2005 Illinois 215 ILCS 5/ Illinois Insurance Code. Article XXXI 3/4 - Public Insurance Adjusters and Registered Firms
(215 ILCS 5/Art. XXXI.75 heading)ARTICLE XXXI 3/4
PUBLIC INSURANCE ADJUSTERS
AND REGISTERED FIRMS
(215 ILCS 5/512.51) (from Ch. 73, par. 1065.59‑51)
Sec. 512.51.
Scope of Article.
This Article shall apply
to all Public Insurance Adjusters and Registered Firms as defined in
Section 512.52.
(Source: P.A. 84‑832.)
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(215 ILCS 5/512.52) (from Ch. 73, par. 1065.59‑52)
Sec. 512.52.
Definitions.
As used in this Article unless
the context clearly otherwise requires:
(a)
"Adjusting insurance claims" means representing an insured with an
insurer for compensation, and while representing that insured either negotiating
values, damages, or depreciation, or applying
the loss circumstances to insurance policy provisions.
(b) "Public Insurance Adjuster" means a person engaged in the business
of adjusting insurance claims.
(c) "Registered Firm" means a person registered with the Director under
Section 512.57.
(d) "Compensation" shall include, but need not be limited to, the following:
1. any assignment of insurance proceeds or a percentage thereof;
2. any agreement to make repairs for the amount of the insurance proceeds
payable;
3. assertion of any lien against insurance proceeds payable.
(e) "Person" embraces both natural persons and business
entities of whatever type.
(Source: P.A. 84‑335; 84‑832.)
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(215 ILCS 5/512.53) (from Ch. 73, par. 1065.59‑53)
Sec. 512.53.
License Required.
(a) No person may engage
in the business of adjusting insurance claims, nor advertise, solicit or
hold himself out to be a Public Insurance Adjuster, nor attempt to
obtain a contract for Public Adjusting services, unless licensed or registered
in accordance with the provisions of this Article, except that the provisions
of this paragraph do not apply to a person admitted to the practice of law
in this State, to a licensed agent adjusting loss or damage under a policy
within his control or to a marine surveyor or average adjuster.
(b) In addition to any other penalty set forth in this Article, any person
violating paragraph (a) of this Section shall be guilty of a Class A misdemeanor,
and any person misappropriating or converting any monies collected as a
Public Insurance Adjuster, whether licensed or not, shall be guilty of a
Class 4 felony.
(Source: P.A. 83‑1362.)
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(215 ILCS 5/512.54) (from Ch. 73, par. 1065.59‑54)
Sec. 512.54.
Application and Examination.
(a) Each application
for a Public Insurance Adjuster license shall be made on a form specified
by the Director. The application shall be signed by the applicant and shall
contain the applicant's declaration, under penalty of refusal, suspension
or revocation of the Public Insurance Adjuster license, that the statements
made in the application are true, correct and complete to the best of the
applicant's knowledge and belief. Before approving the application, the
Director shall be satisfied that the applicant (1) is an individual at
least 18 years of age, and (2) is competent, trustworthy and of good business
reputation.
(b) Applicants for a Public Insurance Adjuster licensee shall pass a written
examination. The examination shall reasonably test the knowledge of the
applicant concerning the applicable insurance laws and rules and regulations
of the Director and the duties and responsibilities of a Public Insurance
Adjuster. All examinations provided for by this Section shall be conducted
under rules and regulations prescribed from time to time by the Director,
and the Director may make such arrangements as may be appropriate,
including contracting with an outside testing service for administering
such examinations. Any charges assessed by any such testing service for
administering such examinations shall be paid directly by the individual applicants.
Each person subject to an examination shall at the time of request for
examination enclose with the application a non‑refundable application fee
made payable to the Director as provided in Section 512.63, plus a separate
remittance if applicable made payable to the designated testing service
for the total of such fees as the testing service charges for each of the
various services being requested by the applicant. In the event an applicant
appears and fails to pass, such person shall not be entitled to any refund
and shall be required to submit a new request for examination together with
all of the requisite fees before being rescheduled at a later date.
(c) An applicant who becomes a resident of this State and who has filed
with the Director certification by a public official having supervision
of Public Insurance Adjusters in the prior state of residency evidencing
that the applicant has passed a written examination and has held a public
insurance adjuster license in good standing for the prior 24 months is not
required to complete the examination required by paragraph (b). However,
the Director may require the applicant to take that portion of the examination
pertaining to Illinois law and rules and regulations of the Director.
(d) The Director may issue a Public Insurance Adjuster license to any
applicant who is not an Illinois resident without an examination only if
(1) the applicant holds a like license from his state of residence, and (2)
the applicant's state of residence accepts Illinois residents for licensing,
and (3) the state in which the applicant resides requires no examination
of Illinois resident Public Insurance Adjusters, and (4) the public official
having supervision of Public Insurance Adjusters in the applicant's state
of residence certifies that the applicant has passed a written examination.
(e) The Director may issue a Public Insurance Adjuster license to any
applicant who is not an Illinois resident and who cannot meet the requirements
of paragraph (d) if the applicant passes a written examination in Illinois.
(Source: P.A. 84‑832.)
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(215 ILCS 5/512.55) (from Ch. 73, par. 1065.59‑55)
Sec. 512.55.
Public Insurance Adjuster license.
(a) The Director
shall issue a Public Insurance Adjuster license to an applicant who has:
(1) met the requirements of Section 512.54; and
(2) paid the fee as set forth in Section 512.63; and
(3) filed with the Director a bond as prescribed in Section 512.56.
(b) Every Public Insurance Adjuster license shall remain in effect for
one year from the date of its issuance.
(c) Each Public Insurance Adjuster license shall contain the name, resident
address and personal identification number of the Public Insurance Adjuster,
the date of issue, general conditions relative to expiration or termination
and any other information the Director considers proper.
(d) The holder of a Public Insurance Adjuster license shall notify the
Director, in writing, of a change of residence address within 30 days of such change.
(e) Each Public Insurance Adjuster license shall remain in effect as
long as the holder of the license maintains in force and effect the bond
required by Section 512.56 and pays the annual fee required by Section
512.63 by the date due as prescribed by the Director, unless
the license is
revoked or suspended pursuant to Section 512.61.
The Department may refuse to issue or may suspend the license
of any person who fails to file a return, or to pay the tax, penalty or
interest shown in a filed return, or to pay any final assessment of tax,
penalty or interest, as required by any tax Act administered by the
Illinois Department of Revenue, until such time as the requirements of any
such tax Act are satisfied.
(Source: P.A. 84‑221; 84‑832.)
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(215 ILCS 5/512.56) (from Ch. 73, par. 1065.59‑56)
Sec. 512.56.
Bonds.
Every applicant for a Public Insurance
Adjuster license shall file a bond, in a form approved by the Director and
executed by a surety company authorized to do business in this State, in
favor of the people of the State of Illinois and payable to any party injured under
the terms of the bond. The bond shall be filed with the application for
a Public Insurance Adjuster license and shall remain in force while the
applicant is licensed. The bond shall be continuous in form and in the
amount of $5,000. The bond shall be conditioned upon full accounting and
due payment, to the person entitled thereto, of funds coming into the Public
Insurance Adjuster's possession incident to a transaction under his license.
The Director shall be notified by the surety company 30 days in advance
of any cancellation of the bond. A Public Insurance Adjuster license shall
automatically terminate when a bond is not in force.
(Source: P.A. 83‑1362.)
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(215 ILCS 5/512.57) (from Ch. 73, par. 1065.59‑57)
Sec. 512.57.
Registered Firms.
(a) No person may employ
one or more Public Insurance Adjustors in their professional capacity, other
than for the purpose of using their professional services to negotiate or
adjust such person's own losses and insurance claims, unless such person
is registered with the Director under subsection (b) of this Section.
No Public Insurance Adjuster may form or participate in any association,
partnership or other business entity with any other Public Insurance Adjustor
for the purpose of engaging in the business of adjusting insurance claims,
unless such business entity is registered with the Director under subsection
(b) of this Section.
(b) To become a Registered Firm, a person must submit to the Director
an application, on a form specified by the Director, and the fee required
by Section 512.63. The Director may require any documents reasonably
necessary to verify the information contained in the application.
(c) Each Registered Firm must notify the Director, in writing, of any
change in its business address within 30 days of such change.
(d) Each Registered Firm must notify the Director of each Public Insurance
Adjuster who is a member, officer, director or employee of the Registered
Firm, and report any changes in such status of any such Public Insurance
Adjuster to the Director within 30 days thereof.
(e) Each Registered Firm shall appoint one or more Public Insurance
Adjusters who is an officer, director or member of the Firm to be responsible
for the compliance of the Registered Firm with the laws of this State and
the rules and regulations of the Director. The Registered Firm shall be
responsible for the actions of its officers, directors, members and employees.
(f) Each Registered Firm which, for any of the causes listed in Section
512.61, terminates its relationship with a Public Insurance Adjuster who
is an officer, director, employee or member of the Registered Firm shall
notify the Director, in writing, within 30 days of such termination of the
specific reasons for such termination. The Registered Firm shall provide
the Director with information, documents, records or statements pertaining
to the termination. Any materials provided may be used by the Director
in any action taken pursuant to Section 512.62. There shall be no liability
on the part of, nor any cause of action against, the Director or the Registered
Firm, or any authorized representative of either, for any statement made
or materials provided pursuant to this paragraph.
(g) The Director shall terminate any registration which does not comply
with the requirements of this Article.
(Source: P.A. 84‑832.)
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(215 ILCS 5/512.58) (from Ch. 73, par. 1065.59‑58)
Sec. 512.58.
Rate Schedules and Contract Forms.
(a) A Public
Insurance 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 which is executed within 5
days after conclusion of the loss‑producing occurrence shall be voidable
for 10 days after execution. The insured may void the contract by notifying
the Public Insurance 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 Insurance Adjuster.
(b) The written contract required by paragraph (a) shall constitute the
entire agreement between the Public Insurance Adjuster and the insured.
A copy of the contract shall be given to the insured when the contract is
executed. Such contract forms may not include any
hold harmless agreement which provides indemnification to the Public Insurance
Adjuster by the insured for liability resulting from the Public Insurance
Adjuster's negligence, nor any
power‑of‑attorney by which the Public Insurance Adjuster can act in the
place and instead of the insured.
(Source: P.A. 83‑1362.)
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(215 ILCS 5/512.59) (from Ch. 73, par. 1065.59‑59)
Sec. 512.59.
Performance standards applicable to all Public
Insurance Adjusters. (a) A Public Insurance Adjuster may not represent that
he is a representative of an insurance company, a fire department, or the
State of Illinois, or that he is a fire investigator, or that his services
are required for the insured to submit a claim to the insured's insurance
company, or that he may provide legal advice or representation to the
insured. A Public Insurance Adjuster may represent that he has been licensed
by the State of Illinois.
(b) A Public Insurance Adjuster may not agree to any loss settlement without
the insured's knowledge and consent.
(c) If the Public Insurance Adjuster refers the insured to a contractor,
the Public Insurance Adjuster warrants that all work will be performed in
a workmanlike manner and conform to all statutes, ordinances and codes.
Should the work not be completed in a workmanlike manner, the Public Insurance
Adjuster shall be responsible for any and all costs and expense required
to complete or repair the work in a workmanlike manner.
(d) Where proceeds paid by an insurance company are paid jointly to the
insured and the Public Insurance Adjuster, the Public Insurance Adjuster
shall release such portion of the proceeds which are due the insured within
30 calendar days after the Public Insurance Adjuster's receipt of the insurance
company's check, money order, draft, or release of funds. If the proceeds
are not so released to the insured within 30 calendar days, the Public Insurance
Adjuster shall provide the insured and the Illinois Department of Insurance
with a written explanation of the reason for the delay.
(e) A Public Insurance Adjuster may not propose or attempt to propose
to any person that the Public Insurance Adjuster represent that person while
a loss‑producing occurrence is continuing nor while the fire department
or its representatives are engaged at the damaged premises nor between the
hours of 7:00 p.m. and 8:00 a.m..
(f) A Public Insurance Adjuster may not advance money or any valuable
consideration, except emergency services or the commencement of repairs,
to an insured pending adjustment of a claim.
(g) A Public Insurance Adjuster may not provide legal advice or
representation to the insured, or engage in the unauthorized practice of law.
(Source: P.A. 84‑335.)
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(215 ILCS 5/512.60) (from Ch. 73, par. 1065.59‑60)
Sec. 512.60.
Maintenance of records.
(a) All Public Insurance
Adjusters
shall maintain a complete record of each of their transactions as a Public
Insurance Adjuster. The records required by this Section shall include:
(1) name of the insured;
(2) date, location and amount of loss;
(3) copy of the contract between the Public Insurance Adjuster and insured;
(4) name of the insurer, amount, expiration date and number of each policy
carried with respect to the loss;
(5) itemized statement of the insured's recoveries;
(6) name of the Public Insurance Adjuster who executed the contract; and
(7) name of the attorney representing the insured, if applicable, and
the name of the representative of the insurance company.
(b) Records shall be maintained for at least three years after the termination
of the transaction with an insured and shall be open to examination by the
Director at any time.
(c) A Public Insurance Adjuster shall not divulge information regarding
any insured without written consent from the insured, except that the Public
Insurance Adjuster may divulge such information to an insurance company
or its representative which insures the insured, to the Department of Insurance,
or upon a court order or an Internal Revenue Service subpoena.
(d) Where a Public Insurance Adjuster is engaged or employed by a Registered
Firm, the records required by this Section may be maintained by such Registered
Firm on behalf of the Public Insurance Adjuster.
(Source: P.A. 84‑335.)
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(215 ILCS 5/512.61) (from Ch. 73, par. 1065.59‑61)
Sec. 512.61.
License suspension, revocation or denial.
(a) Any license issued under this Article may, after notice to the licensee and hearing
as provided by Section 402, be suspended or revoked, and any application
for a license may be denied, if the Director finds that the holder of or
applicant for a license has:
(1) willfully violated any provision of this Code or any rule or regulation
promulgated by the Director; or
(2) intentionally made a material misstatement in an application for a
license as a Public Insurance Adjuster; or
(3) obtained or attempted to obtain a license as a Public Insurance Adjuster
through misrepresentation or fraud; or
(4) misappropriated, converted to his own use or improperly withheld money
due others; or
(5) intentionally misrepresented the terms of any insurance policy; or
(6) used fraudulent, coercive or dishonest practices, or demonstrated
incompetence, untrustworthiness or financial irresponsibility in the transaction
of business as a Public Insurance Adjuster; or
(7) been convicted of a felony, unless the individual demonstrates to
the Director sufficient rehabilitation to warrant the public trust; or
(8) knowingly transacted the business of a Public Insurance Adjuster in
conjunction with an individual who was not licensed at the time; or
(9) failed to appear without reasonable cause or excuse in response to
a subpoena lawfully issued by the Director; or
(10) a license as a Public Insurance Adjuster suspended or revoked or
an application denied in any other state, district, territory or province
on a ground similar to one of the grounds stated in this Section; or
(11) failed to comply with or violated any of the standards set forth
in Section 512.59; or
(12) failed to maintain the records required by Section 512.60; or
(13) engaged in the unauthorized practice of law.
(b) Denial of an application pursuant to this Section shall be by written
notice served upon the applicant by certified or registered mail sent to
the address specified in the application. The applicant may request a hearing
within 30 days from the date of mailing as provided in Section 402.
(c) Upon notification of the issuance of an order suspending or revoking
a Public Insurance Adjuster's license, the licensee or other person having
possession or custody of such license shall promptly deliver it to the Director
in person or by mail. The Director shall publish the name of each Public
Insurance Adjuster whose license is suspended or revoked, after such suspension
or revocation becomes final, in a manner designed to notify interested insurance
companies and other persons.
(d) Any individual whose Public Insurance Adjuster's license is revoked
or whose application is denied pursuant to this Section shall be ineligible
to apply for a Public Insurance Adjuster's license for 2 years. A suspension
pursuant to this Section may be for any period of time up to 2 years.
(Source: P.A. 84‑335; 84‑832.)
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(215 ILCS 5/512.61a) (from Ch. 73, par. 1065.59‑61a)
Sec. 512.61a.
In addition to other grounds specified in this Act, the
Director may refuse to issue or may suspend the license of any person who
has failed to file a return; or to pay the tax, penalty or interest shown
on a filed return; or to pay any final assessment of any tax due to the
Department of Revenue, until such time as the requirements of any such tax
Act are satisfied.
(Source: P.A. 86‑905.)
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(215 ILCS 5/512.62) (from Ch. 73, par. 1065.59‑62)
Sec. 512.62.
Examinations.
(a) The Director shall have the power to
examine any applicant or any person licensed or registered pursuant to this Article.
(b) Every person being examined and its officers, directors and members
must provide to the Director convenient and free access, at all reasonable
hours, to all books, records, documents and other papers relating to its
Public Insurance Adjusting affairs. The officers, directors, members and
employees must facilitate and aid in such examinations so far as it is in
their power to do so.
(c) Examiners may be designated by the Director. Such examiners shall
make their reports to the Director pursuant to this Section. 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 received by the examiners. The report
of examination shall be verified by the examiners.
(d) If a report is made, the Director shall cause the report to be delivered
to the person being examined either in person or by certified or registered
mail to the last known address specified in the records of the Department
of Insurance. The Director must afford the person an opportunity to request
a hearing with reference to the facts and other evidence and allegations
therein contained. The person may request a hearing within 14 calendar
days after receipt of the examination report by giving the Director written
notice of such request, together with a written statement of its objections.
The Director must conduct the hearing in accordance with Sections 402 and
403, and must issue a written order based upon the examination report and
upon the hearing within 90 days after hearing. If the report is refused
or otherwise undeliverable or a hearing is not requested within 14 days,
the right to a hearing shall be deemed waived. After such hearing, if the
examination reveals that the person is operating in violation of any law,
regulation or prior order, the Director in the written order may require
the person to take any action he considers necessary or appropriate in accordance
with the report of examination.
(e) Any person who violates or aids and abets any violation of a written
order issued pursuant to this Section shall be guilty of a business offense
and may be fined not more than $5,000.
(Source: P.A. 83‑1362.)
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(215 ILCS 5/512.63) (from Ch. 73, par. 1065.59‑63)
Sec. 512.63.
Fees.
(a) The fees required by this Article
are as follows:
(1) Public Insurance Adjuster license annual fee, |
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(2) Registration of Firms, $100;
(3) Application Fee for processing each request to
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take the written examination for a Public Adjuster license, $20.
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(Source: P.A. 93‑32, eff. 7‑1‑03.)
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(215 ILCS 5/512.64) (from Ch. 73, par. 1065.59‑64)
Sec. 512.64.
Injunctive Relief.
Any person who acts as
or holds himself out to be a Public Insurance 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 nuisance. The Director may
report such practice to the Attorney General of the State of Illinois, whose
duty it is to apply forthwith by complaint on relation of the Director in
the name of the people of the State of Illinois, as plaintiff, for injunctive
relief in the circuit court of the county where such practice occurred to
enjoin such person from engaging in such practice; and, upon the filing of a
verified petition in such court, the court, if satisfied by affidavit or
otherwise that such person has been engaged in such practice without a valid
and current license to do so, may enter a temporary restraining order without
notice or bond, enjoining the defendant from such further practice.
A copy of the verified complaint shall be served upon the defendant and
the proceedings shall thereafter be conducted as in other civil cases.
If it is established that the defendant has been or is engaged in such
unlawful practice, the court may enter an order or
judgment perpetually enjoining the defendant from further such practice.
In all proceedings hereunder the court, in its discretion, may apportion
the costs among the parties interested in the action, including cost of filing
the complaint, service of process, witness fees and expenses, court reporter
charges and reasonable attorney fees. In case of violation of any
injunctive order entered under the provisions of this Section, the court
may try and punish the offender for contempt of court. Such injunction
proceedings shall be in addition to, and not in lieu of, all penalties and
other remedies.
(Source: P.A. 84‑548.)
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