Illinois Public Adjuster faq

Do I have to hire a Public Adjuster?

No. You are not required to hire a public adjuster, but you have the right to do so if it’s helpful—especially in complex or underpaid claims.

What are the licensing requirements for a Public Adjuster in Illinois?

Public adjusters in Illinois must:

• Pass a state licensing exam.
• Submit a $20,000 surety bond to protect consumers.
• File an approved contract template and disclosure forms with the Illinois Department of Insurance.
• Complete fingerprinting and background checks through an approved live-scan vendor.
• Apply via the National Insurance Producer Registry (NIPR), including fees and all required forms.

What rules regulate Public Adjuster contracts?

Illinois law mandates that:

• All services must be covered by a written contract approved by the Director of Insurance before any service is provided (excluding emergency services)
• Contracts must be in duplicate—one each for you and the adjuster—and the adjuster’s copy must be made available for inspection by the Department at any time
• The adjuster must email a copy of the executed contract to your insurer within 5 business days.
• You have a 5-business-day “cooling-off” period to void the contract; if you cancel, any value given must be returned within 15 business days.

How do Public Adjusters get paid in Illinois?

• Fees are typically a percentage of your settlement.
• As of January 2024, residential claims are capped at 10% compensation.
• Fees must be fully disclosed in writing, along with any direct or indirect financial interests the adjuster may have (e.g., ties to contractors).

What ethics and conflict-of-interest rules apply?

Illinois law prohibits public adjusters from:

• Having undisclosed financial interests in related service providers (e.g., construction, appraisal firms).
• Being both a public adjuster and an insurer’s or independent adjuster on the same claim.
• Misrepresenting their role or authority (e.g., claiming to work for your insurer or offering legal advice).
• Accepting salvage interest without written permission post-settlement.
• Settling your claim without your knowledge or consent; they must also provide documentation if requested before settling.

What are the benefits of hiring a Public Insurance Adjuster?

• They can help maximize your settlement with thorough assessments and expert policy interpretation.
• They ease the time and stress associated with claims, especially complicated ones.
• They provide skilled negotiation and documentation in your favor.