Bill Text: IL SB2922 | 2013-2014 | 98th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Enrolled.html
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-Enrolled.html
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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Insurance Code is amended by | ||||||
5 | changing Section 1570 as follows:
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6 | (215 ILCS 5/1570)
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7 | Sec. 1570. Public adjuster fees. | ||||||
8 | (a) A public adjuster shall not pay a commission, service | ||||||
9 | fee, or other valuable consideration to a person for | ||||||
10 | investigating or settling claims in this State if that person | ||||||
11 | is required to be licensed under this Article and is not so | ||||||
12 | licensed. | ||||||
13 | (b) A person shall not accept a commission, service fee, or | ||||||
14 | other valuable consideration for investigating or settling | ||||||
15 | claims in this State if that person is required to be licensed | ||||||
16 | under this Article and is not so licensed. | ||||||
17 | (c) A public adjuster may pay or assign commission, service | ||||||
18 | fees, or other valuable consideration to persons who do not | ||||||
19 | investigate or settle claims in this State, unless the payment | ||||||
20 | would violate State law.
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21 | (d) A public adjuster may not charge, agree to, or accept | ||||||
22 | any compensation, payment, commissions, fee, or other valuable | ||||||
23 | consideration in excess of 10% of the amount of the insurance |
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1 | settlement claim paid by the insurer on any claim resulting | ||||||
2 | from a catastrophic event, unless approved in writing by the | ||||||
3 | Director. Application for exception to the 10% limit must be | ||||||
4 | made in writing. The request must contain specific reasons as | ||||||
5 | to why the consideration should be in excess of 10% and proof | ||||||
6 | that the policyholder would accept the consideration. The | ||||||
7 | Director must act on any request within 5 business days after | ||||||
8 | receipt of the request. | ||||||
9 | For the purpose of this subsection (d), "catastrophic | ||||||
10 | event" means an occurrence of widespread or severe damage or | ||||||
11 | loss of property producing an overwhelming demand on State and | ||||||
12 | local response resources and mechanisms and a severe long-term | ||||||
13 | effect on general economic activity, and that severely affects | ||||||
14 | State, local, and private sector capabilities to begin to | ||||||
15 | sustain response activities resulting from any catastrophic | ||||||
16 | cause, including, but not limited to, fire, including arson | ||||||
17 | (provided the fire was not caused by the willful action of an | ||||||
18 | owner or resident of the property), flood, earthquake, wind, | ||||||
19 | storm, explosion, or extended periods of severe inclement | ||||||
20 | weather as determined by declaration of a State of disaster by | ||||||
21 | the Governor. This declaration may be made on a | ||||||
22 | county-by-county basis and shall be in effect for 90 days, but | ||||||
23 | may be renewed for 30-day intervals thereafter. | ||||||
24 | (Source: P.A. 96-1332, eff. 1-1-11.)
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