(215 ILCS 5/1575)
    Sec. 1575. Contract between public adjuster and insured.
    (a) Public adjusters shall ensure that all contracts for their services are in writing and contain the following terms:
        (1) legible full name of the adjuster signing the
    
contract, as specified in Department records;
        (2) permanent home state business address and phone
    
number;
        (3) license number;
        (4) title of "Public Adjuster Contract";
        (5) the insured's full name, street address,
    
insurance company name, and policy number, if known or upon notification;
        (6) a description of the loss and its location, if
    
applicable;
        (7) description of services to be provided to the
    
insured;
        (8) signatures of the public adjuster and the insured;
        (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
    
adjuster is fully bonded pursuant to State law; and
        (11) full salary, fee, commission, compensation, or
    
other considerations the public adjuster is to receive for services.
    (b) The contract may specify that the public adjuster shall be named as a co-payee on an insurer's payment of a claim.
        (1) If the compensation is based on a share of the
    
insurance settlement, the exact percentage shall be specified.
        (2) Initial expenses to be reimbursed to the public
    
adjuster from the proceeds of the claim payment shall be specified by type, with dollar estimates set forth in the contract and with any additional expenses first approved by the insured.
        (3) Compensation provisions in a public adjuster
    
contract shall not be redacted in any copy of the contract provided to the Director.
    (c) If the insurer, not later than 5 business days after the date on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy, the public adjuster shall:
        (1) not receive a commission consisting of a
    
percentage of the total amount paid by an insurer to resolve a claim;
        (2) inform the insured that loss recovery amount
    
might not be increased by insurer; and
        (3) be entitled only to reasonable compensation from
    
the insured for services provided by the public adjuster on behalf of the insured, based on the time spent on a claim 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, board-up company, or any other firm 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. The word "firm" shall include any corporation, partnership, association, joint-stock company, or person.
    (e) A public adjuster contract may not contain any contract term that:
        (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 an insurance company;
        (2) requires the insured to authorize an insurance
    
company to issue a check only in the name of the public adjuster;
        (3) precludes a public adjuster or an insured from
    
pursuing civil 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.
    (f) The following provisions apply to a contract between a public adjuster and an insured:
        (1) Prior to the signing of the contract, the public
    
adjuster shall provide the insured with a separate signed and dated disclosure document regarding the claim process that states:
    "Property insurance policies obligate the insured to
    
present a claim to his or her insurance company for consideration. There are 3 types of adjusters that could be involved in that process. The definitions of the 3 types are as follows:
            (A) "Company adjuster" means the insurance
        
adjusters who are employees of an insurance company. They represent the interest of the insurance company and are paid by the insurance company. They will not charge you a fee.
            (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 by your insurance company. They will not charge you a fee.
            (C) "Public adjuster" means the insurance
        
adjusters who do not work for any insurance company. They work for the insured to assist in the preparation, presentation and settlement of the claim. The insured hires them by signing a contract agreeing to pay them a fee or commission based on a percentage of the settlement, or other method of compensation.".
        (2) The insured is not required to hire a public
    
adjuster to help the insured meet his or her obligations under the policy, but has the right to do so.
        (3) The public adjuster is not a representative or
    
employee of the insurer.
        (4) The salary, fee, commission, or other
    
consideration is the obligation of the insured, not the insurer, except when rights have been assigned to the public adjuster by the insured.
    (g) The contracts shall be executed in duplicate to provide an original contract to the public adjuster, and an original contract to the insured. The public adjuster's original contract shall be available at all times for inspection without notice by the Director.
    (h) The public adjuster shall provide the insurer with an exact copy of the contract by the insured, authorizing the public adjuster to represent the insured's interest.
    (i) The public adjuster shall give the insured written notice of the insured's rights as a consumer under the law of this State.
    (j) A public adjuster shall not provide services until a written contract with the insured has been executed, on a form filed with and approved by the Director. At the option of the insured, any such contract shall be voidable for 5 business days after execution. The insured may void the contract by notifying the public adjuster in writing by (i) registered or certified mail, return receipt requested, to the address shown on the contract or (ii) personally serving the notice on the public adjuster.
    (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 cancellation notice.
(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.)