Are you interested in shaping the legislative landscape within your region? Embrace the opportunity to serve on the NAIIA legislative committee! Your perspective and expertise can make a real difference. Contact NAIIA Executive Director Sheri Csom for more details about serving on the committee and upcoming events. You can also view other members serving on the committee in your region at https://naiia.com/naiia-committees/
From our very own Regional Legislative Chair, Christopher M. Davis, CPCU, AIC, HCI-C:
ILLINOIS UPDATES PUBLIC ADJUSTER REGULATIONS
During the 103rd general assembly, Illinois legislators enacted Public Act 103-0216 which brings the states’ public adjuster regulations in line with many other states and the National Association of Insurance Commissioners model act for the regulation of public adjusters. The act provides important protections for policyholders by:
- Limiting public adjuster fees to 10% of the claim when in the past fees much higher were sometimes seen,
- Allowing contracts to be cancelled within 5 days of the contract being received by the insurer rather than 5 days after the contract was signed,
- Allowing contacts to be cancelled via email,
- Prohibiting a public adjuster charging a lower fee if the insured uses a preferred contractor,
- Requiring that the public adjuster disclose any financial interest they may have in a contractor firm, and
- Requiring that the public adjuster serve with objectivity and complete loyalty for the interest of their client alone.
From my perspective in Indiana, public adjusters in The Land of Lincoln have frequently put the interests of contractors ahead of the interests of their clients. Time will tell whether this law will help to put policyholders first and curb the worst abuses by public adjusters. The Illinois Department of Insurance provides additional information about the law which you can read about here.
Thank you to Chris for this update!
Questions? Reach out to Chris Davis, CPCU, AIC (Davis Claims Service) via phone at (812) 239-4295 or email to chris@davis.claims.
