |
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(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 |
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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.
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(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, |
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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.
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(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 |
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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)
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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; |
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(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 |
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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 |
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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 |
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(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. |
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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 |
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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.
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(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.) |
(215 ILCS 5/1585)
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Sec. 1585. Record retention. |
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(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 |
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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.
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(Source: P.A. 96-1332, eff. 1-1-11.) |
(215 ILCS 5/1590)
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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 |
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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 |
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"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 |
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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.
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(Source: P.A. 96-1332, eff. 1-1-11.)
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(815 ILCS 625/Act rep.)
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Section 10. The Fire Damage Representation Agreement Act |
is repealed.
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