Illinois General Assembly - Bill Status for SB0660

Deletes everything after the enacting clause. Amends the Illinois Insurance Code. Creates the Public Adjusters Law. Repeals the Article of the Illinois Insurance Code concerning Public Insurance Adjusters and Registered Firms. Provides that a person shall not act or hold himself out as a public adjuster in this State unless licensed as a public adjuster. Sets forth the specific residency requirements for a public adjuster licensee. Provides that an individual applying for a public adjuster license must pass a written examination unless exempt pursuant to certain provisions. Requires a public adjuster to secure a bond or letter of credit prior to the issuance of a license. Sets forth certain standards of conduct for public adjusters. Provides that any person violating the provisions concerning injunctive relief shall be guilty of a Class A misdemeanor and any person misappropriating or converting any monies collected as a public adjuster, whether licensed or not, shall be guilty of a Class 4 felony. Contains a severability clause. Makes other changes.

Replaces everything after the enacting clause. Reinserts the contents of the engrossed bill with the following changes. Changes the language to provide that 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 the State, nor attempt to obtain a contract for public adjusting services, unless the person is licensed as a public adjuster in accordance with specified provisions. Adds a provision that allows the Director of Insurance to place on probation, suspend, revoke, deny, or refuse to issue or renew a public adjuster's license or levy a civil penalty or any combination of actions, for having been convicted of a felony or misdemeanor involving dishonesty or fraud, unless the individual demonstrates to the Director sufficient rehabilitation to warrant the public trust. Adds a definition for "adjusting a claim for loss or damage covered by an insurance contract" and makes changes to the definition of "public adjuster". Adds a provision concerning fees. Adds language that provides that public adjusters shall ensure that all contracts for their services are in writing and contain the date and time the contract was signed by the public adjuster and date and time the contract was signed by the insured. Changes the language to provide that a public adjuster shall disclose to an insured if he or she has any interest or will be compensated by any construction firm, salvage firm, building appraisal firm, board-up company, or any other firm that performs any work in conjunction with damages caused by the insured loss. Provides that a public adjuster contract may not contain any contract term that includes any hold harmless agreement that provides indemnification to the public adjuster by the insured for liability resulting from the public adjuster's negligence. In provisions concerning a contract between a public adjuster and an insured, deletes language that the insured has the right to initiate direct communications with the insured's attorney, the insurer, the insurer's adjuster, and the insurer's attorney, or any other person regarding the settlement of the insured's claim and once a public adjuster has been retained, the company adjuster or other insurance representative may not communicate directly with the insured without the permission or consent of the public adjuster or the insured's legal counsel. Changes the language to provide that at the option of the insured, any such contract shall be voidable for 5 days (rather than 10 days) after execution. Changes language that provides that a public adjuster may not agree to any loss settlement without the insured's knowledge and consent under specified conditions. Provides that 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 (rather than delivered in person) to the named insured or his or her designee. Adds language providing that the contract shall not be construed to prevent an insured from pursuing any civil remedy after the 5-business day revocation or cancellation period. Makes other changes.

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