Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 5/500-130

(215 ILCS 5/500-130)

(Section scheduled to be repealed on January 1, 2027)

Sec. 500-130. Bond required of insurance producers.

(a) An insurance producer who places insurance either directly or indirectly
with an
insurer with which the insurance producer does not have an agency contract must
maintain in force
while licensed a bond in favor of the people of the
State of Illinois executed by an authorized
surety company and payable to any party injured under
the terms of the bond.  The bond shall be
continuous in form and in the amount of $2,500 or 5% of
the premiums brokered in the previous
calendar year, whichever is greater, but not to exceed
$50,000 total aggregate liability. The bond
shall be conditioned upon full accounting and due payment
to the person or company entitled
thereto, of funds coming into the insurance producer's
possession as an incident to insurance
transactions under the license or surplus line insurance
transactions under the license as a surplus
line producer.

(b) Authorized insurance producers of a business entity may
meet the requirements of this
Section with a bond in the name of the business entity,
continuous in form, and in the amounts
set forth in subsection (a) of this Section.  Insurance
producers may meet the requirements of this
Section with a bond in the name of an  association.  An
individual producer remains responsible
for assuring  that a producer bond is in effect and is for
the correct amount.  The association must
have been in existence for 5 years, have common membership,
and been formed for a purpose
other than obtaining a bond.

(c) The surety may cancel the bond and be released from further
liability thereunder upon
30 days' written notice in advance to the principal. The
cancellation does not affect any liability
incurred or accrued under the bond before the termination
of the 30-day period.

(d) The producer's license may be revoked if the producer acts without a
bond that is
required under this Section.

(e) If a party injured under the terms of the bond requests the producer to
provide the
name of the surety and the bond number, the producer must provide the
information within 3
working days after receiving the request.

(f) An association may meet the requirements of this Section for all of its
members with a
bond in the name of the association that is continuous in form and in the
amounts set forth in
subsection (a) of this Section.

(Source: P.A. 102-135, eff. 7-23-21.)