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IL Public Adjuster practice questions

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Question 1Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Under Illinois law, which person is required to hold a public adjuster license?

  1. A company adjuster employed by an insurer
  2. An attorney representing an insured in a dispute
  3. A person paid to negotiate an insured's claim Correct answer.
  4. A producer who sells a homeowner's policy

Explanation

The Illinois Public Adjusters Law requires a license for any person who, for compensation, acts on behalf of an insured in negotiating or settling an insurance claim. Attorneys acting in the practice of law, company adjusters, and producers selling policies are treated differently.

Question 2Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which Illinois agency administers the public adjuster licensing law?

  1. Illinois Department of Insurance Correct answer.
  2. Illinois Secretary of State
  3. Illinois Attorney General's Office
  4. Illinois Department of Financial and Professional Regulation

Explanation

The Illinois Department of Insurance administers the Public Adjusters Law and issues and regulates public adjuster licenses. The other offices have different responsibilities and do not license public adjusters.

Question 3Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

In an insurance claim handled by a public adjuster, the public adjuster represents:

  1. The state insurance department
  2. The insured Correct answer.
  3. The insurer
  4. The mortgage lender

Explanation

A public adjuster is retained by and represents the insured in preparing and negotiating the claim. The insurer is represented by its own company adjusters or representatives.

Question 4Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster contract must be:

  1. Oral if the claim is under $1,000
  2. Approved by the insurer before it is signed
  3. In writing and signed by the insured Correct answer.
  4. Written but not necessarily signed

Explanation

Illinois requires public adjuster contracts to be in writing and signed by the insured. The contract must also contain required disclosures, including the insured's cancellation right.

Question 5Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

What is the maximum compensation an Illinois public adjuster may charge under the Public Adjusters Law?

  1. 20% of the insurance settlement proceeds
  2. 10% of the insurance settlement proceeds Correct answer.
  3. 15% of the insurance settlement proceeds
  4. Any amount agreed to in writing

Explanation

Illinois caps public adjuster compensation at 10% of the insurance settlement proceeds. A written agreement cannot override the statutory maximum.

Question 6Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster contract in Illinois must give the insured the right to rescind the contract within:

  1. 5 business days after signing Correct answer.
  2. 30 days after the claim is paid
  3. 10 calendar days after signing
  4. 24 hours after signing

Explanation

Illinois law requires the public adjuster contract to disclose a five-business-day right to rescind. If the insured cancels within that period, the contract is not enforceable.

Question 7Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster license is valid for a term of:

  1. 3 years
  2. 4 years
  3. 1 year
  4. 2 years Correct answer.

Explanation

Public adjuster licenses in Illinois are issued for a two-year term and must be renewed with the required continuing education.

Question 8Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

To renew an Illinois public adjuster license, the licensee must complete continuing education of:

  1. 30 hours per term, including 6 ethics hours
  2. 24 hours per term, including 3 ethics hours Correct answer.
  3. 12 hours per term, including 1 ethics hour
  4. 6 hours yearly, with no ethics component

Explanation

Illinois public adjusters must complete 24 hours of continuing education per two-year term, including at least 3 hours of ethics.

Question 9Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which provision must appear in a written public adjuster contract under Illinois law?

  1. The insured's right to cancel Correct answer.
  2. A promise that the insurer will pay the adjuster's fee
  3. A clause waiving the insured's right to sue the insurer
  4. An assignment of the insured's policy to the adjuster

Explanation

The contract must disclose the insured's right to rescind within the statutory period. It may not strip the insured of legal rights, promise insurer payment, or assign the policy.

Question 10Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster is asked to handle a claim for an insured. The same public adjuster also works as an adjuster for the insurer on that claim. This dual role is:

  1. Permitted only for claims under $10,000
  2. Permitted if the insurer pays a separate fee
  3. Permitted if the insured consents in writing
  4. Prohibited as a conflict of interest Correct answer.

Explanation

A public adjuster owes loyalty to the insured and may not simultaneously represent the insurer on the same claim. The conflict cannot be cured by consent or by an additional insurer fee.

Question 11Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster wants to pay a portion of the fee to an unlicensed friend who referred the insured. Under Illinois law, this payment is:

  1. Allowed if the referral came before signing
  2. Allowed if the friend is a family member
  3. Prohibited fee sharing Correct answer.
  4. Allowed if disclosed in the contract

Explanation

Public adjusters may not share compensation with unlicensed persons for referring or assisting with claims. Disclosure or family relationship does not validate the prohibited fee split.

Question 12Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which financial guarantee must an Illinois public adjuster file with the Department to protect insureds?

  1. A $50,000 cash deposit
  2. A $10,000 letter of credit
  3. A surety bond filed with the Department Correct answer.
  4. A professional liability policy of $1,000,000

Explanation

Illinois requires public adjusters to file a surety bond with the Department as a condition of licensure. The bond provides a source of recovery for insureds harmed by improper conduct.

Question 13Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster who receives claim funds or documents from an insured must:

  1. Deposit them in the adjuster's general business account
  2. Hold them in trust for the insured Correct answer.
  3. Send them to the insurer without the insured's consent
  4. Use them to pay the adjuster's fee before settlement

Explanation

A public adjuster acts in a fiduciary capacity and must safeguard claim funds and documents for the insured. Commingling funds or using them before settlement is improper.

Question 14Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which statement in a public adjuster advertisement would violate Illinois law?

  1. We represent policyholders rather than insurance companies
  2. We work for the Illinois Department of Insurance Correct answer.
  3. We provide every client with a written contract
  4. Our compensation is limited by the Illinois Insurance Code

Explanation

A public adjuster may not misrepresent an affiliation with the Department of Insurance or imply government employment. Accurate statements about representation, fee limits, and written contracts are permissible.

Question 15Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster's compensation in Illinois may be based on:

  1. A commission paid by the insurer to the adjuster
  2. An hourly rate approved in advance by the insurer
  3. A flat fee schedule published by the Department
  4. A percentage of the settlement within the cap Correct answer.

Explanation

Public adjusters commonly charge a contingent percentage of the settlement, but the amount may not exceed the statutory cap. The fee is owed by the insured, not paid by the insurer as a commission.

Question 16Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A licensed public adjuster allows an unlicensed assistant to negotiate a settlement directly with the insurer. This is:

  1. Acceptable for small claims only
  2. Acceptable if the assistant is supervised
  3. Acceptable if the insured agrees
  4. Prohibited as unlicensed public adjusting Correct answer.

Explanation

Negotiating a claim for compensation on behalf of an insured requires a public adjuster license. Supervision, insured consent, or the size of the claim does not excuse unlicensed adjusting.

Question 17Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster who changes their business address must notify the Department:

  1. Within 24 hours of the change
  2. Within 30 days of the change Correct answer.
  3. Only at the next license renewal
  4. No notice is required

Explanation

Licensees must keep the Department informed of current contact information and report an address change within 30 days. Waiting until renewal or giving no notice can impair official communications.

Question 18Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An adjuster tells an insured, "I am sent by your insurance company to protect your rights." This statement is:

  1. Prohibited only if the insured suffers a loss
  2. Prohibited misrepresentation Correct answer.
  3. Permissible if the insurer approves the wording
  4. Permissible because it encourages the insured to cooperate

Explanation

A public adjuster may not misrepresent their role or falsely claim to be sent by the insurer. The statement is improper regardless of whether the insured ultimately suffers a loss.

Question 19Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster may endorse a settlement check payable to the insured only when:

  1. The adjuster has filed a surety bond
  2. The insurer mails the check to the adjuster's office
  3. The insured has given written authorization Correct answer.
  4. The claim is over $25,000

Explanation

A public adjuster may not endorse or negotiate the insured's settlement check without written authorization. Receipt of the check or the existence of a bond does not transfer the insured's rights.

Question 20Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which person is exempt from Illinois public adjuster licensing when representing an insured in a claim?

  1. A person who advertises public adjusting services
  2. A person who negotiates a settlement for compensation
  3. A person who adjusts claims for a fee
  4. An attorney acting within the practice of law Correct answer.

Explanation

Attorneys representing insureds as part of the practice of law are not required to hold a public adjuster license. Persons who adjust claims for compensation or advertise public adjusting services generally need a license.

Question 21Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster settles a claim for $80,000. What is the maximum fee the adjuster may charge under the 10% cap?

  1. $10,000
  2. $16,000
  3. $8,000 Correct answer.
  4. $12,000

Explanation

The statutory cap is 10% of the settlement proceeds. Ten percent of $80,000 is $8,000.

Question 22Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster contract omits the insured's right to rescind. What is the likely legal effect?

  1. The insurer must pay the adjuster's fee
  2. The Department must approve the contract before payment
  3. The contract is voidable by the insured Correct answer.
  4. The contract is automatically valid because the omission is technical

Explanation

The cancellation right is a required contract term. Omitting it makes the contract vulnerable to being voided by the insured rather than enforceable as written.

Question 23Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An insured cancels a public adjuster contract within the five-business-day rescission period, before any settlement. What is the result?

  1. The contract is void and no fee is owed Correct answer.
  2. The adjuster may collect a reasonable hourly fee for work performed
  3. The adjuster may collect the full fee if a settlement was offered
  4. The adjuster may collect 50% of the agreed fee

Explanation

A timely rescission voids the contract, and the public adjuster may not collect compensation under it. Any fee already paid must be handled consistent with the cancellation right.

Question 24Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster is convicted of felony theft. The adjuster must:

  1. Wait until renewal to disclose the conviction
  2. Report it only if the insured asks
  3. Notify the Department within 30 days Correct answer.
  4. Report it to the insurer on each claim

Explanation

Licensees must report criminal convictions to the Department within the required reporting period, generally 30 days. Failure to report can itself be grounds for discipline.

Question 25Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which action may the Illinois Department of Insurance take against a public adjuster who violates the Public Adjusters Law?

  1. Imprison the adjuster for up to one year
  2. Require the insured to arbitrate the fee dispute
  3. Revoke the license and impose a fine Correct answer.
  4. Order the insurer to pay the adjuster's fee

Explanation

The Department may impose administrative discipline, including license suspension or revocation and monetary fines. It does not impose criminal imprisonment or order an insurer to pay the adjuster's fee.

Question 26Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Under Illinois law, which of the following activities requires a public adjuster license?

  1. A roofing contractor who, for a fee, negotiates the insured's property claim with the insurer Correct answer.
  2. An insurance producer selling a homeowners policy
  3. A staff employee of an insurer evaluating a claim
  4. An attorney representing an insured in a property claim

Explanation

A public adjuster is a person who, for compensation, acts on behalf of an insured to negotiate or settle a first-party property claim. A contractor who performs that role for a fee must therefore be licensed. Attorneys, producers, and insurer employees act in other capacities.

Question 27Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which statement about use of the title "public adjuster" in Illinois is correct?

  1. An unlicensed person may use the title if supervised by a licensee.
  2. Any licensed insurance producer may use the title.
  3. The title may be used only by a person licensed by the Department as a public adjuster. Correct answer.
  4. The title may be used by a contractor who repairs the loss.

Explanation

Illinois law restricts the title "public adjuster" to individuals who hold a public adjuster license issued by the Department. Holding a different insurance license does not authorize use of the title. Supervision or involvement in repairs does not cure the lack of a license.

Question 28Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster's contract with an insured must be:

  1. in writing and signed by the insured Correct answer.
  2. notarized by a notary public
  3. oral if it is confirmed in writing within 30 days
  4. filed with the Department before work begins

Explanation

The Public Adjusters Act requires a written contract signed by the insured before the adjuster acts. Notarization and advance filing with the Department are not conditions of a valid contract. An oral arrangement later confirmed in writing does not satisfy the requirement.

Question 29Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

In a claim handled under a public adjuster contract, the public adjuster represents:

  1. the insurer
  2. the insured Correct answer.
  3. the Department
  4. both the insured and the insurer

Explanation

A public adjuster is retained by and acts for the insured in negotiating the claim. The adjuster does not represent the insurer or the Department. Representing both sides of the same claim is a conflict prohibited by the Act.

Question 30Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Before an Illinois public adjuster license is issued, the applicant generally must:

  1. have at least five years of adjusting experience
  2. be a licensed attorney
  3. pass a written examination Correct answer.
  4. be sponsored by an insurance company

Explanation

Applicants for a public adjuster license must demonstrate competence by passing the required examination. Prior adjusting experience, a law license, and insurer sponsorship are not general prerequisites. The examination tests knowledge of adjusting and the applicable law.

Question 31Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

The minimum age for an Illinois public adjuster license is:

  1. 18 Correct answer.
  2. 25
  3. 21
  4. 16

Explanation

An applicant for an Illinois public adjuster license must be at least 18 years old. The other ages are not the statutory minimum. Age alone does not qualify an applicant; the other licensure requirements also apply.

Question 32Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An individual who holds a public adjuster license in another state wants to handle claims in Illinois. Under Illinois law, the individual must:

  1. obtain an Illinois public adjuster license Correct answer.
  2. do nothing, because a license from any state is valid nationwide
  3. limit work to three claims per year
  4. work only under the direct supervision of an Illinois licensee

Explanation

Illinois requires a person acting as a public adjuster in the state to hold an Illinois license. A license issued by another state does not authorize public adjusting in Illinois. Supervision by an Illinois licensee does not substitute for licensure.

Question 33Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which entity issues public adjuster licenses in Illinois?

  1. The National Association of Insurance Commissioners
  2. The Illinois Attorney General
  3. The county circuit court
  4. The Illinois Department of Insurance Correct answer.

Explanation

The Illinois Department of Insurance administers the Public Adjusters Act and issues public adjuster licenses. The Attorney General, courts, and the NAIC do not license public adjusters. The Department also handles renewals and discipline.

Question 34Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

While firefighters are still working at the scene of a house fire, a licensed public adjuster approaches the homeowner and asks to handle the claim. Under Illinois law, this solicitation is:

  1. permitted if the homeowner initiates the conversation
  2. prohibited Correct answer.
  3. permitted because the adjuster is licensed
  4. permitted after the adjuster provides a written contract

Explanation

Illinois prohibits a public adjuster from soliciting business at the scene of a loss-producing occurrence. The prohibition applies even to licensed adjusters. Offering a written contract does not make the solicitation permissible.

Question 35Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

After an insured signs a public adjuster contract, the adjuster must:

  1. file the contract with the Department within 10 days
  2. keep the only copy in the claim file
  3. send the contract to the insurer with the claim
  4. give the insured a copy of the signed contract Correct answer.

Explanation

The insured is entitled to receive a copy of the signed public adjuster contract. The contract is not filed with the Department or sent to the insurer as part of the claim. Retaining the only copy deprives the insured of the required documentation.

Question 36Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster license is:

  1. valid for use by any employee of the licensee
  2. transferable if the buyer passes the licensing examination
  3. a personal privilege that cannot be transferred to another person Correct answer.
  4. transferable to a business partner with Department approval

Explanation

A public adjuster license is issued to the individual and is not transferable. A buyer cannot acquire the license even by passing the examination. Employees who adjust claims must themselves be licensed.

Question 37Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster is disciplined by another state's insurance regulator. The adjuster must:

  1. report it only if the other state suspends the license
  2. take no action because the claim was handled in another state
  3. wait until the next renewal to disclose it
  4. report the action to the Illinois Department Correct answer.

Explanation

Licensees must notify the Illinois Department when another jurisdiction takes administrative action against them. The duty is not limited to suspensions and is not deferred to renewal. The location of the underlying claim does not excuse reporting.

Question 38Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster is asked to handle a claim in which the adjuster owns a 50% interest in the damaged property. Under Illinois law, the adjuster:

  1. may not handle the claim because of the financial interest Correct answer.
  2. may handle the claim if the insurer consents
  3. may handle the claim if the fee is disclosed
  4. may handle the claim if another licensee reviews the settlement

Explanation

A public adjuster may not act on a claim in which the adjuster has a financial interest apart from the fee. Disclosure or insurer consent does not remove the conflict. Review by another licensee does not cure the prohibited conflict.

Question 39Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An insured offers to assign the right to the claim proceeds to the public adjuster as security for the fee. The adjuster:

  1. may not accept an assignment of the claim Correct answer.
  2. may accept the assignment if the fee is under 10%
  3. may accept the assignment if it is notarized
  4. may accept only after the claim is paid

Explanation

Illinois prohibits a public adjuster from acquiring an interest in the insured's claim, including by assignment. The fee is compensation for services, not a share of the claim itself. Notarization, fee size, and timing do not make an assignment permissible.

Question 40Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster wants to operate under the name "Illinois State Claims Bureau." Under Illinois law, this name is:

  1. acceptable if the adjuster is licensed
  2. prohibited because it implies a government connection Correct answer.
  3. acceptable if the word "Bureau" is removed
  4. acceptable if the Department approves it

Explanation

A public adjuster may not use a business name that suggests affiliation with a government agency. The name "Illinois State Claims Bureau" implies an official connection and is therefore prohibited. Removing only "Bureau" would not eliminate the governmental implication.

Question 41Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An applicant for an Illinois public adjuster license knowingly omits a prior felony conviction from the application. This conduct:

  1. has no effect because the Department performs its own background check
  2. is grounds for denial or discipline for a false statement Correct answer.
  3. is permitted if the conviction was more than 10 years ago
  4. is permitted if the applicant later discloses it at renewal

Explanation

Knowingly providing false or incomplete information on a license application is a violation of the Act. The Department may deny the license or take disciplinary action. Later disclosure or the Department's own investigation does not excuse the false statement.

Question 42Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster contract must disclose:

  1. the insured's mortgage balance
  2. the fee or method of calculating the fee Correct answer.
  3. the insurer's claim reserve amount
  4. the name of the insurer's staff adjuster

Explanation

The contract must clearly disclose the compensation the public adjuster will receive, including how the fee is calculated. Insurer reserves, the identity of the insurer's adjuster, and the insured's mortgage balance are not required contract disclosures. Concealing the fee arrangement violates the Act.

Question 43Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Which item must appear in an Illinois public adjuster contract?

  1. the adjuster's license number Correct answer.
  2. the insurer's NAIC company code
  3. the adjuster's social security number
  4. the insured's credit score

Explanation

The public adjuster's license number must be included in the contract so the insured can verify licensure. A social security number, credit score, and NAIC company code are not required contract terms. Including unnecessary personal data can itself create privacy concerns.

Question 44Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

Before performing adjusting services for an insured, an Illinois public adjuster must:

  1. have a signed written contract with the insured Correct answer.
  2. collect the fee in advance
  3. file a notice with the Department
  4. obtain the insurer's written approval

Explanation

The public adjuster must have a signed written contract with the insured before providing adjusting services. Insurer approval is not required, and no advance notice is filed with the Department. Advance fee collection is not a condition of representation.

Question 45Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An applicant for an Illinois public adjuster license must be:

  1. a resident of Illinois
  2. of good moral character and trustworthy Correct answer.
  3. a college graduate
  4. a former insurance company adjuster

Explanation

Applicants must be trustworthy and of good moral character, in addition to meeting the examination and other requirements. Illinois residency, a college degree, and prior company adjusting experience are not conditions of licensure. Character is assessed as part of the application review.

Question 46Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A roofing contractor tells a homeowner, "For 15% of whatever the insurer pays, I will handle your entire insurance claim." The contractor is not licensed as a public adjuster. Under Illinois law, this arrangement is:

  1. permitted because the fee is contingent on payment
  2. permitted if the contractor uses a written contract
  3. permitted because the contractor will also perform the repairs
  4. unlicensed public adjusting Correct answer.

Explanation

Negotiating a first-party claim for compensation on behalf of an insured is public adjusting and requires a license. Performing repairs does not exempt the contractor from licensure for the claim-handling activity. A written contract or contingent fee does not cure the lack of a license.

Question 47Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

After a tornado, a public adjuster licensed only in Indiana travels to Illinois and signs contracts with Illinois homeowners to negotiate their storm claims. The adjuster's activity is:

  1. unlawful only if the adjuster collects a fee
  2. lawful because the adjuster holds a license in another state
  3. lawful because the losses resulted from a declared disaster
  4. unlawful unless the adjuster holds an Illinois public adjuster license Correct answer.

Explanation

Public adjusting in Illinois requires an Illinois license, even after a declared disaster. An out-of-state license does not authorize work in Illinois. The violation occurs when the adjuster acts, not only when a fee is collected.

Question 48Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

An Illinois public adjuster's license lapses while a claim is pending. The adjuster may:

  1. not continue public adjusting activity until the license is renewed Correct answer.
  2. continue negotiating until the claim is settled
  3. continue if the Department is notified within 30 days
  4. continue if the insured signs a new contract

Explanation

Public adjusting activity requires a current license, so the adjuster must stop once the license lapses. A new contract with the insured does not restore the license. Notifying the Department does not authorize continued unlicensed activity.

Question 49Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster solicits claim business at a disaster scene while emergency responders are working. Which consequence is authorized under Illinois law?

  1. Automatic criminal prosecution for insurance fraud
  2. Discipline by the Department for a prohibited solicitation Correct answer.
  3. No consequence if no contract was signed
  4. Forfeiture of the adjuster's commissions to the insured

Explanation

Soliciting at the scene of a loss-producing occurrence is a prohibited act, and the Department may discipline the licensee. The Act does not make every such solicitation an automatic fraud prosecution. Signing a contract is not required for the prohibited conduct to occur.

Question 50Illinois Insurance Laws, Rules, and Regulations Pertaining to Public Adjusters

A public adjuster tells an insured, "The Illinois Department of Insurance has reviewed and approved my fee for your claim." This statement is:

  1. acceptable if the fee is within the 10% cap
  2. acceptable because the adjuster is licensed
  3. a prohibited misrepresentation Correct answer.
  4. acceptable if the adjuster provides it in writing

Explanation

A public adjuster may not misrepresent that the Department has approved the adjuster's fee or conduct. Licensing does not mean the Department endorses individual fee arrangements. A fee within the cap and a written statement do not make the misrepresentation lawful.