Bill Text: IL HB3426 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Insurance Code. Increases one of the fees allowed as part of the taxable costs in a specified action to $240,000 (instead of $60,000). Provides that it shall be unlawful for any company transacting insurance business in this State to pay a claim of an insured property owner for loss by fire or explosion to a structure located in this State where the amount recoverable for loss to the structure under a policy exceeds $100,000 (instead of $25,000), until the insurance company receives the required certificate. Sets forth provisions concerning adjustment and settlement of first party property insurance losses based on replacement cost. Requires the insurer to replace items with material of like kind and quality so as to conform to a reasonably uniform appearance, including interior and exterior covered losses, when a covered loss for real property requires the replacement of an item or items and the replacement item or items do not match adjacent items in quality, color, or size. Excludes expenses to be reimbursed to the public adjuster from the 10% cap on a public adjuster's salary, fee, commission, compensation, or consideration. Provides that the policies must be individually underwritten for personal, family, or household use. Provides that expenses to be reimbursed to the public adjuster are not limited to emergency mitigation expenses, and requires expenses to be reimbursed to the public adjuster regardless of whether the expense is covered by the applicable insurance policy. Includes the named insured's public adjuster and the named insured's attorney as designees.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2025-03-21 - Rule 19(a) / Re-referred to Rules Committee [HB3426 Detail]

Download: Illinois-2025-HB3426-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3426 Introduced , by Rep. Brad Stephens SYNOPSIS AS INTRODUCED:
215 ILCS 5/154.6 from Ch. 73, par. 766.6
215 ILCS 5/155 from Ch. 73, par. 767
215 ILCS 5/397.1 from Ch. 73, par. 1009.1
215 ILCS 5/1570
215 ILCS 5/1575
215 ILCS 5/1590
Amends the Illinois Insurance Code. Increases one of the fees allowed as part of the taxable costs in a specified action to $240,000 (instead of $60,000). Provides that it shall be unlawful for any company transacting insurance business in this State to pay a claim of an insured property owner for loss by fire or explosion to a structure located in this State where the amount recoverable for loss to the structure under a policy exceeds $100,000 (instead of $25,000), until the insurance company receives the required certificate. Sets forth provisions concerning adjustment and settlement of first party property insurance losses based on replacement cost. Requires the insurer to replace items with material of like kind and quality so as to conform to a reasonably uniform appearance, including interior and exterior covered losses, when a covered loss for real property requires the replacement of an item or items and the replacement item or items do not match adjacent items in quality, color, or size. Excludes expenses to be reimbursed to the public adjuster from the 10% cap on a public adjuster's salary, fee, commission, compensation, or consideration. Provides that the policies must be individually underwritten for personal, family, or household use. Provides that expenses to be reimbursed to the public adjuster are not limited to emergency mitigation expenses, and requires expenses to be reimbursed to the public adjuster regardless of whether the expense is covered by the applicable insurance policy. Includes the named insured's public adjuster and the named insured's attorney as designees.
LRB104 10651 BAB 20728 b
A BILL FOR
HB3426 LRB104 10651 BAB 20728 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Insurance Code is amended by
changing Sections 154.6, 155, 397.1, 1570, 1575, and 1590 as
follows:
(215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
Sec. 154.6. Acts constituting improper claims practice.
(a) Any of the following acts by a company, if committed
without just cause and in violation of Section 154.5,
constitutes an improper claims practice:
(1) (a) Knowingly misrepresenting to claimants and
insureds relevant facts or policy provisions relating to
coverages at issue;
(2) (b) Failing to acknowledge with reasonable
promptness pertinent communications with respect to claims
arising under its policies;
(3) (c) Failing to adopt and implement reasonable
standards for the prompt investigations and settlement of
claims arising under its policies;
(4) (d) Not attempting in good faith to effectuate
prompt, fair and equitable settlement of claims submitted
in which liability has become reasonably clear;

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(5) (e) Compelling policyholders to institute suits to
recover amounts due under its policies by offering
substantially less than the amounts ultimately recovered
in suits brought by them;
(6) (f) Engaging in activity which results in a
disproportionate number of meritorious complaints against
the insurer received by the Insurance Department;
(7) (g) Engaging in activity which results in a
disproportionate number of lawsuits to be filed against
the insurer or its insureds by claimants;
(8) (h) Refusing to pay claims without conducting a
reasonable investigation based on all available
information;
(9) (i) Failing to affirm or deny coverage of claims
within a reasonable time after proof of loss statements
have been completed;
(10) (j) Attempting to settle a claim for less than
the amount to which a reasonable person would believe the
claimant was entitled, by reference to written or printed
advertising material accompanying or made part of an
application or establishing unreasonable caps or limits on
paint or materials when estimating vehicle repairs;
(11) (k) Attempting to settle claims on the basis of
an application which was altered without notice to, or
knowledge or consent of, the insured;
(12) (l) Making a claims payment to a policyholder or

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beneficiary omitting the coverage under which each payment
is being made;
(13) (m) Delaying the investigation or payment of
claims by requiring an insured, a claimant, or the
physicians of either to submit a preliminary claim report
and then requiring subsequent submission of formal proof
of loss forms, resulting in the duplication of
verification;
(14) (n) Failing in the case of the denial of a claim
or the offer of a compromise settlement to promptly
provide a reasonable and accurate explanation of the basis
in the insurance policy or applicable law for such denial
or compromise settlement;
(15) (o) Failing to provide forms necessary to present
claims within 15 working days of a request with such
explanations as are necessary to use them effectively;
(16) (p) Failing to adopt and implement reasonable
standards to verify that a repairer designated by the
insurance company to provide an estimate, perform repairs,
or engage in any other service in connection with an
insured loss on a vehicle is duly licensed under Section
5-301 of the Illinois Vehicle Code;
(17) (q) Failing to provide as a persistent tendency a
notification on any written estimate prepared by an
insurance company in connection with an insured loss that
Illinois law requires that vehicle repairers must be

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licensed in accordance with Section 5-301 of the Illinois
Vehicle Code;
(18) (r) Failing to pay the replacement vehicle use or
occupation tax, title, and transfer fees required by
Section 154.9 of this Code;
(19) (s) Engaging in any other acts which are in
substance equivalent to any of the foregoing.
(b) When the policy provides for the adjustment and
settlement of first-party property insurance losses based on
replacement cost and when a loss requires repair or
replacement of an item or part, any consequential physical
damage incurred in making such repair or replacement, not
otherwise excluded by the policy, shall be included in the
loss. The insured shall not be required to pay for betterment
nor any other cost except for the applicable deductible.
(c) When a covered loss for real property requires the
replacement of an item or items and the replacement item or
items do not match adjacent items in quality, color, or size,
the insurer shall replace the items with material of like kind
and quality so as to conform to a reasonably uniform
appearance. This provision applies to interior and exterior
covered losses.
(Source: P.A. 102-69, eff. 7-1-22.)
(215 ILCS 5/155) (from Ch. 73, par. 767)
Sec. 155. Attorney fees.

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(1) In any action by or against a company wherein there is
in issue the liability of a company on a policy or policies of
insurance or the amount of the loss payable thereunder, or for
an unreasonable delay in settling a claim, and it appears to
the court that such action or delay is vexatious and
unreasonable, the court may allow as part of the taxable costs
in the action reasonable attorney fees, other costs, plus an
amount not to exceed any one of the following amounts:
(a) 60% of the amount which the court or jury finds
such party is entitled to recover against the company,
exclusive of all costs;
(b) $240,000 $60,000; or
(c) the excess of the amount which the court or jury
finds such party is entitled to recover, exclusive of
costs, over the amount, if any, which the company offered
to pay in settlement of the claim prior to the action.
(2) Where there are several policies insuring the same
insured against the same loss whether issued by the same or by
different companies, the court may fix the amount of the
allowance so that the total attorney fees on account of one
loss shall not be increased by reason of the fact that the
insured brings separate suits on such policies.
(Source: P.A. 93-485, eff. 1-1-04.)
(215 ILCS 5/397.1) (from Ch. 73, par. 1009.1)
Sec. 397.1. Certificate regarding payment of taxes and

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expenses on property sustaining loss.
(a) It shall be unlawful for any company transacting
insurance business in this State to pay a claim of an insured
property owner for loss by fire or explosion to a structure
located in this State where the amount recoverable for loss to
the structure under a policy exceeds $100,000 $25,000, until
the insurance company receives the certificate required by
this Section. A notice, to the State's Attorney of the county
where the structure is located, of the insurers intent to pay a
claim shall include the name of the property owner, the
address of the property, its legal description, the permanent
real estate index number that identifies the property for
purposes of taxation, and the amount of the claim to be paid.
(b) For purposes of this Section, the following
definitions are applicable:
(1) "Insured property owner" is a person named as an
insured who is the owner, title-holder or mortgagee of a
structure, the holder of an interest secured by the
structure, the beneficiary of a land trust owning or
holding title to a structure, the lessee of a structure
with a contractual obligation for property taxes, or the
assignee of any such person.
(2) "Amount recoverable" is the dollar amount payable
under all insurance policies for loss to the structure.
(3) "Proceeds" is the dollar amount payable for loss
to the structure under an insurance policy.

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(4) "Delinquent property taxes" are those property
taxes on the property which are delinquent pursuant to
Section 21-15, 21-20, or 21-25 of the Property Tax Code,
including those delinquent taxes on property forfeited
under Section 21-225 of the Property Tax Code, as of the
date of loss.
In determining delinquent property taxes under this
Section, the amount of property taxes for which a
certificate of error has been issued pursuant to Section
14-10 or 14-20 of the Property Tax Code shall not be
considered delinquent.
(5) "Incurred demolition expense" is: a. the cost of
demolishing or removing a structure from property by or at
the expense of a unit of local government if the
demolition or removal occurs on a date preceding the later
of (i) the acceptance by the insurance company of a Proof
of Loss for an agreed amount of proceeds, or (ii) the date
of receipt by the unit of local government of a request for
execution of the certificate required by this Section; or
b. the amount estimated by the unit of local government
when it receives a request to execute the certificate
required by this Section; or c. the amount ordered to be
withheld by a court within 28 days after a unit of local
government receives a request for execution of the
certificate required by this Section. The unit of local
government must be a party to such proceeding.

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Incurred demolition expense shall be determined under
subparagraph a. whenever possible. In determining the
incurred demolition expense under subparagraph b., the
unit of local government shall make its estimate and
execute the certificate within 30 days after receiving a
request for execution. If the unit of local government
shall fail within 30 days to execute the certificate, as
required by subparagraph a., the company can proceed to
make payment of the claim as if the certificate had been
received showing no unpaid demolition costs. The request
for execution may be served personally, and may be proven
by a written receipt signed by the local official as of the
date the request was made or by service on the local
official by certified mail, return receipt requested. A
court order under subparagraph c. shall supersede an
estimate under subparagraph b.
(6) "Property" is the lot on which the structure is
located.
(7) "Structure" is a building.
(8) "Claim" is the demand by an insured for payment
under an insurance policy or policies.
(9) "Proof of Loss" is the document on which an
insured formally presents his claim to an insurance
company.
(10) "Certificate" is the executed form prescribed by
the Director of Insurance.

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(11) "Executed" means signed by the appropriate
official or unit of government.
(c) For any claim to which this Section is applicable, an
insured property owner must submit one of the following to the
insurance company:
(1) a certificate that with respect to the property
there are:
a. no delinquent property taxes, and
b. no unpaid incurred demolition expenses;
(2) a certificate setting forth with respect to the
property:
a. the amount of unpaid delinquent property taxes,
b. the amount of unpaid incurred demolition
expense, and
c. a direction by an insured property owner to the
insurance company to pay the unpaid delinquent
property taxes and unpaid incurred demolition
expenses.
(d) (1) Except as provided in paragraph (2) of this
subsection (d), if a certificate is submitted pursuant to
paragraph (2) of subsection (c) of this Section, the
insurance company shall pay the unpaid delinquent property
taxes and unpaid incurred demolition expense from the
proceeds payable by issuing a draft or check payable to
the appropriate tax collector or unit of local government.
Any proceeds remaining shall be paid to the insured

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property owner.
(2) In the event incurred demolition expense is
determined by estimation under paragraph (5) of subsection
(b) of this Section in cities of over 2,000,000, the
insurance company shall hold the amount estimated until an
amended certificate executed by the appropriate local
government official is submitted stating (i) that no
demolition expense will be incurred or (ii) the actual
unpaid incurred demolition expense. The insurance company
shall then issue a draft or check payable to the unit of
local government for the actual unpaid incurred demolition
expense. Any proceeds remaining shall be paid to the
insured property owner.
In determining the amount of proceeds remaining under
this paragraph, the insured property owner shall receive
interest on the amount withheld from the date the
certificate is executed as provided in Section 2 of the
Interest Act.
(e) If, under this Section, the proceeds payable are less
than the amount of the unpaid delinquent property taxes and
unpaid incurred demolition expense, unpaid property taxes
shall be paid first.
(f) If incurred demolition expense withheld pursuant to
subparagraphs b. or c. of paragraph 5 of subsection (b) of this
Section exceeds the ultimate cost of demolition, the excess
shall first be applied to unpaid delinquent property taxes.

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Any amount of proceeds remaining shall be paid to the insured
property owner.
(g) Nothing in this Section shall be construed as:
(1) making an insurance company liable for any amount
in excess of the proceeds payable under its insurance
policy unless the insurance company shall have made
payment to the named insured without satisfying the
requirements of this Section;
(2) making a unit of local government or tax collector
an insured under an insurance policy; or
(3) creating an obligation for an insurance company to
pay unpaid delinquent property taxes or unpaid incurred
demolition expense other than as provided in subsection
(d) of this Section.
(h) An insurance company making a payment of proceeds
under this Section for unpaid delinquent taxes or unpaid
incurred demolition expense shall be entitled to the full
benefit of such payment, including subrogation rights and
other rights of assignment.
(i) Unpaid property taxes and unpaid incurred demolition
expense for a claim for loss to a structure occurring after the
issuance of a tax deed pursuant to Section 22-40 of the
Property Tax Code shall not include any unpaid property tax or
unpaid demolition expense arising before the issuance of the
tax deed.
(j) The county collector shall be designated as the local

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official who shall execute the certificate required by this
Section regarding delinquent property taxes. The village clerk
or city clerk in incorporated areas and the official in charge
of the county building department in unincorporated areas
shall be designated as the local official who shall execute
the certificate required by this Section regarding demolition
expenses.
(k) A fee not to exceed $5 may be charged by a unit of
local government for execution of the certificate required by
this Section.
(l) This Section shall retroactively apply to any policy
issued or renewed on or after January 1, 1978 for which a claim
subject to this Section remains unpaid as of the effective
date of this amendatory Act of 1978.
(Source: P.A. 87-507; 88-667, eff. 9-16-94; 88-670, eff.
12-2-94.)
(215 ILCS 5/1570)
Sec. 1570. Public adjuster fees.
(a) A public adjuster shall not pay a commission, service
fee, or other valuable consideration to a person for
investigating or settling claims in this State if that person
is required to be licensed under this Article and is not so
licensed.
(b) A person shall not accept a commission, service fee,
or other valuable consideration for investigating or settling

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claims in this State if that person is required to be licensed
under this Article and is not so licensed.
(c) A public adjuster may pay or assign commission,
service fees, or other valuable consideration to persons who
do not investigate or settle claims in this State, unless the
payment would violate State law.
(d) If the loss giving rise to the claim for which the
public adjuster was retained arises from damage to property
that is anything but a personal residence, a public adjuster
may not charge, agree to, or accept any compensation, payment,
commission, fee, or other valuable consideration in excess of
10% of the amount of the insurance settlement claim paid by the
insurer on any claim resulting from a catastrophic event,
unless approved in writing by the Director. Application for
exception to the 10% limit must be made in writing. The request
must contain specific reasons as to why the consideration
should be in excess of 10% and proof that the policyholder
would accept the consideration. The Director must act on any
request within 5 business days after receipt of the request.
For the purpose of this subsection (d), "catastrophic
event" means an occurrence of widespread or severe damage or
loss of property producing an overwhelming demand on State and
local response resources and mechanisms and a severe long-term
effect on general economic activity, and that severely affects
State, local, and private sector capabilities to begin to
sustain response activities resulting from any catastrophic

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cause, including, but not limited to, fire, including arson
(provided the fire was not caused by the willful action of an
owner or resident of the property), flood, earthquake, wind,
storm, explosion, or extended periods of severe inclement
weather as determined by declaration of a State of disaster by
the Governor. This declaration may be made on a
county-by-county basis and shall be in effect for 90 days, but
may be renewed for 30-day intervals thereafter.
(e) If the loss giving rise to the claim for which the
public adjuster was retained arises from damage to a personal
residence, a public adjuster may not charge, agree to, or
accept any compensation, payment, commission, fee, or other
valuable consideration in excess of 10% of the amount of the
insurance settlement claim paid by the insurer on any claim.
Expenses to be reimbursed to the public adjuster are not
subject to the 10% cap on a public adjuster's salary, fee,
commission, compensation, or consideration. The policies must
be individually underwritten for personal, family, or
household use. No other type of insurance shall be considered
personal insurance. As used in this subsection, "personal
residence" means a residence insured under homeowners and
non-commercial dwelling fire insurance policies.
(Source: P.A. 103-216, eff. 1-1-24.)
(215 ILCS 5/1575)
Sec. 1575. Contract between public adjuster and insured.

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(a) Public adjusters shall ensure that all contracts for
their services are in writing and contain the following terms:
(1) legible full name of the adjuster signing the
contract, as specified in Department records;
(2) permanent home state business address, email
address, and phone number;
(3) license number;
(4) title of "Public Adjuster Contract";
(5) the insured's full name, street address, insurance
company name, and policy number, if known or upon
notification;
(6) a description of the loss and its location;
(7) description of services to be provided to the
insured;
(8) signatures of the public adjuster and the insured;
(9) date and time the contract was signed by the
public adjuster and date and time the contract was signed
by the insured;
(10) attestation language stating that the public
adjuster is fully bonded pursuant to State law; and
(11) full salary, fee, commission, compensation, or
other considerations the public adjuster is to receive for
services, including any applicable cap under Section 1570.
(b) The contract may specify that the public adjuster
shall be named as a co-payee on an insurer's payment of a
claim.

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(1) If the compensation is based on a share of the
insurance settlement, the exact percentage shall be
specified.
(2) Initial expenses to be reimbursed to the public
adjuster from the proceeds of the claim payment shall be
specified by type, with dollar estimates set forth in the
contract and with any additional expenses first approved
by the insured. Expenses to be reimbursed to the public
adjuster are not limited to emergency mitigation expenses.
Expenses shall be reimbursed to the public adjuster
regardless of whether the expense is covered by the
applicable insurance policy.
(3) Compensation provisions in a public adjuster
contract shall not be redacted in any copy of the contract
provided to the Director.
(c) If the insurer, not later than 5 business days after
the date on which the loss is reported to the insurer, either
pays or commits in writing to pay to the insured the policy
limit of the insurance policy, the public adjuster shall:
(1) not receive a commission consisting of a
percentage of the total amount paid by an insurer to
resolve a claim;
(2) inform the insured that loss recovery amount might
not be increased by insurer; and
(3) be entitled only to reasonable compensation from
the insured for services provided by the public adjuster

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on behalf of the insured, based on the time spent on a
claim and expenses incurred by the public adjuster, until
the claim is paid or the insured receives a written
commitment to pay from the insurer.
(d) A public adjuster shall provide the insured a written
disclosure concerning any direct or indirect financial
interest that the public adjuster has with any other party who
is involved in any aspect of the claim, other than the salary,
fee, commission, or other consideration established in the
written contract with the insured, including, but not limited
to, any ownership of or any compensation expected to be
received from, any construction firm, salvage firm, building
appraisal firm, board-up company, or any other firm that
provides estimates for work, or that performs any work, in
conjunction with damages caused by the insured loss on which
the public adjuster is engaged. The word "firm" shall include
any corporation, partnership, association, joint-stock
company, or person.
(e) A public adjuster contract may not contain any
contract term that:
(1) allows the public adjuster's percentage fee to be
collected when money is due from an insurance company, but
not paid, or that allows a public adjuster to collect the
entire fee from the first check issued by an insurance
company, rather than as a percentage of each check issued
by an insurance company;

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(2) requires the insured to authorize an insurance
company to issue a check only in the name of the public
adjuster;
(3) precludes a public adjuster or an insured from
pursuing civil remedies;
(4) includes any hold harmless agreement that provides
indemnification to the public adjuster by the insured for
liability resulting from the public adjuster's negligence;
or
(5) provides power of attorney by which the public
adjuster can act in the place and instead of the insured.
(f) The following provisions apply to a contract between a
public adjuster and an insured:
(1) Prior to the signing of the contract, the public
adjuster shall provide the insured with a separate signed
and dated disclosure document regarding the claim process
that states:
"Property insurance policies obligate the insured to
present a claim to his or her insurance company for
consideration. There are 3 types of adjusters that could
be involved in that process. The definitions of the 3
types are as follows:
(A) "Company adjuster" means the insurance
adjusters who are employees of an insurance company.
They represent the interest of the insurance company
and are paid by the insurance company. They will not

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charge you a fee.
(B) "Independent adjuster" means the insurance
adjusters who are hired on a contract basis by an
insurance company to represent the insurance company's
interest in the settlement of the claim. They are paid
by your insurance company. They will not charge you a
fee.
(C) "Public adjuster" means the insurance
adjusters who do not work for any insurance company.
They represent the insured to assist in the
preparation, presentation and settlement of the claim.
The insured hires them by signing a contract agreeing
to pay them a fee or commission based on a percentage
of the settlement, or other method of compensation.".
(2) The insured is not required to hire a public
adjuster to help the insured meet his or her obligations
under the policy, but has the right to do so.
(3) The public adjuster is not a representative or
employee of the insurer or the Department of Insurance.
(4) The salary, fee, commission, or other
consideration is the obligation of the insured, not the
insurer, except when rights have been assigned to the
public adjuster by the insured.
(g) The contracts shall be executed in duplicate to
provide an original contract to the public adjuster, and an
original contract to the insured. The public adjuster's

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original contract shall be available at all times for
inspection without notice by the Director.
(h) The public adjuster shall provide the insurer or its
authorized representative for receiving notice of loss or
damage with an exact copy of the contract with the insured by
email no later than 5 business days after execution of the
contract, authorizing the public adjuster to represent the
insured's interest.
(i) The public adjuster shall give the insured written
notice of the insured's rights as a consumer under the law of
this State.
(j) A public adjuster shall not provide services, other
than emergency services, until a written contract with the
insured has been executed, on a form filed with and approved by
the Director, and an exact copy of the contract has been
provided to the insurer in accordance with subsection (h). At
the option of the insured, any such contract shall be voidable
for 5 business days after the contract is received by the
insurer. The insured may void the contract by notifying the
public adjuster in writing by (i) registered or certified
mail, return receipt requested, to the address shown on the
contract, (ii) personally serving the notice on the public
adjuster, or (iii) sending an email to the email address shown
on the contract.
(k) If the insured exercises the right to rescind the
contract, anything of value given by the insured under the

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contract will be returned to the insured within 15 business
days following the receipt by the public adjuster of the
cancellation notice.
(l) All contracts entered into that are in violation of
this Section are void and invalid.
(Source: P.A. 103-216, eff. 1-1-24.)
(215 ILCS 5/1590)
Sec. 1590. Standards of conduct of public adjuster.
(a) A public adjuster is obligated, under his or her
license, to serve with objectivity and complete loyalty for
the interests of his client alone, and to render to the insured
such information, counsel, and service, as within the
knowledge, understanding, and opinion in good faith of the
licensee, as will best serve the insured's insurance claim
needs and interest.
(b) A public adjuster may not propose or attempt to
propose to any person that the public adjuster represent that
person while a loss-producing occurrence is continuing, nor
while the fire department or its representatives are engaged
at the damaged premises, nor between the hours of 7:00 p.m. and
8:00 a.m.
(c) A public adjuster shall not permit an unlicensed
employee or representative of the public adjuster to conduct
business for which a license is required under this Article.
(d) A public adjuster shall not have a direct or indirect

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financial interest in any aspect of the claim, other than the
salary, fee, commission, or other consideration established in
the written contract with the insured, unless full written
disclosure has been made to the insured as set forth in
subsection (d) of Section 1575.
(e) A public adjuster shall not acquire any interest in
the salvage of property subject to the contract with the
insured unless the public adjuster obtains written permission
from the insured after settlement of the claim with the
insurer as set forth in subsection (d) of Section 1575 of this
Article.
(f) The public adjuster shall abstain from referring or
directing the insured to get needed repairs or services in
connection with a loss from any person, unless disclosed to
the insured:
(1) with whom the public adjuster has a direct or
indirect financial interest; or
(2) from whom the public adjuster may receive direct
or indirect compensation for the referral.
(g) The public adjuster shall disclose to an insured if he
or she has any interest or will be compensated by any
construction firm, salvage firm, building appraisal firm,
board-up company, or any other firm that performs any work in
conjunction with damages caused by the insured loss. The word
"firm" shall include any corporation, partnership,
association, joint-stock company or individual as set forth in

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Section 1575 of this Article.
(h) Any compensation or anything of value in connection
with an insured's specific loss that will be received by a
public adjuster shall be disclosed by the public adjuster to
the insured in writing including the source and amount of any
such compensation.
(i) In all cases where the loss giving rise to the claim
for which the public adjuster was retained arise from damage
to a personal residence, the insurance proceeds shall be
delivered to the named insured or his or her designee,
including the named insured's public adjuster and the named
insured's attorney. Where proceeds paid by an insurance
company are paid jointly to the insured and the public
adjuster, the insured shall release such portion of the
proceeds that are due the public adjuster within 30 calendar
days after the insured's receipt of the insurance company's
check, money order, draft, or release of funds. If the
proceeds are not so released to the public adjuster within 30
calendar days, the insured shall provide the public adjuster
with a written explanation of the reason for the delay.
(j) Public adjusters shall adhere to the following general
ethical requirements:
(1) a public adjuster shall not undertake the
adjustment of any claim if the public adjuster is not
competent and knowledgeable as to the terms and conditions
of the insurance coverage, or which otherwise exceeds the

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public adjuster's current expertise;
(2) a public adjuster shall not knowingly make any
oral or written material misrepresentations or statements
which are false or maliciously critical and intended to
injure any person engaged in the business of insurance to
any insured client or potential insured client;
(3) no public adjuster, while so licensed by the
Department, may represent or act as a company adjuster or
independent adjuster on the same claim;
(4) the contract shall not be construed to prevent an
insured from pursuing any civil remedy after the
5-business day revocation or cancellation period;
(5) a public adjuster shall not enter into a contract
or accept a power of attorney that vests in the public
adjuster the effective authority to choose the persons who
shall perform repair work;
(6) a public adjuster shall ensure that all contracts
for the public adjuster's services are in writing and set
forth all terms and conditions of the engagement; and
(7) a public adjuster shall not advance money or any
valuable consideration, except emergency services to an
insured pending adjustment of a claim.
(k) A public adjuster may not agree to any loss settlement
without the insured's knowledge and consent and shall, upon
the insured's request, provide the insured with a document
setting forth the scope, amount, and value of the damages

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prior to request by the insured for authority to settle the
loss.
(l) A public adjuster shall not provide legal advice or
representation to the insured or engage in the unauthorized
practice of law.
(m) A public adjuster shall not represent that he or she is
a representative of an insurance company, a fire department,
or the State of Illinois, that he or she is a fire
investigator, that his or her services are required for the
insured to submit a claim to the insured's insurance company,
or that he or she may provide legal advice or representation to
the insured. A public adjuster may represent that he or she has
been licensed by the State of Illinois.
(Source: P.A. 103-216, eff. 1-1-24.)