SB2922 EnrolledLRB098 17339 RPM 52435 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 1570 as follows:
 
6    (215 ILCS 5/1570)
7    Sec. 1570. Public adjuster fees.
8    (a) A public adjuster shall not pay a commission, service
9fee, or other valuable consideration to a person for
10investigating or settling claims in this State if that person
11is required to be licensed under this Article and is not so
12licensed.
13    (b) A person shall not accept a commission, service fee, or
14other valuable consideration for investigating or settling
15claims in this State if that person is required to be licensed
16under this Article and is not so licensed.
17    (c) A public adjuster may pay or assign commission, service
18fees, or other valuable consideration to persons who do not
19investigate or settle claims in this State, unless the payment
20would violate State law.
21    (d) A public adjuster may not charge, agree to, or accept
22any compensation, payment, commissions, fee, or other valuable
23consideration in excess of 10% of the amount of the insurance

 

 

SB2922 Enrolled- 2 -LRB098 17339 RPM 52435 b

1settlement claim paid by the insurer on any claim resulting
2from a catastrophic event, unless approved in writing by the
3Director. Application for exception to the 10% limit must be
4made in writing. The request must contain specific reasons as
5to why the consideration should be in excess of 10% and proof
6that the policyholder would accept the consideration. The
7Director must act on any request within 5 business days after
8receipt of the request.
9    For the purpose of this subsection (d), "catastrophic
10event" means an occurrence of widespread or severe damage or
11loss of property producing an overwhelming demand on State and
12local response resources and mechanisms and a severe long-term
13effect on general economic activity, and that severely affects
14State, local, and private sector capabilities to begin to
15sustain response activities resulting from any catastrophic
16cause, including, but not limited to, fire, including arson
17(provided the fire was not caused by the willful action of an
18owner or resident of the property), flood, earthquake, wind,
19storm, explosion, or extended periods of severe inclement
20weather as determined by declaration of a State of disaster by
21the Governor. This declaration may be made on a
22county-by-county basis and shall be in effect for 90 days, but
23may be renewed for 30-day intervals thereafter.
24(Source: P.A. 96-1332, eff. 1-1-11.)