SB 660 — INS CD-PUBLIC ADJUSTERS

(A) shall be in the minimum amount of $20,000;

and (C) shall not be terminated unless at least 30 days' prior written notice will have been filed with SB0660 Enrolled - 18 - LRB096 06719 MJR 16803 b the and given to the licensee.

(215 ILCS 5/1563 new) Sec.

1563.

Fees.

(a) The fees required by this Article are as follows:

(1) Public adjuster license fee of $250, payable once every 2 years.

(2) Business entity license fee of $250, payable once every 2 years.

(3) Application fee of $50 for processing each request to take the written examination for a public adjuster license.

SB0660 Engrossed - 18 - LRB096 06719 MJR 16803 b (a) An individual who holds a public adjuster license and who is not exempt under subsection (b) of this Section shall satisfactorily complete a minimum of 24 hours of continuing SB0660 Enrolled - 19 - LRB096 06719 MJR 16803 b education courses, including 3 hours of classroom ethics instruction, reported on a biennial basis in conjunction with the license renewal cycle.

The self-study credit hours contained in a certified course shall be considered classroom hours when at least two-thirds of the hours are given SB0660 Engrossed - 19 - LRB096 06719 MJR 16803 b as classroom or seminar instruction.

The public adjuster must complete the course in advance of the renewal date to allow the education provider time to report SB0660 Enrolled - 20 - LRB096 06719 MJR 16803 b the credit to the Department.

SB0660 Engrossed - 20 - LRB096 06719 MJR 16803 b (c) A public adjuster may pay or assign commission, service fees, or other valuable consideration to persons who do not investigate or settle claims in this State, unless the payment SB0660 Enrolled - 21 - LRB096 06719 MJR 16803 b would violate State law.

(9) date and time the contract was signed by the public adjuster and date and time the contract was signed by the insured;

(10) attestation language stating that the public SB0660 Engrossed - 21 - LRB096 06719 MJR 16803 b adjuster is fully bonded pursuant to State law;

and (11) full salary, fee, commission, compensation, or SB0660 Enrolled - 22 - LRB096 06719 MJR 16803 b other considerations the public adjuster is to receive for services.

and (3) be entitled only to reasonable compensation from SB0660 Engrossed - 22 - LRB096 06719 MJR 16803 b the insured for services provided by the public adjuster on behalf of the insured, based on the time spent on a claim SB0660 Enrolled - 23 - LRB096 06719 MJR 16803 b and expenses incurred by the public adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer.

(d) A public adjuster shall provide the insured a written disclosure concerning any direct or indirect financial interest that the public adjuster has with any other party who is involved in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured, including, but not limited to, any ownership of or any compensation expected to be received from, any construction firm, salvage firm, building appraisal firm, motorboard-up vehiclecompany, repair shop, or any other firm which that provides estimates for work, or that performs any work, in conjunction with damages caused by the insured loss on which the public adjuster is engaged.

(1) allows the public adjuster's percentage fee to be collected when money is due from an insurance company, but not paid, or that allows a public adjuster to collect the entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by SB0660 Engrossed - 23 - LRB096 06719 MJR 16803 b an insurance company;

(2) requires the insured to authorize an insurance SB0660 Enrolled - 24 - LRB096 06719 MJR 16803 b company to issue a check only in the name of the public adjuster;

or (3) precludes a public adjuster or an insured from pursuing civil remedies.remedies;

(4) includes any hold harmless agreement that provides indemnification to the public adjuster by the insured for liability resulting from the public adjuster's negligence;

or (5) provides power of attorney by which the public adjuster can act in the place and instead of the insured.

SB0660 Enrolled - 25 - LRB096 06719 MJR 16803 b (B) "Independent adjuster" means the insurance adjusters who are hired on a contract basis by an insurance company to represent the insurance company's interest in the settlement of the claim.

They are paid SB0660 Engrossed - 24 - LRB096 06719 MJR 16803 b by your insurance company.

(3) The insuredpublic hasadjuster theis rightnot toa initiaterepresentative direct communications with the insured's attorney, the insurer, the insurer's adjuster, and the insurer's attorney, or anyemployee other person regarding the settlement of the insured'sinsurer. claim.

Once(4) aThe publicsalary, adjusterfee, hascommission, been retained, the company adjuster or other insuranceconsideration representativeis maythe notobligation communicateof directlythe withinsured, not the insuredinsurer, withoutexcept thewhen permissionrights orhave consentbeen ofassigned to the public adjuster orby the insured'sinsured. legal counsel.

(4) The public adjuster is not a representative or employee of the insurer.

(5) The salary, fee, commission, or other consideration is the obligation of the insured, not the insurer, except when rights have been assigned to the SB0660 Engrossed - 25 - LRB096 06719 MJR 16803 b public adjuster by the insured.

The public adjuster's original contract shall be available at all times for inspection without SB0660 Enrolled - 26 - LRB096 06719 MJR 16803 b notice by the Director.

At the option of the insured, any such contract that is executed within 5 business days after conclusion of the loss producing occurrence shall be voidable for 105 business days after execution.

(k) If the insured exercises the right to rescind the contract, anything of value given by the insured under the contract will be returned to the insured within 15 business days following the receipt by the public adjuster of the SB0660 Engrossed - 26 - LRB096 06719 MJR 16803 b cancellation notice.

A public adjuster who receives, accepts, or holds any funds on behalf of an insured towards the settlement of a claim for loss or damage shall SB0660 Enrolled - 27 - LRB096 06719 MJR 16803 b deposit the funds in a non-interest bearing escrow or trust account in a financial institution that is insured by an agency of the federal government in the public adjuster's home state or where the loss occurred.

SB0660 Engrossed - 27 - LRB096 06719 MJR 16803 b (7) a register of all monies received, deposited, disbursed, or withdrawn in connection with a transaction with an insured, including fees transfers and disbursements from a trust account and all transactions concerning all interest bearing accounts;

SB0660 Enrolled - 28 - LRB096 06719 MJR 16803 b (9) name of the attorney representing the insured, if applicable, and the name of the claims representatives of the insurance company;

(a) A public adjuster is obligated, under his or her license, to serve with objectivity and complete loyalty for the interests of his client alone, and to render to the insured such information, counsel, and service, as within the SB0660 Engrossed - 28 - LRB096 06719 MJR 16803 b knowledge, understanding, and opinion in good faith of the licensee, as will best serve the insured's insurance claim needs and interest.

(b) A public adjuster may not propose or attempt to propose to any person that the public adjuster represent that person while a loss-producing occurrence is continuing, nor while the SB0660 Enrolled - 29 - LRB096 06719 MJR 16803 b fire department or its representatives are engaged at the damaged premises, nor between the hours of 7:00 p.m.

(f) The public adjuster shall abstain from referring or directing the insured to get needed repairs or services in connection with a loss from any person, unless disclosed to the SB0660 Engrossed - 29 - LRB096 06719 MJR 16803 b insured:

(g) The public adjuster shall disclose to an insured if he SB0660 Enrolled - 30 - LRB096 06719 MJR 16803 b or she has any interest or will be compensated by any construction firm, salvage firm, building appraisal firm, motorboard-up vehiclecompany, repair shop, or any other firm that performs any work in conjunction with damages caused by the insured loss.

(i) In all cases where the loss giving rise to the claim for which the public adjuster was retained arise from damage to a personal residence, the insurance proceeds shall be delivered in person to the named insured or his or her designee.

Where proceeds paid by an insurance company are paid jointly to the insured and the public adjuster, the insured shall release such portion of the proceeds that are due the public adjuster within 30 calendar days after the insured's receipt of the insurance SB0660 Engrossed - 30 - LRB096 06719 MJR 16803 b company's check, money order, draft, or release of funds.

If the proceeds are not so released to the insuredpublic adjuster within 30 calendar days, the insured shall provide the public adjuster with a written explanation of the reason for the delay.

SB0660 Enrolled - 31 - LRB096 06719 MJR 16803 b (1) a public adjuster shall not undertake the adjustment of any claim if the public adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise;

(4) the contract shall not be construed to prevent an insured from pursuing any civil remedy after the 3-business5-business day revocation or cancellation period;

SB0660 Engrossed - 31 - LRB096 06719 MJR 16803 b (6) a public adjuster shall ensure that all contracts for the public adjuster's services are in writing and set forth all terms and conditions of the engagement;

SB0660 Enrolled - 32 - LRB096 06719 MJR 16803 b (k) A public adjuster may not agree to any loss settlement without the insured's knowledge and consent.consent and shall, upon the insured's request, provide the insured with a document setting forth the scope, amount, and value of the damages prior to request by the insured for authority to settle the loss.

(l) A public adjuster shall not provide legal advice or representation to the insured or engage in the unauthorized practice of law.

(m) A public adjuster shall not represent that he or she is a representative of an insurance company, a fire department, or the State of Illinois, that he or she is a fire investigator, that his or her services are required for the insured to submit a claim to the insured's insurance company, or that he or she may provide legal advice or representation to the insured.

A public adjuster may represent that he or she has been licensed by the State of Illinois.

(b) Within 30 days of the initial pretrial hearing date, SB0660 Enrolled - 33 - LRB096 06719 MJR 16803 b the public adjuster shall report to the Director any criminal prosecution of the public adjuster taken in any jurisdiction.

SB0660 Engrossed - 32 - LRB096 06719 MJR 16803 b (a) The Director shall have the power to examine any applicant or any person licensed or registered pursuant to this Article.

Any report alleging substantive violations shall be in writing and shall be based upon the facts ascertained from the books, records, documents, papers, and other evidence obtained by the examiners or ascertained from the testimony of the officers, directors, members, or other individuals examined under oath or ascertained by notarized affidavits SB0660 Enrolled - 34 - LRB096 06719 MJR 16803 b received by the examiners.

Any person who acts as or holds himself out to be a public adjuster without holding a valid and current license to do so is hereby declared to be inimical to the public welfare and to constitute a public SB0660 Engrossed - 33 - LRB096 06719 MJR 16803 b nuisance.

In all proceedings hereunder, the court, in its discretion, may SB0660 Enrolled - 35 - LRB096 06719 MJR 16803 b apportion the costs among the parties interested in the action, including the costs of filing the complaint, service of process, witness fees and expenses, court reporter charges, and reasonable attorney fees.

SB0660 Engrossed - 34 - LRB096 06719 MJR 16803 b (215 ILCS 5/1610 new) Sec.

(215 ILCS 5/Art.5/500-75 rep.) Section 910.

XXXI.75The rep.)Illinois Insurance Code is amended by repealing Section 910.500-75.

TheSB0660 IllinoisEnrolled Insurance- Code36 is- amendedLRB096 by06719 repealingMJR Article16803 XXXI.75.b Section 997.

Section 997.