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| Public Act 095-0213 |
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AN ACT concerning insurance.
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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 512.52, 512.53, 512.55, 512.57, 512.58, | ||||
512.59, 512.60, 512.61, and 512.64 as follows:
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(215 ILCS 5/512.52) (from Ch. 73, par. 1065.59-52)
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Sec. 512.52. Definitions. As used in this Article unless
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the context clearly otherwise requires:
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(a)
"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.
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(b) "Public Insurance Adjuster" means a person engaged in | ||||
the business
of adjusting insurance claims who is licensed | ||||
pursuant to this Article.
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(c) "Registered Firm" means a person registered with the | ||||
Director under
Section 512.57.
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(d) "Compensation" shall include, but need not be limited | ||||
to, the following:
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1. any assignment of insurance proceeds or a percentage | ||||
thereof;
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2. any agreement to make repairs for the amount of the | ||
insurance proceeds
payable;
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3. assertion of any lien against insurance proceeds | ||
payable.
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(e) "Person" embraces both natural persons and business
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entities of whatever type.
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(Source: P.A. 84-335; 84-832.)
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(215 ILCS 5/512.53) (from Ch. 73, par. 1065.59-53)
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Sec. 512.53. License Required. (a) No person may engage
in | ||
the business of adjusting insurance claims, nor advertise, | ||
solicit or hold himself out to be in the business of adjusting | ||
insurance claims, solicit or
hold himself out to be a Public | ||
Insurance Adjuster, nor attempt to
obtain a contract for Public | ||
Adjusting services, unless licensed or registered
in | ||
accordance with the provisions of this Article, except that the | ||
provisions
of this paragraph do not apply to a person admitted | ||
to the practice of law
in this State, to a licensed agent | ||
adjusting loss or damage under a policy
within his control or | ||
to a marine surveyor or average adjuster.
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(b) In addition to any other penalty set forth in this | ||
Article, any person
violating paragraph (a) of this Section | ||
shall be guilty of a Class A misdemeanor,
and any person | ||
misappropriating or converting any monies collected as a
Public | ||
Insurance Adjuster, whether licensed or not, shall be guilty of | ||
a
Class 4 felony. | ||
(c) All contracts entered into by any person violating | ||
subsection (a) of this Section are void and invalid.
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(Source: P.A. 83-1362.)
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(215 ILCS 5/512.55) (from Ch. 73, par. 1065.59-55)
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Sec. 512.55. Public Insurance Adjuster license. (a) The | ||
Director
shall issue a Public Insurance Adjuster license to an | ||
applicant who has:
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(1) met the requirements of Section 512.54; and
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(2) paid the fee as set forth in Section 512.63; and
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(3) filed with the Director a bond as prescribed in Section | ||
512.56.
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(b) Every Public Insurance Adjuster license shall remain in | ||
effect for
one year from the date of its issuance.
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(c) Each Public Insurance Adjuster license shall contain | ||
the name, business address, resident
address and personal | ||
identification number of the Public Insurance Adjuster,
the | ||
date of issue, general conditions relative to expiration or | ||
termination
and any other information the Director considers | ||
proper.
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(d) The holder of a Public Insurance Adjuster license shall | ||
notify the
Director, in writing, of a change of either business | ||
or residence address within 30 days of such change.
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(e) Each Public Insurance Adjuster license shall remain in | ||
effect as
long as the holder of the license maintains in force | ||
and effect the bond
required by Section 512.56 and pays the | ||
annual fee required by Section
512.63 by the date due as | ||
prescribed by the Director, unless
the license is
revoked or | ||
suspended pursuant to Section 512.61.
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The Department may refuse to issue or may suspend the | ||
license
of any person who fails to file a return, or to pay the | ||
tax, penalty or
interest shown in a filed return, or to pay any | ||
final assessment of tax,
penalty or interest, as required by | ||
any tax Act administered by the
Illinois Department of Revenue, | ||
until such time as the requirements of any
such tax Act are | ||
satisfied.
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(Source: P.A. 84-221; 84-832.)
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(215 ILCS 5/512.57) (from Ch. 73, par. 1065.59-57)
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Sec. 512.57. Registered Firms. (a) No person shall
may
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engage in the business of adjusting insurance claims
employ
one | ||
or more Public Insurance Adjustors in their professional | ||
capacity, other
than for the purpose of using their | ||
professional services to negotiate or
adjust such person's own | ||
losses and insurance claims, unless such person
is licensed | ||
pursuant to this Article and registered with the Director under | ||
subsection (b) of this Section.
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No Public Insurance Adjuster may form or participate in any | ||
association,
partnership or other business entity with any | ||
other Public Insurance Adjustor
for the purpose of engaging in | ||
the business of adjusting insurance claims,
unless such | ||
business entity is registered with the Director under | ||
subsection
(b) of this Section.
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(b) To become a Registered Firm, a person must submit to | ||
the Director
an application, on a form specified by the | ||
Director, and the fee required
by Section 512.63. The Director | ||
may require any documents reasonably
necessary to verify the | ||
information contained in the application.
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(c) Each Registered Firm must notify the Director, in | ||
writing, of any
change in its business or residence address | ||
within 30 days of such change.
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(d) Each Registered Firm must notify the Director of each | ||
Public Insurance
Adjuster who is a member, officer, director or | ||
employee of the Registered
Firm, and report any changes in such | ||
status of any such Public Insurance
Adjuster to the Director | ||
within 30 days thereof.
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(e) Each Registered Firm shall appoint one or more Public | ||
Insurance
Adjusters who is an officer, director or member of | ||
the Firm to be responsible
for the compliance of the Registered | ||
Firm with the laws of this State and
the rules and regulations | ||
of the Director. The Registered Firm shall be
responsible for | ||
the actions of its officers, directors, members and employees.
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(f) Each Registered Firm which, for any of the causes | ||
listed in Section
512.61, terminates its relationship with a | ||
Public Insurance Adjuster who
is an officer, director, employee | ||
or member of the Registered Firm shall
notify the Director, in | ||
writing, within 30 days of such termination of the
specific | ||
reasons for such termination. The Registered Firm shall provide
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the Director with information, documents, records or | ||
statements pertaining
to the termination. Any materials | ||
provided may be used by the Director
in any action taken | ||
pursuant to Section 512.62. There shall be no liability
on the | ||
part of, nor any cause of action against, the Director or the | ||
Registered
Firm, or any authorized representative of either, | ||
for any statement made
or materials provided pursuant to this | ||
paragraph.
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(g) The Director shall terminate any registration which | ||
does not comply
with the requirements of this Article.
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(h) A registered firm may only be comprised of licensed | ||
Public Insurance Adjusters. All shareholders, officers, and | ||
directors of registered firms must be licensed pursuant to this | ||
Act. Any Public Insurance Adjuster who has a license that has | ||
been revoked, suspended, or not renewed, whether voluntarily or | ||
not, must withdraw from a registered firm within 30 days and | ||
give written notice of his or her resignation to the licensed | ||
firm within 30 days.
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(Source: P.A. 84-832.)
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(215 ILCS 5/512.58) (from Ch. 73, par. 1065.59-58)
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Sec. 512.58. Rate Schedules and Contract Forms. (a) A | ||
Public
Insurance Adjuster shall not provide services until a | ||
written contract with the insured
has been executed, on a form | ||
filed with and approved by the Director. At
the option of the | ||
insured, any such contract which is executed within 5
business
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days after conclusion of the loss-producing occurrence shall be | ||
voidable
for 10 days after execution. The insured may void the | ||
contract by notifying
the Public Insurance 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 Insurance Adjuster.
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(b) The written contract required by paragraph (a) shall | ||
constitute the
entire agreement between the Public Insurance | ||
Adjuster and the insured.
A copy of the contract shall be given | ||
to the insured when the contract is
executed. Such contract | ||
forms may not include any
hold harmless agreement which | ||
provides indemnification to the Public Insurance
Adjuster by | ||
the insured for liability resulting from the Public Insurance
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Adjuster's negligence, nor any
power-of-attorney by which the | ||
Public Insurance Adjuster can act in the
place and instead of | ||
the insured.
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(Source: P.A. 83-1362.)
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(215 ILCS 5/512.59) (from Ch. 73, par. 1065.59-59)
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Sec. 512.59. Performance standards applicable to all | ||
Public
Insurance Adjusters. | ||
(a) A Public Insurance Adjuster shall
may not represent | ||
that
he is a representative of an insurance company, a fire | ||
department, or the
State of Illinois, or that he is a fire | ||
investigator, or that his services
are required for the insured | ||
to submit a claim to the insured's insurance
company, or that | ||
he may provide legal advice or representation to the
insured. A | ||
Public Insurance Adjuster may represent that he has been | ||
licensed
by the State of Illinois.
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(b) A Public Insurance Adjuster shall
may not agree to any | ||
loss settlement without
the insured's knowledge and consent and | ||
shall provide the insured with a document setting forth the | ||
scope, amount, and value of the damages prior to requesting the | ||
insured for authority to settling any loss.
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(c)
If the Public Insurance Adjuster refers the insured to | ||
a contractor,
the Public Insurance Adjuster warrants that all | ||
work will be performed in
a workmanlike manner and conform to | ||
all statutes, ordinances and codes.
Should the work not be | ||
completed in a workmanlike manner, the Public Insurance
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Adjuster shall be responsible for any and all costs and expense | ||
required
to complete or repair the work in a workmanlike | ||
manner.
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(d) In all cases where the loss giving rise to the claim | ||
for which the Public Insurance Adjuster was retained arise from | ||
damage to a personal residence, the insurance proceeds shall be | ||
delivered in person 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 Insurance Adjuster, the | ||
insured
Public Insurance Adjuster
shall release such portion of | ||
the proceeds which are due the Public Insurance Adjuster
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insured within
30 calendar days after the insured's
Public | ||
Insurance Adjuster's receipt of the insurance
company's check, | ||
money order, draft, or release of funds. If the proceeds
are | ||
not so released to the insured within 30 calendar days, the | ||
insured
Public Insurance
Adjuster
shall provide the Public | ||
Insurance Adjuster
insured and the Illinois Department of | ||
Insurance
with a written explanation of the reason for the | ||
delay.
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(e)
A Public Insurance Adjuster
may not propose or attempt | ||
to propose
to any person that the Public Insurance 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..
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(f) A Public Insurance Adjuster shall
may not advance money | ||
or any valuable
consideration, except emergency services or the | ||
commencement of repairs,
to an insured pending adjustment of a | ||
claim.
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(g) A Public Insurance Adjuster shall
may not provide legal | ||
advice or
representation to the insured, or engage in the | ||
unauthorized practice of law.
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(Source: P.A. 84-335.)
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(215 ILCS 5/512.60) (from Ch. 73, par. 1065.59-60)
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Sec. 512.60. Maintenance of records. (a) All Public | ||
Insurance
Adjusters
shall maintain a complete record of each of | ||
their transactions as a Public
Insurance Adjuster. The records | ||
required by this Section shall include:
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(1) name of the insured;
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(2) date, location and amount of loss;
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(3) copy of the contract between the Public Insurance | ||
Adjuster and insured;
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(4) name of the insurer, amount, expiration date and number | ||
of each policy
carried with respect to the loss;
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(5) itemized statement of the insured's recoveries;
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(6) name of the Public Insurance Adjuster who executed the | ||
contract; and
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(7) name of the attorney representing the insured, if | ||
applicable, and
the name of the representative of the insurance | ||
company; and .
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(8) copy of the statement provided to the insured | ||
explaining the amount and value of the damages to the insured | ||
premises, the amount of insurance proceeds recovered from the | ||
insured, and the amount and values of all expenses incurred to | ||
adjust the claim and the amount and value of the Public | ||
Insurance Adjuster's fees and charges.
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(b) Records shall be maintained for at least three years | ||
after the termination
of the transaction with an insured and | ||
shall be open to examination by the
Director at any time.
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(c) A Public Insurance Adjuster shall not divulge | ||
information regarding
any insured without written consent from | ||
the insured, except that the Public
Insurance Adjuster may | ||
divulge such information to an insurance company
or its | ||
representative which insures the insured, to the Department of | ||
Insurance,
or upon a court order or an Internal Revenue Service | ||
subpoena.
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(d) Where a Public Insurance Adjuster is engaged or | ||
employed by a Registered
Firm, the records required by this | ||
Section may be maintained by such Registered
Firm on behalf of | ||
the Public Insurance Adjuster.
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(Source: P.A. 84-335.)
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(215 ILCS 5/512.61) (from Ch. 73, par. 1065.59-61)
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Sec. 512.61. License suspension, revocation or denial. (a) | ||
Any license issued under this Article may, after notice to the | ||
licensee and hearing
as provided by Section 402, be suspended | ||
or revoked, and any application
for a license may be denied, if | ||
the Director finds that the holder of or
applicant for a | ||
license has:
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(1) willfully violated any provision of this Code or any | ||
rule or regulation
promulgated by the Director; or
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(2) intentionally made a material misstatement in an | ||
application for a
license as a Public Insurance Adjuster; or
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(3) obtained or attempted to obtain a license as a Public | ||
Insurance Adjuster
through misrepresentation or fraud; or
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(4) misappropriated, converted to his own use or improperly | ||
withheld money
due others; or
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(5) intentionally misrepresented the terms of any | ||
insurance policy; or
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(6) used fraudulent, coercive or dishonest practices, or | ||
demonstrated
incompetence, untrustworthiness or financial | ||
irresponsibility in the transaction
of business as a Public | ||
Insurance Adjuster; or
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(7) been convicted of any
a felony or misdemeanor involving | ||
dishonesty or fraud, unless the individual demonstrates to
the | ||
Director sufficient rehabilitation to warrant the public | ||
trust; or
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(8) knowingly transacted the business of a Public Insurance | ||
Adjuster in
conjunction with an individual who was not licensed | ||
at the time; or
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(9) failed to appear without reasonable cause or excuse in | ||
response to
a subpoena lawfully issued by the Director; or
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(10) a license as a Public Insurance Adjuster suspended or | ||
revoked or
an application denied in any other state, district, | ||
territory or province
on a ground similar to one of the grounds | ||
stated in this Section; or
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(11) failed to comply with or violated any of the standards | ||
set forth
in Section 512.59; or
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(12) failed to maintain the records required by Section | ||
512.60; or
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(13) engaged in the unauthorized practice of law.
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(b) Revocation, suspension, or the denial
Denial of an | ||
application pursuant to this Section shall be by written
notice | ||
served upon the applicant by certified or registered mail sent | ||
to
the address specified in the application. The applicant may | ||
request a hearing in writing
within 30 days from the date of | ||
mailing as provided in Section 402. The hearing shall be held | ||
pursuant to Section 2402 of Title 50 of the Code.
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(c) Upon notification of the issuance of an order | ||
suspending or revoking
a Public Insurance Adjuster's license, | ||
the licensee or other person having
possession or custody of | ||
such license shall promptly deliver it to the Director
in | ||
person or by mail. The Director shall publish the name of each | ||
Public
Insurance Adjuster whose license is suspended or | ||
revoked, after such suspension
or revocation becomes final, in | ||
a manner designed to notify interested insurance
companies and | ||
other persons.
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(d) Any individual whose Public Insurance Adjuster's | ||
license is revoked
or whose application is denied pursuant to | ||
this Section shall be ineligible
to apply for a Public | ||
Insurance Adjuster's license for 5
2 years. A suspension
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pursuant to this Section may be for any period of time up to 5
2
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years.
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(Source: P.A. 84-335; 84-832.)
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(215 ILCS 5/512.64) (from Ch. 73, par. 1065.59-64)
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Sec. 512.64. Injunctive Relief. Any person who acts as
or | ||
holds himself out to be either engaged in the business of | ||
adjusting insurance claims or a Public Insurance Adjuster | ||
without holding a
valid and current Public Insurance Adjuster's
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license to do so is hereby declared to be inimical to
the | ||
public welfare and to constitute a public nuisance. The | ||
Director may
report such practice to the Attorney General of | ||
the State of Illinois, whose
duty it is to apply forthwith by | ||
complaint on relation of the Director in
the name of the people | ||
of the State of Illinois, as plaintiff, for injunctive
relief | ||
in the circuit court of the county where such practice occurred | ||
to
enjoin such person from engaging in such practice; and, upon | ||
the filing of a
verified petition in such court, the court, if | ||
satisfied by affidavit or
otherwise that such person has been | ||
engaged in such practice without a valid
and current license to | ||
do so, may enter a temporary restraining order without
notice | ||
or bond, enjoining the defendant from such further practice.
A | ||
copy of the verified complaint shall be served upon the | ||
defendant and
the proceedings shall thereafter be conducted as | ||
in other civil cases.
If it is established that the defendant | ||
has been or is engaged in such
unlawful practice, the court may | ||
enter an order or
judgment perpetually enjoining the defendant | ||
from further such practice.
In all proceedings hereunder the | ||
court, in its discretion, may apportion
the costs among the | ||
parties interested in the action, including cost of filing
the | ||
complaint, service of process, witness fees and expenses, court | ||
reporter
charges and reasonable attorney fees. In case of | ||
violation of any
injunctive order entered under the provisions | ||
of this Section, the court
may try and punish the offender for | ||
contempt of court. Such injunction
proceedings shall be in | ||
addition to, and not in lieu of, all penalties and
other | ||
remedies.
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(Source: P.A. 84-548.)
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