Bill Text: IL SB2922 | 2013-2014 | 98th General Assembly | Chaptered
Bill Title: Amends the Illinois Insurance Code to provide that a public adjuster may not charge, agree to, or accept any compensation, payment, commissions, fee, or other valuable consideration in excess of 10% of the amount of the insurance settlement claim paid by the insurer.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2014-07-07 - Public Act . . . . . . . . . 98-0701 [SB2922 Detail]
Download: Illinois-2013-SB2922-Chaptered.html
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Public Act 098-0701 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Insurance Code is amended by | ||||
changing Section 1570 as follows:
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(215 ILCS 5/1570)
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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.
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(d) A public adjuster may not charge, agree to, or accept | ||||
any compensation, payment, commissions, fee, or other valuable | ||||
consideration in excess of 10% of the amount of the insurance |
settlement claim paid by the insurer on any claim resulting | ||
from a catastrophic event, unless approved in writing by the | ||
Director. Application for exception to the 10% limit must be | ||
made in writing. The request must contain specific reasons as | ||
to why the consideration should be in excess of 10% and proof | ||
that the policyholder would accept the consideration. The | ||
Director must act on any request within 5 business days after | ||
receipt of the request. | ||
For the purpose of this subsection (d), "catastrophic | ||
event" means an occurrence of widespread or severe damage or | ||
loss of property producing an overwhelming demand on State and | ||
local response resources and mechanisms and a severe long-term | ||
effect on general economic activity, and that severely affects | ||
State, local, and private sector capabilities to begin to | ||
sustain response activities resulting from any catastrophic | ||
cause, including, but not limited to, fire, including arson | ||
(provided the fire was not caused by the willful action of an | ||
owner or resident of the property), flood, earthquake, wind, | ||
storm, explosion, or extended periods of severe inclement | ||
weather as determined by declaration of a State of disaster by | ||
the Governor. This declaration may be made on a | ||
county-by-county basis and shall be in effect for 90 days, but | ||
may be renewed for 30-day intervals thereafter. | ||
(Source: P.A. 96-1332, eff. 1-1-11.)
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