Illinois Insurance Producer Bond
Illinois Insurance Producer Bond Information
An Insurance Producer/Business Entity Bond is a type of surety bond required by those in Illinois licensed to engage or continue in the business as an Insurance Producer/Business Entity pursuant to the Illinois Insurance Code. While in force, the bond ensures that the bonded producer/entity complies with all the provisions of Section 500-30 of the Illinois Insurance Code and makes a full and proper accounting and payment to any party entitled to the funds related to insurance transactions. This surety bond runs continuously and may be terminated by the surety through thirty days notice to the obligee and principal of its intention of termination.
What Does an Insurance Producer Bond Protect Against?
The bond ensures that the insurance producer practices proper accounting in all insurance transactions including funding, payments or other transactions handled in the course of insurance business. The producer must also comply with all the provisions of Section 500-30 of the Illinois Insurance Code, as amended. The bond shall be continuous in form and may be terminated by the surety, upon its giving thirty (30) days notice to the principal of its intention of termination.