Bill Text: IL HB0274 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Creates the Public Adjusters Law. Repeals the Article of the Illinois Insurance Code concerning Public Insurance Adjusters and Registered Firms. Provides that a person shall not act or hold himself out as a public adjuster in this State unless licensed as a public adjuster. Sets forth the specific residency requirements for a public adjuster licensee. Provides that an individual applying for a public adjuster license must pass a written examination unless exempt pursuant to certain provisions. Provides for the creation of an optional apprentice public adjuster license. Provides that the Director of Insurance may place on probation, suspend, revoke, or refuse to issue or renew a public adjuster's license or may levy a civil penalty or any combination of actions against a public adjuster licensee who violates the Act. Provides that an individual who holds a public adjuster license shall satisfactorily complete a minimum of 24 hours of continuing education courses. Sets forth certain standards of conduct for public adjusters. Provides that a public adjuster shall report to the Director any administrative action taken against the public adjuster in another jurisdiction or by another governmental agency in this State within 30 days of the final disposition of the matter. Amends the Freedom of Information Act to exempt from disclosure certain documents required under the Public Adjusters Law of the Illinois Insurance Code. Contains other provisions.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Introduced - Dead) 2009-04-03 - Rule 19(a) / Re-referred to Rules Committee [HB0274 Detail]

Download: Illinois-2009-HB0274-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0274 Introduced 1/23/2009, by Rep. Edward J. Acevedo SYNOPSIS AS INTRODUCED:
See Index
Amends the Illinois Insurance Code. Creates the Public Adjusters Law. Repeals the Article of the Illinois Insurance Code concerning Public Insurance Adjusters and Registered Firms. Provides that a person shall not act or hold himself out as a public adjuster in this State unless licensed as a public adjuster. Sets forth the specific residency requirements for a public adjuster licensee. Provides that an individual applying for a public adjuster license must pass a written examination unless exempt pursuant to certain provisions. Provides for the creation of an optional apprentice public adjuster license. Provides that the Director of Insurance may place on probation, suspend, revoke, or refuse to issue or renew a public adjuster's license or may levy a civil penalty or any combination of actions against a public adjuster licensee who violates the Act. Provides that an individual who holds a public adjuster license shall satisfactorily complete a minimum of 24 hours of continuing education courses. Sets forth certain standards of conduct for public adjusters. Provides that a public adjuster shall report to the Director any administrative action taken against the public adjuster in another jurisdiction or by another governmental agency in this State within 30 days of the final disposition of the matter. Amends the Freedom of Information Act to exempt from disclosure certain documents required under the Public Adjusters Law of the Illinois Insurance Code. Contains other provisions.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by adding
Article XLV as follows:
(215 ILCS 5/Art. XLV heading new)
ARTICLE XLV. PUBLIC ADJUSTERS
(215 ILCS 5/1501 new)
Sec. 1501. Short title. This Article may be cited as the
Public Adjustors Law.
(215 ILCS 5/1505 new)
Sec. 1505. Purpose and scope. This Article governs the
qualifications and procedures for the licensing of public
adjusters. It specifies the duties of and restrictions on
public adjusters, which include limiting their licensure to
assisting insureds in first party claims.
(215 ILCS 5/1510 new)
Sec. 1510. Definitions. In this Article:
"Apprentice public adjuster" means a person who is
qualified in all respects as a public adjuster, except as to

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experience, education, or training.
"Business entity" means a corporation, association,
partnership, limited liability company, limited liability
partnership, or other legal entity.
"Director" means the Director of the Division of Insurance
of the Department of Financial and Professional Regulation.
"Division" means the Division of Insurance of the
Department of Financial and Professional Regulation.
"Fingerprints" means an impression of the lines on the
finger taken for the purpose of identification. The impression
may be electronic or in ink converted to electronic format.
"Home state" means the District of Columbia and any state
or territory of the United States where the public adjuster's
principal place of residence or principal place of business is
located. If neither the state in which the public adjuster
maintains the principal place of residence nor the state in
which the public adjuster maintains the principal place of
business has a substantially similar law governing public
adjusters, the public adjuster may declare another state in
which it becomes licensed and acts as a public adjuster to be
the home state.
"Individual" means a natural person.
"Person" means an individual or a business entity.
"Public adjuster" means any person who, for compensation or
any other thing of value on behalf of the insured:
(i) acts or aids, solely in relation to first party

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claims arising under insurance contracts that insure the
real or personal property of the insured, on behalf of an
insured in negotiating for, or effecting the settlement of,
a claim for loss or damage covered by an insurance
contract;
(ii) advertises for employment as an public adjuster of
insurance claims or solicits business or represents
himself or herself to the public as an public adjuster of
first party insurance claims for losses or damages arising
out of policies of insurance that insure real or personal
property; or
(iii) directly or indirectly solicits business,
investigates or adjusts losses, or advises an insured about
first party claims for losses or damages arising out of
policies of insurance that insure real or personal property
for another person engaged in the business of adjusting
losses or damages covered by an insurance policy for the
insured.
"Uniform individual application" means the current version
of the National Association of Directors (NAIC) Uniform
Individual Application for resident and nonresident
individuals.
"Uniform business entity application" means the current
version of the National Association of Insurance Commissioners
(NAIC) Uniform Business Entity Application for resident and
nonresident business entities.

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(215 ILCS 5/1515 new)
Sec. 1515. License required.
(a) A person shall not act or hold himself out as a public
adjuster in this State 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) the business entity has designated a licensed
public adjuster responsible for the business entity's
compliance with the insurance laws, rules and regulations
of this State.
(d) Notwithstanding subsections (a) through (c) of this

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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.
(215 ILCS 5/1520 new)
Sec. 1520. Application for license.
(a) A person applying for a public adjuster license shall
make application to the Director on the appropriate uniform
application or other application prescribed by the Director.
(b) The applicant shall declare under penalty of perjury
and under penalty of refusal, suspension, or revocation of the

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license that the statements made in the application are true,
correct, and complete to the best of the applicant's knowledge
and belief.
(c) In order to make a determination of license
eligibility, the Director is authorized to require
fingerprints of applicants and submit the fingerprints and the
fee required to perform the criminal history record checks to
the Illinois State Police and the Federal Bureau of
Investigation (FBI) for State and national criminal history
record checks. The Director shall require a criminal history
record check on each applicant in accordance with this Section.
The Director shall require each applicant to submit a full set
of fingerprints in order for the Director to obtain and receive
National Criminal History Records from the FBI Criminal Justice
Information Services Division.
(1) The Director may contract for the collection,
transmission, and resubmission of fingerprints required
under this Section. If the Director does so, the fee for
collecting, transmitting, and retaining fingerprints shall
be payable directly to the contractor. The Director may
agree to a reasonable fingerprinting fee to be charged by
the contractor.
(2) The Director may waive submission of fingerprints
by any person that has previously furnished fingerprints
and those fingerprints are on file with the Central
Repository of the NAIC, its affiliates, or subsidiaries.

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(3) The Director is authorized to submit electronic
fingerprint records and necessary identifying information
to the NAIC, its affiliates, or subsidiaries for permanent
retention in a centralized repository. The purpose of such
a centralized repository is to provide Directors with
access to fingerprint records in order to perform criminal
history record checks.
(215 ILCS 5/1525 new)
Sec. 1525. Resident license.
(a) Before issuing a public adjuster license to an
applicant under this Section, the Director shall find that the
applicant:
(1) is eligible to designate this State as his or her
home state or is a nonresident who is not eligible for a
license under Section 1540;
(2) has not committed any act that is a ground for
denial, suspension, or revocation of a license as set forth
in Section 1555;
(3) is trustworthy, reliable, and of good reputation,
evidence of which may be determined by the Director;
(4) is financially responsible to exercise the license
and has provided proof of financial responsibility as
required in Section 1560 of this Article; and
(5) maintains an office in the home state of residence
with public access by reasonable appointment or regular

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business hours. This includes a designated office within a
home state of residence.
(b) In addition to satisfying the requirements of
subsection (a) of this Section, an individual shall
(1) be at least 18 years of age;
(2) have successfully passed the public adjuster
examination;
(3) designate a licensed individual public adjuster
responsible for the business entity's compliance with the
insurance laws, rules, and regulations of this State; and
(4) designate only licensed individual public
adjusters to exercise the business entity's license.
(c) The Director may require any documents reasonably
necessary to verify the information contained in the
application.
(215 ILCS 5/1530 new)
Sec. 1530. Examination.
(a) An individual applying for a public adjuster license
under this Article must pass a written examination unless he or
she is exempt pursuant to Section 1535 of this Article. The
examination shall test the knowledge of the individual
concerning the duties and responsibilities of a public adjuster
and the insurance laws and regulations of this State.
Examinations required by this Section shall be developed and
conducted under rules and regulations prescribed by the

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Director.
(b) The Director may make arrangements, including
contracting with an outside testing service, for administering
examinations and collecting the nonrefundable fee. Each
individual applying for an examination shall remit a
non-refundable fee as prescribed by the Director. An individual
who fails to appear for the examination as scheduled or fails
to pass the examination shall reapply for an examination and
remit all required fees and forms before being rescheduled for
another examination.
(215 ILCS 5/1535 new)
Sec. 1535. Exemptions from examination.
(a) An individual who applies for a public adjuster license
in this State who was previously licensed as a public adjuster
in another state based on an public adjuster examination shall
not be required to complete any prelicensing examination. This
exemption is only available if (i) the person is currently
licensed in that state or if the application is received within
12 months of the cancellation of the applicant's previous
license; and (ii) if the prior state issues a certification
that, at the time of cancellation, the applicant was in good
standing in that state or the state's producer database records
or records maintained by the NAIC, its affiliates, or
subsidiaries, indicate that the public adjuster is or was
licensed in good standing.

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(b) A person licensed as a public adjuster in another state
based on a public adjuster examination who moves to this State
shall submit an application within 90 days of establishing
legal residence to become a resident licensee pursuant to
Section 1525 of this Article. No prelicensing examination shall
be required of that person to obtain a public adjuster license.
(c) An individual who applies for a public adjuster license
in this State who was previously licensed as a public adjuster
in this State shall not be required to complete any
prelicensing examination. This exemption is only available if
the application is received within 12 months of the
cancellation of the applicant's previous license in this State
and if, at the time of cancellation, the applicant was in good
standing in this State.
(215 ILCS 5/1540 new)
Sec. 1540. Nonresident license reciprocity.
(a) Unless denied licensure pursuant to Section 1555 of
this Article, a nonresident person shall receive a nonresident
public adjuster license if:
(1) the person is currently licensed as a resident
public adjuster and in good standing in his or her home
state;
(2) the person has submitted the proper request for
licensure and has provided proof of financial
responsibility as required in Section 1560 of this Article;

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(3) the person has submitted or transmitted to the
Director the appropriate completed application for
licensure; and
(4) the person's home state awards non-resident public
adjuster licenses to residents of this State on the same
basis.
(b) The Director may verify the public adjuster's licensing
status through the producer database maintained by the NAIC,
its affiliates, or subsidiaries.
(c) As a condition to continuation of a public adjuster
license issued under this Section, the licensee shall maintain
a resident public adjuster license in his or her home state.
The non-resident public adjuster license issued under this
Section shall terminate and be surrendered immediately to the
Director if the home state public adjuster license terminates
for any reason, unless the public adjuster has been issued a
license as a resident public adjuster in his or her new home
state. Notification to the state or states where the
non-resident license is issued must be made as soon as
possible, yet no later that 30 days of change in new state
resident license. The licensee shall include his or her new and
old address on the notification. A new state resident license
is required for non-resident licenses to remain valid. The new
state resident license must have reciprocity with the licensing
non-resident state or states for the non-resident license not
to terminate.

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(215 ILCS 5/1545 new)
Sec. 1545. License.
(a) Unless denied licensure under this Article, persons who
have met the requirements of this Article shall be issued a
public adjuster license.
(b) A public adjuster license shall remain in effect unless
revoked, terminated, or suspended as long as the requirements
for license renewal are met by the due date.
(c) The licensee shall inform the Director by any means
acceptable to the Director of a change of address, change of
legal name, or change of information submitted on the
application within 30 days of the change.
(d) A licensed public adjuster shall be subject to Trade
Practices and Fraud Sections of this Code.
(e) A public adjuster who allows his or her license to
lapse may, within 12 months from the due date of the renewal,
be issued a new public adjuster license upon the Director's
receipt of the request for renewal. However, a penalty in the
amount of double the unpaid renewal fee shall be required for
the issue of the new public adjuster license. The new public
adjuster license shall be effective the date the Director
receives the request for renewal and the late payment penalty.
(f) Any public adjuster licensee that fails to apply for
renewal of a license before expiration of the current license
shall pay a lapsed license fee of twice the license fee and be

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subject to other penalties as provided by law before the
license will be renewed. If the Division receives the request
for reinstatement and the required lapsed license fee within 60
days of the date the license lapsed, the Division shall
reinstate the license retroactively to the date the license
lapsed. If the Division receives the request for reinstatement
and the required lapsed license fee after 60 days, but within
one year of the date the license lapsed, the Division shall
reinstate the license prospectively with the date the license
is reinstated. If the person applies for reinstatement more
than one year from the date the license lapsed, the person
shall reapply for the license under this Article.
(g) A licensed public adjuster that is unable to comply
with license renewal procedures due to military service, a
long-term medical disability, or some other extenuating
circumstance, may request a waiver of the procedures in
subsection (f) of this Section. The public adjuster may also
request a waiver of any examination requirement, fine, or other
sanction imposed for failure to comply with renewal procedures.
(h) The license shall contain the licensee's name, city and
state of business address, personal identification number, the
date of issuance, the expiration date, and any other
information the Director deems necessary.
(i) In order to assist in the performance of the Director's
duties, the Director may contract with non-governmental
entities, including the NAIC or any affiliates or subsidiaries

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that the NAIC oversees, to perform any ministerial functions,
including the collection of fees and data, related to licensing
that the Director may deem appropriate.
(215 ILCS 5/1550 new)
Sec. 1550. Apprentice public adjuster license.
(a) The apprentice public adjuster license is an optional
license to facilitate the training necessary to ensure
reasonable competency to fulfill the responsibilities of a
public adjuster as defined in this Article.
(b) The apprentice public adjuster license shall be subject
to the following terms and conditions:
(1) An attestation or certification from a licensed
public adjuster (licensee) shall accompany an application
for an initial apprentice public adjuster license assuming
responsibility for all actions of such applicant;
(2) The apprentice public adjuster is authorized to
adjust claims in the state that has issued licensure only;
(3) The apprentice public adjuster shall not be
required to take and successfully complete the prescribed
public adjuster examination;
(4) The licensee shall at all times be an employee of a
public adjuster and subject to training, direction, and
control by a licensed public adjuster;
(5) The apprentice public adjuster license is for a
period not to exceed 12 months, the license shall not be

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renewed;
(6) The licensee is restricted to participation in
factual investigation, tentative closing, and solicitation
of losses subject to the review and final determination of
a licensed public adjuster;
(7) Compensation of an apprentice public adjuster
shall be on a salaried or hourly basis only; and
(8) The licensee shall be subject to suspension,
revocation, or conditions in accordance with State law.
(215 ILCS 5/1555 new)
Sec. 1555. License denial, non-renewal, or revocation
(a) The Director may place on probation, suspend, revoke,
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;

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(5) intentionally misrepresenting the terms of an
actual or proposed insurance contract or application for
insurance;
(6) having been convicted of a felony;
(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 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;
(12) knowingly accepting insurance business from an
individual who is not licensed but who is required to be
licensed by the Director;
(13) failing to comply with an administrative or court
order imposing a child support obligation; or
(14) failing to pay State income tax or comply with any
administrative or court order directing payment of State

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income tax.
(b) In the event that the action by the Director is to deny
an application for or not renew a license, the Director shall
notify the applicant or licensee and advise, in writing, the
applicant or licensee of the reason for the non-renewal or
denial of the applicant's or licensee's license. The applicant
or licensee may make written demand upon the Director for a
hearing before the Director to determine the reasonableness of
the Director's action.
(c) The license of a business entity may be suspended,
revoked, or refused if the Director finds, after hearing, that
an individual licensee's violation was known or should have
been known by one or more of the partners, officers, or
managers acting on behalf of the business entity and the
violation was neither reported to the Director, nor corrective
action taken.
(d) In addition to or in lieu of any applicable denial,
suspension or revocation of a license, a person may, after
hearing, be subject to a civil fine.
(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.

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(215 ILCS 5/1560 new)
Sec. 1560. Bond or letter of credit.
(a) Prior to the issuance of a license as a public adjuster
and for the duration of the license, the applicant shall secure
evidence of financial responsibility in a format prescribed by
the Director through a security 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 $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 $20,000;
(B) shall be to an account to the Director and
subject to lawful levy of execution on behalf of any
person to whom the public adjuster has been found to be

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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.
(215 ILCS 5/1565 new)
Sec. 1565. Continuing education.
(a) An individual, who holds a public adjuster license and
who is not exempt under subsection (b) of this Section, shall
satisfactorily complete a minimum of 24 hours of continuing
education courses, including ethics, reported on a biennial
basis in conjunction with the license renewal cycle.
(b) This Section shall not apply to:
(1) licensees not licensed for one full year prior to
the end of the applicable continuing education biennium; or
(2) licensees holding nonresident public adjuster

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licenses who have met the continuing education
requirements of their home state and whose home state gives
credit to residents of this State on the same basis.
(c) Only continuing education courses approved by the
Director shall be used to satisfy the continuing education
requirement of subsection (a) of this Section.
(215 ILCS 5/1570 new)
Sec. 1570. Public adjuster fees.
(a) A public adjuster shall not pay a commission, service
fee, or other valuable consideration to a person for
investigating or settling claims in this State if that person
is required to be licensed under this Article and is not so
licensed.
(b) A person shall not accept a commission, service fee, or
other valuable consideration for investigating or settling
claims in this State if that person is required to be licensed
under this Article and is not so licensed.
(c) A public adjuster may pay or assign commission, service
fees, or other valuable consideration to persons who do not
investigate or settle claims in this State, unless the payment
would violate State law.
(215 ILCS 5/1575 new)
Sec. 1575. Contract between public adjuster and insured.
(a) Public adjusters shall ensure that all contracts for

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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 and phone
number;
(3) license number;
(4) title of "Public Adjuster Contract";
(5) the insured's full name, street address, insurance
company name, and policy number, if known or upon
notification;
(6) a description of the loss and its location, if
applicable;
(7) description of services to be provided to the
insured;
(8) signatures of the public adjuster and the insured;
(9) date contract was signed by the public adjuster and
date 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.
(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

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specified.
(2) Initial expenses to be reimbursed to the public
adjuster from the proceeds of the claim payment shall be
specified by type, with dollar estimates set forth in the
contract and with any additional expenses first approved by
the insured.
(3) Compensation provisions in a public adjusting
contract shall not be redacted in any copy of the contract
provided to the Director.
(c) If the insurer, not later than 72 hours 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

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is involved in any aspect of the claim, other than the salary,
fee, commission, or other consideration established in the
written contract with the insured, including, but not limited
to, any ownership of, other than as a minority stockholder, or
any compensation expected to be received from, any construction
firm, salvage firm, building appraisal firm, motor vehicle
repair shop, or any other firm which 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 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) imposes collection costs or late fees; or
(4) precludes a public adjuster from pursuing civil
remedies.
(f) The following provisions apply to a contract between a

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public adjuster and an insured:
(1) Prior to the signing of the contract, the public
adjuster shall provide the insured with a separate
disclosure document regarding the claim process that
states:
"Property insurance policies obligate the insured to
present a claim to his or her insurance company for
consideration. There are 3 types of adjusters that could be
involved in that process. The definitions of the 3 types
are as follows:
(A) "Company adjuster" means the insurance
adjusters who are employees of an insurance company.
They represent the interest of the insurance company
and are paid by the insurance company. They will not
charge you a fee.
(B) "Independent adjuster" means the insurance
adjusters who are hired on a contract basis by an
insurance company to represent the insurance company's
interest in the settlement of the claim. They are paid
by your insurance company. They will not charge you a
fee.
(C) "Public adjuster" means the insurance
adjusters who do not work for any insurance company.
They 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

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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 insured has the right to initiate direct
communications with the insured's attorney, the insurer,
the insurer's adjuster, and the insurer's attorney, or any
other person regarding the settlement of the insured's
claim. Once a public adjuster has been retained, the
company adjuster or other insurance representative may not
communicate directly with the insured without the
permission or consent of the public adjuster or the
insured's legal counsel.
(4) The public adjuster is not a representative or
employee of the insurer.
(5) The salary, fee, commission, or other
consideration is the obligation of the insured, not the
insurer.
(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 a
notification letter, which has been signed by the insured,

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authorizing the public adjuster to represent the insured's
interest.
(i) The public adjuster shall give the insured written
notice of the insured's rights as a consumer under the law of
this State.
(j) The insured has the right to rescind the contract
within 3 business days after the date the contract was signed.
The rescission shall be in writing and mailed or delivered to
the public adjuster at the address in the contract within the 3
business day period.
(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.
(215 ILCS 5/1580 new)
Sec. 1580. Escrow or trust accounts. A public adjuster who
receives, accepts, or holds any funds on behalf of an insured
towards the settlement of a claim for loss or damage shall
deposit the funds in a non-interest bearing escrow or trust
account in a financial institution that is insured by an agency
of the federal government in the public adjuster's home state
or where the loss occurred.
(215 ILCS 5/1585 new)

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Sec. 1585. Record retention.
(a) A public adjuster shall maintain a complete record of
each transaction as a public adjuster. The records required by
this Section shall include the following:
(1) name of the insured;
(2) date, location and amount of the loss;
(3) copy of the contract between the public adjuster
and insured;
(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 5 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 Freedom
of Information Act.
(215 ILCS 5/1590 new)
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 shall not solicit or attempt to
solicit an insured during the progress of a loss-producing
occurrence, as defined in the insured's insurance contract.
(c) A public adjuster shall not permit an unlicensed
employee or representative of the public adjuster to conduct
business for which a license is required under this Article.
(d) A public adjuster shall not have a direct or indirect
financial interest in any aspect of the claim, other than the
salary, fee, commission, or other consideration established in

HB0274 - 29 - LRB096 04478 RPM 14530 b
the written contract with the insured, unless full written
disclosure has been made to the insured as set forth in
subsection (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 (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 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,
motor vehicle repair shop, or any other firm that performs any
work in conjunction with damages caused by the insured loss.
The word "firm" shall include any corporation, partnership,
association, joint-stock company or individual as set forth in
Section 1575 of this Article.
(h) Any compensation or anything of value in connection
with an insured's specific loss that will be received by a

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public adjuster shall be disclosed by the public adjuster to
the insured in writing including the source and amount of any
such compensation.
(i) 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 3-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; and
(6) A public adjuster shall ensure that all contracts

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for the public adjuster's services are in writing and set
forth all terms and conditions of the engagement.
(j) A public adjuster may not agree to any loss settlement
without the insured's knowledge and consent.
(215 ILCS 5/1595 new)
Sec. 1595. Reporting of actions.
(a) The public adjuster shall report to the Director any
administrative action taken against the public adjuster in
another jurisdiction or by another governmental agency in this
State within 30 days of the final disposition of the matter.
This report shall include a copy of the order, consent to
order, or other relevant legal documents.
(b) Within 30 days of the initial pretrial hearing date,
the public adjuster shall report to the Director any criminal
prosecution of the public adjuster taken in any jurisdiction.
The report shall include a copy of the initial complaint filed,
the order resulting from the hearing, and any other relevant
legal documents.
(215 ILCS 5/1600 new)
Sec. 1600. Rules. The Director shall promulgate reasonable
rules as are necessary or proper to carry out the purposes of
this Article.
Section 900. The Freedom of Information Act is amended by

HB0274 - 32 - LRB096 04478 RPM 14530 b
changing Section 7 as follows:
(5 ILCS 140/7) (from Ch. 116, par. 207)
(Text of Section before amendment by P.A. 95-988)
Sec. 7. Exemptions.
(1) The following shall be exempt from inspection and
copying:
(a) Information specifically prohibited from
disclosure by federal or State law or rules and regulations
adopted under federal or State law.
(b) Information that, if disclosed, would constitute a
clearly unwarranted invasion of personal privacy, unless
the disclosure is consented to in writing by the individual
subjects of the information. The disclosure of information
that bears on the public duties of public employees and
officials shall not be considered an invasion of personal
privacy. Information exempted under this subsection (b)
shall include but is not limited to:
(i) files and personal information maintained with
respect to clients, patients, residents, students or
other individuals receiving social, medical,
educational, vocational, financial, supervisory or
custodial care or services directly or indirectly from
federal agencies or public bodies;
(ii) personnel files and personal information
maintained with respect to employees, appointees or

HB0274 - 33 - LRB096 04478 RPM 14530 b
elected officials of any public body or applicants for
those positions;
(iii) files and personal information maintained
with respect to any applicant, registrant or licensee
by any public body cooperating with or engaged in
professional or occupational registration, licensure
or discipline;
(iv) information required of any taxpayer in
connection with the assessment or collection of any tax
unless disclosure is otherwise required by State
statute;
(v) information revealing the identity of persons
who file complaints with or provide information to
administrative, investigative, law enforcement or
penal agencies; provided, however, that identification
of witnesses to traffic accidents, traffic accident
reports, and rescue reports may be provided by agencies
of local government, except in a case for which a
criminal investigation is ongoing, without
constituting a clearly unwarranted per se invasion of
personal privacy under this subsection; and
(vi) the names, addresses, or other personal
information of participants and registrants in park
district, forest preserve district, and conservation
district programs.
(c) Records compiled by any public body for

HB0274 - 34 - LRB096 04478 RPM 14530 b
administrative enforcement proceedings and any law
enforcement or correctional agency for law enforcement
purposes or for internal matters of a public body, but only
to the extent that disclosure would:
(i) interfere with pending or actually and
reasonably contemplated law enforcement proceedings
conducted by any law enforcement or correctional
agency;
(ii) interfere with pending administrative
enforcement proceedings conducted by any public body;
(iii) deprive a person of a fair trial or an
impartial hearing;
(iv) unavoidably disclose the identity of a
confidential source or confidential information
furnished only by the confidential source;
(v) disclose unique or specialized investigative
techniques other than those generally used and known or
disclose internal documents of correctional agencies
related to detection, observation or investigation of
incidents of crime or misconduct;
(vi) constitute an invasion of personal privacy
under subsection (b) of this Section;
(vii) endanger the life or physical safety of law
enforcement personnel or any other person; or
(viii) obstruct an ongoing criminal investigation.
(d) Criminal history record information maintained by

HB0274 - 35 - LRB096 04478 RPM 14530 b
State or local criminal justice agencies, except the
following which shall be open for public inspection and
copying:
(i) chronologically maintained arrest information,
such as traditional arrest logs or blotters;
(ii) the name of a person in the custody of a law
enforcement agency and the charges for which that
person is being held;
(iii) court records that are public;
(iv) records that are otherwise available under
State or local law; or
(v) records in which the requesting party is the
individual identified, except as provided under part
(vii) of paragraph (c) of subsection (1) of this
Section.
"Criminal history record information" means data
identifiable to an individual and consisting of
descriptions or notations of arrests, detentions,
indictments, informations, pre-trial proceedings, trials,
or other formal events in the criminal justice system or
descriptions or notations of criminal charges (including
criminal violations of local municipal ordinances) and the
nature of any disposition arising therefrom, including
sentencing, court or correctional supervision,
rehabilitation and release. The term does not apply to
statistical records and reports in which individuals are

HB0274 - 36 - LRB096 04478 RPM 14530 b
not identified and from which their identities are not
ascertainable, or to information that is for criminal
investigative or intelligence purposes.
(e) Records that relate to or affect the security of
correctional institutions and detention facilities.
(f) Preliminary drafts, notes, recommendations,
memoranda and other records in which opinions are
expressed, or policies or actions are formulated, except
that a specific record or relevant portion of a record
shall not be exempt when the record is publicly cited and
identified by the head of the public body. The exemption
provided in this paragraph (f) extends to all those records
of officers and agencies of the General Assembly that
pertain to the preparation of legislative documents.
(g) Trade secrets and commercial or financial
information obtained from a person or business where the
trade secrets or information are proprietary, privileged
or confidential, or where disclosure of the trade secrets
or information may cause competitive harm, including:
(i) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(ii) All trade secrets and commercial or financial
information obtained by a public body, including a
public pension fund, from a private equity fund or a
privately held company within the investment portfolio

HB0274 - 37 - LRB096 04478 RPM 14530 b
of a private equity fund as a result of either
investing or evaluating a potential investment of
public funds in a private equity fund. The exemption
contained in this item does not apply to the aggregate
financial performance information of a private equity
fund, nor to the identity of the fund's managers or
general partners. The exemption contained in this item
does not apply to the identity of a privately held
company within the investment portfolio of a private
equity fund, unless the disclosure of the identity of a
privately held company may cause competitive harm.
Nothing contained in this paragraph (g) shall be construed
to prevent a person or business from consenting to disclosure.
(h) Proposals and bids for any contract, grant, or
agreement, including information which if it were
disclosed would frustrate procurement or give an advantage
to any person proposing to enter into a contractor
agreement with the body, until an award or final selection
is made. Information prepared by or for the body in
preparation of a bid solicitation shall be exempt until an
award or final selection is made.
(i) Valuable formulae, computer geographic systems,
designs, drawings and research data obtained or produced by
any public body when disclosure could reasonably be
expected to produce private gain or public loss. The
exemption for "computer geographic systems" provided in

HB0274 - 38 - LRB096 04478 RPM 14530 b
this paragraph (i) does not extend to requests made by news
media as defined in Section 2 of this Act when the
requested information is not otherwise exempt and the only
purpose of the request is to access and disseminate
information regarding the health, safety, welfare, or
legal rights of the general public.
(j) Test questions, scoring keys and other examination
data used to administer an academic examination or
determined the qualifications of an applicant for a license
or employment.
(k) Architects' plans, engineers' technical
submissions, and other construction related technical
documents for projects not constructed or developed in
whole or in part with public funds and the same for
projects constructed or developed with public funds, but
only to the extent that disclosure would compromise
security, including but not limited to water treatment
facilities, airport facilities, sport stadiums, convention
centers, and all government owned, operated, or occupied
buildings.
(l) Library circulation and order records identifying
library users with specific materials.
(m) Minutes of meetings of public bodies closed to the
public as provided in the Open Meetings Act until the
public body makes the minutes available to the public under
Section 2.06 of the Open Meetings Act.

HB0274 - 39 - LRB096 04478 RPM 14530 b
(n) Communications between a public body and an
attorney or auditor representing the public body that would
not be subject to discovery in litigation, and materials
prepared or compiled by or for a public body in
anticipation of a criminal, civil or administrative
proceeding upon the request of an attorney advising the
public body, and materials prepared or compiled with
respect to internal audits of public bodies.
(o) Information received by a primary or secondary
school, college or university under its procedures for the
evaluation of faculty members by their academic peers.
(p) Administrative or technical information associated
with automated data processing operations, including but
not limited to software, operating protocols, computer
program abstracts, file layouts, source listings, object
modules, load modules, user guides, documentation
pertaining to all logical and physical design of
computerized systems, employee manuals, and any other
information that, if disclosed, would jeopardize the
security of the system or its data or the security of
materials exempt under this Section.
(q) Documents or materials relating to collective
negotiating matters between public bodies and their
employees or representatives, except that any final
contract or agreement shall be subject to inspection and
copying.

HB0274 - 40 - LRB096 04478 RPM 14530 b
(r) Drafts, notes, recommendations and memoranda
pertaining to the financing and marketing transactions of
the public body. The records of ownership, registration,
transfer, and exchange of municipal debt obligations, and
of persons to whom payment with respect to these
obligations is made.
(s) The records, documents and information relating to
real estate purchase negotiations until those negotiations
have been completed or otherwise terminated. With regard to
a parcel involved in a pending or actually and reasonably
contemplated eminent domain proceeding under the Eminent
Domain Act, records, documents and information relating to
that parcel shall be exempt except as may be allowed under
discovery rules adopted by the Illinois Supreme Court. The
records, documents and information relating to a real
estate sale shall be exempt until a sale is consummated.
(t) Any and all proprietary information and records
related to the operation of an intergovernmental risk
management association or self-insurance pool or jointly
self-administered health and accident cooperative or pool.
(u) Information concerning a university's adjudication
of student or employee grievance or disciplinary cases, to
the extent that disclosure would reveal the identity of the
student or employee and information concerning any public
body's adjudication of student or employee grievances or
disciplinary cases, except for the final outcome of the

HB0274 - 41 - LRB096 04478 RPM 14530 b
cases.
(v) Course materials or research materials used by
faculty members.
(w) Information related solely to the internal
personnel rules and practices of a public body.
(x) Information contained in or related to
examination, operating, or condition reports prepared by,
on behalf of, or for the use of a public body responsible
for the regulation or supervision of financial
institutions or insurance companies, unless disclosure is
otherwise required by State law.
(y) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(z) Manuals or instruction to staff that relate to
establishment or collection of liability for any State tax
or that relate to investigations by a public body to
determine violation of any criminal law.
(aa) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other records
prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(bb) Insurance or self insurance (including any
intergovernmental risk management association or self
insurance pool) claims, loss or risk management

HB0274 - 42 - LRB096 04478 RPM 14530 b
information, records, data, advice or communications.
(cc) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmissible
disease or any information the disclosure of which is
restricted under the Illinois Sexually Transmissible
Disease Control Act.
(dd) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
(ee) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(ff) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Regional Transportation Authority under Section 2.11 of
the Regional Transportation Authority Act or the St. Clair
County Transit District under the Bi-State Transit Safety
Act.
(gg) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(hh) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act.
(ii) Beginning July 1, 1999, information that would
disclose or might lead to the disclosure of secret or

HB0274 - 43 - LRB096 04478 RPM 14530 b
confidential information, codes, algorithms, programs, or
private keys intended to be used to create electronic or
digital signatures under the Electronic Commerce Security
Act.
(jj) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a local
emergency energy plan ordinance that is adopted under
Section 11-21.5-5 of the Illinois Municipal Code.
(kk) Information and data concerning the distribution
of surcharge moneys collected and remitted by wireless
carriers under the Wireless Emergency Telephone Safety
Act.
(ll) Vulnerability assessments, security measures, and
response policies or plans that are designed to identify,
prevent, or respond to potential attacks upon a community's
population or systems, facilities, or installations, the
destruction or contamination of which would constitute a
clear and present danger to the health or safety of the
community, but only to the extent that disclosure could
reasonably be expected to jeopardize the effectiveness of
the measures or the safety of the personnel who implement
them or the public. Information exempt under this item may
include such things as details pertaining to the
mobilization or deployment of personnel or equipment, to
the operation of communication systems or protocols, or to
tactical operations.

HB0274 - 44 - LRB096 04478 RPM 14530 b
(mm) Maps and other records regarding the location or
security of generation, transmission, distribution,
storage, gathering, treatment, or switching facilities
owned by a utility or by the Illinois Power Agency.
(nn) Law enforcement officer identification
information or driver identification information compiled
by a law enforcement agency or the Department of
Transportation under Section 11-212 of the Illinois
Vehicle Code.
(oo) Records and information provided to a residential
health care facility resident sexual assault and death
review team or the Executive Council under the Abuse
Prevention Review Team Act.
(pp) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(qq) Defense budgets and petitions for certification
of compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the Capital
Crimes Litigation Act. This subsection (qq) shall apply
until the conclusion of the trial of the case, even if the
prosecution chooses not to pursue the death penalty prior
to trial or sentencing.
(rr) Information contained in or related to proposals,
bids, or negotiations related to electric power

HB0274 - 45 - LRB096 04478 RPM 14530 b
procurement under Section 1-75 of the Illinois Power Agency
Act and Section 16-111.5 of the Public Utilities Act that
is determined to be confidential and proprietary by the
Illinois Power Agency or by the Illinois Commerce
Commission.
(ss) Information that is prohibited from being
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(tt) Information the disclosure of which is exempted
under the Public Adjusters Law of the Illinois Insurance
Code.
(2) This Section does not authorize withholding of
information or limit the availability of records to the public,
except as stated in this Section or otherwise provided in this
Act.
(Source: P.A. 94-280, eff. 1-1-06; 94-508, eff. 1-1-06; 94-664,
eff. 1-1-06; 94-931, eff. 6-26-06; 94-953, eff. 6-27-06;
94-1055, eff. 1-1-07; 95-331, eff. 8-21-07; 95-481, eff.
8-28-07; 95-941, eff. 8-29-08.)
(Text of Section after amendment by P.A. 95-988)
Sec. 7. Exemptions.
(1) The following shall be exempt from inspection and
copying:
(a) Information specifically prohibited from
disclosure by federal or State law or rules and regulations

HB0274 - 46 - LRB096 04478 RPM 14530 b
adopted under federal or State law.
(b) Information that, if disclosed, would constitute a
clearly unwarranted invasion of personal privacy, unless
the disclosure is consented to in writing by the individual
subjects of the information. The disclosure of information
that bears on the public duties of public employees and
officials shall not be considered an invasion of personal
privacy. Information exempted under this subsection (b)
shall include but is not limited to:
(i) files and personal information maintained with
respect to clients, patients, residents, students or
other individuals receiving social, medical,
educational, vocational, financial, supervisory or
custodial care or services directly or indirectly from
federal agencies or public bodies;
(ii) personnel files and personal information
maintained with respect to employees, appointees or
elected officials of any public body or applicants for
those positions;
(iii) files and personal information maintained
with respect to any applicant, registrant or licensee
by any public body cooperating with or engaged in
professional or occupational registration, licensure
or discipline;
(iv) information required of any taxpayer in
connection with the assessment or collection of any tax

HB0274 - 47 - LRB096 04478 RPM 14530 b
unless disclosure is otherwise required by State
statute;
(v) information revealing the identity of persons
who file complaints with or provide information to
administrative, investigative, law enforcement or
penal agencies; provided, however, that identification
of witnesses to traffic accidents, traffic accident
reports, and rescue reports may be provided by agencies
of local government, except in a case for which a
criminal investigation is ongoing, without
constituting a clearly unwarranted per se invasion of
personal privacy under this subsection;
(vi) the names, addresses, or other personal
information of participants and registrants in park
district, forest preserve district, and conservation
district programs; and
(vii) the Notarial Record or other medium
containing the thumbprint or fingerprint required by
Section 3-102(c)(6) of the Illinois Notary Public Act.
(c) Records compiled by any public body for
administrative enforcement proceedings and any law
enforcement or correctional agency for law enforcement
purposes or for internal matters of a public body, but only
to the extent that disclosure would:
(i) interfere with pending or actually and
reasonably contemplated law enforcement proceedings

HB0274 - 48 - LRB096 04478 RPM 14530 b
conducted by any law enforcement or correctional
agency;
(ii) interfere with pending administrative
enforcement proceedings conducted by any public body;
(iii) deprive a person of a fair trial or an
impartial hearing;
(iv) unavoidably disclose the identity of a
confidential source or confidential information
furnished only by the confidential source;
(v) disclose unique or specialized investigative
techniques other than those generally used and known or
disclose internal documents of correctional agencies
related to detection, observation or investigation of
incidents of crime or misconduct;
(vi) constitute an invasion of personal privacy
under subsection (b) of this Section;
(vii) endanger the life or physical safety of law
enforcement personnel or any other person; or
(viii) obstruct an ongoing criminal investigation.
(d) Criminal history record information maintained by
State or local criminal justice agencies, except the
following which shall be open for public inspection and
copying:
(i) chronologically maintained arrest information,
such as traditional arrest logs or blotters;
(ii) the name of a person in the custody of a law

HB0274 - 49 - LRB096 04478 RPM 14530 b
enforcement agency and the charges for which that
person is being held;
(iii) court records that are public;
(iv) records that are otherwise available under
State or local law; or
(v) records in which the requesting party is the
individual identified, except as provided under part
(vii) of paragraph (c) of subsection (1) of this
Section.
"Criminal history record information" means data
identifiable to an individual and consisting of
descriptions or notations of arrests, detentions,
indictments, informations, pre-trial proceedings, trials,
or other formal events in the criminal justice system or
descriptions or notations of criminal charges (including
criminal violations of local municipal ordinances) and the
nature of any disposition arising therefrom, including
sentencing, court or correctional supervision,
rehabilitation and release. The term does not apply to
statistical records and reports in which individuals are
not identified and from which their identities are not
ascertainable, or to information that is for criminal
investigative or intelligence purposes.
(e) Records that relate to or affect the security of
correctional institutions and detention facilities.
(f) Preliminary drafts, notes, recommendations,

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memoranda and other records in which opinions are
expressed, or policies or actions are formulated, except
that a specific record or relevant portion of a record
shall not be exempt when the record is publicly cited and
identified by the head of the public body. The exemption
provided in this paragraph (f) extends to all those records
of officers and agencies of the General Assembly that
pertain to the preparation of legislative documents.
(g) Trade secrets and commercial or financial
information obtained from a person or business where the
trade secrets or information are proprietary, privileged
or confidential, or where disclosure of the trade secrets
or information may cause competitive harm, including:
(i) All information determined to be confidential
under Section 4002 of the Technology Advancement and
Development Act.
(ii) All trade secrets and commercial or financial
information obtained by a public body, including a
public pension fund, from a private equity fund or a
privately held company within the investment portfolio
of a private equity fund as a result of either
investing or evaluating a potential investment of
public funds in a private equity fund. The exemption
contained in this item does not apply to the aggregate
financial performance information of a private equity
fund, nor to the identity of the fund's managers or

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general partners. The exemption contained in this item
does not apply to the identity of a privately held
company within the investment portfolio of a private
equity fund, unless the disclosure of the identity of a
privately held company may cause competitive harm.
Nothing contained in this paragraph (g) shall be construed
to prevent a person or business from consenting to disclosure.
(h) Proposals and bids for any contract, grant, or
agreement, including information which if it were
disclosed would frustrate procurement or give an advantage
to any person proposing to enter into a contractor
agreement with the body, until an award or final selection
is made. Information prepared by or for the body in
preparation of a bid solicitation shall be exempt until an
award or final selection is made.
(i) Valuable formulae, computer geographic systems,
designs, drawings and research data obtained or produced by
any public body when disclosure could reasonably be
expected to produce private gain or public loss. The
exemption for "computer geographic systems" provided in
this paragraph (i) does not extend to requests made by news
media as defined in Section 2 of this Act when the
requested information is not otherwise exempt and the only
purpose of the request is to access and disseminate
information regarding the health, safety, welfare, or
legal rights of the general public.

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(j) Test questions, scoring keys and other examination
data used to administer an academic examination or
determined the qualifications of an applicant for a license
or employment.
(k) Architects' plans, engineers' technical
submissions, and other construction related technical
documents for projects not constructed or developed in
whole or in part with public funds and the same for
projects constructed or developed with public funds, but
only to the extent that disclosure would compromise
security, including but not limited to water treatment
facilities, airport facilities, sport stadiums, convention
centers, and all government owned, operated, or occupied
buildings.
(l) Library circulation and order records identifying
library users with specific materials.
(m) Minutes of meetings of public bodies closed to the
public as provided in the Open Meetings Act until the
public body makes the minutes available to the public under
Section 2.06 of the Open Meetings Act.
(n) Communications between a public body and an
attorney or auditor representing the public body that would
not be subject to discovery in litigation, and materials
prepared or compiled by or for a public body in
anticipation of a criminal, civil or administrative
proceeding upon the request of an attorney advising the

HB0274 - 53 - LRB096 04478 RPM 14530 b
public body, and materials prepared or compiled with
respect to internal audits of public bodies.
(o) Information received by a primary or secondary
school, college or university under its procedures for the
evaluation of faculty members by their academic peers.
(p) Administrative or technical information associated
with automated data processing operations, including but
not limited to software, operating protocols, computer
program abstracts, file layouts, source listings, object
modules, load modules, user guides, documentation
pertaining to all logical and physical design of
computerized systems, employee manuals, and any other
information that, if disclosed, would jeopardize the
security of the system or its data or the security of
materials exempt under this Section.
(q) Documents or materials relating to collective
negotiating matters between public bodies and their
employees or representatives, except that any final
contract or agreement shall be subject to inspection and
copying.
(r) Drafts, notes, recommendations and memoranda
pertaining to the financing and marketing transactions of
the public body. The records of ownership, registration,
transfer, and exchange of municipal debt obligations, and
of persons to whom payment with respect to these
obligations is made.

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(s) The records, documents and information relating to
real estate purchase negotiations until those negotiations
have been completed or otherwise terminated. With regard to
a parcel involved in a pending or actually and reasonably
contemplated eminent domain proceeding under the Eminent
Domain Act, records, documents and information relating to
that parcel shall be exempt except as may be allowed under
discovery rules adopted by the Illinois Supreme Court. The
records, documents and information relating to a real
estate sale shall be exempt until a sale is consummated.
(t) Any and all proprietary information and records
related to the operation of an intergovernmental risk
management association or self-insurance pool or jointly
self-administered health and accident cooperative or pool.
(u) Information concerning a university's adjudication
of student or employee grievance or disciplinary cases, to
the extent that disclosure would reveal the identity of the
student or employee and information concerning any public
body's adjudication of student or employee grievances or
disciplinary cases, except for the final outcome of the
cases.
(v) Course materials or research materials used by
faculty members.
(w) Information related solely to the internal
personnel rules and practices of a public body.
(x) Information contained in or related to

HB0274 - 55 - LRB096 04478 RPM 14530 b
examination, operating, or condition reports prepared by,
on behalf of, or for the use of a public body responsible
for the regulation or supervision of financial
institutions or insurance companies, unless disclosure is
otherwise required by State law.
(y) Information the disclosure of which is restricted
under Section 5-108 of the Public Utilities Act.
(z) Manuals or instruction to staff that relate to
establishment or collection of liability for any State tax
or that relate to investigations by a public body to
determine violation of any criminal law.
(aa) Applications, related documents, and medical
records received by the Experimental Organ Transplantation
Procedures Board and any and all documents or other records
prepared by the Experimental Organ Transplantation
Procedures Board or its staff relating to applications it
has received.
(bb) Insurance or self insurance (including any
intergovernmental risk management association or self
insurance pool) claims, loss or risk management
information, records, data, advice or communications.
(cc) Information and records held by the Department of
Public Health and its authorized representatives relating
to known or suspected cases of sexually transmissible
disease or any information the disclosure of which is
restricted under the Illinois Sexually Transmissible

HB0274 - 56 - LRB096 04478 RPM 14530 b
Disease Control Act.
(dd) Information the disclosure of which is exempted
under Section 30 of the Radon Industry Licensing Act.
(ee) Firm performance evaluations under Section 55 of
the Architectural, Engineering, and Land Surveying
Qualifications Based Selection Act.
(ff) Security portions of system safety program plans,
investigation reports, surveys, schedules, lists, data, or
information compiled, collected, or prepared by or for the
Regional Transportation Authority under Section 2.11 of
the Regional Transportation Authority Act or the St. Clair
County Transit District under the Bi-State Transit Safety
Act.
(gg) Information the disclosure of which is restricted
and exempted under Section 50 of the Illinois Prepaid
Tuition Act.
(hh) Information the disclosure of which is exempted
under the State Officials and Employees Ethics Act.
(ii) Beginning July 1, 1999, information that would
disclose or might lead to the disclosure of secret or
confidential information, codes, algorithms, programs, or
private keys intended to be used to create electronic or
digital signatures under the Electronic Commerce Security
Act.
(jj) Information contained in a local emergency energy
plan submitted to a municipality in accordance with a local

HB0274 - 57 - LRB096 04478 RPM 14530 b
emergency energy plan ordinance that is adopted under
Section 11-21.5-5 of the Illinois Municipal Code.
(kk) Information and data concerning the distribution
of surcharge moneys collected and remitted by wireless
carriers under the Wireless Emergency Telephone Safety
Act.
(ll) Vulnerability assessments, security measures, and
response policies or plans that are designed to identify,
prevent, or respond to potential attacks upon a community's
population or systems, facilities, or installations, the
destruction or contamination of which would constitute a
clear and present danger to the health or safety of the
community, but only to the extent that disclosure could
reasonably be expected to jeopardize the effectiveness of
the measures or the safety of the personnel who implement
them or the public. Information exempt under this item may
include such things as details pertaining to the
mobilization or deployment of personnel or equipment, to
the operation of communication systems or protocols, or to
tactical operations.
(mm) Maps and other records regarding the location or
security of generation, transmission, distribution,
storage, gathering, treatment, or switching facilities
owned by a utility or by the Illinois Power Agency.
(nn) Law enforcement officer identification
information or driver identification information compiled

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by a law enforcement agency or the Department of
Transportation under Section 11-212 of the Illinois
Vehicle Code.
(oo) Records and information provided to a residential
health care facility resident sexual assault and death
review team or the Executive Council under the Abuse
Prevention Review Team Act.
(pp) Information provided to the predatory lending
database created pursuant to Article 3 of the Residential
Real Property Disclosure Act, except to the extent
authorized under that Article.
(qq) Defense budgets and petitions for certification
of compensation and expenses for court appointed trial
counsel as provided under Sections 10 and 15 of the Capital
Crimes Litigation Act. This subsection (qq) shall apply
until the conclusion of the trial of the case, even if the
prosecution chooses not to pursue the death penalty prior
to trial or sentencing.
(rr) Information contained in or related to proposals,
bids, or negotiations related to electric power
procurement under Section 1-75 of the Illinois Power Agency
Act and Section 16-111.5 of the Public Utilities Act that
is determined to be confidential and proprietary by the
Illinois Power Agency or by the Illinois Commerce
Commission.
(ss) Information that is prohibited from being

HB0274 - 59 - LRB096 04478 RPM 14530 b
disclosed under Section 4 of the Illinois Health and
Hazardous Substances Registry Act.
(tt) Information the disclosure of which is exempted
under the Public Adjusters Law of the Illinois Insurance
Code.
(2) This Section does not authorize withholding of
information or limit the availability of records to the public,
except as stated in this Section or otherwise provided in this
Act.
(Source: P.A. 94-280, eff. 1-1-06; 94-508, eff. 1-1-06; 94-664,
eff. 1-1-06; 94-931, eff. 6-26-06; 94-953, eff. 6-27-06;
94-1055, eff. 1-1-07; 95-331, eff. 8-21-07; 95-481, eff.
8-28-07; 95-941, eff. 8-29-08; 95-988, eff. 6-1-09; revised
10-20-08.)
(215 ILCS 5/Art. XXXI.75 rep.)
Section 910. The Illinois Insurance Code is amended by
repealing Article XXXI.75.
Section 997. Severability. The provisions of this Act are
severable under Section 1.31 of the Statute on Statutes.
HB0274 - 60 - LRB096 04478 RPM 14530 b
INDEX
Statutes amended in order of appearance
215 ILCS 5/Art. XLV
heading new
215 ILCS 5/1501 new
215 ILCS 5/1505 new
215 ILCS 5/1510 new
215 ILCS 5/1515 new
215 ILCS 5/1520 new
215 ILCS 5/1525 new
215 ILCS 5/1530 new
215 ILCS 5/1535 new
215 ILCS 5/1540 new
215 ILCS 5/1545 new
215 ILCS 5/1550 new
215 ILCS 5/1555 new
215 ILCS 5/1560 new
215 ILCS 5/1565 new
215 ILCS 5/1570 new
215 ILCS 5/1575 new
215 ILCS 5/1580 new
215 ILCS 5/1585 new
215 ILCS 5/1590 new
215 ILCS 5/1595 new
215 ILCS 5/1600 new
HB0274 - 61 - LRB096 04478 RPM 14530 b
5 ILCS 140/7 from Ch. 116, par. 207
215 ILCS 5/Art. XXXI.75
rep.