Full Text of SB1495 103rd General Assembly
SB1495sam001 103RD GENERAL ASSEMBLY | Sen. Napoleon Harris, III Filed: 3/3/2023
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| 1 | | AMENDMENT TO SENATE BILL 1495
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 1495 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Insurance Code is amended by | 5 | | changing Sections 1510, 1550, 1555, 1560, 1575, 1585, and 1590 | 6 | | and by adding Section 1586 as follows: | 7 | | (215 ILCS 5/1510)
| 8 | | Sec. 1510. Definitions. In this Article: | 9 | | "Adjusting a claim for loss or damage covered by an | 10 | | insurance contract" means negotiating values, damages, or | 11 | | depreciation or applying the loss circumstances to insurance | 12 | | policy provisions. | 13 | | "Adjusting insurance claims" means representing an insured | 14 | | with an insurer for compensation and, while representing that | 15 | | insured, either negotiating values, damages, or depreciation | 16 | | or applying the loss circumstances to insurance policy |
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| 1 | | provisions. | 2 | | "Associated contractor" means any contractor or related | 3 | | service provider owned or operated by: | 4 | | (1) the named public adjuster, spouse, or any family | 5 | | member; or | 6 | | (2) any contractor recommended by the public adjuster | 7 | | if the fee stated in the public adjuster contract is | 8 | | waived when the recommended contractor is utilized by the | 9 | | insured. | 10 | | "Business entity" means a corporation, association, | 11 | | partnership, limited liability company, limited liability | 12 | | partnership, or other legal entity. | 13 | | "Department" means the Department of Insurance. | 14 | | "Director" means the Director of Insurance. | 15 | | "Fingerprints" means an impression of the lines on the | 16 | | finger taken for the purpose of identification. The impression | 17 | | may be electronic or in ink converted to electronic format. | 18 | | "Home state" means the District of Columbia and any state | 19 | | or territory of the United States where the public adjuster's | 20 | | principal place of residence or principal place of business is | 21 | | located. If neither the state in which the public adjuster | 22 | | maintains the principal place of residence nor the state in | 23 | | which the public adjuster maintains the principal place of | 24 | | business has a substantially similar law governing public | 25 | | adjusters, the public adjuster may declare another state in | 26 | | which it becomes licensed and acts as a public adjuster to be |
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| 1 | | the home state. | 2 | | "Individual" means a natural person. | 3 | | "Person" means an individual or a business entity. | 4 | | "Public adjuster" means any person who, for compensation | 5 | | or any other thing of value on behalf of the insured: | 6 | | (i) acts , or aids, or represents the insured solely in | 7 | | relation to first party claims arising under insurance | 8 | | contracts that insure the real or personal property of the | 9 | | insured, on behalf of an insured in adjusting a claim for | 10 | | loss or damage covered by an insurance contract; | 11 | | (ii) advertises for employment as a public adjuster of | 12 | | insurance claims or solicits business or represents | 13 | | himself or herself to the public as a public adjuster of | 14 | | first party insurance claims for losses or damages arising | 15 | | out of policies of insurance that insure real or personal | 16 | | property; or | 17 | | (iii) directly or indirectly solicits business, | 18 | | investigates or adjusts losses, or advises an insured | 19 | | about first party claims for losses or damages arising out | 20 | | of policies of insurance that insure real or personal | 21 | | property for another person engaged in the business of | 22 | | adjusting losses or damages covered by an insurance policy | 23 | | for the insured. | 24 | | "Scope of damages" means a document that describes the | 25 | | amount and type of damage to a structure and includes, at | 26 | | minimum, an itemized description of the materials to be used |
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| 1 | | in the repair estimates of the quantity and costs of the | 2 | | materials. | 3 | | "Uniform individual application" means the current version | 4 | | of the National Association of Directors (NAIC) Uniform | 5 | | Individual Application for resident and nonresident | 6 | | individuals. | 7 | | "Uniform business entity application" means the current | 8 | | version of the National Association of Insurance Commissioners | 9 | | (NAIC) Uniform Business Entity Application for resident and | 10 | | nonresident business entities.
| 11 | | "Webinar" means an online educational presentation during | 12 | | which a live and participating instructor and participating | 13 | | viewers, whose attendance is periodically verified throughout | 14 | | the presentation, actively engage in discussion and in the | 15 | | submission and answering of questions. | 16 | | (Source: P.A. 102-135, eff. 7-23-21.) | 17 | | (215 ILCS 5/1550) | 18 | | Sec. 1550. Applicant convictions. | 19 | | (a) The Director and the Department shall not require | 20 | | applicants to report the following information and shall not | 21 | | collect or consider the following criminal history records in | 22 | | connection with a public adjuster license application: | 23 | | (1) Juvenile adjudications of delinquent minors as | 24 | | defined in Section 5-105 of the Juvenile Court Act of | 25 | | 1987, subject to the restrictions set forth in Section |
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| 1 | | 5-130 of that Act. | 2 | | (2) Law enforcement records, court records, and | 3 | | conviction records of an individual who was 17 years old | 4 | | at the time of the offense and before January 1, 2014, | 5 | | unless the nature of the offense required the individual | 6 | | to be tried as an adult. | 7 | | (3) Records of arrest not followed by a formal charge | 8 | | or conviction. | 9 | | (4) Records of arrest where charges were dismissed | 10 | | unless related to the duties and responsibilities of a | 11 | | public adjuster. However, applicants shall not be asked to | 12 | | report any arrests, and any arrest not followed by a | 13 | | conviction shall not be the basis of a denial and may be | 14 | | used only to assess an applicant's rehabilitation. | 15 | | (5) Convictions overturned by a higher court. | 16 | | (6) Convictions or arrests that have been sealed or | 17 | | expunged. | 18 | | (b) The Director, upon a finding that an applicant for a | 19 | | license under this Act was previously convicted of any a | 20 | | felony or a misdemeanor involving dishonesty or fraud, shall | 21 | | consider any mitigating factors and evidence of rehabilitation | 22 | | contained in the applicant's record, including any of the | 23 | | following factors and evidence, to determine if a license may | 24 | | be denied because the prior conviction will impair the ability | 25 | | of the applicant to engage in the position for which a license | 26 | | is sought: |
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| 1 | | (1) the bearing, if any, of the offense for which the | 2 | | applicant was previously convicted on the duties, | 3 | | functions, and responsibilities of the position for which | 4 | | a license is sought; | 5 | | (2) whether the conviction suggests a future | 6 | | propensity to endanger the safety and property of others | 7 | | while performing the duties and responsibilities for which | 8 | | a license is sought; | 9 | | (3) if the applicant was previously licensed or | 10 | | employed in this State or other states or jurisdictions, | 11 | | then the lack of prior misconduct arising from or related | 12 | | to the licensed position or position of employment; | 13 | | (4) whether 5 years since a felony conviction or 3 | 14 | | years since release from confinement for the conviction, | 15 | | whichever is later, have passed without a subsequent | 16 | | conviction; | 17 | | (5) successful completion of sentence and, for | 18 | | applicants serving a term of parole or probation, a | 19 | | progress report provided by the applicant's probation or | 20 | | parole officer that documents the applicant's compliance | 21 | | with conditions of supervision; | 22 | | (6) evidence of the applicant's present fitness and | 23 | | professional character; | 24 | | (7) evidence of rehabilitation or rehabilitative | 25 | | effort during or after incarceration or during or after a | 26 | | term of supervision, including, but not limited to, a |
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| 1 | | certificate of good conduct under Section 5-5.5-25 of the | 2 | | Unified Code of Corrections or certificate of relief from | 3 | | disabilities under Section 5-5.5-10 of the Unified Code of | 4 | | Corrections; and | 5 | | (8) any other mitigating factors that contribute to | 6 | | the person's potential and current ability to perform the | 7 | | duties and responsibilities of a public adjuster. | 8 | | (c) If a nonresident licensee meets the standards set | 9 | | forth in items (1) through (4) of subsection (a) of Section | 10 | | 1540 and has received consent pursuant to 18 U.S.C. 1033(e)(2) | 11 | | from his or her home state, the Director shall grant the | 12 | | nonresident licensee a license. | 13 | | (d) If the Director refuses to issue a license to an | 14 | | applicant based on a conviction or convictions, in whole or in | 15 | | part, then the Director shall notify the applicant of the | 16 | | denial in writing with the following included in the notice of | 17 | | denial: | 18 | | (1) a statement about the decision to refuse to issue | 19 | | a license; | 20 | | (2) a list of convictions that the Director determined | 21 | | will impair the applicant's ability to engage in the | 22 | | position for which a license is sought; | 23 | | (3) a list of the convictions that were the sole or | 24 | | partial basis for the refusal to issue a license; and | 25 | | (4) a summary of the appeal process or the earliest | 26 | | the applicant may reapply for a license, whichever is |
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| 1 | | applicable.
| 2 | | (Source: P.A. 100-286, eff. 1-1-18 .) | 3 | | (215 ILCS 5/1555) | 4 | | Sec. 1555. License denial, nonrenewal, or revocation. | 5 | | (a) The Director may place on probation, suspend, revoke, | 6 | | deny, or refuse to issue or renew a public adjuster's license | 7 | | or may levy a civil penalty or any combination of actions, for | 8 | | any one or more of the following causes: | 9 | | (1) providing incorrect, misleading, incomplete, or | 10 | | materially untrue information in the license application; | 11 | | (2) violating any insurance laws, or violating any | 12 | | regulation, subpoena, or order of the Director or of | 13 | | another state's Director; | 14 | | (3) obtaining or attempting to obtain a license | 15 | | through misrepresentation or fraud; | 16 | | (4) improperly withholding, misappropriating, or | 17 | | converting any monies or properties received in the course | 18 | | of doing insurance business; | 19 | | (5) intentionally misrepresenting the terms of an | 20 | | actual or proposed insurance contract or application for | 21 | | insurance; | 22 | | (6) having been convicted of any a felony or a | 23 | | misdemeanor involving dishonesty or fraud, unless the | 24 | | individual demonstrates to the Director sufficient | 25 | | rehabilitation to warrant the public trust; consideration |
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| 1 | | of such conviction of an applicant shall be in accordance | 2 | | with Section 1550; | 3 | | (7) having admitted or been found to have committed | 4 | | any insurance unfair trade practice or insurance fraud; | 5 | | (8) using fraudulent, coercive, or dishonest | 6 | | practices; or demonstrating incompetence, | 7 | | untrustworthiness, or financial irresponsibility in the | 8 | | conduct of business in this State or elsewhere; | 9 | | (9) having an insurance license or public adjuster | 10 | | license or its equivalent, denied, suspended, or revoked | 11 | | in any other state, province, district, or territory; | 12 | | (10) forging another's name to an application for | 13 | | insurance or to any document related to an insurance | 14 | | transaction; | 15 | | (11) cheating, including improperly using notes or any | 16 | | other reference material, to complete an examination for | 17 | | an insurance license or public adjuster license; | 18 | | (12) knowingly accepting insurance business from or | 19 | | transacting business with an individual who is not | 20 | | licensed but who is required to be licensed by the | 21 | | Director; | 22 | | (13) failing to comply with an administrative or court | 23 | | order imposing a child support obligation; | 24 | | (14) failing to pay State income tax or comply with | 25 | | any administrative or court order directing payment of | 26 | | State income tax; |
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| 1 | | (15) failing to comply with or having violated any of | 2 | | the standards set forth in Section 1590 of this Law; or | 3 | | (16) failing to maintain the records required by | 4 | | Section 1585 of this Law ; or . | 5 | | (17) failing to comply with Section 1586 of this Law. | 6 | | (b) If the action by the Director is to nonrenew, suspend, | 7 | | or revoke a license or to deny an application for a license, | 8 | | the Director shall notify the applicant or licensee and | 9 | | advise, in writing, the applicant or licensee of the reason | 10 | | for the suspension, revocation, denial, or nonrenewal of the | 11 | | applicant's or licensee's license. The applicant or licensee | 12 | | may make written demand upon the Director within 30 days after | 13 | | the date of mailing for a hearing before the Director to | 14 | | determine the reasonableness of the Director's action. The | 15 | | hearing must be held within not fewer than 20 days nor more | 16 | | than 30 days after the mailing of the notice of hearing and | 17 | | shall be held pursuant to 50 Ill. Adm. Code 2402. | 18 | | (c) The license of a business entity may be suspended, | 19 | | revoked, or refused if the Director finds, after hearing, that | 20 | | an individual licensee's violation was known or should have | 21 | | been known by one or more of the partners, officers, or | 22 | | managers acting on behalf of the business entity and the | 23 | | violation was neither reported to the Director, nor corrective | 24 | | action taken. | 25 | | (d) In addition to or in lieu of any applicable denial, | 26 | | suspension or revocation of a license, a person may, after |
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| 1 | | hearing, be subject to a civil penalty. In addition to or | 2 | | instead of any applicable denial, suspension, or revocation of | 3 | | a license, a person may, after hearing, be subject to a civil | 4 | | penalty of up to $10,000 for each cause for denial, | 5 | | suspension, or revocation, however, the civil penalty may | 6 | | total no more than $100,000. | 7 | | (e) The Director shall retain the authority to enforce the | 8 | | provisions of and impose any penalty or remedy authorized by | 9 | | this Article against any person who is under investigation for | 10 | | or charged with a violation of this Article even if the | 11 | | person's license or registration has been surrendered or has | 12 | | lapsed by operation of law. | 13 | | (f) Any individual whose public adjuster's license is | 14 | | revoked or whose application is denied pursuant to this | 15 | | Section shall be ineligible to apply for a public adjuster's | 16 | | license for 5 years. A suspension pursuant to this Section may | 17 | | be for any period of time up to 5 years.
| 18 | | (Source: P.A. 100-286, eff. 1-1-18 .) | 19 | | (215 ILCS 5/1560)
| 20 | | Sec. 1560. Bond or letter of credit. | 21 | | (a) Prior to the issuance of a license as a public adjuster | 22 | | and for the duration of the license, the applicant shall | 23 | | secure evidence of financial responsibility in a format | 24 | | prescribed by the Director through a surety bond or | 25 | | irrevocable letter of credit, subject to all of the following |
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| 1 | | requirements: | 2 | | (1) A surety bond executed and issued by an insurer | 3 | | authorized to issue surety bonds in this State, which | 4 | | bond: | 5 | | (A) shall be in the minimum amount of $50,000 | 6 | | $20,000 ; | 7 | | (B) shall be in favor of this State and shall | 8 | | specifically authorize recovery by the Director on | 9 | | behalf of any person in this State who sustained | 10 | | damages as the result of erroneous acts, failure to | 11 | | act, conviction of fraud, or conviction of unfair | 12 | | practices in his or her capacity as a public adjuster; | 13 | | and | 14 | | (C) shall not be terminated unless at least 30 | 15 | | days' prior written notice will have been filed with | 16 | | the Director and given to the licensee; and | 17 | | (2) An irrevocable letter of credit issued by a | 18 | | qualified financial institution, which letter of credit: | 19 | | (A) shall be in the minimum amount of $50,000 | 20 | | $20,000 ; | 21 | | (B) shall be to an account to the Director and | 22 | | subject to lawful levy of execution on behalf of any | 23 | | person to whom the public adjuster has been found to be | 24 | | legally liable as the result of erroneous acts, | 25 | | failure to act, fraudulent acts, or unfair practices | 26 | | in his or her capacity as a public adjuster; and |
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| 1 | | (C) shall not be terminated unless at least 30 | 2 | | days' prior written notice will have been filed with | 3 | | the and given to the licensee. | 4 | | (b) The issuer of the evidence of financial responsibility | 5 | | shall notify the Director upon termination of the bond or | 6 | | letter of credit, unless otherwise directed by the Director. | 7 | | (c) The Director may ask for the evidence of financial | 8 | | responsibility at any time he or she deems relevant. | 9 | | (d) The authority to act as a public adjuster shall | 10 | | automatically terminate if the evidence of financial | 11 | | responsibility terminates or becomes impaired.
| 12 | | (Source: P.A. 96-1332, eff. 1-1-11.) | 13 | | (215 ILCS 5/1575)
| 14 | | Sec. 1575. Contract between public adjuster and insured. | 15 | | (a) Public adjusters shall ensure that all contracts for | 16 | | their services are in writing and contain the following terms: | 17 | | (1) legible full name of the adjuster signing the | 18 | | contract, as specified in Department records; | 19 | | (2) permanent home state business address , email | 20 | | address, and phone number; | 21 | | (3) license number; | 22 | | (4) title of "Public Adjuster Contract"; | 23 | | (5) the insured's full name, street address, insurance | 24 | | company name, and policy number, if known or upon | 25 | | notification; |
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| 1 | | (6) a description of the loss and its location and a | 2 | | scope of damages , if applicable ; | 3 | | (7) description of services to be provided to the | 4 | | insured; | 5 | | (8) signatures of the public adjuster and the insured; | 6 | | (9) date and time the contract was signed by the | 7 | | public adjuster and date and time the contract was signed | 8 | | by the insured; | 9 | | (10) attestation language stating that the public | 10 | | adjuster is fully bonded pursuant to State law; and | 11 | | (11) full salary, fee, commission, compensation, or | 12 | | other considerations the public adjuster is to receive for | 13 | | services. | 14 | | (b) The contract may specify that the public adjuster | 15 | | shall be named as a co-payee on an insurer's payment of a | 16 | | claim. | 17 | | (1) If the compensation is based on a share of the | 18 | | insurance settlement, the exact percentage shall be | 19 | | specified. | 20 | | (2) Initial expenses to be reimbursed to the public | 21 | | adjuster from the proceeds of the claim payment shall be | 22 | | specified by type, with dollar estimates set forth in the | 23 | | contract and with any additional expenses first approved | 24 | | by the insured. | 25 | | (3) Compensation provisions in a public adjuster | 26 | | contract shall not be redacted in any copy of the contract |
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| 1 | | provided to the Director. | 2 | | (c) If the insurer, not later than 5 business days after | 3 | | the date on which the loss is reported to the insurer, either | 4 | | pays or commits in writing to pay to the insured the policy | 5 | | limit of the insurance policy, the public adjuster shall: | 6 | | (1) not receive a commission consisting of a | 7 | | percentage of the total amount paid by an insurer to | 8 | | resolve a claim; | 9 | | (2) inform the insured that loss recovery amount might | 10 | | not be increased by insurer; and | 11 | | (3) be entitled only to reasonable compensation from | 12 | | the insured for services provided by the public adjuster | 13 | | on behalf of the insured, based on the time spent on a | 14 | | claim and expenses incurred by the public adjuster, until | 15 | | the claim is paid or the insured receives a written | 16 | | commitment to pay from the insurer. | 17 | | (d) A public adjuster shall provide the insured a written | 18 | | disclosure concerning any direct or indirect financial | 19 | | interest that the public adjuster has with any other party or | 20 | | associated contractor who is involved in any aspect of the | 21 | | claim, other than the salary, fee, commission, or other | 22 | | consideration established in the written contract with the | 23 | | insured, including, but not limited to, any ownership of or | 24 | | any compensation expected to be received from, any | 25 | | construction firm, salvage firm, building appraisal firm, | 26 | | board-up company, or any other firm that provides estimates |
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| 1 | | for work, or that performs any work, in conjunction with | 2 | | damages caused by the insured loss on which the public | 3 | | adjuster is engaged. The word "firm" shall include any | 4 | | corporation, partnership, association, joint-stock company, or | 5 | | person. The written disclosure must contain, at a minimum, the | 6 | | following: | 7 | | (1) A statement clarifying the amount of ownership in | 8 | | the recommended contractor by the public adjuster and the | 9 | | name and relation of the family member that owns or | 10 | | operates the recommended contractor, if applicable. | 11 | | (2) The specific amount of compensation the public | 12 | | adjuster will receive from the recommended contractor; | 13 | | this disclosure of compensation may be stated in an actual | 14 | | dollar amount or as a percentage of the payment. | 15 | | (e) A public adjuster contract may not contain any | 16 | | contract term that: | 17 | | (1) allows the public adjuster's percentage fee to be | 18 | | collected when money is due from an insurance company, but | 19 | | not paid, or that allows a public adjuster to collect the | 20 | | entire fee from the first check issued by an insurance | 21 | | company, rather than as a percentage of each check issued | 22 | | by an insurance company; | 23 | | (2) requires the insured to authorize an insurance | 24 | | company to issue a check only in the name of the public | 25 | | adjuster; | 26 | | (3) precludes a public adjuster or an insured from |
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| 1 | | pursuing civil remedies; | 2 | | (4) includes any hold harmless agreement that provides | 3 | | indemnification to the public adjuster by the insured for | 4 | | liability resulting from the public adjuster's negligence; | 5 | | or | 6 | | (5) provides power of attorney by which the public | 7 | | adjuster can act in the place and instead of the insured. | 8 | | (f) The following provisions apply to a contract between a | 9 | | public adjuster and an insured: | 10 | | (1) Prior to the signing of the contract, the public | 11 | | adjuster shall provide the insured with a separate signed | 12 | | and dated disclosure document regarding the claim process | 13 | | that states: | 14 | | "Property insurance policies obligate the insured to | 15 | | present a claim to his or her insurance company for | 16 | | consideration. There are 3 types of adjusters that could | 17 | | be involved in that process. The definitions of the 3 | 18 | | types are as follows: | 19 | | (A) "Company adjuster" means the insurance | 20 | | adjusters who are employees of an insurance company. | 21 | | They represent the interest of the insurance company | 22 | | and are paid by the insurance company. They will not | 23 | | charge you a fee. | 24 | | (B) "Independent adjuster" means the insurance | 25 | | adjusters who are hired on a contract basis by an | 26 | | insurance company to represent the insurance company's |
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| 1 | | interest in the settlement of the claim. They are paid | 2 | | by your insurance company. They will not charge you a | 3 | | fee. | 4 | | (C) "Public adjuster" means the insurance | 5 | | adjusters who do not work for any insurance company. | 6 | | They represent work for the insured to assist in the | 7 | | preparation, presentation and settlement of the claim. | 8 | | The insured hires them by signing a contract agreeing | 9 | | to pay them a fee or commission based on a percentage | 10 | | of the settlement, or other method of compensation.". | 11 | | (2) The insured is not required to hire a public | 12 | | adjuster to help the insured meet his or her obligations | 13 | | under the policy, but has the right to do so. | 14 | | (3) The public adjuster is not a representative or | 15 | | employee of the insurer or the Department of Insurance . | 16 | | (4) The salary, fee, commission, or other | 17 | | consideration is the obligation of the insured, not the | 18 | | insurer, except when rights have been assigned to the | 19 | | public adjuster by the insured. | 20 | | (g) The contracts shall be executed in duplicate to | 21 | | provide an original contract to the public adjuster, and an | 22 | | original contract to the insured. The public adjuster's | 23 | | original contract shall be available at all times for | 24 | | inspection without notice by the Director. | 25 | | (h) The public adjuster shall provide the insurer or its | 26 | | authorized representative for receiving notice of loss or |
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| 1 | | damage with an exact copy of the contract with by the insured | 2 | | by email within 2 business days after execution of the | 3 | | contract , authorizing the public adjuster to represent the | 4 | | insured's interest. | 5 | | (i) The public adjuster shall give the insured written | 6 | | notice of the insured's rights as a consumer under the law of | 7 | | this State. | 8 | | (j) A public adjuster shall not provide services , other | 9 | | than emergency services, until a written contract with the | 10 | | insured has been executed, on a form filed with and approved by | 11 | | the Director , and an exact copy of the contract has been | 12 | | provided to the insurer in accordance with subsection (h) . At | 13 | | the option of the insured, any such contract shall be voidable | 14 | | for 5 business days after the copy has been received by the | 15 | | insurer execution . The insured may void the contract by | 16 | | notifying the public adjuster in writing by (i) registered or | 17 | | certified mail, return receipt requested, to the address shown | 18 | | on the contract , or (ii) personally serving the notice on the | 19 | | public adjuster , or (iii) sending an email to the email | 20 | | address shown on the contract . | 21 | | (k) If the insured exercises the right to rescind the | 22 | | contract, anything of value given by the insured under the | 23 | | contract will be returned to the insured within 15 business | 24 | | days following the receipt by the public adjuster of the | 25 | | cancellation notice.
| 26 | | (Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.) |
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| 1 | | (215 ILCS 5/1585)
| 2 | | Sec. 1585. Record retention. | 3 | | (a) A public adjuster shall maintain a complete record of | 4 | | each transaction as a public adjuster. The records required by | 5 | | this Section shall include the following: | 6 | | (1) name of the insured; | 7 | | (2) date, location and amount of the loss; | 8 | | (3) a copy of the contract between the public adjuster | 9 | | and insured , a copy of the scope of work document, and a | 10 | | copy of the separate disclosure documents document ; | 11 | | (4) name of the insurer, amount, expiration date and | 12 | | number of each policy carried with respect to the loss; | 13 | | (5) itemized statement of the insured's recoveries; | 14 | | (6) itemized statement of all compensation received by | 15 | | the public adjuster, from any source whatsoever, in | 16 | | connection with the loss; | 17 | | (7) a register of all monies received, deposited, | 18 | | disbursed, or withdrawn in connection with a transaction | 19 | | with an insured, including fees transfers and | 20 | | disbursements from a trust account and all transactions | 21 | | concerning all interest bearing accounts; | 22 | | (8) name of public adjuster who executed the contract; | 23 | | (9) name of the attorney representing the insured, if | 24 | | applicable, and the name of the claims representatives of | 25 | | the insurance company; and |
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| 1 | | (10) evidence of financial responsibility in a format | 2 | | prescribed by the Director. | 3 | | (b) Records shall be maintained for at least 7 years after | 4 | | the termination of the transaction with an insured and shall | 5 | | be open to examination by the Director at all times. | 6 | | (c) Records submitted to the Director in accordance with | 7 | | this Section that contain information identified in writing as | 8 | | proprietary by the public adjuster shall be treated as | 9 | | confidential by the Director and shall not be subject to the | 10 | | Freedom of Information Act.
| 11 | | (Source: P.A. 96-1332, eff. 1-1-11.) | 12 | | (215 ILCS 5/1586 new) | 13 | | Sec. 1586. Associated contractors. | 14 | | (a) A public adjuster license may be denied, suspended, or | 15 | | revoked under Section 1555 if the Director determines that, | 16 | | during either of the 2 calendar years following the issuance | 17 | | or extension date of the license, the aggregate amount of | 18 | | insureds' recoveries that were referred to associated | 19 | | contractors exceeded the aggregate amount of insureds' | 20 | | recoveries that were not referred to associated contractors of | 21 | | the licensee. | 22 | | (b) A public adjuster who refers any insured to an | 23 | | associated contractor shall be responsible for tracking and | 24 | | maintaining current lists of all insureds' recoveries that | 25 | | were referred to associated contractors and all insureds' |
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| 1 | | recoveries that were not referred to an associated contractor. | 2 | | (215 ILCS 5/1590)
| 3 | | Sec. 1590. Standards of conduct of public adjuster. | 4 | | (a) A public adjuster is obligated, under his or her | 5 | | license, to serve with objectivity and complete loyalty for | 6 | | the interests of his client alone, and to render to the insured | 7 | | such information, counsel, and service, as within the | 8 | | knowledge, understanding, and opinion in good faith of the | 9 | | licensee, as will best serve the insured's insurance claim | 10 | | needs and interest. | 11 | | (b) A public adjuster may not propose or attempt to | 12 | | propose to any person that the public adjuster represent that | 13 | | person while a loss-producing occurrence is continuing, nor | 14 | | while the fire department or its representatives are engaged | 15 | | at the damaged premises, nor between the hours of 7:00 p.m. and | 16 | | 8:00 a.m. | 17 | | (c) A public adjuster shall not permit an unlicensed | 18 | | employee or representative of the public adjuster to conduct | 19 | | business for which a license is required under this Article. | 20 | | (d) A public adjuster shall not have a direct or indirect | 21 | | financial interest in any aspect of the claim, other than the | 22 | | salary, fee, commission, or other consideration established in | 23 | | the written contract with the insured, unless full written | 24 | | disclosure has been made to the insured as set forth in | 25 | | subsection (d) (g) of Section 1575. |
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| 1 | | (e) A public adjuster shall not acquire any interest in | 2 | | the salvage of property subject to the contract with the | 3 | | insured unless the public adjuster obtains written permission | 4 | | from the insured after settlement of the claim with the | 5 | | insurer as set forth in subsection (d) (g) of Section 1575 of | 6 | | this Article. | 7 | | (f) The public adjuster shall abstain from referring or | 8 | | directing the insured to get needed repairs or services in | 9 | | connection with a loss from any person, unless disclosed to | 10 | | the insured: | 11 | | (1) with whom the public adjuster has a financial | 12 | | interest or who is an associated contractor of the public | 13 | | adjuster ; or | 14 | | (2) from whom the public adjuster may receive direct | 15 | | or indirect compensation for the referral. | 16 | | (g) The public adjuster shall disclose to an insured if he | 17 | | or she has any interest or will be compensated by any | 18 | | construction firm, salvage firm, building appraisal firm, | 19 | | board-up company, or any other firm that performs any work in | 20 | | conjunction with damages caused by the insured loss. The word | 21 | | "firm" shall include any corporation, partnership, | 22 | | association, joint-stock company or individual as set forth in | 23 | | Section 1575 of this Article. | 24 | | (h) Any compensation or anything of value in connection | 25 | | with an insured's specific loss that will be received by a | 26 | | public adjuster shall be disclosed by the public adjuster to |
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| 1 | | the insured in writing including the source and amount of any | 2 | | such compensation. | 3 | | (i) In all cases where the loss giving rise to the claim | 4 | | for which the public adjuster was retained arise from damage | 5 | | to a personal residence, the insurance proceeds shall be | 6 | | delivered to the named insured or his or her designee. Where | 7 | | proceeds paid by an insurance company are paid jointly to the | 8 | | insured and the public adjuster, the insured shall release | 9 | | such portion of the proceeds that are due the public adjuster | 10 | | within 30 calendar days after the insured's receipt of the | 11 | | insurance company's check, money order, draft, or release of | 12 | | funds. If the proceeds are not so released to the public | 13 | | adjuster within 30 calendar days, the insured shall provide | 14 | | the public adjuster with a written explanation of the reason | 15 | | for the delay. | 16 | | (j) Public adjusters shall adhere to the following general | 17 | | ethical requirements: | 18 | | (1) a public adjuster shall not undertake the | 19 | | adjustment of any claim if the public adjuster is not | 20 | | competent and knowledgeable as to the terms and conditions | 21 | | of the insurance coverage, or which otherwise exceeds the | 22 | | public adjuster's current expertise; | 23 | | (2) a public adjuster shall not knowingly make any | 24 | | oral or written material misrepresentations or statements | 25 | | which are false or maliciously critical and intended to | 26 | | injure any person engaged in the business of insurance to |
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| 1 | | any insured client or potential insured client; | 2 | | (3) no public adjuster, while so licensed by the | 3 | | Department, may represent or act as a company adjuster or | 4 | | independent adjuster on the same claim; | 5 | | (4) the contract shall not be construed to prevent an | 6 | | insured from pursuing any civil remedy after the | 7 | | 5-business day revocation or cancellation period; | 8 | | (5) a public adjuster shall not enter into a contract | 9 | | or accept a power of attorney that vests in the public | 10 | | adjuster the effective authority to choose the persons who | 11 | | shall perform repair work; | 12 | | (6) a public adjuster shall ensure that all contracts | 13 | | for the public adjuster's services are in writing and set | 14 | | forth all terms and conditions of the engagement; and | 15 | | (7) a public adjuster shall not advance money or any | 16 | | valuable consideration, except emergency services to an | 17 | | insured pending adjustment of a claim. | 18 | | (k) A public adjuster may not agree to any loss settlement | 19 | | without the insured's knowledge and consent and shall, upon | 20 | | the insured's request, provide the insured with a document | 21 | | setting forth the scope, amount, and value of the damages | 22 | | prior to request by the insured for authority to settle the | 23 | | loss. | 24 | | (l) A public adjuster shall not provide legal advice or | 25 | | representation to the insured or engage in the unauthorized | 26 | | practice of law. |
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| 1 | | (m) A public adjuster shall not represent that he or she is | 2 | | a representative of an insurance company, a fire department, | 3 | | or the State of Illinois, that he or she is a fire | 4 | | investigator, that his or her services are required for the | 5 | | insured to submit a claim to the insured's insurance company, | 6 | | or that he or she may provide legal advice or representation to | 7 | | the insured. A public adjuster may represent that he or she has | 8 | | been licensed by the State of Illinois. | 9 | | (n) A public adjuster shall not act in the place and | 10 | | instead of the insured.
| 11 | | (Source: P.A. 96-1332, eff. 1-1-11.)
| 12 | | (815 ILCS 625/Act rep.)
| 13 | | Section 10. The Fire Damage Representation Agreement Act | 14 | | is repealed.".
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