Full Text of HB1555 95th General Assembly
HB1555enr 95TH GENERAL ASSEMBLY
|
|
|
HB1555 Enrolled |
|
LRB095 08568 KBJ 28751 b |
|
| 1 |
| AN ACT concerning insurance.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Sections 512.52, 512.53, 512.55, 512.57, 512.58, | 6 |
| 512.59, 512.60, 512.61, and 512.64 as follows:
| 7 |
| (215 ILCS 5/512.52) (from Ch. 73, par. 1065.59-52)
| 8 |
| Sec. 512.52. Definitions. As used in this Article unless
| 9 |
| the context clearly otherwise requires:
| 10 |
| (a)
"Adjusting insurance claims" means representing an | 11 |
| insured with an
insurer for compensation, and while | 12 |
| representing that insured either negotiating
values, damages, | 13 |
| or depreciation, or applying
the loss circumstances to | 14 |
| insurance policy provisions.
| 15 |
| (b) "Public Insurance Adjuster" means a person engaged in | 16 |
| the business
of adjusting insurance claims who is licensed | 17 |
| pursuant to this Article .
| 18 |
| (c) "Registered Firm" means a person registered with the | 19 |
| Director under
Section 512.57.
| 20 |
| (d) "Compensation" shall include, but need not be limited | 21 |
| to, the following:
| 22 |
| 1. any assignment of insurance proceeds or a percentage | 23 |
| thereof;
|
|
|
|
HB1555 Enrolled |
- 2 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| 2. any agreement to make repairs for the amount of the | 2 |
| insurance proceeds
payable;
| 3 |
| 3. assertion of any lien against insurance proceeds | 4 |
| payable.
| 5 |
| (e) "Person" embraces both natural persons and business
| 6 |
| entities of whatever type.
| 7 |
| (Source: P.A. 84-335; 84-832.)
| 8 |
| (215 ILCS 5/512.53) (from Ch. 73, par. 1065.59-53)
| 9 |
| Sec. 512.53. License Required. (a) No person may engage
in | 10 |
| the business of adjusting insurance claims, nor advertise, | 11 |
| solicit or hold himself out to be in the business of adjusting | 12 |
| insurance claims, solicit or
hold himself out to be a Public | 13 |
| Insurance Adjuster, nor attempt to
obtain a contract for Public | 14 |
| Adjusting services, unless licensed or registered
in | 15 |
| accordance with the provisions of this Article, except that the | 16 |
| provisions
of this paragraph do not apply to a person admitted | 17 |
| to the practice of law
in this State, to a licensed agent | 18 |
| adjusting loss or damage under a policy
within his control or | 19 |
| to a marine surveyor or average adjuster.
| 20 |
| (b) In addition to any other penalty set forth in this | 21 |
| Article, any person
violating paragraph (a) of this Section | 22 |
| shall be guilty of a Class A misdemeanor,
and any person | 23 |
| misappropriating or converting any monies collected as a
Public | 24 |
| Insurance Adjuster, whether licensed or not, shall be guilty of | 25 |
| a
Class 4 felony. |
|
|
|
HB1555 Enrolled |
- 3 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| (c) All contracts entered into by any person violating | 2 |
| subsection (a) of this Section are void and invalid.
| 3 |
| (Source: P.A. 83-1362.)
| 4 |
| (215 ILCS 5/512.55) (from Ch. 73, par. 1065.59-55)
| 5 |
| Sec. 512.55. Public Insurance Adjuster license. (a) The | 6 |
| Director
shall issue a Public Insurance Adjuster license to an | 7 |
| applicant who has:
| 8 |
| (1) met the requirements of Section 512.54; and
| 9 |
| (2) paid the fee as set forth in Section 512.63; and
| 10 |
| (3) filed with the Director a bond as prescribed in Section | 11 |
| 512.56.
| 12 |
| (b) Every Public Insurance Adjuster license shall remain in | 13 |
| effect for
one year from the date of its issuance.
| 14 |
| (c) Each Public Insurance Adjuster license shall contain | 15 |
| the name, business address, resident
address and personal | 16 |
| identification number of the Public Insurance Adjuster,
the | 17 |
| date of issue, general conditions relative to expiration or | 18 |
| termination
and any other information the Director considers | 19 |
| proper.
| 20 |
| (d) The holder of a Public Insurance Adjuster license shall | 21 |
| notify the
Director, in writing, of a change of either business | 22 |
| or residence address within 30 days of such change.
| 23 |
| (e) Each Public Insurance Adjuster license shall remain in | 24 |
| effect as
long as the holder of the license maintains in force | 25 |
| and effect the bond
required by Section 512.56 and pays the |
|
|
|
HB1555 Enrolled |
- 4 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| annual fee required by Section
512.63 by the date due as | 2 |
| prescribed by the Director, unless
the license is
revoked or | 3 |
| suspended pursuant to Section 512.61.
| 4 |
| The Department may refuse to issue or may suspend the | 5 |
| license
of any person who fails to file a return, or to pay the | 6 |
| tax, penalty or
interest shown in a filed return, or to pay any | 7 |
| final assessment of tax,
penalty or interest, as required by | 8 |
| any tax Act administered by the
Illinois Department of Revenue, | 9 |
| until such time as the requirements of any
such tax Act are | 10 |
| satisfied.
| 11 |
| (Source: P.A. 84-221; 84-832.)
| 12 |
| (215 ILCS 5/512.57) (from Ch. 73, par. 1065.59-57)
| 13 |
| Sec. 512.57. Registered Firms. (a) No person shall
may
| 14 |
| engage in the business of adjusting insurance claims
employ
one | 15 |
| or more Public Insurance Adjustors in their professional | 16 |
| capacity, other
than for the purpose of using their | 17 |
| professional services to negotiate or
adjust such person's own | 18 |
| losses and insurance claims, unless such person
is licensed | 19 |
| pursuant to this Article and registered with the Director under | 20 |
| subsection (b) of this Section.
| 21 |
| No Public Insurance Adjuster may form or participate in any | 22 |
| association,
partnership or other business entity with any | 23 |
| other Public Insurance Adjustor
for the purpose of engaging in | 24 |
| the business of adjusting insurance claims,
unless such | 25 |
| business entity is registered with the Director under |
|
|
|
HB1555 Enrolled |
- 5 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| subsection
(b) of this Section.
| 2 |
| (b) To become a Registered Firm, a person must submit to | 3 |
| the Director
an application, on a form specified by the | 4 |
| Director, and the fee required
by Section 512.63. The Director | 5 |
| may require any documents reasonably
necessary to verify the | 6 |
| information contained in the application.
| 7 |
| (c) Each Registered Firm must notify the Director, in | 8 |
| writing, of any
change in its business or residence address | 9 |
| within 30 days of such change.
| 10 |
| (d) Each Registered Firm must notify the Director of each | 11 |
| Public Insurance
Adjuster who is a member, officer, director or | 12 |
| employee of the Registered
Firm, and report any changes in such | 13 |
| status of any such Public Insurance
Adjuster to the Director | 14 |
| within 30 days thereof.
| 15 |
| (e) Each Registered Firm shall appoint one or more Public | 16 |
| Insurance
Adjusters who is an officer, director or member of | 17 |
| the Firm to be responsible
for the compliance of the Registered | 18 |
| Firm with the laws of this State and
the rules and regulations | 19 |
| of the Director. The Registered Firm shall be
responsible for | 20 |
| the actions of its officers, directors, members and employees.
| 21 |
| (f) Each Registered Firm which, for any of the causes | 22 |
| listed in Section
512.61, terminates its relationship with a | 23 |
| Public Insurance Adjuster who
is an officer, director, employee | 24 |
| or member of the Registered Firm shall
notify the Director, in | 25 |
| writing, within 30 days of such termination of the
specific | 26 |
| reasons for such termination. The Registered Firm shall provide
|
|
|
|
HB1555 Enrolled |
- 6 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| the Director with information, documents, records or | 2 |
| statements pertaining
to the termination. Any materials | 3 |
| provided may be used by the Director
in any action taken | 4 |
| pursuant to Section 512.62. There shall be no liability
on the | 5 |
| part of, nor any cause of action against, the Director or the | 6 |
| Registered
Firm, or any authorized representative of either, | 7 |
| for any statement made
or materials provided pursuant to this | 8 |
| paragraph.
| 9 |
| (g) The Director shall terminate any registration which | 10 |
| does not comply
with the requirements of this Article.
| 11 |
| (h) A registered firm may only be comprised of licensed | 12 |
| Public Insurance Adjusters. All shareholders, officers, and | 13 |
| directors of registered firms must be licensed pursuant to this | 14 |
| Act. Any Public Insurance Adjuster who has a license that has | 15 |
| been revoked, suspended, or not renewed, whether voluntarily or | 16 |
| not, must withdraw from a registered firm within 30 days and | 17 |
| give written notice of his or her resignation to the licensed | 18 |
| firm within 30 days.
| 19 |
| (Source: P.A. 84-832.)
| 20 |
| (215 ILCS 5/512.58) (from Ch. 73, par. 1065.59-58)
| 21 |
| Sec. 512.58. Rate Schedules and Contract Forms. (a) A | 22 |
| Public
Insurance Adjuster shall not provide services until a | 23 |
| written contract with the insured
has been executed, on a form | 24 |
| filed with and approved by the Director. At
the option of the | 25 |
| insured, any such contract which is executed within 5
business
|
|
|
|
HB1555 Enrolled |
- 7 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| days after conclusion of the loss-producing occurrence shall be | 2 |
| voidable
for 10 days after execution. The insured may void the | 3 |
| contract by notifying
the Public Insurance Adjuster in writing | 4 |
| by (i) registered or certified
mail, return receipt requested, | 5 |
| to the address shown on the contract; or
(ii) personally | 6 |
| serving the notice on the Public Insurance Adjuster.
| 7 |
| (b) The written contract required by paragraph (a) shall | 8 |
| constitute the
entire agreement between the Public Insurance | 9 |
| Adjuster and the insured.
A copy of the contract shall be given | 10 |
| to the insured when the contract is
executed. Such contract | 11 |
| forms may not include any
hold harmless agreement which | 12 |
| provides indemnification to the Public Insurance
Adjuster by | 13 |
| the insured for liability resulting from the Public Insurance
| 14 |
| Adjuster's negligence, nor any
power-of-attorney by which the | 15 |
| Public Insurance Adjuster can act in the
place and instead of | 16 |
| the insured.
| 17 |
| (Source: P.A. 83-1362.)
| 18 |
| (215 ILCS 5/512.59) (from Ch. 73, par. 1065.59-59)
| 19 |
| Sec. 512.59. Performance standards applicable to all | 20 |
| Public
Insurance Adjusters. | 21 |
| (a) A Public Insurance Adjuster shall
may not represent | 22 |
| that
he is a representative of an insurance company, a fire | 23 |
| department, or the
State of Illinois, or that he is a fire | 24 |
| investigator, or that his services
are required for the insured | 25 |
| to submit a claim to the insured's insurance
company, or that |
|
|
|
HB1555 Enrolled |
- 8 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| he may provide legal advice or representation to the
insured. A | 2 |
| Public Insurance Adjuster may represent that he has been | 3 |
| licensed
by the State of Illinois.
| 4 |
| (b) A Public Insurance Adjuster shall
may not agree to any | 5 |
| loss settlement without
the insured's knowledge and consent and | 6 |
| shall provide the insured with a document setting forth the | 7 |
| scope, amount, and value of the damages prior to requesting the | 8 |
| insured for authority to settling any loss .
| 9 |
| (c)
If the Public Insurance Adjuster refers the insured to | 10 |
| a contractor,
the Public Insurance Adjuster warrants that all | 11 |
| work will be performed in
a workmanlike manner and conform to | 12 |
| all statutes, ordinances and codes.
Should the work not be | 13 |
| completed in a workmanlike manner, the Public Insurance
| 14 |
| Adjuster shall be responsible for any and all costs and expense | 15 |
| required
to complete or repair the work in a workmanlike | 16 |
| manner.
| 17 |
| (d) In all cases where the loss giving rise to the claim | 18 |
| for which the Public Insurance Adjuster was retained arise from | 19 |
| damage to a personal residence, the insurance proceeds shall be | 20 |
| delivered in person to the named insured or his or her | 21 |
| designee. Where proceeds paid by an insurance company are paid | 22 |
| jointly to the
insured and the Public Insurance Adjuster, the | 23 |
| insured
Public Insurance Adjuster
shall release such portion of | 24 |
| the proceeds which are due the Public Insurance Adjuster
| 25 |
| insured within
30 calendar days after the insured's
Public | 26 |
| Insurance Adjuster's receipt of the insurance
company's check, |
|
|
|
HB1555 Enrolled |
- 9 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| money order, draft, or release of funds. If the proceeds
are | 2 |
| not so released to the insured within 30 calendar days, the | 3 |
| insured
Public Insurance
Adjuster
shall provide the Public | 4 |
| Insurance Adjuster
insured and the Illinois Department of | 5 |
| Insurance
with a written explanation of the reason for the | 6 |
| delay.
| 7 |
| (e)
A Public Insurance Adjuster
may not propose or attempt | 8 |
| to propose
to any person that the Public Insurance Adjuster | 9 |
| represent that person
while
a loss-producing occurrence is | 10 |
| continuing nor while the fire department
or its representatives | 11 |
| are engaged at the damaged premises nor between the
hours of | 12 |
| 7:00 p.m. and 8:00 a.m..
| 13 |
| (f) A Public Insurance Adjuster shall
may not advance money | 14 |
| or any valuable
consideration , except emergency services or the | 15 |
| commencement of repairs,
to an insured pending adjustment of a | 16 |
| claim.
| 17 |
| (g) A Public Insurance Adjuster shall
may not provide legal | 18 |
| advice or
representation to the insured, or engage in the | 19 |
| unauthorized practice of law.
| 20 |
| (Source: P.A. 84-335.)
| 21 |
| (215 ILCS 5/512.60) (from Ch. 73, par. 1065.59-60)
| 22 |
| Sec. 512.60. Maintenance of records. (a) All Public | 23 |
| Insurance
Adjusters
shall maintain a complete record of each of | 24 |
| their transactions as a Public
Insurance Adjuster. The records | 25 |
| required by this Section shall include:
|
|
|
|
HB1555 Enrolled |
- 10 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| (1) name of the insured;
| 2 |
| (2) date, location and amount of loss;
| 3 |
| (3) copy of the contract between the Public Insurance | 4 |
| Adjuster and insured;
| 5 |
| (4) name of the insurer, amount, expiration date and number | 6 |
| of each policy
carried with respect to the loss;
| 7 |
| (5) itemized statement of the insured's recoveries;
| 8 |
| (6) name of the Public Insurance Adjuster who executed the | 9 |
| contract; and
| 10 |
| (7) name of the attorney representing the insured, if | 11 |
| applicable, and
the name of the representative of the insurance | 12 |
| company ; and .
| 13 |
| (8) copy of the statement provided to the insured | 14 |
| explaining the amount and value of the damages to the insured | 15 |
| premises, the amount of insurance proceeds recovered from the | 16 |
| insured, and the amount and values of all expenses incurred to | 17 |
| adjust the claim and the amount and value of the Public | 18 |
| Insurance Adjuster's fees and charges.
| 19 |
| (b) Records shall be maintained for at least three years | 20 |
| after the termination
of the transaction with an insured and | 21 |
| shall be open to examination by the
Director at any time.
| 22 |
| (c) A Public Insurance Adjuster shall not divulge | 23 |
| information regarding
any insured without written consent from | 24 |
| the insured, except that the Public
Insurance Adjuster may | 25 |
| divulge such information to an insurance company
or its | 26 |
| representative which insures the insured, to the Department of |
|
|
|
HB1555 Enrolled |
- 11 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| Insurance,
or upon a court order or an Internal Revenue Service | 2 |
| subpoena.
| 3 |
| (d) Where a Public Insurance Adjuster is engaged or | 4 |
| employed by a Registered
Firm, the records required by this | 5 |
| Section may be maintained by such Registered
Firm on behalf of | 6 |
| the Public Insurance Adjuster.
| 7 |
| (Source: P.A. 84-335.)
| 8 |
| (215 ILCS 5/512.61) (from Ch. 73, par. 1065.59-61)
| 9 |
| Sec. 512.61. License suspension, revocation or denial. (a) | 10 |
| Any license issued under this Article may, after notice to the | 11 |
| licensee and hearing
as provided by Section 402, be suspended | 12 |
| or revoked, and any application
for a license may be denied, if | 13 |
| the Director finds that the holder of or
applicant for a | 14 |
| license has:
| 15 |
| (1) willfully violated any provision of this Code or any | 16 |
| rule or regulation
promulgated by the Director; or
| 17 |
| (2) intentionally made a material misstatement in an | 18 |
| application for a
license as a Public Insurance Adjuster; or
| 19 |
| (3) obtained or attempted to obtain a license as a Public | 20 |
| Insurance Adjuster
through misrepresentation or fraud; or
| 21 |
| (4) misappropriated, converted to his own use or improperly | 22 |
| withheld money
due others; or
| 23 |
| (5) intentionally misrepresented the terms of any | 24 |
| insurance policy; or
| 25 |
| (6) used fraudulent, coercive or dishonest practices, or |
|
|
|
HB1555 Enrolled |
- 12 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| demonstrated
incompetence, untrustworthiness or financial | 2 |
| irresponsibility in the transaction
of business as a Public | 3 |
| Insurance Adjuster; or
| 4 |
| (7) been convicted of any
a felony or misdemeanor involving | 5 |
| dishonesty or fraud , unless the individual demonstrates to
the | 6 |
| Director sufficient rehabilitation to warrant the public | 7 |
| trust; or
| 8 |
| (8) knowingly transacted the business of a Public Insurance | 9 |
| Adjuster in
conjunction with an individual who was not licensed | 10 |
| at the time; or
| 11 |
| (9) failed to appear without reasonable cause or excuse in | 12 |
| response to
a subpoena lawfully issued by the Director; or
| 13 |
| (10) a license as a Public Insurance Adjuster suspended or | 14 |
| revoked or
an application denied in any other state, district, | 15 |
| territory or province
on a ground similar to one of the grounds | 16 |
| stated in this Section; or
| 17 |
| (11) failed to comply with or violated any of the standards | 18 |
| set forth
in Section 512.59; or
| 19 |
| (12) failed to maintain the records required by Section | 20 |
| 512.60; or
| 21 |
| (13) engaged in the unauthorized practice of law.
| 22 |
| (b) Revocation, suspension, or the denial
Denial of an | 23 |
| application pursuant to this Section shall be by written
notice | 24 |
| served upon the applicant by certified or registered mail sent | 25 |
| to
the address specified in the application. The applicant may | 26 |
| request a hearing in writing
within 30 days from the date of |
|
|
|
HB1555 Enrolled |
- 13 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| mailing as provided in Section 402. The hearing shall be held | 2 |
| pursuant to Section 2402 of Title 50 of the Code.
| 3 |
| (c) Upon notification of the issuance of an order | 4 |
| suspending or revoking
a Public Insurance Adjuster's license, | 5 |
| the licensee or other person having
possession or custody of | 6 |
| such license shall promptly deliver it to the Director
in | 7 |
| person or by mail. The Director shall publish the name of each | 8 |
| Public
Insurance Adjuster whose license is suspended or | 9 |
| revoked, after such suspension
or revocation becomes final, in | 10 |
| a manner designed to notify interested insurance
companies and | 11 |
| other persons.
| 12 |
| (d) Any individual whose Public Insurance Adjuster's | 13 |
| license is revoked
or whose application is denied pursuant to | 14 |
| this Section shall be ineligible
to apply for a Public | 15 |
| Insurance Adjuster's license for 5
2 years. A suspension
| 16 |
| pursuant to this Section may be for any period of time up to 5
2
| 17 |
| years.
| 18 |
| (Source: P.A. 84-335; 84-832.)
| 19 |
| (215 ILCS 5/512.64) (from Ch. 73, par. 1065.59-64)
| 20 |
| Sec. 512.64. Injunctive Relief. Any person who acts as
or | 21 |
| holds himself out to be either engaged in the business of | 22 |
| adjusting insurance claims or a Public Insurance Adjuster | 23 |
| without holding a
valid and current Public Insurance Adjuster's
| 24 |
| license to do so is hereby declared to be inimical to
the | 25 |
| public welfare and to constitute a public nuisance. The |
|
|
|
HB1555 Enrolled |
- 14 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| Director may
report such practice to the Attorney General of | 2 |
| the State of Illinois, whose
duty it is to apply forthwith by | 3 |
| complaint on relation of the Director in
the name of the people | 4 |
| of the State of Illinois, as plaintiff, for injunctive
relief | 5 |
| in the circuit court of the county where such practice occurred | 6 |
| to
enjoin such person from engaging in such practice; and, upon | 7 |
| the filing of a
verified petition in such court, the court, if | 8 |
| satisfied by affidavit or
otherwise that such person has been | 9 |
| engaged in such practice without a valid
and current license to | 10 |
| do so, may enter a temporary restraining order without
notice | 11 |
| or bond, enjoining the defendant from such further practice.
A | 12 |
| copy of the verified complaint shall be served upon the | 13 |
| defendant and
the proceedings shall thereafter be conducted as | 14 |
| in other civil cases.
If it is established that the defendant | 15 |
| has been or is engaged in such
unlawful practice, the court may | 16 |
| enter an order or
judgment perpetually enjoining the defendant | 17 |
| from further such practice.
In all proceedings hereunder the | 18 |
| court, in its discretion, may apportion
the costs among the | 19 |
| parties interested in the action, including cost of filing
the | 20 |
| complaint, service of process, witness fees and expenses, court | 21 |
| reporter
charges and reasonable attorney fees. In case of | 22 |
| violation of any
injunctive order entered under the provisions | 23 |
| of this Section, the court
may try and punish the offender for | 24 |
| contempt of court. Such injunction
proceedings shall be in | 25 |
| addition to, and not in lieu of, all penalties and
other | 26 |
| remedies.
|
|
|
|
HB1555 Enrolled |
- 15 - |
LRB095 08568 KBJ 28751 b |
|
| 1 |
| (Source: P.A. 84-548.)
|
|