Bill Amendment: IL SB1495 | 2023-2024 | 103rd General Assembly
NOTE: For additional amemendments please see the Bill Drafting List
Bill Title: INS-PUBLIC ADJUSTERS/VARIOUS
Status: 2023-06-30 - Public Act . . . . . . . . . 103-0216 [SB1495 Detail]
Download: Illinois-2023-SB1495-Senate_Amendment_002.html
Bill Title: INS-PUBLIC ADJUSTERS/VARIOUS
Status: 2023-06-30 - Public Act . . . . . . . . . 103-0216 [SB1495 Detail]
Download: Illinois-2023-SB1495-Senate_Amendment_002.html
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1 | AMENDMENT TO SENATE BILL 1495
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2 | AMENDMENT NO. ______. Amend Senate Bill 1495, AS AMENDED, | ||||||
3 | by replacing everything after the enacting clause with the | ||||||
4 | following:
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5 | "Section 5. The Illinois Insurance Code is amended by | ||||||
6 | changing Sections 1510, 1515, 1550, 1555, 1560, 1570, 1575, | ||||||
7 | 1585, and 1590 as follows:
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8 | (215 ILCS 5/1510)
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9 | Sec. 1510. Definitions. In this Article: | ||||||
10 | "Adjusting a claim for loss or damage covered by an | ||||||
11 | insurance contract" means negotiating values, damages, or | ||||||
12 | depreciation or applying the loss circumstances to insurance | ||||||
13 | policy provisions. | ||||||
14 | "Adjusting insurance claims" means representing an insured | ||||||
15 | with an insurer for compensation and, while representing that | ||||||
16 | insured, either negotiating values, damages, or depreciation |
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1 | or applying the loss circumstances to insurance policy | ||||||
2 | provisions. | ||||||
3 | "Business entity" means a corporation, association, | ||||||
4 | partnership, limited liability company, limited liability | ||||||
5 | partnership, or other legal entity. | ||||||
6 | "Department" means the Department of Insurance. | ||||||
7 | "Director" means the Director of Insurance. | ||||||
8 | "Fingerprints" means an impression of the lines on the | ||||||
9 | finger taken for the purpose of identification. The impression | ||||||
10 | may be electronic or in ink converted to electronic format. | ||||||
11 | "Home state" means the District of Columbia and any state | ||||||
12 | or territory of the United States where the public adjuster's | ||||||
13 | principal place of residence or principal place of business is | ||||||
14 | located. If neither the state in which the public adjuster | ||||||
15 | maintains the principal place of residence nor the state in | ||||||
16 | which the public adjuster maintains the principal place of | ||||||
17 | business has a substantially similar law governing public | ||||||
18 | adjusters, the public adjuster may declare another state in | ||||||
19 | which it becomes licensed and acts as a public adjuster to be | ||||||
20 | the home state. | ||||||
21 | "Individual" means a natural person. | ||||||
22 | "Person" means an individual or a business entity. | ||||||
23 | "Public adjuster" means any person who, for compensation | ||||||
24 | or any other thing of value on behalf of the insured: | ||||||
25 | (i) acts , or aids, or represents the insured solely in | ||||||
26 | relation to first party claims arising under insurance |
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1 | contracts that insure the real or personal property of the | ||||||
2 | insured, on behalf of an insured in adjusting a claim for | ||||||
3 | loss or damage covered by an insurance contract; | ||||||
4 | (ii) advertises for employment as a public adjuster of | ||||||
5 | insurance claims or solicits business or represents | ||||||
6 | himself or herself to the public as a public adjuster of | ||||||
7 | first party insurance claims for losses or damages arising | ||||||
8 | out of policies of insurance that insure real or personal | ||||||
9 | property; or | ||||||
10 | (iii) directly or indirectly solicits business, | ||||||
11 | investigates or adjusts losses, or advises an insured | ||||||
12 | about first party claims for losses or damages arising out | ||||||
13 | of policies of insurance that insure real or personal | ||||||
14 | property for another person engaged in the business of | ||||||
15 | adjusting losses or damages covered by an insurance policy | ||||||
16 | for the insured. | ||||||
17 | "Uniform individual application" means the current version | ||||||
18 | of the National Association of Directors (NAIC) Uniform | ||||||
19 | Individual Application for resident and nonresident | ||||||
20 | individuals. | ||||||
21 | "Uniform business entity application" means the current | ||||||
22 | version of the National Association of Insurance Commissioners | ||||||
23 | (NAIC) Uniform Business Entity Application for resident and | ||||||
24 | nonresident business entities.
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25 | "Webinar" means an online educational presentation during | ||||||
26 | which a live and participating instructor and participating |
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1 | viewers, whose attendance is periodically verified throughout | ||||||
2 | the presentation, actively engage in discussion and in the | ||||||
3 | submission and answering of questions. | ||||||
4 | (Source: P.A. 102-135, eff. 7-23-21.)
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5 | (215 ILCS 5/1515)
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6 | Sec. 1515. License required. | ||||||
7 | (a) A person shall not act, advertise, solicit, or hold | ||||||
8 | himself out as a public adjuster or to be in the business of | ||||||
9 | adjusting insurance claims in this State, nor attempt to | ||||||
10 | obtain a contract for public adjusting services, unless the | ||||||
11 | person is licensed as a public adjuster in accordance with | ||||||
12 | this Article. | ||||||
13 | (b) A person licensed as a public adjuster shall not | ||||||
14 | misrepresent to a claimant that he or she is an adjuster | ||||||
15 | representing an insurer in any capacity, including acting as | ||||||
16 | an employee of the insurer or acting as an independent | ||||||
17 | adjuster unless so appointed by an insurer in writing to act on | ||||||
18 | the insurer's behalf for that specific claim or purpose. A | ||||||
19 | licensed public adjuster is prohibited from charging that | ||||||
20 | specific claimant a fee when appointed by the insurer and the | ||||||
21 | appointment is accepted by the public adjuster. | ||||||
22 | (c) A business entity acting as a public adjuster is | ||||||
23 | required to obtain a public adjuster license. Application | ||||||
24 | shall be made using the Uniform Business Entity Application. | ||||||
25 | Before approving the application, the Director shall find |
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1 | that: | ||||||
2 | (1) the business entity has paid the required fees to | ||||||
3 | be registered as a business entity in this State; and | ||||||
4 | (2) all officers, shareholders, and persons with | ||||||
5 | ownership interests in the business entity are licensed | ||||||
6 | public adjusters responsible for the business entity's | ||||||
7 | compliance with the insurance laws, rules, and regulations | ||||||
8 | of this State. | ||||||
9 | (d) Notwithstanding subsections (a) through (c) of this | ||||||
10 | Section, a license as a public adjuster shall not be required | ||||||
11 | of the following: | ||||||
12 | (1) an attorney admitted to practice in this State, | ||||||
13 | when acting in his or her professional capacity as an | ||||||
14 | attorney; | ||||||
15 | (2) a person who negotiates or settles claims arising | ||||||
16 | under a life or health insurance policy or an annuity | ||||||
17 | contract; | ||||||
18 | (3) a person employed only for the purpose of | ||||||
19 | obtaining facts surrounding a loss or furnishing technical | ||||||
20 | assistance to a licensed public adjuster, including | ||||||
21 | photographers, estimators, private investigators, | ||||||
22 | engineers, and handwriting experts; | ||||||
23 | (4) a licensed health care provider, or employee of a | ||||||
24 | licensed health care provider, who prepares or files a | ||||||
25 | health claim form on behalf of a patient; or | ||||||
26 | (5) a person who settles subrogation claims between |
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1 | insurers. | ||||||
2 | (e) All contracts entered into that are in violation of | ||||||
3 | this Section are void and invalid.
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4 | (Source: P.A. 96-1332, eff. 1-1-11.)
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5 | (215 ILCS 5/1550) | ||||||
6 | Sec. 1550. Applicant convictions. | ||||||
7 | (a) The Director and the Department shall not require | ||||||
8 | applicants to report the following information and shall not | ||||||
9 | collect or consider the following criminal history records in | ||||||
10 | connection with a public adjuster license application: | ||||||
11 | (1) Juvenile adjudications of delinquent minors as | ||||||
12 | defined in Section 5-105 of the Juvenile Court Act of | ||||||
13 | 1987, subject to the restrictions set forth in Section | ||||||
14 | 5-130 of that Act. | ||||||
15 | (2) Law enforcement records, court records, and | ||||||
16 | conviction records of an individual who was 17 years old | ||||||
17 | at the time of the offense and before January 1, 2014, | ||||||
18 | unless the nature of the offense required the individual | ||||||
19 | to be tried as an adult. | ||||||
20 | (3) Records of arrest not followed by a formal charge | ||||||
21 | or conviction. | ||||||
22 | (4) Records of arrest where charges were dismissed | ||||||
23 | unless related to the duties and responsibilities of a | ||||||
24 | public adjuster. However, applicants shall not be asked to | ||||||
25 | report any arrests, and any arrest not followed by a |
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1 | conviction shall not be the basis of a denial and may be | ||||||
2 | used only to assess an applicant's rehabilitation. | ||||||
3 | (5) Convictions overturned by a higher court. | ||||||
4 | (6) Convictions or arrests that have been sealed or | ||||||
5 | expunged. | ||||||
6 | (b) The Director, upon a finding that an applicant for a | ||||||
7 | license under this Act was previously convicted of any a | ||||||
8 | felony or a misdemeanor involving dishonesty or fraud, shall | ||||||
9 | consider any mitigating factors and evidence of rehabilitation | ||||||
10 | contained in the applicant's record, including any of the | ||||||
11 | following factors and evidence, to determine if a license may | ||||||
12 | be denied because the prior conviction will impair the ability | ||||||
13 | of the applicant to engage in the position for which a license | ||||||
14 | is sought: | ||||||
15 | (1) the bearing, if any, of the offense for which the | ||||||
16 | applicant was previously convicted on the duties, | ||||||
17 | functions, and responsibilities of the position for which | ||||||
18 | a license is sought; | ||||||
19 | (2) whether the conviction suggests a future | ||||||
20 | propensity to endanger the safety and property of others | ||||||
21 | while performing the duties and responsibilities for which | ||||||
22 | a license is sought; | ||||||
23 | (3) if the applicant was previously licensed or | ||||||
24 | employed in this State or other states or jurisdictions, | ||||||
25 | then the lack of prior misconduct arising from or related | ||||||
26 | to the licensed position or position of employment; |
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1 | (4) whether 5 years since a felony conviction or 3 | ||||||
2 | years since release from confinement for the conviction, | ||||||
3 | whichever is later, have passed without a subsequent | ||||||
4 | conviction; | ||||||
5 | (5) successful completion of sentence and, for | ||||||
6 | applicants serving a term of parole or probation, a | ||||||
7 | progress report provided by the applicant's probation or | ||||||
8 | parole officer that documents the applicant's compliance | ||||||
9 | with conditions of supervision; | ||||||
10 | (6) evidence of the applicant's present fitness and | ||||||
11 | professional character; | ||||||
12 | (7) evidence of rehabilitation or rehabilitative | ||||||
13 | effort during or after incarceration or during or after a | ||||||
14 | term of supervision, including, but not limited to, a | ||||||
15 | certificate of good conduct under Section 5-5.5-25 of the | ||||||
16 | Unified Code of Corrections or certificate of relief from | ||||||
17 | disabilities under Section 5-5.5-10 of the Unified Code of | ||||||
18 | Corrections; and | ||||||
19 | (8) any other mitigating factors that contribute to | ||||||
20 | the person's potential and current ability to perform the | ||||||
21 | duties and responsibilities of a public adjuster. | ||||||
22 | (c) If a nonresident licensee meets the standards set | ||||||
23 | forth in items (1) through (4) of subsection (a) of Section | ||||||
24 | 1540 and has received consent pursuant to 18 U.S.C. 1033(e)(2) | ||||||
25 | from his or her home state, the Director shall grant the | ||||||
26 | nonresident licensee a license. |
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1 | (d) If the Director refuses to issue a license to an | ||||||
2 | applicant based on a conviction or convictions, in whole or in | ||||||
3 | part, then the Director shall notify the applicant of the | ||||||
4 | denial in writing with the following included in the notice of | ||||||
5 | denial: | ||||||
6 | (1) a statement about the decision to refuse to issue | ||||||
7 | a license; | ||||||
8 | (2) a list of convictions that the Director determined | ||||||
9 | will impair the applicant's ability to engage in the | ||||||
10 | position for which a license is sought; | ||||||
11 | (3) a list of the convictions that were the sole or | ||||||
12 | partial basis for the refusal to issue a license; and | ||||||
13 | (4) a summary of the appeal process or the earliest | ||||||
14 | the applicant may reapply for a license, whichever is | ||||||
15 | applicable.
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16 | (Source: P.A. 100-286, eff. 1-1-18 .)
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17 | (215 ILCS 5/1555) | ||||||
18 | Sec. 1555. License denial, nonrenewal, or revocation. | ||||||
19 | (a) The Director may place on probation, suspend, revoke, | ||||||
20 | deny, or refuse to issue or renew a public adjuster's license | ||||||
21 | or may levy a civil penalty or any combination of actions, for | ||||||
22 | any one or more of the following causes: | ||||||
23 | (1) providing incorrect, misleading, incomplete, or | ||||||
24 | materially untrue information in the license application; | ||||||
25 | (2) violating any insurance laws, or violating any |
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1 | regulation, subpoena, or order of the Director or of | ||||||
2 | another state's Director; | ||||||
3 | (3) obtaining or attempting to obtain a license | ||||||
4 | through misrepresentation or fraud; | ||||||
5 | (4) improperly withholding, misappropriating, or | ||||||
6 | converting any monies or properties received in the course | ||||||
7 | of doing insurance business; | ||||||
8 | (5) intentionally misrepresenting the terms of an | ||||||
9 | actual or proposed insurance contract or application for | ||||||
10 | insurance; | ||||||
11 | (6) having been convicted of any a felony or a | ||||||
12 | misdemeanor involving dishonesty or fraud, unless the | ||||||
13 | individual demonstrates to the Director sufficient | ||||||
14 | rehabilitation to warrant the public trust; consideration | ||||||
15 | of such conviction of an applicant shall be in accordance | ||||||
16 | with Section 1550; | ||||||
17 | (7) having admitted or been found to have committed | ||||||
18 | any insurance unfair trade practice or insurance fraud; | ||||||
19 | (8) using fraudulent, coercive, or dishonest | ||||||
20 | practices; or demonstrating incompetence, | ||||||
21 | untrustworthiness, or financial irresponsibility in the | ||||||
22 | conduct of business in this State or elsewhere; | ||||||
23 | (9) having an insurance license or public adjuster | ||||||
24 | license or its equivalent, denied, suspended, or revoked | ||||||
25 | in any other state, province, district, or territory; | ||||||
26 | (10) forging another's name to an application for |
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1 | insurance or to any document related to an insurance | ||||||
2 | transaction; | ||||||
3 | (11) cheating, including improperly using notes or any | ||||||
4 | other reference material, to complete an examination for | ||||||
5 | an insurance license or public adjuster license; | ||||||
6 | (12) knowingly accepting insurance business from or | ||||||
7 | transacting business with an individual who is not | ||||||
8 | licensed but who is required to be licensed by the | ||||||
9 | Director; | ||||||
10 | (13) failing to comply with an administrative or court | ||||||
11 | order imposing a child support obligation; | ||||||
12 | (14) failing to pay State income tax or comply with | ||||||
13 | any administrative or court order directing payment of | ||||||
14 | State income tax; | ||||||
15 | (15) failing to comply with or having violated any of | ||||||
16 | the standards set forth in Section 1590 of this Law; or | ||||||
17 | (16) failing to maintain the records required by | ||||||
18 | Section 1585 of this Law. | ||||||
19 | (b) If the action by the Director is to nonrenew, suspend, | ||||||
20 | or revoke a license or to deny an application for a license, | ||||||
21 | the Director shall notify the applicant or licensee and | ||||||
22 | advise, in writing, the applicant or licensee of the reason | ||||||
23 | for the suspension, revocation, denial, or nonrenewal of the | ||||||
24 | applicant's or licensee's license. The applicant or licensee | ||||||
25 | may make written demand upon the Director within 30 days after | ||||||
26 | the date of mailing for a hearing before the Director to |
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1 | determine the reasonableness of the Director's action. The | ||||||
2 | hearing must be held within not fewer than 20 days nor more | ||||||
3 | than 30 days after the mailing of the notice of hearing and | ||||||
4 | shall be held pursuant to 50 Ill. Adm. Code 2402. | ||||||
5 | (c) The license of a business entity may be suspended, | ||||||
6 | revoked, or refused if the Director finds, after hearing, that | ||||||
7 | an individual licensee's violation was known or should have | ||||||
8 | been known by one or more of the partners, officers, or | ||||||
9 | managers acting on behalf of the business entity and the | ||||||
10 | violation was neither reported to the Director, nor corrective | ||||||
11 | action taken. | ||||||
12 | (d) In addition to or in lieu of any applicable denial, | ||||||
13 | suspension or revocation of a license, a person may, after | ||||||
14 | hearing, be subject to a civil penalty. In addition to or | ||||||
15 | instead of any applicable denial, suspension, or revocation of | ||||||
16 | a license, a person may, after hearing, be subject to a civil | ||||||
17 | penalty of up to $10,000 for each cause for denial, | ||||||
18 | suspension, or revocation, however, the civil penalty may | ||||||
19 | total no more than $100,000. | ||||||
20 | (e) The Director shall retain the authority to enforce the | ||||||
21 | provisions of and impose any penalty or remedy authorized by | ||||||
22 | this Article against any person who is under investigation for | ||||||
23 | or charged with a violation of this Article even if the | ||||||
24 | person's license or registration has been surrendered or has | ||||||
25 | lapsed by operation of law. | ||||||
26 | (f) Any individual whose public adjuster's license is |
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1 | revoked or whose application is denied pursuant to this | ||||||
2 | Section shall be ineligible to apply for a public adjuster's | ||||||
3 | license for 5 years. A suspension pursuant to this Section may | ||||||
4 | be for any period of time up to 5 years.
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5 | (Source: P.A. 100-286, eff. 1-1-18 .)
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6 | (215 ILCS 5/1560)
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7 | Sec. 1560. Bond or letter of credit. | ||||||
8 | (a) Prior to the issuance of a license as a public adjuster | ||||||
9 | and for the duration of the license, the applicant shall | ||||||
10 | secure evidence of financial responsibility in a format | ||||||
11 | prescribed by the Director through a surety bond or | ||||||
12 | irrevocable letter of credit, subject to all of the following | ||||||
13 | requirements: | ||||||
14 | (1) A surety bond executed and issued by an insurer | ||||||
15 | authorized to issue surety bonds in this State, which | ||||||
16 | bond: | ||||||
17 | (A) shall be in the minimum amount of $50,000 | ||||||
18 | $20,000 ; | ||||||
19 | (B) shall be in favor of this State and shall | ||||||
20 | specifically authorize recovery by the Director on | ||||||
21 | behalf of any person in this State who sustained | ||||||
22 | damages as the result of erroneous acts, failure to | ||||||
23 | act, conviction of fraud, or conviction of unfair | ||||||
24 | practices in his or her capacity as a public adjuster; | ||||||
25 | and |
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1 | (C) shall not be terminated unless at least 30 | ||||||
2 | days' prior written notice will have been filed with | ||||||
3 | the Director and given to the licensee; and | ||||||
4 | (2) An irrevocable letter of credit issued by a | ||||||
5 | qualified financial institution, which letter of credit: | ||||||
6 | (A) shall be in the minimum amount of $50,000 | ||||||
7 | $20,000 ; | ||||||
8 | (B) shall be to an account to the Director and | ||||||
9 | subject to lawful levy of execution on behalf of any | ||||||
10 | person to whom the public adjuster has been found to be | ||||||
11 | legally liable as the result of erroneous acts, | ||||||
12 | failure to act, fraudulent acts, or unfair practices | ||||||
13 | in his or her capacity as a public adjuster; and | ||||||
14 | (C) shall not be terminated unless at least 30 | ||||||
15 | days' prior written notice will have been filed with | ||||||
16 | the and given to the licensee. | ||||||
17 | (b) The issuer of the evidence of financial responsibility | ||||||
18 | shall notify the Director upon termination of the bond or | ||||||
19 | letter of credit, unless otherwise directed by the Director. | ||||||
20 | (c) The Director may ask for the evidence of financial | ||||||
21 | responsibility at any time he or she deems relevant. | ||||||
22 | (d) The authority to act as a public adjuster shall | ||||||
23 | automatically terminate if the evidence of financial | ||||||
24 | responsibility terminates or becomes impaired.
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25 | (Source: P.A. 96-1332, eff. 1-1-11.)
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1 | (215 ILCS 5/1570) | ||||||
2 | Sec. 1570. Public adjuster fees. | ||||||
3 | (a) A public adjuster shall not pay a commission, service | ||||||
4 | fee, or other valuable consideration to a person for | ||||||
5 | investigating or settling claims in this State if that person | ||||||
6 | is required to be licensed under this Article and is not so | ||||||
7 | licensed. | ||||||
8 | (b) A person shall not accept a commission, service fee, | ||||||
9 | or other valuable consideration for investigating or settling | ||||||
10 | claims in this State if that person is required to be licensed | ||||||
11 | under this Article and is not so licensed. | ||||||
12 | (c) A public adjuster may pay or assign commission, | ||||||
13 | service fees, or other valuable consideration to persons who | ||||||
14 | do not investigate or settle claims in this State, unless the | ||||||
15 | payment would violate State law.
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16 | (d) If the loss giving rise to the claim for which the | ||||||
17 | public adjuster was retained arises from damage to property | ||||||
18 | that is anything but a personal residence, a A public adjuster | ||||||
19 | may not charge, agree to, or accept any compensation, payment, | ||||||
20 | commission commissions , fee, or other valuable consideration | ||||||
21 | in excess of 10% of the amount of the insurance settlement | ||||||
22 | claim paid by the insurer on any claim resulting from a | ||||||
23 | catastrophic event, unless approved in writing by the | ||||||
24 | Director. Application for exception to the 10% limit must be | ||||||
25 | made in writing. The request must contain specific reasons as | ||||||
26 | to why the consideration should be in excess of 10% and proof |
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1 | that the policyholder would accept the consideration. The | ||||||
2 | Director must act on any request within 5 business days after | ||||||
3 | receipt of the request. | ||||||
4 | For the purpose of this subsection (d), "catastrophic | ||||||
5 | event" means an occurrence of widespread or severe damage or | ||||||
6 | loss of property producing an overwhelming demand on State and | ||||||
7 | local response resources and mechanisms and a severe long-term | ||||||
8 | effect on general economic activity, and that severely affects | ||||||
9 | State, local, and private sector capabilities to begin to | ||||||
10 | sustain response activities resulting from any catastrophic | ||||||
11 | cause, including, but not limited to, fire, including arson | ||||||
12 | (provided the fire was not caused by the willful action of an | ||||||
13 | owner or resident of the property), flood, earthquake, wind, | ||||||
14 | storm, explosion, or extended periods of severe inclement | ||||||
15 | weather as determined by declaration of a State of disaster by | ||||||
16 | the Governor. This declaration may be made on a | ||||||
17 | county-by-county basis and shall be in effect for 90 days, but | ||||||
18 | may be renewed for 30-day intervals thereafter. | ||||||
19 | (e) If the loss giving rise to the claim for which the | ||||||
20 | public adjuster was retained arises from damage to a personal | ||||||
21 | residence, a public adjuster may not charge, agree to, or | ||||||
22 | accept any compensation, payment, commission, fee, or other | ||||||
23 | valuable consideration in excess of 10% of the amount of the | ||||||
24 | insurance settlement claim paid by the insurer on any claim. | ||||||
25 | (Source: P.A. 98-701, eff. 1-1-15 .)
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1 | (215 ILCS 5/1575)
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2 | Sec. 1575. Contract between public adjuster and insured. | ||||||
3 | (a) Public adjusters shall ensure that all contracts for | ||||||
4 | their services are in writing and contain the following terms: | ||||||
5 | (1) legible full name of the adjuster signing the | ||||||
6 | contract, as specified in Department records; | ||||||
7 | (2) permanent home state business address , email | ||||||
8 | address, and phone number; | ||||||
9 | (3) license number; | ||||||
10 | (4) title of "Public Adjuster Contract"; | ||||||
11 | (5) the insured's full name, street address, insurance | ||||||
12 | company name, and policy number, if known or upon | ||||||
13 | notification; | ||||||
14 | (6) a description of the loss and its location , if | ||||||
15 | applicable ; | ||||||
16 | (7) description of services to be provided to the | ||||||
17 | insured; | ||||||
18 | (8) signatures of the public adjuster and the insured; | ||||||
19 | (9) date and time the contract was signed by the | ||||||
20 | public adjuster and date and time the contract was signed | ||||||
21 | by the insured; | ||||||
22 | (10) attestation language stating that the public | ||||||
23 | adjuster is fully bonded pursuant to State law; and | ||||||
24 | (11) full salary, fee, commission, compensation, or | ||||||
25 | other considerations the public adjuster is to receive for | ||||||
26 | services , including any applicable cap under Section 1570 . |
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1 | (b) The contract may specify that the public adjuster | ||||||
2 | shall be named as a co-payee on an insurer's payment of a | ||||||
3 | claim. | ||||||
4 | (1) If the compensation is based on a share of the | ||||||
5 | insurance settlement, the exact percentage shall be | ||||||
6 | specified. | ||||||
7 | (2) Initial expenses to be reimbursed to the public | ||||||
8 | adjuster from the proceeds of the claim payment shall be | ||||||
9 | specified by type, with dollar estimates set forth in the | ||||||
10 | contract and with any additional expenses first approved | ||||||
11 | by the insured. | ||||||
12 | (3) Compensation provisions in a public adjuster | ||||||
13 | contract shall not be redacted in any copy of the contract | ||||||
14 | provided to the Director. | ||||||
15 | (c) If the insurer, not later than 5 business days after | ||||||
16 | the date on which the loss is reported to the insurer, either | ||||||
17 | pays or commits in writing to pay to the insured the policy | ||||||
18 | limit of the insurance policy, the public adjuster shall: | ||||||
19 | (1) not receive a commission consisting of a | ||||||
20 | percentage of the total amount paid by an insurer to | ||||||
21 | resolve a claim; | ||||||
22 | (2) inform the insured that loss recovery amount might | ||||||
23 | not be increased by insurer; and | ||||||
24 | (3) be entitled only to reasonable compensation from | ||||||
25 | the insured for services provided by the public adjuster | ||||||
26 | on behalf of the insured, based on the time spent on a |
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1 | claim and expenses incurred by the public adjuster, until | ||||||
2 | the claim is paid or the insured receives a written | ||||||
3 | commitment to pay from the insurer. | ||||||
4 | (d) A public adjuster shall provide the insured a written | ||||||
5 | disclosure concerning any direct or indirect financial | ||||||
6 | interest that the public adjuster has with any other party who | ||||||
7 | is involved in any aspect of the claim, other than the salary, | ||||||
8 | fee, commission, or other consideration established in the | ||||||
9 | written contract with the insured, including, but not limited | ||||||
10 | to, any ownership of or any compensation expected to be | ||||||
11 | received from, any construction firm, salvage firm, building | ||||||
12 | appraisal firm, board-up company, or any other firm that | ||||||
13 | provides estimates for work, or that performs any work, in | ||||||
14 | conjunction with damages caused by the insured loss on which | ||||||
15 | the public adjuster is engaged. The word "firm" shall include | ||||||
16 | any corporation, partnership, association, joint-stock | ||||||
17 | company, or person. | ||||||
18 | (e) A public adjuster contract may not contain any | ||||||
19 | contract term that: | ||||||
20 | (1) allows the public adjuster's percentage fee to be | ||||||
21 | collected when money is due from an insurance company, but | ||||||
22 | not paid, or that allows a public adjuster to collect the | ||||||
23 | entire fee from the first check issued by an insurance | ||||||
24 | company, rather than as a percentage of each check issued | ||||||
25 | by an insurance company; | ||||||
26 | (2) requires the insured to authorize an insurance |
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1 | company to issue a check only in the name of the public | ||||||
2 | adjuster; | ||||||
3 | (3) precludes a public adjuster or an insured from | ||||||
4 | pursuing civil remedies; | ||||||
5 | (4) includes any hold harmless agreement that provides | ||||||
6 | indemnification to the public adjuster by the insured for | ||||||
7 | liability resulting from the public adjuster's negligence; | ||||||
8 | or | ||||||
9 | (5) provides power of attorney by which the public | ||||||
10 | adjuster can act in the place and instead of the insured. | ||||||
11 | (f) The following provisions apply to a contract between a | ||||||
12 | public adjuster and an insured: | ||||||
13 | (1) Prior to the signing of the contract, the public | ||||||
14 | adjuster shall provide the insured with a separate signed | ||||||
15 | and dated disclosure document regarding the claim process | ||||||
16 | that states: | ||||||
17 | "Property insurance policies obligate the insured to | ||||||
18 | present a claim to his or her insurance company for | ||||||
19 | consideration. There are 3 types of adjusters that could | ||||||
20 | be involved in that process. The definitions of the 3 | ||||||
21 | types are as follows: | ||||||
22 | (A) "Company adjuster" means the insurance | ||||||
23 | adjusters who are employees of an insurance company. | ||||||
24 | They represent the interest of the insurance company | ||||||
25 | and are paid by the insurance company. They will not | ||||||
26 | charge you a fee. |
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1 | (B) "Independent adjuster" means the insurance | ||||||
2 | adjusters who are hired on a contract basis by an | ||||||
3 | insurance company to represent the insurance company's | ||||||
4 | interest in the settlement of the claim. They are paid | ||||||
5 | by your insurance company. They will not charge you a | ||||||
6 | fee. | ||||||
7 | (C) "Public adjuster" means the insurance | ||||||
8 | adjusters who do not work for any insurance company. | ||||||
9 | They represent work for the insured to assist in the | ||||||
10 | preparation, presentation and settlement of the claim. | ||||||
11 | The insured hires them by signing a contract agreeing | ||||||
12 | to pay them a fee or commission based on a percentage | ||||||
13 | of the settlement, or other method of compensation.". | ||||||
14 | (2) The insured is not required to hire a public | ||||||
15 | adjuster to help the insured meet his or her obligations | ||||||
16 | under the policy, but has the right to do so. | ||||||
17 | (3) The public adjuster is not a representative or | ||||||
18 | employee of the insurer or the Department of Insurance . | ||||||
19 | (4) The salary, fee, commission, or other | ||||||
20 | consideration is the obligation of the insured, not the | ||||||
21 | insurer, except when rights have been assigned to the | ||||||
22 | public adjuster by the insured. | ||||||
23 | (g) The contracts shall be executed in duplicate to | ||||||
24 | provide an original contract to the public adjuster, and an | ||||||
25 | original contract to the insured. The public adjuster's | ||||||
26 | original contract shall be available at all times for |
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1 | inspection without notice by the Director. | ||||||
2 | (h) The public adjuster shall provide the insurer or its | ||||||
3 | authorized representative for receiving notice of loss or | ||||||
4 | damage with an exact copy of the contract with by the insured | ||||||
5 | by email no later than 5 business days after execution of the | ||||||
6 | contract , authorizing the public adjuster to represent the | ||||||
7 | insured's interest. | ||||||
8 | (i) The public adjuster shall give the insured written | ||||||
9 | notice of the insured's rights as a consumer under the law of | ||||||
10 | this State. | ||||||
11 | (j) A public adjuster shall not provide services , other | ||||||
12 | than emergency services, until a written contract with the | ||||||
13 | insured has been executed, on a form filed with and approved by | ||||||
14 | the Director , and an exact copy of the contract has been | ||||||
15 | provided to the insurer in accordance with subsection (h) . At | ||||||
16 | the option of the insured, any such contract shall be voidable | ||||||
17 | for 5 business days after the contract is received by the | ||||||
18 | insurer execution . The insured may void the contract by | ||||||
19 | notifying the public adjuster in writing by (i) registered or | ||||||
20 | certified mail, return receipt requested, to the address shown | ||||||
21 | on the contract , or (ii) personally serving the notice on the | ||||||
22 | public adjuster , or (iii) sending an email to the email | ||||||
23 | address shown on the contract . | ||||||
24 | (k) If the insured exercises the right to rescind the | ||||||
25 | contract, anything of value given by the insured under the | ||||||
26 | contract will be returned to the insured within 15 business |
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1 | days following the receipt by the public adjuster of the | ||||||
2 | cancellation notice. | ||||||
3 | (l) All contracts entered into that are in violation of | ||||||
4 | this Section are void and invalid.
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5 | (Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.)
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6 | (215 ILCS 5/1585)
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7 | Sec. 1585. Record retention. | ||||||
8 | (a) A public adjuster shall maintain a complete record of | ||||||
9 | each transaction as a public adjuster. The records required by | ||||||
10 | this Section shall include the following: | ||||||
11 | (1) name of the insured; | ||||||
12 | (2) date, location and amount of the loss; | ||||||
13 | (3) a copy of the contract between the public adjuster | ||||||
14 | and insured and a copy of the separate disclosure | ||||||
15 | documents document ; | ||||||
16 | (4) name of the insurer, amount, expiration date and | ||||||
17 | number of each policy carried with respect to the loss; | ||||||
18 | (5) itemized statement of the insured's recoveries; | ||||||
19 | (6) itemized statement of all compensation received by | ||||||
20 | the public adjuster, from any source whatsoever, in | ||||||
21 | connection with the loss; | ||||||
22 | (7) a register of all monies received, deposited, | ||||||
23 | disbursed, or withdrawn in connection with a transaction | ||||||
24 | with an insured, including fees transfers and | ||||||
25 | disbursements from a trust account and all transactions |
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1 | concerning all interest bearing accounts; | ||||||
2 | (8) name of public adjuster who executed the contract; | ||||||
3 | (9) name of the attorney representing the insured, if | ||||||
4 | applicable, and the name of the claims representatives of | ||||||
5 | the insurance company; and | ||||||
6 | (10) evidence of financial responsibility in a format | ||||||
7 | prescribed by the Director. | ||||||
8 | (b) Records shall be maintained for at least 7 years after | ||||||
9 | the termination of the transaction with an insured and shall | ||||||
10 | be open to examination by the Director at all times. | ||||||
11 | (c) Records submitted to the Director in accordance with | ||||||
12 | this Section that contain information identified in writing as | ||||||
13 | proprietary by the public adjuster shall be treated as | ||||||
14 | confidential by the Director and shall not be subject to the | ||||||
15 | Freedom of Information Act.
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16 | (Source: P.A. 96-1332, eff. 1-1-11.)
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17 | (215 ILCS 5/1590)
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18 | Sec. 1590. Standards of conduct of public adjuster. | ||||||
19 | (a) A public adjuster is obligated, under his or her | ||||||
20 | license, to serve with objectivity and complete loyalty for | ||||||
21 | the interests of his client alone, and to render to the insured | ||||||
22 | such information, counsel, and service, as within the | ||||||
23 | knowledge, understanding, and opinion in good faith of the | ||||||
24 | licensee, as will best serve the insured's insurance claim | ||||||
25 | needs and interest. |
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1 | (b) A public adjuster may not propose or attempt to | ||||||
2 | propose to any person that the public adjuster represent that | ||||||
3 | person while a loss-producing occurrence is continuing, nor | ||||||
4 | while the fire department or its representatives are engaged | ||||||
5 | at the damaged premises, nor between the hours of 7:00 p.m. and | ||||||
6 | 8:00 a.m. | ||||||
7 | (c) A public adjuster shall not permit an unlicensed | ||||||
8 | employee or representative of the public adjuster to conduct | ||||||
9 | business for which a license is required under this Article. | ||||||
10 | (d) A public adjuster shall not have a direct or indirect | ||||||
11 | financial interest in any aspect of the claim, other than the | ||||||
12 | salary, fee, commission, or other consideration established in | ||||||
13 | the written contract with the insured, unless full written | ||||||
14 | disclosure has been made to the insured as set forth in | ||||||
15 | subsection (d) (g) of Section 1575. | ||||||
16 | (e) A public adjuster shall not acquire any interest in | ||||||
17 | the salvage of property subject to the contract with the | ||||||
18 | insured unless the public adjuster obtains written permission | ||||||
19 | from the insured after settlement of the claim with the | ||||||
20 | insurer as set forth in subsection (d) (g) of Section 1575 of | ||||||
21 | this Article. | ||||||
22 | (f) The public adjuster shall abstain from referring or | ||||||
23 | directing the insured to get needed repairs or services in | ||||||
24 | connection with a loss from any person, unless disclosed to | ||||||
25 | the insured: | ||||||
26 | (1) with whom the public adjuster has a direct or |
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1 | indirect financial interest; or | ||||||
2 | (2) from whom the public adjuster may receive direct | ||||||
3 | or indirect compensation for the referral. | ||||||
4 | (g) The public adjuster shall disclose to an insured if he | ||||||
5 | or she has any interest or will be compensated by any | ||||||
6 | construction firm, salvage firm, building appraisal firm, | ||||||
7 | board-up company, or any other firm that performs any work in | ||||||
8 | conjunction with damages caused by the insured loss. The word | ||||||
9 | "firm" shall include any corporation, partnership, | ||||||
10 | association, joint-stock company or individual as set forth in | ||||||
11 | Section 1575 of this Article. | ||||||
12 | (h) Any compensation or anything of value in connection | ||||||
13 | with an insured's specific loss that will be received by a | ||||||
14 | public adjuster shall be disclosed by the public adjuster to | ||||||
15 | the insured in writing including the source and amount of any | ||||||
16 | such compensation. | ||||||
17 | (i) In all cases where the loss giving rise to the claim | ||||||
18 | for which the public adjuster was retained arise from damage | ||||||
19 | to a personal residence, the insurance proceeds shall be | ||||||
20 | delivered to the named insured or his or her designee. Where | ||||||
21 | proceeds paid by an insurance company are paid jointly to the | ||||||
22 | insured and the public adjuster, the insured shall release | ||||||
23 | such portion of the proceeds that are due the public adjuster | ||||||
24 | within 30 calendar days after the insured's receipt of the | ||||||
25 | insurance company's check, money order, draft, or release of | ||||||
26 | funds. If the proceeds are not so released to the public |
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1 | adjuster within 30 calendar days, the insured shall provide | ||||||
2 | the public adjuster with a written explanation of the reason | ||||||
3 | for the delay. | ||||||
4 | (j) Public adjusters shall adhere to the following general | ||||||
5 | ethical requirements: | ||||||
6 | (1) a public adjuster shall not undertake the | ||||||
7 | adjustment of any claim if the public adjuster is not | ||||||
8 | competent and knowledgeable as to the terms and conditions | ||||||
9 | of the insurance coverage, or which otherwise exceeds the | ||||||
10 | public adjuster's current expertise; | ||||||
11 | (2) a public adjuster shall not knowingly make any | ||||||
12 | oral or written material misrepresentations or statements | ||||||
13 | which are false or maliciously critical and intended to | ||||||
14 | injure any person engaged in the business of insurance to | ||||||
15 | any insured client or potential insured client; | ||||||
16 | (3) no public adjuster, while so licensed by the | ||||||
17 | Department, may represent or act as a company adjuster or | ||||||
18 | independent adjuster on the same claim; | ||||||
19 | (4) the contract shall not be construed to prevent an | ||||||
20 | insured from pursuing any civil remedy after the | ||||||
21 | 5-business day revocation or cancellation period; | ||||||
22 | (5) a public adjuster shall not enter into a contract | ||||||
23 | or accept a power of attorney that vests in the public | ||||||
24 | adjuster the effective authority to choose the persons who | ||||||
25 | shall perform repair work; | ||||||
26 | (6) a public adjuster shall ensure that all contracts |
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1 | for the public adjuster's services are in writing and set | ||||||
2 | forth all terms and conditions of the engagement; and | ||||||
3 | (7) a public adjuster shall not advance money or any | ||||||
4 | valuable consideration, except emergency services to an | ||||||
5 | insured pending adjustment of a claim. | ||||||
6 | (k) A public adjuster may not agree to any loss settlement | ||||||
7 | without the insured's knowledge and consent and shall, upon | ||||||
8 | the insured's request, provide the insured with a document | ||||||
9 | setting forth the scope, amount, and value of the damages | ||||||
10 | prior to request by the insured for authority to settle the | ||||||
11 | loss. | ||||||
12 | (l) A public adjuster shall not provide legal advice or | ||||||
13 | representation to the insured or engage in the unauthorized | ||||||
14 | practice of law. | ||||||
15 | (m) A public adjuster shall not represent that he or she is | ||||||
16 | a representative of an insurance company, a fire department, | ||||||
17 | or the State of Illinois, that he or she is a fire | ||||||
18 | investigator, that his or her services are required for the | ||||||
19 | insured to submit a claim to the insured's insurance company, | ||||||
20 | or that he or she may provide legal advice or representation to | ||||||
21 | the insured. A public adjuster may represent that he or she has | ||||||
22 | been licensed by the State of Illinois.
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23 | (Source: P.A. 96-1332, eff. 1-1-11.)
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24 | (815 ILCS 625/Act rep.)
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25 | Section 10. The Fire Damage Representation Agreement Act |
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1 | is repealed.".
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