Terminating a public adjuster contract in the state of Illinois is a legally binding process that requires certified mail within ten business days of signing the contract. The contract outlines the duties and responsibilities of a public adjuster, as well as the insurance laws and regulations of the state. In addition, the public adjuster may request an exemption from any examination requirement, fine, or other sanction imposed for failure to comply with renewal procedures. The original contract must be available for inspection at all times without notice from the Director. If the insured decides to terminate the contract, the entire value given by the insured must be returned within 15 business days of receiving notice of cancellation.
The consideration is the obligation of the insured, not of the insurer, unless the rights have been assigned to the public adjuster. A fine of twice the unpaid renewal fee will be required for issuance of a new public appraiser license. The guidelines and rules for public adjusters are set out in the Illinois Statue and in the administrative code of the Illinois insurance department. The public appraiser must complete a course before renewal date in order for educational provider to report credit to the Department. The Director may verify status of public appraiser's license through producer database maintained by NAIC, its affiliates or subsidiaries. An exemption is only available if (i) person currently has license in that state or if application is received within 12 months after cancellation of previous license; and (ii) previous state issues certification that, at time of cancellation, applicant was in good standing in that state or records maintained by NAIC, its affiliates or subsidiaries indicate public appraiser has or was licensed in good standing. Any other reference material needed to complete an exam to obtain insurance license or public appraiser's license must be provided.
A public appraiser cannot accept any settlement of losses without knowledge and consent of insured and must provide document stating extent, amount and value of damages before insured requests authorization to settle loss. Public appraisers can negotiate, estimate and resolve insurance claims after fire or flood but may not practice law. Violations of public adjuster rules should be immediately referred to Illinois Department of Insurance. The contract may specify that public adjuster will be named as co-beneficiary in payment of claim by insurer.
