Insurance producer’s bond cost
Illinois insurance producer bond amounts must be for $2,500 or 5% of the total premiums brokered in the past year, whichever is greater. The required bond amount is not to exceed $50,000.
Surety Bonds can issue the introductory $2,500 Illinois insurance producer bond for just $50 without a credit check! If your bond amount is higher than $5,000, it might require underwriting consideration that could include a review of your credit report.
Why this bond
This bond ensures that insurance producers comply with section 500-30 of the Illinois Insurance Code. By posting this bond, consumers are protected if an insurance producer should provide misleading information or commit fraud.
This bond also requires producers to pay all dues to any person or company entitled to funds from insurance transactions.
Insurance producer’s bond details
The insurance producer’s Federal Employer Identification Number (FEIN/IRS Tax ID) or social security number (SSN) must be listed on the bond form. This bond is continuous until canceled. If the bond is to be canceled, the surety company must provide the obligee with at least 30 days’ notice. The state requires that the original physical bond remain at the physical place of business.
Become an insurance producer
As of August 1, 2012, the state requires that individuals apply for their insurance producer licenses online.
To become a licensed insurance producer, applicants must:
- Complete the pre-licensing requirements of 20 hours per line of authority (7.5 of which must be completed in a classroom setting)
- Take the insurance exam
- Apply to www.NIPR.com 5 days after exam completion
Apply for your surety bond
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