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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB4287

Introduced 1/14/2026, by Rep. Dagmara Avelar

SYNOPSIS AS INTRODUCED:

215 ILCS 5/1510
215 ILCS 5/1575

Amends the Illinois Insurance Code. Defines "compensation" and makes
changes to other defined terms. Provides that a public adjuster shall not
provide services, other than emergency services, until a written contract
with the insured has been executed, on a form filed with and approved by
the Director, and an exact copy of the contract has been provided to the
insurer or its authorized representative for receiving notice of loss or
damage (instead of to only the insurer). Effective immediately.
LRB104 17112 BAB 30531 b

A BILL FOR

HB4287
LRB104 17112 BAB 30531 b
1

AN ACT concerning regulation.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Insurance Code is amended by
5
changing Sections 1510 and 1575 as follows:

6

(215 ILCS 5/1510)
7

Sec. 1510.
Definitions.
In this Article:
8

"Adjusting a claim for loss or damage covered by an
9
insurance contract" means negotiating values, damages, or
10
depreciation or applying the loss circumstances to insurance
11
policy provisions.
12

"Adjusting insurance claims" means representing an insured
13
with an insurer for compensation and, while representing that
14
insured, either negotiating values, damages, or depreciation
15
or applying the loss circumstances to insurance policy
16
provisions.
17

"Business entity" means a corporation, association,
18
partnership, limited liability company, limited liability
19
partnership, or other legal entity.
20

"Compensation" includes, but is not limited to, the
21
following:
22

(1) any assignment of insurance proceeds or a
23

percentage of the insurance proceeds;

HB4287
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LRB104 17112 BAB 30531 b
1

(2) any agreement to make repairs for the amount of
2

the insurance proceeds payable; or
3

(3) assertion of any lien against insurance proceeds
4

payable.

5

"Department" means the Department of Insurance.
6

"Director" means the Director of Insurance.
7

"Fingerprints" means an impression of the lines on the
8
finger taken for the purpose of identification. The impression
9
may be electronic or in ink converted to electronic format.
10

"Home state" means the District of Columbia and any state
11
or territory of the United States where the public adjuster's
12
principal place of residence or principal place of business is
13
located. If neither the state in which the public adjuster
14
maintains the principal place of residence nor the state in
15
which the public adjuster maintains the principal place of
16
business has a substantially similar law governing public
17
adjusters, the public adjuster may declare another state in
18
which it becomes licensed and acts as a public adjuster to be
19
the home state.
20

"Individual" means a natural person.
21

"Person" means an individual or a business entity.
22

"Public adjuster" means any person who, for compensation
23
or any other thing of value on behalf of the insured:
24

(i) acts, aids, or represents the insured solely in
25

relation to first party claims arising under insurance
26

contracts that insure the real or personal property of the

HB4287
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LRB104 17112 BAB 30531 b
1

insured, in adjusting
an insurance

a
claim for loss or
2

damage covered by an insurance contract;
3

(ii) advertises for employment as a public adjuster of
4

insurance claims or solicits business or represents
5

himself or herself to the public as a public adjuster of
6

first party insurance claims for losses or damages arising
7

out of policies of insurance that insure real or personal
8

property; or
9

(iii) directly or indirectly solicits business,
10

investigates or adjusts losses, or advises an insured
11

about first party claims for losses or damages arising out
12

of policies of insurance that insure real or personal
13

property for another person engaged in the business of
14

adjusting losses or damages covered by an insurance policy
15

for the insured.
16

"Uniform individual application" means the current version
17
of the National Association of Directors (NAIC) Uniform
18
Individual Application for resident and nonresident
19
individuals.
20

"Uniform business entity application" means the current
21
version of the National Association of Insurance Commissioners
22
(NAIC) Uniform Business Entity Application for resident and
23
nonresident business entities.
24

"Webinar" means an online educational presentation during
25
which a live and participating instructor and participating
26
viewers, whose attendance is periodically verified throughout

HB4287
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LRB104 17112 BAB 30531 b
1
the presentation, actively engage in discussion and in the
2
submission and answering of questions.
3
(Source: P.A. 102-135, eff. 7-23-21; 103-216, eff. 1-1-24
.)

4

(215 ILCS 5/1575)
5

Sec. 1575.
Contract between public adjuster and insured.
6

(a) Public adjusters shall ensure that all contracts for
7
their services are in writing and contain the following terms:
8

(1) legible full name of the adjuster signing the
9

contract, as specified in Department records;
10

(2) permanent home state business address, email
11

address, and phone number;
12

(3) license number;
13

(4) title of "Public Adjuster Contract";
14

(5) the insured's full name, street address, insurance
15

company name, and policy number, if known or upon
16

notification;
17

(6) a description of the loss and its location;
18

(7) description of services to be provided to the
19

insured;
20

(8) signatures of the public adjuster and the insured;
21

(9) date and time the contract was signed by the
22

public adjuster and date and time the contract was signed
23

by the insured;
24

(10) attestation language stating that the public
25

adjuster is fully bonded pursuant to State law; and

HB4287
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LRB104 17112 BAB 30531 b
1

(11) full salary, fee, commission, compensation, or
2

other considerations the public adjuster is to receive for
3

services, including any applicable cap under Section 1570.
4

(b) The contract may specify that the public adjuster
5
shall be named as a co-payee on an insurer's payment of a
6
claim.
7

(1) If the compensation is based on a share of the
8

insurance settlement, the exact percentage shall be
9

specified.
10

(2) Initial expenses to be reimbursed to the public
11

adjuster from the proceeds of the claim payment shall be
12

specified by type, with dollar estimates set forth in the
13

contract and with any additional expenses first approved
14

by the insured.
15

(3) Compensation provisions in a public adjuster
16

contract shall not be redacted in any copy of the contract
17

provided to the Director.
18

(c) If the insurer, not later than 5 business days after
19
the date on which the loss is reported to the insurer, either
20
pays or commits in writing to pay to the insured the policy
21
limit of the insurance policy, the public adjuster shall:
22

(1) not receive a commission consisting of a
23

percentage of the total amount paid by an insurer to
24

resolve a claim;
25

(2) inform the insured that loss recovery amount might
26

not be increased by insurer; and

HB4287
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LRB104 17112 BAB 30531 b
1

(3) be entitled only to reasonable compensation from
2

the insured for services provided by the public adjuster
3

on behalf of the insured, based on the time spent on a
4

claim and expenses incurred by the public adjuster, until
5

the claim is paid or the insured receives a written
6

commitment to pay from the insurer.
7

(d) A public adjuster shall provide the insured a written
8
disclosure concerning any direct or indirect financial
9
interest that the public adjuster has with any other party who
10
is involved in any aspect of the claim, other than the salary,
11
fee, commission, or other consideration established in the
12
written contract with the insured, including, but not limited
13
to, any ownership of or any compensation expected to be
14
received from, any construction firm, salvage firm, building
15
appraisal firm, board-up company, or any other firm that
16
provides estimates for work, or that performs any work, in
17
conjunction with damages caused by the insured loss on which
18
the public adjuster is engaged. The word "firm" shall include
19
any corporation, partnership, association, joint-stock
20
company, or person.
21

(e) A public adjuster contract may not contain any
22
contract term that:
23

(1) allows the public adjuster's percentage fee to be
24

collected when money is due from an insurance company, but
25

not paid, or that allows a public adjuster to collect the
26

entire fee from the first check issued by an insurance

HB4287
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LRB104 17112 BAB 30531 b
1

company, rather than as a percentage of each check issued
2

by an insurance company;
3

(2) requires the insured to authorize an insurance
4

company to issue a check only in the name of the public
5

adjuster;
6

(3) precludes a public adjuster or an insured from
7

pursuing civil remedies;
8

(4) includes any hold harmless agreement that provides
9

indemnification to the public adjuster by the insured for
10

liability resulting from the public adjuster's negligence;
11

or
12

(5) provides power of attorney by which the public
13

adjuster can act in the place and instead of the insured.
14

(f) The following provisions apply to a contract between a
15
public adjuster and an insured:
16

(1) Prior to the signing of the contract, the public
17

adjuster shall provide the insured with a separate signed
18

and dated disclosure document regarding the claim process
19

that states:
20

"Property insurance policies obligate the insured to
21

present a claim to his or her insurance company for
22

consideration. There are 3 types of adjusters that could
23

be involved in that process. The definitions of the 3
24

types are as follows:
25

(A) "Company adjuster" means the insurance
26

adjusters who are employees of an insurance company.

HB4287
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LRB104 17112 BAB 30531 b
1

They represent the interest of the insurance company
2

and are paid by the insurance company. They will not
3

charge you a fee.
4

(B) "Independent adjuster" means the insurance
5

adjusters who are hired on a contract basis by an
6

insurance company to represent the insurance company's
7

interest in the settlement of the claim. They are paid
8

by your insurance company. They will not charge you a
9

fee.
10

(C) "Public adjuster" means the insurance
11

adjusters who do not work for any insurance company.
12

They represent the insured to assist in the
13

preparation, presentation
,
and settlement of the
14

claim. The insured hires them by signing a contract
15

agreeing to pay them a fee or commission based on a
16

percentage of the settlement, or other method of
17

compensation.".
18

(2) The insured is not required to hire a public
19

adjuster to help the insured meet his or her obligations
20

under the policy, but has the right to do so.
21

(3) The public adjuster is not a representative or
22

employee of the insurer or the Department of Insurance.
23

(4) The salary, fee, commission, or other
24

consideration is the obligation of the insured, not the
25

insurer, except when rights have been assigned to the
26

public adjuster by the insured.

HB4287
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LRB104 17112 BAB 30531 b
1

(g) The contracts shall be executed in duplicate to
2
provide an original contract to the public adjuster, and an
3
original contract to the insured. The public adjuster's
4
original contract shall be available at all times for
5
inspection without notice by the Director.
6

(h) The public adjuster shall provide the insurer or its
7
authorized representative for receiving notice of loss or
8
damage with an exact copy of the contract with the insured by
9
email no later than 5 business days after execution of the
10
contract, authorizing the public adjuster to represent the
11
insured's interest.
12

(i) The public adjuster shall give the insured written
13
notice of the insured's rights as a consumer under the law of
14
this State.
15

(j) A public adjuster shall not provide services, other
16
than emergency services, until a written contract with the
17
insured has been executed, on a form filed with and approved by
18
the Director, and an exact copy of the contract has been
19
provided to the insurer
or its authorized representative for
20
receiving notice of loss or damage
in accordance with
21
subsection (h). At the option of the insured, any such
22
contract shall be voidable for 5 business days after the
23
contract is received by the insurer. The insured may void the
24
contract by notifying the public adjuster in writing by (i)
25
registered or certified mail, return receipt requested, to the
26
address shown on the contract, (ii) personally serving the

HB4287
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LRB104 17112 BAB 30531 b
1
notice on the public adjuster, or (iii) sending an email to the
2
email address shown on the contract.
3

(k) If the insured exercises the right to rescind the
4
contract, anything of value given by the insured under the
5
contract will be returned to the insured within 15 business
6
days following the receipt by the public adjuster of the
7
cancellation notice.
8

(l) All contracts entered into that are in violation of
9
this Section are void and invalid.
10
(Source: P.A. 103-216, eff. 1-1-24
.)

11

Section 99.
Effective date.
This Act takes effect upon
12
becoming law.

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