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91_SB0363sam002
LRB9100321JSmbam01
1 AMENDMENT TO SENATE BILL 363
2 AMENDMENT NO. . Amend Senate Bill 363, AS AMENDED,
3 in the introductory clause to Section 5 of the bill by
4 changing "505.1" to "505.1, 508.2"; and
5 in the body of Section 5 of the bill by inserting immediately
6 below the last line of Sec. 505.1 the following:
7 "(215 ILCS 5/508.2) (from Ch. 73, par. 1065.55-2)
8 Sec. 508.2. Bond required of Insurance Producers.
9 (1) Each producer and registered firm who places
10 insurance either directly or indirectly with an insurer with
11 which the producer or registered firm does not have an agent
12 contact shall maintain in force while licensed a bond in
13 favor of the people of the State of Illinois executed by an
14 authorized surety company and payable to any party injured
15 under the terms of the bond. The bond shall be continuous in
16 form and in the amount of $2,500 or 5% of the premiums
17 brokered in the previous calendar year, whichever is greater,
18 but not to exceed $50,000 total aggregate liability. The bond
19 shall be conditioned upon full accounting and due payment to
20 the person or company entitled thereto, of funds coming into
21 the insurance producer's possession as an incident to
22 insurance transactions under the his license or surplus line
-2- LRB9100321JSmbam01
1 insurance transactions under the his license as a surplus
2 line producer.
3 (2) Authorized insurance producers of a registered firm
4 may meet the requirements of this Section with a bond in the
5 name of the registered firm, continuous in form and in the
6 amounts set forth in subsection (1) of this Section.
7 (3) Such bond shall remain in force and effect until the
8 surety is released from liability by the Director or until
9 the bond is canceled by the surety. The surety may cancel the
10 bond and be released from further liability thereunder upon
11 30 days' written notice in advance to the Principal Director.
12 Such cancellation shall not affect any liability incurred or
13 accrued thereunder before the termination of the 30-day
14 period. Upon receipt of any notice of cancellation, the
15 Director shall immediately notify the licensee.
16 (4) Such license shall not be valid automatically
17 terminate upon there being no bond in force, or if the
18 producer acts without a bond which is required pursuant to
19 this Section, and the license shall be returned by its lawful
20 custodian to the Director for cancellation.
21 (5) If a party injured under the terms of the bond
22 requests the producer to provide the name of the surety and
23 the bond number, the producer must provide the information
24 within 3 working days after receiving the request.
25 (6) An association may meet the requirements of this
26 Section for all of its members with a bond in the name of the
27 association that is continuous in form and in the amounts set
28 forth in subsection (1) of this Section.
29 (Source: P.A. 88-313.)"; and
30 in the list of captions preceding Section 10 of the bill, by
31 deleting "(215 ILCS 5/508.2 rep.)"; and
32 in Section 10 of the bill, by changing "Sections 504.1 and
33 508.2" to "Section 504.1".