HB4430 104TH GENERAL ASSEMBLY

LRB104 16903 BAB 30314 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4430

Introduced 1/20/2026, by Rep. Anne Stava

SYNOPSIS AS INTRODUCED:

205 ILCS 5/48.7 new
215 ILCS 5/1515

Amends the Illinois Banking Act. Requires a bank to confirm the identification of a payee and verify endorsements are proper before processing a check for which the name of a borrower or other payee is relied upon for payment, credit, or loan disbursement. Provides that a bank may satisfy the verification requirements through the specified commercially reasonable means of identification. Exempts checks processed solely through automated check clearing processes without manual review, that are authorized by federal law. Amends the Public Adjusters Article of the Illinois Insurance Code. Establishes proof of licensure requirements for licensed public adjusters.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Banking Act is amended by adding Section 48.7 as follows:

(205 ILCS 5/48.7 new)

Sec. 48.7. Verification of payee and check endorsement.

(a) Before processing a check for which the name of a borrower or other payee is relied upon for payment, credit, or loan disbursement, a bank shall:

(1) confirm that the named payee on the check matches the person or entity presenting or authorizing the check; and

(2) verify that all endorsements are properly authorized and consistent with the payee identified on the face of the check.

(b) A bank may satisfy the requirements of subsection (a) through commercially reasonable means of identification, including:

(1) review of government-issued identification;

(2) comparison with account records maintained by the bank; or

(3) confirmation through a clearing bank or issuing bank.

(c) This Section does not apply to checks processed solely through automated check clearing processes, without manual review, that are authorized by federal law.

Section 10. The Illinois Insurance Code is amended by changing Section 1515 as follows:

(215 ILCS 5/1515)

Sec. 1515. License required.

(a) A person shall not act, advertise, solicit, or hold himself out as a public adjuster or to be in the business of adjusting insurance claims in this State, nor attempt to obtain a contract for public adjusting services, 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) all officers, shareholders, and persons with ownership interests in the business entity are licensed public adjusters responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State.

(c-5) A licensed public adjuster shall, before any substantive negotiations take place under an agreement to represent an insured, provide the insurance carrier with proof of being licensed as a public adjuster in the State of Illinois, pursuant to the requirements of this Article. If proof is not provided, the insurance carrier shall notify the insured and the Department. The public adjuster may not charge or accept any compensation, payment, commission, fee, or other valuable consideration in excess of those allowed for by Section 1570 of this Article for actions required by this subsection.

(d) Notwithstanding subsections (a) through (c-5) (c) of this 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.

(e) All contracts entered into that are in violation of this Section are void and invalid.

(Source: P.A. 103-216, eff. 1-1-24.)