Illinois 2025-2026 Regular Session

Illinois House Bill HB3426 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3426 Introduced , by Rep. Brad Stephens SYNOPSIS AS INTRODUCED: 215 ILCS 5/154.6 from Ch. 73, par. 766.6215 ILCS 5/155 from Ch. 73, par. 767215 ILCS 5/397.1 from Ch. 73, par. 1009.1215 ILCS 5/1570215 ILCS 5/1575215 ILCS 5/1590 Amends the Illinois Insurance Code. Increases one of the fees allowed as part of the taxable costs in a specified action to $240,000 (instead of $60,000). Provides that it shall be unlawful for any company transacting insurance business in this State to pay a claim of an insured property owner for loss by fire or explosion to a structure located in this State where the amount recoverable for loss to the structure under a policy exceeds $100,000 (instead of $25,000), until the insurance company receives the required certificate. Sets forth provisions concerning adjustment and settlement of first party property insurance losses based on replacement cost. Requires the insurer to replace items with material of like kind and quality so as to conform to a reasonably uniform appearance, including interior and exterior covered losses, when a covered loss for real property requires the replacement of an item or items and the replacement item or items do not match adjacent items in quality, color, or size. Excludes expenses to be reimbursed to the public adjuster from the 10% cap on a public adjuster's salary, fee, commission, compensation, or consideration. Provides that the policies must be individually underwritten for personal, family, or household use. Provides that expenses to be reimbursed to the public adjuster are not limited to emergency mitigation expenses, and requires expenses to be reimbursed to the public adjuster regardless of whether the expense is covered by the applicable insurance policy. Includes the named insured's public adjuster and the named insured's attorney as designees. LRB104 10651 BAB 20728 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3426 Introduced , by Rep. Brad Stephens SYNOPSIS AS INTRODUCED: 215 ILCS 5/154.6 from Ch. 73, par. 766.6215 ILCS 5/155 from Ch. 73, par. 767215 ILCS 5/397.1 from Ch. 73, par. 1009.1215 ILCS 5/1570215 ILCS 5/1575215 ILCS 5/1590 215 ILCS 5/154.6 from Ch. 73, par. 766.6 215 ILCS 5/155 from Ch. 73, par. 767 215 ILCS 5/397.1 from Ch. 73, par. 1009.1 215 ILCS 5/1570 215 ILCS 5/1575 215 ILCS 5/1590 Amends the Illinois Insurance Code. Increases one of the fees allowed as part of the taxable costs in a specified action to $240,000 (instead of $60,000). Provides that it shall be unlawful for any company transacting insurance business in this State to pay a claim of an insured property owner for loss by fire or explosion to a structure located in this State where the amount recoverable for loss to the structure under a policy exceeds $100,000 (instead of $25,000), until the insurance company receives the required certificate. Sets forth provisions concerning adjustment and settlement of first party property insurance losses based on replacement cost. Requires the insurer to replace items with material of like kind and quality so as to conform to a reasonably uniform appearance, including interior and exterior covered losses, when a covered loss for real property requires the replacement of an item or items and the replacement item or items do not match adjacent items in quality, color, or size. Excludes expenses to be reimbursed to the public adjuster from the 10% cap on a public adjuster's salary, fee, commission, compensation, or consideration. Provides that the policies must be individually underwritten for personal, family, or household use. Provides that expenses to be reimbursed to the public adjuster are not limited to emergency mitigation expenses, and requires expenses to be reimbursed to the public adjuster regardless of whether the expense is covered by the applicable insurance policy. Includes the named insured's public adjuster and the named insured's attorney as designees. LRB104 10651 BAB 20728 b LRB104 10651 BAB 20728 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3426 Introduced , by Rep. Brad Stephens SYNOPSIS AS INTRODUCED:
3	3	215 ILCS 5/154.6 from Ch. 73, par. 766.6215 ILCS 5/155 from Ch. 73, par. 767215 ILCS 5/397.1 from Ch. 73, par. 1009.1215 ILCS 5/1570215 ILCS 5/1575215 ILCS 5/1590 215 ILCS 5/154.6 from Ch. 73, par. 766.6 215 ILCS 5/155 from Ch. 73, par. 767 215 ILCS 5/397.1 from Ch. 73, par. 1009.1 215 ILCS 5/1570 215 ILCS 5/1575 215 ILCS 5/1590
4	4	215 ILCS 5/154.6 from Ch. 73, par. 766.6
5	5	215 ILCS 5/155 from Ch. 73, par. 767
6	6	215 ILCS 5/397.1 from Ch. 73, par. 1009.1
7	7	215 ILCS 5/1570
8	8	215 ILCS 5/1575
9	9	215 ILCS 5/1590
10	10	Amends the Illinois Insurance Code. Increases one of the fees allowed as part of the taxable costs in a specified action to $240,000 (instead of $60,000). Provides that it shall be unlawful for any company transacting insurance business in this State to pay a claim of an insured property owner for loss by fire or explosion to a structure located in this State where the amount recoverable for loss to the structure under a policy exceeds $100,000 (instead of $25,000), until the insurance company receives the required certificate. Sets forth provisions concerning adjustment and settlement of first party property insurance losses based on replacement cost. Requires the insurer to replace items with material of like kind and quality so as to conform to a reasonably uniform appearance, including interior and exterior covered losses, when a covered loss for real property requires the replacement of an item or items and the replacement item or items do not match adjacent items in quality, color, or size. Excludes expenses to be reimbursed to the public adjuster from the 10% cap on a public adjuster's salary, fee, commission, compensation, or consideration. Provides that the policies must be individually underwritten for personal, family, or household use. Provides that expenses to be reimbursed to the public adjuster are not limited to emergency mitigation expenses, and requires expenses to be reimbursed to the public adjuster regardless of whether the expense is covered by the applicable insurance policy. Includes the named insured's public adjuster and the named insured's attorney as designees.
11	11	LRB104 10651 BAB 20728 b LRB104 10651 BAB 20728 b
12	12	LRB104 10651 BAB 20728 b
13	13	A BILL FOR
14	14	HB3426LRB104 10651 BAB 20728 b HB3426 LRB104 10651 BAB 20728 b
15	15	HB3426 LRB104 10651 BAB 20728 b
16	16	1 AN ACT concerning regulation.
17	17	2 Be it enacted by the People of the State of Illinois,
18	18	3 represented in the General Assembly:
19	19	4 Section 5. The Illinois Insurance Code is amended by
20	20	5 changing Sections 154.6, 155, 397.1, 1570, 1575, and 1590 as
21	21	6 follows:
22	22	7 (215 ILCS 5/154.6) (from Ch. 73, par. 766.6)
23	23	8 Sec. 154.6. Acts constituting improper claims practice.
24	24	9 (a) Any of the following acts by a company, if committed
25	25	10 without just cause and in violation of Section 154.5,
26	26	11 constitutes an improper claims practice:
27	27	12 (1) (a) Knowingly misrepresenting to claimants and
28	28	13 insureds relevant facts or policy provisions relating to
29	29	14 coverages at issue;
30	30	15 (2) (b) Failing to acknowledge with reasonable
31	31	16 promptness pertinent communications with respect to claims
32	32	17 arising under its policies;
33	33	18 (3) (c) Failing to adopt and implement reasonable
34	34	19 standards for the prompt investigations and settlement of
35	35	20 claims arising under its policies;
36	36	21 (4) (d) Not attempting in good faith to effectuate
37	37	22 prompt, fair and equitable settlement of claims submitted
38	38	23 in which liability has become reasonably clear;
39	39
40	40
41	41
42	42	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3426 Introduced , by Rep. Brad Stephens SYNOPSIS AS INTRODUCED:
43	43	215 ILCS 5/154.6 from Ch. 73, par. 766.6215 ILCS 5/155 from Ch. 73, par. 767215 ILCS 5/397.1 from Ch. 73, par. 1009.1215 ILCS 5/1570215 ILCS 5/1575215 ILCS 5/1590 215 ILCS 5/154.6 from Ch. 73, par. 766.6 215 ILCS 5/155 from Ch. 73, par. 767 215 ILCS 5/397.1 from Ch. 73, par. 1009.1 215 ILCS 5/1570 215 ILCS 5/1575 215 ILCS 5/1590
44	44	215 ILCS 5/154.6 from Ch. 73, par. 766.6
45	45	215 ILCS 5/155 from Ch. 73, par. 767
46	46	215 ILCS 5/397.1 from Ch. 73, par. 1009.1
47	47	215 ILCS 5/1570
48	48	215 ILCS 5/1575
49	49	215 ILCS 5/1590
50	50	Amends the Illinois Insurance Code. Increases one of the fees allowed as part of the taxable costs in a specified action to $240,000 (instead of $60,000). Provides that it shall be unlawful for any company transacting insurance business in this State to pay a claim of an insured property owner for loss by fire or explosion to a structure located in this State where the amount recoverable for loss to the structure under a policy exceeds $100,000 (instead of $25,000), until the insurance company receives the required certificate. Sets forth provisions concerning adjustment and settlement of first party property insurance losses based on replacement cost. Requires the insurer to replace items with material of like kind and quality so as to conform to a reasonably uniform appearance, including interior and exterior covered losses, when a covered loss for real property requires the replacement of an item or items and the replacement item or items do not match adjacent items in quality, color, or size. Excludes expenses to be reimbursed to the public adjuster from the 10% cap on a public adjuster's salary, fee, commission, compensation, or consideration. Provides that the policies must be individually underwritten for personal, family, or household use. Provides that expenses to be reimbursed to the public adjuster are not limited to emergency mitigation expenses, and requires expenses to be reimbursed to the public adjuster regardless of whether the expense is covered by the applicable insurance policy. Includes the named insured's public adjuster and the named insured's attorney as designees.
51	51	LRB104 10651 BAB 20728 b LRB104 10651 BAB 20728 b
52	52	LRB104 10651 BAB 20728 b
53	53	A BILL FOR
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58	58
59	59	215 ILCS 5/154.6 from Ch. 73, par. 766.6
60	60	215 ILCS 5/155 from Ch. 73, par. 767
61	61	215 ILCS 5/397.1 from Ch. 73, par. 1009.1
62	62	215 ILCS 5/1570
63	63	215 ILCS 5/1575
64	64	215 ILCS 5/1590
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83	83	1 (5) (e) Compelling policyholders to institute suits to
84	84	2 recover amounts due under its policies by offering
85	85	3 substantially less than the amounts ultimately recovered
86	86	4 in suits brought by them;
87	87	5 (6) (f) Engaging in activity which results in a
88	88	6 disproportionate number of meritorious complaints against
89	89	7 the insurer received by the Insurance Department;
90	90	8 (7) (g) Engaging in activity which results in a
91	91	9 disproportionate number of lawsuits to be filed against
92	92	10 the insurer or its insureds by claimants;
93	93	11 (8) (h) Refusing to pay claims without conducting a
94	94	12 reasonable investigation based on all available
95	95	13 information;
96	96	14 (9) (i) Failing to affirm or deny coverage of claims
97	97	15 within a reasonable time after proof of loss statements
98	98	16 have been completed;
99	99	17 (10) (j) Attempting to settle a claim for less than
100	100	18 the amount to which a reasonable person would believe the
101	101	19 claimant was entitled, by reference to written or printed
102	102	20 advertising material accompanying or made part of an
103	103	21 application or establishing unreasonable caps or limits on
104	104	22 paint or materials when estimating vehicle repairs;
105	105	23 (11) (k) Attempting to settle claims on the basis of
106	106	24 an application which was altered without notice to, or
107	107	25 knowledge or consent of, the insured;
108	108	26 (12) (l) Making a claims payment to a policyholder or
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119	119	1 beneficiary omitting the coverage under which each payment
120	120	2 is being made;
121	121	3 (13) (m) Delaying the investigation or payment of
122	122	4 claims by requiring an insured, a claimant, or the
123	123	5 physicians of either to submit a preliminary claim report
124	124	6 and then requiring subsequent submission of formal proof
125	125	7 of loss forms, resulting in the duplication of
126	126	8 verification;
127	127	9 (14) (n) Failing in the case of the denial of a claim
128	128	10 or the offer of a compromise settlement to promptly
129	129	11 provide a reasonable and accurate explanation of the basis
130	130	12 in the insurance policy or applicable law for such denial
131	131	13 or compromise settlement;
132	132	14 (15) (o) Failing to provide forms necessary to present
133	133	15 claims within 15 working days of a request with such
134	134	16 explanations as are necessary to use them effectively;
135	135	17 (16) (p) Failing to adopt and implement reasonable
136	136	18 standards to verify that a repairer designated by the
137	137	19 insurance company to provide an estimate, perform repairs,
138	138	20 or engage in any other service in connection with an
139	139	21 insured loss on a vehicle is duly licensed under Section
140	140	22 5-301 of the Illinois Vehicle Code;
141	141	23 (17) (q) Failing to provide as a persistent tendency a
142	142	24 notification on any written estimate prepared by an
143	143	25 insurance company in connection with an insured loss that
144	144	26 Illinois law requires that vehicle repairers must be
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149	149
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154	154	HB3426 - 4 - LRB104 10651 BAB 20728 b
155	155	1 licensed in accordance with Section 5-301 of the Illinois
156	156	2 Vehicle Code;
157	157	3 (18) (r) Failing to pay the replacement vehicle use or
158	158	4 occupation tax, title, and transfer fees required by
159	159	5 Section 154.9 of this Code;
160	160	6 (19) (s) Engaging in any other acts which are in
161	161	7 substance equivalent to any of the foregoing.
162	162	8 (b) When the policy provides for the adjustment and
163	163	9 settlement of first-party property insurance losses based on
164	164	10 replacement cost and when a loss requires repair or
165	165	11 replacement of an item or part, any consequential physical
166	166	12 damage incurred in making such repair or replacement, not
167	167	13 otherwise excluded by the policy, shall be included in the
168	168	14 loss. The insured shall not be required to pay for betterment
169	169	15 nor any other cost except for the applicable deductible.
170	170	16 (c) When a covered loss for real property requires the
171	171	17 replacement of an item or items and the replacement item or
172	172	18 items do not match adjacent items in quality, color, or size,
173	173	19 the insurer shall replace the items with material of like kind
174	174	20 and quality so as to conform to a reasonably uniform
175	175	21 appearance. This provision applies to interior and exterior
176	176	22 covered losses.
177	177	23 (Source: P.A. 102-69, eff. 7-1-22.)
178	178	24 (215 ILCS 5/155) (from Ch. 73, par. 767)
179	179	25 Sec. 155. Attorney fees.
180	180
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190	190	1 (1) In any action by or against a company wherein there is
191	191	2 in issue the liability of a company on a policy or policies of
192	192	3 insurance or the amount of the loss payable thereunder, or for
193	193	4 an unreasonable delay in settling a claim, and it appears to
194	194	5 the court that such action or delay is vexatious and
195	195	6 unreasonable, the court may allow as part of the taxable costs
196	196	7 in the action reasonable attorney fees, other costs, plus an
197	197	8 amount not to exceed any one of the following amounts:
198	198	9 (a) 60% of the amount which the court or jury finds
199	199	10 such party is entitled to recover against the company,
200	200	11 exclusive of all costs;
201	201	12 (b) $240,000 $60,000; or
202	202	13 (c) the excess of the amount which the court or jury
203	203	14 finds such party is entitled to recover, exclusive of
204	204	15 costs, over the amount, if any, which the company offered
205	205	16 to pay in settlement of the claim prior to the action.
206	206	17 (2) Where there are several policies insuring the same
207	207	18 insured against the same loss whether issued by the same or by
208	208	19 different companies, the court may fix the amount of the
209	209	20 allowance so that the total attorney fees on account of one
210	210	21 loss shall not be increased by reason of the fact that the
211	211	22 insured brings separate suits on such policies.
212	212	23 (Source: P.A. 93-485, eff. 1-1-04.)
213	213	24 (215 ILCS 5/397.1) (from Ch. 73, par. 1009.1)
214	214	25 Sec. 397.1. Certificate regarding payment of taxes and
215	215
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219	219
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224	224	HB3426 - 6 - LRB104 10651 BAB 20728 b
225	225	1 expenses on property sustaining loss.
226	226	2 (a) It shall be unlawful for any company transacting
227	227	3 insurance business in this State to pay a claim of an insured
228	228	4 property owner for loss by fire or explosion to a structure
229	229	5 located in this State where the amount recoverable for loss to
230	230	6 the structure under a policy exceeds $100,000 $25,000, until
231	231	7 the insurance company receives the certificate required by
232	232	8 this Section. A notice, to the State's Attorney of the county
233	233	9 where the structure is located, of the insurers intent to pay a
234	234	10 claim shall include the name of the property owner, the
235	235	11 address of the property, its legal description, the permanent
236	236	12 real estate index number that identifies the property for
237	237	13 purposes of taxation, and the amount of the claim to be paid.
238	238	14 (b) For purposes of this Section, the following
239	239	15 definitions are applicable:
240	240	16 (1) "Insured property owner" is a person named as an
241	241	17 insured who is the owner, title-holder or mortgagee of a
242	242	18 structure, the holder of an interest secured by the
243	243	19 structure, the beneficiary of a land trust owning or
244	244	20 holding title to a structure, the lessee of a structure
245	245	21 with a contractual obligation for property taxes, or the
246	246	22 assignee of any such person.
247	247	23 (2) "Amount recoverable" is the dollar amount payable
248	248	24 under all insurance policies for loss to the structure.
249	249	25 (3) "Proceeds" is the dollar amount payable for loss
250	250	26 to the structure under an insurance policy.
251	251
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261	261	1 (4) "Delinquent property taxes" are those property
262	262	2 taxes on the property which are delinquent pursuant to
263	263	3 Section 21-15, 21-20, or 21-25 of the Property Tax Code,
264	264	4 including those delinquent taxes on property forfeited
265	265	5 under Section 21-225 of the Property Tax Code, as of the
266	266	6 date of loss.
267	267	7 In determining delinquent property taxes under this
268	268	8 Section, the amount of property taxes for which a
269	269	9 certificate of error has been issued pursuant to Section
270	270	10 14-10 or 14-20 of the Property Tax Code shall not be
271	271	11 considered delinquent.
272	272	12 (5) "Incurred demolition expense" is: a. the cost of
273	273	13 demolishing or removing a structure from property by or at
274	274	14 the expense of a unit of local government if the
275	275	15 demolition or removal occurs on a date preceding the later
276	276	16 of (i) the acceptance by the insurance company of a Proof
277	277	17 of Loss for an agreed amount of proceeds, or (ii) the date
278	278	18 of receipt by the unit of local government of a request for
279	279	19 execution of the certificate required by this Section; or
280	280	20 b. the amount estimated by the unit of local government
281	281	21 when it receives a request to execute the certificate
282	282	22 required by this Section; or c. the amount ordered to be
283	283	23 withheld by a court within 28 days after a unit of local
284	284	24 government receives a request for execution of the
285	285	25 certificate required by this Section. The unit of local
286	286	26 government must be a party to such proceeding.
287	287
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297	297	1 Incurred demolition expense shall be determined under
298	298	2 subparagraph a. whenever possible. In determining the
299	299	3 incurred demolition expense under subparagraph b., the
300	300	4 unit of local government shall make its estimate and
301	301	5 execute the certificate within 30 days after receiving a
302	302	6 request for execution. If the unit of local government
303	303	7 shall fail within 30 days to execute the certificate, as
304	304	8 required by subparagraph a., the company can proceed to
305	305	9 make payment of the claim as if the certificate had been
306	306	10 received showing no unpaid demolition costs. The request
307	307	11 for execution may be served personally, and may be proven
308	308	12 by a written receipt signed by the local official as of the
309	309	13 date the request was made or by service on the local
310	310	14 official by certified mail, return receipt requested. A
311	311	15 court order under subparagraph c. shall supersede an
312	312	16 estimate under subparagraph b.
313	313	17 (6) "Property" is the lot on which the structure is
314	314	18 located.
315	315	19 (7) "Structure" is a building.
316	316	20 (8) "Claim" is the demand by an insured for payment
317	317	21 under an insurance policy or policies.
318	318	22 (9) "Proof of Loss" is the document on which an
319	319	23 insured formally presents his claim to an insurance
320	320	24 company.
321	321	25 (10) "Certificate" is the executed form prescribed by
322	322	26 the Director of Insurance.
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333	333	1 (11) "Executed" means signed by the appropriate
334	334	2 official or unit of government.
335	335	3 (c) For any claim to which this Section is applicable, an
336	336	4 insured property owner must submit one of the following to the
337	337	5 insurance company:
338	338	6 (1) a certificate that with respect to the property
339	339	7 there are:
340	340	8 a. no delinquent property taxes, and
341	341	9 b. no unpaid incurred demolition expenses;
342	342	10 (2) a certificate setting forth with respect to the
343	343	11 property:
344	344	12 a. the amount of unpaid delinquent property taxes,
345	345	13 b. the amount of unpaid incurred demolition
346	346	14 expense, and
347	347	15 c. a direction by an insured property owner to the
348	348	16 insurance company to pay the unpaid delinquent
349	349	17 property taxes and unpaid incurred demolition
350	350	18 expenses.
351	351	19 (d) (1) Except as provided in paragraph (2) of this
352	352	20 subsection (d), if a certificate is submitted pursuant to
353	353	21 paragraph (2) of subsection (c) of this Section, the
354	354	22 insurance company shall pay the unpaid delinquent property
355	355	23 taxes and unpaid incurred demolition expense from the
356	356	24 proceeds payable by issuing a draft or check payable to
357	357	25 the appropriate tax collector or unit of local government.
358	358	26 Any proceeds remaining shall be paid to the insured
359	359
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369	369	1 property owner.
370	370	2 (2) In the event incurred demolition expense is
371	371	3 determined by estimation under paragraph (5) of subsection
372	372	4 (b) of this Section in cities of over 2,000,000, the
373	373	5 insurance company shall hold the amount estimated until an
374	374	6 amended certificate executed by the appropriate local
375	375	7 government official is submitted stating (i) that no
376	376	8 demolition expense will be incurred or (ii) the actual
377	377	9 unpaid incurred demolition expense. The insurance company
378	378	10 shall then issue a draft or check payable to the unit of
379	379	11 local government for the actual unpaid incurred demolition
380	380	12 expense. Any proceeds remaining shall be paid to the
381	381	13 insured property owner.
382	382	14 In determining the amount of proceeds remaining under
383	383	15 this paragraph, the insured property owner shall receive
384	384	16 interest on the amount withheld from the date the
385	385	17 certificate is executed as provided in Section 2 of the
386	386	18 Interest Act.
387	387	19 (e) If, under this Section, the proceeds payable are less
388	388	20 than the amount of the unpaid delinquent property taxes and
389	389	21 unpaid incurred demolition expense, unpaid property taxes
390	390	22 shall be paid first.
391	391	23 (f) If incurred demolition expense withheld pursuant to
392	392	24 subparagraphs b. or c. of paragraph 5 of subsection (b) of this
393	393	25 Section exceeds the ultimate cost of demolition, the excess
394	394	26 shall first be applied to unpaid delinquent property taxes.
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405	405	1 Any amount of proceeds remaining shall be paid to the insured
406	406	2 property owner.
407	407	3 (g) Nothing in this Section shall be construed as:
408	408	4 (1) making an insurance company liable for any amount
409	409	5 in excess of the proceeds payable under its insurance
410	410	6 policy unless the insurance company shall have made
411	411	7 payment to the named insured without satisfying the
412	412	8 requirements of this Section;
413	413	9 (2) making a unit of local government or tax collector
414	414	10 an insured under an insurance policy; or
415	415	11 (3) creating an obligation for an insurance company to
416	416	12 pay unpaid delinquent property taxes or unpaid incurred
417	417	13 demolition expense other than as provided in subsection
418	418	14 (d) of this Section.
419	419	15 (h) An insurance company making a payment of proceeds
420	420	16 under this Section for unpaid delinquent taxes or unpaid
421	421	17 incurred demolition expense shall be entitled to the full
422	422	18 benefit of such payment, including subrogation rights and
423	423	19 other rights of assignment.
424	424	20 (i) Unpaid property taxes and unpaid incurred demolition
425	425	21 expense for a claim for loss to a structure occurring after the
426	426	22 issuance of a tax deed pursuant to Section 22-40 of the
427	427	23 Property Tax Code shall not include any unpaid property tax or
428	428	24 unpaid demolition expense arising before the issuance of the
429	429	25 tax deed.
430	430	26 (j) The county collector shall be designated as the local
431	431
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441	441	1 official who shall execute the certificate required by this
442	442	2 Section regarding delinquent property taxes. The village clerk
443	443	3 or city clerk in incorporated areas and the official in charge
444	444	4 of the county building department in unincorporated areas
445	445	5 shall be designated as the local official who shall execute
446	446	6 the certificate required by this Section regarding demolition
447	447	7 expenses.
448	448	8 (k) A fee not to exceed $5 may be charged by a unit of
449	449	9 local government for execution of the certificate required by
450	450	10 this Section.
451	451	11 (l) This Section shall retroactively apply to any policy
452	452	12 issued or renewed on or after January 1, 1978 for which a claim
453	453	13 subject to this Section remains unpaid as of the effective
454	454	14 date of this amendatory Act of 1978.
455	455	15 (Source: P.A. 87-507; 88-667, eff. 9-16-94; 88-670, eff.
456	456	16 12-2-94.)
457	457	17 (215 ILCS 5/1570)
458	458	18 Sec. 1570. Public adjuster fees.
459	459	19 (a) A public adjuster shall not pay a commission, service
460	460	20 fee, or other valuable consideration to a person for
461	461	21 investigating or settling claims in this State if that person
462	462	22 is required to be licensed under this Article and is not so
463	463	23 licensed.
464	464	24 (b) A person shall not accept a commission, service fee,
465	465	25 or other valuable consideration for investigating or settling
466	466
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476	476	1 claims in this State if that person is required to be licensed
477	477	2 under this Article and is not so licensed.
478	478	3 (c) A public adjuster may pay or assign commission,
479	479	4 service fees, or other valuable consideration to persons who
480	480	5 do not investigate or settle claims in this State, unless the
481	481	6 payment would violate State law.
482	482	7 (d) If the loss giving rise to the claim for which the
483	483	8 public adjuster was retained arises from damage to property
484	484	9 that is anything but a personal residence, a public adjuster
485	485	10 may not charge, agree to, or accept any compensation, payment,
486	486	11 commission, fee, or other valuable consideration in excess of
487	487	12 10% of the amount of the insurance settlement claim paid by the
488	488	13 insurer on any claim resulting from a catastrophic event,
489	489	14 unless approved in writing by the Director. Application for
490	490	15 exception to the 10% limit must be made in writing. The request
491	491	16 must contain specific reasons as to why the consideration
492	492	17 should be in excess of 10% and proof that the policyholder
493	493	18 would accept the consideration. The Director must act on any
494	494	19 request within 5 business days after receipt of the request.
495	495	20 For the purpose of this subsection (d), "catastrophic
496	496	21 event" means an occurrence of widespread or severe damage or
497	497	22 loss of property producing an overwhelming demand on State and
498	498	23 local response resources and mechanisms and a severe long-term
499	499	24 effect on general economic activity, and that severely affects
500	500	25 State, local, and private sector capabilities to begin to
501	501	26 sustain response activities resulting from any catastrophic
502	502
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512	512	1 cause, including, but not limited to, fire, including arson
513	513	2 (provided the fire was not caused by the willful action of an
514	514	3 owner or resident of the property), flood, earthquake, wind,
515	515	4 storm, explosion, or extended periods of severe inclement
516	516	5 weather as determined by declaration of a State of disaster by
517	517	6 the Governor. This declaration may be made on a
518	518	7 county-by-county basis and shall be in effect for 90 days, but
519	519	8 may be renewed for 30-day intervals thereafter.
520	520	9 (e) If the loss giving rise to the claim for which the
521	521	10 public adjuster was retained arises from damage to a personal
522	522	11 residence, a public adjuster may not charge, agree to, or
523	523	12 accept any compensation, payment, commission, fee, or other
524	524	13 valuable consideration in excess of 10% of the amount of the
525	525	14 insurance settlement claim paid by the insurer on any claim.
526	526	15 Expenses to be reimbursed to the public adjuster are not
527	527	16 subject to the 10% cap on a public adjuster's salary, fee,
528	528	17 commission, compensation, or consideration. The policies must
529	529	18 be individually underwritten for personal, family, or
530	530	19 household use. No other type of insurance shall be considered
531	531	20 personal insurance. As used in this subsection, "personal
532	532	21 residence" means a residence insured under homeowners and
533	533	22 non-commercial dwelling fire insurance policies.
534	534	23 (Source: P.A. 103-216, eff. 1-1-24.)
535	535	24 (215 ILCS 5/1575)
536	536	25 Sec. 1575. Contract between public adjuster and insured.
537	537
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540	540
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547	547	1 (a) Public adjusters shall ensure that all contracts for
548	548	2 their services are in writing and contain the following terms:
549	549	3 (1) legible full name of the adjuster signing the
550	550	4 contract, as specified in Department records;
551	551	5 (2) permanent home state business address, email
552	552	6 address, and phone number;
553	553	7 (3) license number;
554	554	8 (4) title of "Public Adjuster Contract";
555	555	9 (5) the insured's full name, street address, insurance
556	556	10 company name, and policy number, if known or upon
557	557	11 notification;
558	558	12 (6) a description of the loss and its location;
559	559	13 (7) description of services to be provided to the
560	560	14 insured;
561	561	15 (8) signatures of the public adjuster and the insured;
562	562	16 (9) date and time the contract was signed by the
563	563	17 public adjuster and date and time the contract was signed
564	564	18 by the insured;
565	565	19 (10) attestation language stating that the public
566	566	20 adjuster is fully bonded pursuant to State law; and
567	567	21 (11) full salary, fee, commission, compensation, or
568	568	22 other considerations the public adjuster is to receive for
569	569	23 services, including any applicable cap under Section 1570.
570	570	24 (b) The contract may specify that the public adjuster
571	571	25 shall be named as a co-payee on an insurer's payment of a
572	572	26 claim.
573	573
574	574
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576	576
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583	583	1 (1) If the compensation is based on a share of the
584	584	2 insurance settlement, the exact percentage shall be
585	585	3 specified.
586	586	4 (2) Initial expenses to be reimbursed to the public
587	587	5 adjuster from the proceeds of the claim payment shall be
588	588	6 specified by type, with dollar estimates set forth in the
589	589	7 contract and with any additional expenses first approved
590	590	8 by the insured. Expenses to be reimbursed to the public
591	591	9 adjuster are not limited to emergency mitigation expenses.
592	592	10 Expenses shall be reimbursed to the public adjuster
593	593	11 regardless of whether the expense is covered by the
594	594	12 applicable insurance policy.
595	595	13 (3) Compensation provisions in a public adjuster
596	596	14 contract shall not be redacted in any copy of the contract
597	597	15 provided to the Director.
598	598	16 (c) If the insurer, not later than 5 business days after
599	599	17 the date on which the loss is reported to the insurer, either
600	600	18 pays or commits in writing to pay to the insured the policy
601	601	19 limit of the insurance policy, the public adjuster shall:
602	602	20 (1) not receive a commission consisting of a
603	603	21 percentage of the total amount paid by an insurer to
604	604	22 resolve a claim;
605	605	23 (2) inform the insured that loss recovery amount might
606	606	24 not be increased by insurer; and
607	607	25 (3) be entitled only to reasonable compensation from
608	608	26 the insured for services provided by the public adjuster
609	609
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611	611
612	612
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619	619	1 on behalf of the insured, based on the time spent on a
620	620	2 claim and expenses incurred by the public adjuster, until
621	621	3 the claim is paid or the insured receives a written
622	622	4 commitment to pay from the insurer.
623	623	5 (d) A public adjuster shall provide the insured a written
624	624	6 disclosure concerning any direct or indirect financial
625	625	7 interest that the public adjuster has with any other party who
626	626	8 is involved in any aspect of the claim, other than the salary,
627	627	9 fee, commission, or other consideration established in the
628	628	10 written contract with the insured, including, but not limited
629	629	11 to, any ownership of or any compensation expected to be
630	630	12 received from, any construction firm, salvage firm, building
631	631	13 appraisal firm, board-up company, or any other firm that
632	632	14 provides estimates for work, or that performs any work, in
633	633	15 conjunction with damages caused by the insured loss on which
634	634	16 the public adjuster is engaged. The word "firm" shall include
635	635	17 any corporation, partnership, association, joint-stock
636	636	18 company, or person.
637	637	19 (e) A public adjuster contract may not contain any
638	638	20 contract term that:
639	639	21 (1) allows the public adjuster's percentage fee to be
640	640	22 collected when money is due from an insurance company, but
641	641	23 not paid, or that allows a public adjuster to collect the
642	642	24 entire fee from the first check issued by an insurance
643	643	25 company, rather than as a percentage of each check issued
644	644	26 by an insurance company;
645	645
646	646
647	647
648	648
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655	655	1 (2) requires the insured to authorize an insurance
656	656	2 company to issue a check only in the name of the public
657	657	3 adjuster;
658	658	4 (3) precludes a public adjuster or an insured from
659	659	5 pursuing civil remedies;
660	660	6 (4) includes any hold harmless agreement that provides
661	661	7 indemnification to the public adjuster by the insured for
662	662	8 liability resulting from the public adjuster's negligence;
663	663	9 or
664	664	10 (5) provides power of attorney by which the public
665	665	11 adjuster can act in the place and instead of the insured.
666	666	12 (f) The following provisions apply to a contract between a
667	667	13 public adjuster and an insured:
668	668	14 (1) Prior to the signing of the contract, the public
669	669	15 adjuster shall provide the insured with a separate signed
670	670	16 and dated disclosure document regarding the claim process
671	671	17 that states:
672	672	18 "Property insurance policies obligate the insured to
673	673	19 present a claim to his or her insurance company for
674	674	20 consideration. There are 3 types of adjusters that could
675	675	21 be involved in that process. The definitions of the 3
676	676	22 types are as follows:
677	677	23 (A) "Company adjuster" means the insurance
678	678	24 adjusters who are employees of an insurance company.
679	679	25 They represent the interest of the insurance company
680	680	26 and are paid by the insurance company. They will not
681	681
682	682
683	683
684	684
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691	691	1 charge you a fee.
692	692	2 (B) "Independent adjuster" means the insurance
693	693	3 adjusters who are hired on a contract basis by an
694	694	4 insurance company to represent the insurance company's
695	695	5 interest in the settlement of the claim. They are paid
696	696	6 by your insurance company. They will not charge you a
697	697	7 fee.
698	698	8 (C) "Public adjuster" means the insurance
699	699	9 adjusters who do not work for any insurance company.
700	700	10 They represent the insured to assist in the
701	701	11 preparation, presentation and settlement of the claim.
702	702	12 The insured hires them by signing a contract agreeing
703	703	13 to pay them a fee or commission based on a percentage
704	704	14 of the settlement, or other method of compensation.".
705	705	15 (2) The insured is not required to hire a public
706	706	16 adjuster to help the insured meet his or her obligations
707	707	17 under the policy, but has the right to do so.
708	708	18 (3) The public adjuster is not a representative or
709	709	19 employee of the insurer or the Department of Insurance.
710	710	20 (4) The salary, fee, commission, or other
711	711	21 consideration is the obligation of the insured, not the
712	712	22 insurer, except when rights have been assigned to the
713	713	23 public adjuster by the insured.
714	714	24 (g) The contracts shall be executed in duplicate to
715	715	25 provide an original contract to the public adjuster, and an
716	716	26 original contract to the insured. The public adjuster's
717	717
718	718
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727	727	1 original contract shall be available at all times for
728	728	2 inspection without notice by the Director.
729	729	3 (h) The public adjuster shall provide the insurer or its
730	730	4 authorized representative for receiving notice of loss or
731	731	5 damage with an exact copy of the contract with the insured by
732	732	6 email no later than 5 business days after execution of the
733	733	7 contract, authorizing the public adjuster to represent the
734	734	8 insured's interest.
735	735	9 (i) The public adjuster shall give the insured written
736	736	10 notice of the insured's rights as a consumer under the law of
737	737	11 this State.
738	738	12 (j) A public adjuster shall not provide services, other
739	739	13 than emergency services, until a written contract with the
740	740	14 insured has been executed, on a form filed with and approved by
741	741	15 the Director, and an exact copy of the contract has been
742	742	16 provided to the insurer in accordance with subsection (h). At
743	743	17 the option of the insured, any such contract shall be voidable
744	744	18 for 5 business days after the contract is received by the
745	745	19 insurer. The insured may void the contract by notifying the
746	746	20 public adjuster in writing by (i) registered or certified
747	747	21 mail, return receipt requested, to the address shown on the
748	748	22 contract, (ii) personally serving the notice on the public
749	749	23 adjuster, or (iii) sending an email to the email address shown
750	750	24 on the contract.
751	751	25 (k) If the insured exercises the right to rescind the
752	752	26 contract, anything of value given by the insured under the
753	753
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763	763	1 contract will be returned to the insured within 15 business
764	764	2 days following the receipt by the public adjuster of the
765	765	3 cancellation notice.
766	766	4 (l) All contracts entered into that are in violation of
767	767	5 this Section are void and invalid.
768	768	6 (Source: P.A. 103-216, eff. 1-1-24.)
769	769	7 (215 ILCS 5/1590)
770	770	8 Sec. 1590. Standards of conduct of public adjuster.
771	771	9 (a) A public adjuster is obligated, under his or her
772	772	10 license, to serve with objectivity and complete loyalty for
773	773	11 the interests of his client alone, and to render to the insured
774	774	12 such information, counsel, and service, as within the
775	775	13 knowledge, understanding, and opinion in good faith of the
776	776	14 licensee, as will best serve the insured's insurance claim
777	777	15 needs and interest.
778	778	16 (b) A public adjuster may not propose or attempt to
779	779	17 propose to any person that the public adjuster represent that
780	780	18 person while a loss-producing occurrence is continuing, nor
781	781	19 while the fire department or its representatives are engaged
782	782	20 at the damaged premises, nor between the hours of 7:00 p.m. and
783	783	21 8:00 a.m.
784	784	22 (c) A public adjuster shall not permit an unlicensed
785	785	23 employee or representative of the public adjuster to conduct
786	786	24 business for which a license is required under this Article.
787	787	25 (d) A public adjuster shall not have a direct or indirect
788	788
789	789
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798	798	1 financial interest in any aspect of the claim, other than the
799	799	2 salary, fee, commission, or other consideration established in
800	800	3 the written contract with the insured, unless full written
801	801	4 disclosure has been made to the insured as set forth in
802	802	5 subsection (d) of Section 1575.
803	803	6 (e) A public adjuster shall not acquire any interest in
804	804	7 the salvage of property subject to the contract with the
805	805	8 insured unless the public adjuster obtains written permission
806	806	9 from the insured after settlement of the claim with the
807	807	10 insurer as set forth in subsection (d) of Section 1575 of this
808	808	11 Article.
809	809	12 (f) The public adjuster shall abstain from referring or
810	810	13 directing the insured to get needed repairs or services in
811	811	14 connection with a loss from any person, unless disclosed to
812	812	15 the insured:
813	813	16 (1) with whom the public adjuster has a direct or
814	814	17 indirect financial interest; or
815	815	18 (2) from whom the public adjuster may receive direct
816	816	19 or indirect compensation for the referral.
817	817	20 (g) The public adjuster shall disclose to an insured if he
818	818	21 or she has any interest or will be compensated by any
819	819	22 construction firm, salvage firm, building appraisal firm,
820	820	23 board-up company, or any other firm that performs any work in
821	821	24 conjunction with damages caused by the insured loss. The word
822	822	25 "firm" shall include any corporation, partnership,
823	823	26 association, joint-stock company or individual as set forth in
824	824
825	825
826	826
827	827
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834	834	1 Section 1575 of this Article.
835	835	2 (h) Any compensation or anything of value in connection
836	836	3 with an insured's specific loss that will be received by a
837	837	4 public adjuster shall be disclosed by the public adjuster to
838	838	5 the insured in writing including the source and amount of any
839	839	6 such compensation.
840	840	7 (i) In all cases where the loss giving rise to the claim
841	841	8 for which the public adjuster was retained arise from damage
842	842	9 to a personal residence, the insurance proceeds shall be
843	843	10 delivered to the named insured or his or her designee,
844	844	11 including the named insured's public adjuster and the named
845	845	12 insured's attorney. Where proceeds paid by an insurance
846	846	13 company are paid jointly to the insured and the public
847	847	14 adjuster, the insured shall release such portion of the
848	848	15 proceeds that are due the public adjuster within 30 calendar
849	849	16 days after the insured's receipt of the insurance company's
850	850	17 check, money order, draft, or release of funds. If the
851	851	18 proceeds are not so released to the public adjuster within 30
852	852	19 calendar days, the insured shall provide the public adjuster
853	853	20 with a written explanation of the reason for the delay.
854	854	21 (j) Public adjusters shall adhere to the following general
855	855	22 ethical requirements:
856	856	23 (1) a public adjuster shall not undertake the
857	857	24 adjustment of any claim if the public adjuster is not
858	858	25 competent and knowledgeable as to the terms and conditions
859	859	26 of the insurance coverage, or which otherwise exceeds the
860	860
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870	870	1 public adjuster's current expertise;
871	871	2 (2) a public adjuster shall not knowingly make any
872	872	3 oral or written material misrepresentations or statements
873	873	4 which are false or maliciously critical and intended to
874	874	5 injure any person engaged in the business of insurance to
875	875	6 any insured client or potential insured client;
876	876	7 (3) no public adjuster, while so licensed by the
877	877	8 Department, may represent or act as a company adjuster or
878	878	9 independent adjuster on the same claim;
879	879	10 (4) the contract shall not be construed to prevent an
880	880	11 insured from pursuing any civil remedy after the
881	881	12 5-business day revocation or cancellation period;
882	882	13 (5) a public adjuster shall not enter into a contract
883	883	14 or accept a power of attorney that vests in the public
884	884	15 adjuster the effective authority to choose the persons who
885	885	16 shall perform repair work;
886	886	17 (6) a public adjuster shall ensure that all contracts
887	887	18 for the public adjuster's services are in writing and set
888	888	19 forth all terms and conditions of the engagement; and
889	889	20 (7) a public adjuster shall not advance money or any
890	890	21 valuable consideration, except emergency services to an
891	891	22 insured pending adjustment of a claim.
892	892	23 (k) A public adjuster may not agree to any loss settlement
893	893	24 without the insured's knowledge and consent and shall, upon
894	894	25 the insured's request, provide the insured with a document
895	895	26 setting forth the scope, amount, and value of the damages
896	896
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