Sen. William R. Haine

Filed: 4/7/2014

 

 


 

 


 
09800SB2922sam002LRB098 17339 RPM 58346 a

1
AMENDMENT TO SENATE BILL 2922

2    AMENDMENT NO. ______. Amend Senate Bill 2922, AS AMENDED,
3by replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Insurance Code is amended by
6changing Section 1570 as follows:
 
7    (215 ILCS 5/1570)
8    Sec. 1570. Public adjuster fees.
9    (a) A public adjuster shall not pay a commission, service
10fee, or other valuable consideration to a person for
11investigating or settling claims in this State if that person
12is required to be licensed under this Article and is not so
13licensed.
14    (b) A person shall not accept a commission, service fee, or
15other valuable consideration for investigating or settling
16claims in this State if that person is required to be licensed

 

 

09800SB2922sam002- 2 -LRB098 17339 RPM 58346 a

1under this Article and is not so licensed.
2    (c) A public adjuster may pay or assign commission, service
3fees, or other valuable consideration to persons who do not
4investigate or settle claims in this State, unless the payment
5would violate State law.
6    (d) A public adjuster may not charge, agree to, or accept
7any compensation, payment, commissions, fee, or other valuable
8consideration in excess of 10% of the amount of the insurance
9settlement claim paid by the insurer on any claim resulting
10from a catastrophic event, unless approved in writing by the
11Director. Application for exception to the 10% limit must be
12made in writing. The request must contain specific reasons as
13to why the consideration should be in excess of 10% and proof
14that the policyholder would accept the consideration. The
15Director must act on any request within 5 business days after
16receipt of the request.
17    For the purpose of this subsection (d), "catastrophic
18event" means an occurrence of widespread or severe damage or
19loss of property producing an overwhelming demand on State and
20local response resources and mechanisms and a severe long-term
21effect on general economic activity, and that severely affects
22State, local, and private sector capabilities to begin to
23sustain response activities resulting from any catastrophic
24cause, including, but not limited to, fire, including arson
25(provided the fire was not caused by the willful action of an
26owner or resident of the property), flood, earthquake, wind,

 

 

09800SB2922sam002- 3 -LRB098 17339 RPM 58346 a

1storm, explosion, or extended periods of severe inclement
2weather as determined by declaration of a State of disaster by
3the Governor. This declaration may be made on a
4county-by-county basis and shall be in effect for 90 days, but
5may be renewed for 30-day intervals thereafter.
6(Source: P.A. 96-1332, eff. 1-1-11.)".