All Licensed Public Adjusters and Property Casualty Insurance Companies : Public Adjuster Practices

Illinois Department of Insurance BRUCE RAUNER Governor JENNIFER HAMMER Director TO: All Licensed Public Adjusters and Property Casualt Insurance Companies FROM: Jennifer Hammer, Director of Insuran DATE: August 29, 2018 Bulletin 2018-06 RE: Public Adjuster Practices This shall serve as a reminder to all Public Adjusters of their duties under Article 45 of the Illinois Insurance Code. (215 ILCS 5/1501 et seq.). It has come to our attention that some Public Adjusters may not be following all requirements set forth by Illinois insurance laws and this may be adversely impacting Illinois consumers who are unaware of their rights. This bulletin is intended to serve as a reminder to Public Adjusters operating in Illinois that fraudulent, coercive, or dishonest practices may be investigated. Committing insurance fraud or violating unfair insurance trade practice regulations are grounds for the Director to take action, which may include the probation, suspension, or revocation oflicense. (215 ILCS 5/1555). • Prior to the execution of a Public Adjuster Contract an exact copy of the contract must be filed with and approved by the Department oflnsurance. (215 ILCS 5/15750)). • Prior to the execution of a Public Adjuster Contract a separate signed and dated disclosure document must be provided to the consumer regarding the claim process. (215 ILCS 5/1575(f)(l)). • The Public Adjuster must provide an original contract to the insured at the time it is executed. (215 ILCS 5/1575(g)). In addition, a consumer has a right to void any Public Adjuster Contract within 5 business days of execution. The Department believes this is a valuable consumer protection, which needs to be clearly explained to the consumer when the Public Adjuster Contract is executed (l)). • The Public Adjuster must provide an original contract to the insured at the time it is executed. (215 ILCS 5/1575(g)). In addition, a consumer has a right to void any Public Adjuster Contract within 5 business days of execution. The Department believes this is a valuable consumer protection, which needs to be clearly explained to the consumer when the Public Adjuster Contract is executed. Calculation of"business days," as it involves an act to be performed pursuant to the statute (i.e., the mailing of a notice under 215 ILCS 5/1575), will be done using the method set forth in the Statute on Statutes (5 ILCS 70/1.11) excluding the date the contract is executed and also any weekend and holidays. Notification can be made in writing by either certified or registered mail, return receipt requested, to the address shown on the contract, or by personally serving notice on the Public Adjuster. In the case of mailing, if proper notice is sent on or before the fifth business day after execution of the Public Adjuster Contract, the contract will be deemed void. Notice will be considered served if it is personally delivered to the Public Adjuster or their agent, or delivered to the address shown in the contract as the place of business. 320 W. Washington Street Springfield, Illinois 62767 (217) 782-4515 http://insurance.illinois.gov Public Adjusters are also required to abstain from referring or directing a consumer to get repairs or services in connection from the loss from any person unless proper advance disclosure has been provided of any financial interest, including both direct and indirect compensation, that they may receive from any firm that performs work in conjunction with the damages. (215 ILCS 5/1590; see also Title 50 of the Illinois Administrative Code, Sections 3118.85 and 3118.95). The Department recommends all Public Adjusters use the attached pre-approved template when entering into a contract with the insured for adjusting a claim for loss or damages on behalf of the insured ion, that they may receive from any firm that performs work in conjunction with the damages. (215 ILCS 5/1590; see also Title 50 of the Illinois Administrative Code, Sections 3118.85 and 3118.95). The Department recommends all Public Adjusters use the attached pre-approved template when entering into a contract with the insured for adjusting a claim for loss or damages on behalf of the insured. As an alternative, Public Adjusters may file a contract pursuant to 215 ILCS 5/157 5 for the Department's review and approval. If you have questions, please submit them to this email address: DOI.InfoDesk@illinois.gov. 320 West Washington St. Springfield, Illinois 62767-0001 /?17\ 7A?..A1;1,;