Bill > HB3771

This bill amends the Illinois Insurance Code to strengthen regulations for public adjusters, who are insurance professionals hired by policyholders to help negotiate insurance claims. The bill removes previous provisions that allowed public adjusters to have financial interests in various aspects of a claim if they provided written disclosure. Now, public adjusters are explicitly prohibited from having any direct or indirect financial interest in any part of a claim beyond their contracted compensation. The legislation requires public adjuster contracts to be comprehensive, including details such as the adjuster's license number, service descriptions, compensation terms, and a mandatory disclosure document explaining the different types of insurance adjusters. The bill also establishes strict ethical guidelines for public adjusters, including prohibitions on soliciting clients during active emergency situations, requirements for full compensation transparency, and mandates that insurance proceeds be primarily delivered to the named insured. These changes aim to protect policyholders by reducing potential conflicts of interest and ensuring more transparent and ethical practices in the insurance claims process.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3771&GAID=18&DocTypeID=HB&SessionID=114&GA=104