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HB 3427

INS-PUBLIC ADJUSTER BOARD

104th Regular Session Introduced by Brad Stephens

Creates a Public Adjuster Advisory Board within the Department of Insurance to review licensure, develop consumer-protection rules, and issue annual policy reports.

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Bill Summary · HB 3427

HB 3427 — Public Adjuster Advisory Board (Summary)

Status: House Committee Amendment No. 1 (filed Mar 19, 2025); re‑referred to Rules Committee (Mar 21, 2025). Effective date: upon becoming law.

Purpose / Intent

Creates a Public Adjuster Advisory Board within the Illinois Department of Insurance to review public adjuster licensure and operations, and to develop advisory recommendations (including proposed rules) for the Department—with particular emphasis on protecting residential and commercial consumers after catastrophic events.

Key provisions

  • Establishes a new statutory section (20 ILCS 1405/1405‑55) creating the Public Adjuster Advisory Board inside the Department of Insurance.
  • Board duties:
    • Review and recommend changes to licensure, license issuance, and licensing requirements for public adjusters in Illinois.
    • Prepare advisory recommendations and proposed rules for the Department aimed at protecting consumers in situations involving catastrophic events.
    • Submit an annual report to the Governor and General Assembly addressing licensing/operational issues and recommended policy changes (first report due by January 1, 2026, and annually thereafter).
  • Membership (ex officio and appointed):
    • Director of Insurance (or designee) — serves as chair.
    • Chief Enforcement Officer (or designee).
    • General Counsel (or designee).
    • One appointee each by: President of the Senate, Senate Minority Leader, Speaker of the House, House Minority Leader.
    • Governor appointments: one licensed attorney who specializes in public adjuster regulation; one public adjuster residing outside Cook/DuPage/Kane/Lake/McHenry/Will counties; two licensed public adjusters residing within those six counties; and licensed public adjuster(s) representing the Chicagoland Public Adjusters Association (text contains slight ambiguity as to the exact number appointed for this last item).
  • Operations:
    • Members receive no compensation but may be reimbursed for necessary expenses from Department appropriations.
    • Department of Insurance must provide staff and administrative support.
    • Initial meeting as soon as practicable after appointments; thereafter meetings in April and September each year.

Who is affected

  • Licensed public adjusters in Illinois (licensing, oversight, potential rule changes).
  • Commercial and residential insurance consumers (consumer protections, especially post‑catastrophe).
  • Department of Insurance (will host, staff, and consider Board recommendations).
  • Insurers and other stakeholders may be affected indirectly by any rule or policy changes recommended/adopted.

Procedural/timeline notes

  • Bill introduced and progressed through committee referrals in Feb–Mar 2025 (assigned to Insurance Committee Mar 11; amendment filed Mar 19).
  • House Amendment No. 1 makes minor technical wording fixes (inserting "by" after "appointed" in several lines).
  • If enacted, Board must produce its first annual report by Jan 1, 2026.

Compiled from official sources — confirm details with the bill’s official record.

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