Full Text of HB5471 102nd General Assembly
HB5471eng 102ND GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 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 1510 and 1575 as follows: | 6 | | (215 ILCS 5/1510)
| 7 | | Sec. 1510. Definitions. In this Article: | 8 | | "Adjusting a claim for loss or damage covered by an | 9 | | insurance contract" means negotiating values, damages, or | 10 | | depreciation or applying the loss circumstances to insurance | 11 | | policy provisions. | 12 | | "Adjusting insurance claims" means representing an insured | 13 | | with an insurer for compensation, and while representing that | 14 | | insured either negotiating values, damages, or depreciation, | 15 | | or applying the loss circumstances to insurance policy | 16 | | provisions. | 17 | | "Business entity" means a corporation, association, | 18 | | partnership, limited liability company, limited liability | 19 | | partnership, or other legal entity. | 20 | | "Compensation" includes, but is not limited to, the | 21 | | following: | 22 | | (1) any assignment of insurance proceeds or a | 23 | | percentage of the insurance proceeds; |
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| 1 | | (2) any agreement to make repairs for the amount of | 2 | | the insurance proceeds payable; or | 3 | | (3) assertion of any lien against insurance proceeds | 4 | | payable. | 5 | | "Department" means the Department of Insurance. | 6 | | "Director" means the Director of Insurance. | 7 | | "Fingerprints" means an impression of the lines on the | 8 | | finger taken for the purpose of identification. The impression | 9 | | may be electronic or in ink converted to electronic format. | 10 | | "Home state" means the District of Columbia and any state | 11 | | or territory of the United States where the public adjuster's | 12 | | principal place of residence or principal place of business is | 13 | | located. If neither the state in which the public adjuster | 14 | | maintains the principal place of residence nor the state in | 15 | | which the public adjuster maintains the principal place of | 16 | | business has a substantially similar law governing public | 17 | | adjusters, the public adjuster may declare another state in | 18 | | which it becomes licensed and acts as a public adjuster to be | 19 | | the home state. | 20 | | "Individual" means a natural person. | 21 | | "Person" means an individual or a business entity. | 22 | | "Public adjuster" means any person who, for compensation | 23 | | or any other thing of value on behalf of the insured: | 24 | | (i) acts , or aids, or represents the insured solely in | 25 | | relation to first party claims arising under insurance | 26 | | contracts that insure the real or personal property of the |
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| 1 | | insured , on behalf of an insured in adjusting an insurance | 2 | | a claim for loss or damage covered by an insurance | 3 | | contract; | 4 | | (ii) advertises for employment as a public adjuster of | 5 | | insurance claims or solicits business or represents | 6 | | himself or herself to the public as a public adjuster of | 7 | | first party insurance claims for losses or damages arising | 8 | | out of policies of insurance that insure real or personal | 9 | | property; or | 10 | | (iii) directly or indirectly solicits business, | 11 | | investigates or adjusts losses, or advises an insured | 12 | | about first party claims for losses or damages arising out | 13 | | of policies of insurance that insure real or personal | 14 | | property for another person engaged in the business of | 15 | | adjusting losses or damages covered by an insurance policy | 16 | | for the insured. | 17 | | "Uniform individual application" means the current version | 18 | | of the National Association of Directors (NAIC) Uniform | 19 | | Individual Application for resident and nonresident | 20 | | individuals. | 21 | | "Uniform business entity application" means the current | 22 | | version of the National Association of Insurance Commissioners | 23 | | (NAIC) Uniform Business Entity Application for resident and | 24 | | nonresident business entities.
| 25 | | "Webinar" means an online educational presentation during | 26 | | which a live and participating instructor and participating |
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| 1 | | viewers, whose attendance is periodically verified throughout | 2 | | the presentation, actively engage in discussion and in the | 3 | | submission and answering of questions. | 4 | | (Source: P.A. 102-135, eff. 7-23-21.) | 5 | | (215 ILCS 5/1575)
| 6 | | Sec. 1575. Contract between public adjuster and insured. | 7 | | (a) Public adjusters shall ensure that all contracts for | 8 | | their services are in writing and contain the following terms: | 9 | | (1) legible full name of the adjuster signing the | 10 | | contract, as specified in Department records; | 11 | | (2) permanent home state business address , email | 12 | | address, and phone number; | 13 | | (3) license number; | 14 | | (4) title of "Public Adjuster Contract"; | 15 | | (5) the insured's full name, street address, insurance | 16 | | company name, and policy number, if known or upon | 17 | | notification; | 18 | | (6) a description of the loss and its location, if | 19 | | applicable; | 20 | | (7) description of services to be provided to the | 21 | | insured; | 22 | | (8) signatures of the public adjuster and the insured; | 23 | | (9) date and time the contract was signed by the | 24 | | public adjuster and date and time the contract was signed | 25 | | by the insured; |
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| 1 | | (10) attestation language stating that the public | 2 | | adjuster is fully bonded pursuant to State law; and | 3 | | (11) full salary, fee, commission, compensation, or | 4 | | other considerations the public adjuster is to receive for | 5 | | services. | 6 | | (b) The contract may specify that the public adjuster | 7 | | shall be named as a co-payee on an insurer's payment of a | 8 | | claim. | 9 | | (1) If the compensation is based on a share of the | 10 | | insurance settlement, the exact percentage shall be | 11 | | specified. | 12 | | (2) Initial expenses to be reimbursed to the public | 13 | | adjuster from the proceeds of the claim payment shall be | 14 | | specified by type, with dollar estimates set forth in the | 15 | | contract and with any additional expenses first approved | 16 | | by the insured. | 17 | | (3) Compensation provisions in a public adjuster | 18 | | contract shall not be redacted in any copy of the contract | 19 | | provided to the Director. | 20 | | (c) If the insurer, not later than 5 business days after | 21 | | the date on which the loss is reported to the insurer, either | 22 | | pays or commits in writing to pay to the insured the policy | 23 | | limit of the insurance policy, the public adjuster shall: | 24 | | (1) not receive a commission consisting of a | 25 | | percentage of the total amount paid by an insurer to | 26 | | resolve a claim; |
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| 1 | | (2) inform the insured that loss recovery amount might | 2 | | not be increased by insurer; and | 3 | | (3) be entitled only to reasonable compensation from | 4 | | the insured for services provided by the public adjuster | 5 | | on behalf of the insured, based on the time spent on a | 6 | | claim and expenses incurred by the public adjuster, until | 7 | | the claim is paid or the insured receives a written | 8 | | commitment to pay from the insurer. | 9 | | (d) A public adjuster shall provide the insured a written | 10 | | disclosure concerning any direct or indirect financial | 11 | | interest that the public adjuster has with any other party who | 12 | | is involved in any aspect of the claim, other than the salary, | 13 | | fee, commission, or other consideration established in the | 14 | | written contract with the insured, including, but not limited | 15 | | to, any ownership of or any compensation expected to be | 16 | | received from, any construction firm, salvage firm, building | 17 | | appraisal firm, board-up company, or any other firm that | 18 | | provides estimates for work, or that performs any work, in | 19 | | conjunction with damages caused by the insured loss on which | 20 | | the public adjuster is engaged. The word "firm" shall include | 21 | | any corporation, partnership, association, joint-stock | 22 | | company, or person. | 23 | | (e) A public adjuster contract may not contain any | 24 | | contract term that: | 25 | | (1) allows the public adjuster's percentage fee to be | 26 | | collected when money is due from an insurance company, but |
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| 1 | | not paid, or that allows a public adjuster to collect the | 2 | | entire fee from the first check issued by an insurance | 3 | | company, rather than as a percentage of each check issued | 4 | | by an insurance company; | 5 | | (2) requires the insured to authorize an insurance | 6 | | company to issue a check only in the name of the public | 7 | | adjuster; | 8 | | (3) precludes a public adjuster or an insured from | 9 | | pursuing civil remedies; | 10 | | (4) includes any hold harmless agreement that provides | 11 | | indemnification to the public adjuster by the insured for | 12 | | liability resulting from the public adjuster's negligence; | 13 | | or | 14 | | (5) provides power of attorney by which the public | 15 | | adjuster can act in the place and instead of the insured. | 16 | | (f) The following provisions apply to a contract between a | 17 | | public adjuster and an insured: | 18 | | (1) Prior to the signing of the contract, the public | 19 | | adjuster shall provide the insured with a separate signed | 20 | | and dated disclosure document regarding the claim process | 21 | | that states: | 22 | | "Property insurance policies obligate the insured to | 23 | | present a claim to his or her insurance company for | 24 | | consideration. There are 3 types of adjusters that could | 25 | | be involved in that process. The definitions of the 3 | 26 | | types are as follows: |
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| 1 | | (A) "Company adjuster" means the insurance | 2 | | adjusters who are employees of an insurance company. | 3 | | They represent the interest of the insurance company | 4 | | and are paid by the insurance company. They will not | 5 | | charge you a fee. | 6 | | (B) "Independent adjuster" means the insurance | 7 | | adjusters who are hired on a contract basis by an | 8 | | insurance company to represent the insurance company's | 9 | | interest in the settlement of the claim. They are paid | 10 | | by your insurance company. They will not charge you a | 11 | | fee. | 12 | | (C) "Public adjuster" means the insurance | 13 | | adjusters who do not work for any insurance company. | 14 | | They represent work for the insured to assist in the | 15 | | preparation, presentation , and settlement of the | 16 | | claim. The insured hires them by signing a contract | 17 | | agreeing to pay them a fee or commission based on a | 18 | | percentage of the settlement, or other method of | 19 | | compensation.". | 20 | | (2) The insured is not required to hire a public | 21 | | adjuster to help the insured meet his or her obligations | 22 | | under the policy, but has the right to do so. | 23 | | (3) The public adjuster is not a representative or | 24 | | employee of the insurer. | 25 | | (4) The salary, fee, commission, or other | 26 | | consideration is the obligation of the insured, not the |
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| 1 | | insurer, except when rights have been assigned to the | 2 | | public adjuster by the insured. | 3 | | (g) The contracts shall be executed in duplicate to | 4 | | provide an original contract to the public adjuster, and an | 5 | | original contract to the insured. The public adjuster's | 6 | | original contract shall be available at all times for | 7 | | inspection without notice by the Director. | 8 | | (h) The public adjuster shall provide the insurer , or its | 9 | | authorized representative for receiving notice of loss or | 10 | | damage, with an exact copy of the contract with by the insured | 11 | | by email after execution of the contract , authorizing the | 12 | | public adjuster to represent the insured's interest. | 13 | | (i) The public adjuster shall give the insured written | 14 | | notice of the insured's rights as a consumer under the law of | 15 | | this State. | 16 | | (j) A public adjuster shall not provide services , other | 17 | | than emergency services, until a written contract with the | 18 | | insured has been executed, on a form filed with and approved by | 19 | | the Director , and an exact copy of the contract has been | 20 | | provided to the insurer, or its authorized representative for | 21 | | receiving notice of loss or damage . Except as provided in the | 22 | | Fire Damage Representation Agreement Act, at At the option of | 23 | | the insured, any such contract shall be voidable for 5 | 24 | | business days after the copy has been received by the insurer | 25 | | execution . The insured may void the contract by notifying the | 26 | | public adjuster in writing by (i) registered or certified |
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| 1 | | mail, return receipt requested, to the address shown on the | 2 | | contract , or (ii) personally serving the notice on the public | 3 | | adjuster , or (iii) sending an email to the email address shown | 4 | | on the contract . | 5 | | (k) If the insured exercises the right to rescind the | 6 | | contract, anything of value given by the insured under the | 7 | | contract will be returned to the insured within 15 business | 8 | | days following the receipt by the public adjuster of the | 9 | | cancellation notice.
| 10 | | (Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.) | 11 | | (215 ILCS 5/Art. XXXI.75 rep.) | 12 | | Section 10. The Illinois Insurance Code is amended by | 13 | | repealing Article XXXI 3/4.
| 14 | | Section 99. Effective date. This Act takes effect upon | 15 | | becoming law.
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