What is the purpose of the Illinois Third Party Administrator Bond?
The Illinois Third Party Administrator Bond is required by the Illinois Department of Financial and Professional Regulation, Division of Insurance. The bond states that the administrator will make a full accounting and due payment to the person or company entitled thereto of funds coming into his possession as an incident to Third Party Administrator transactions and shall comply with all the provisions of Section 511.104 of the IL Insurance Code. The required bond amount varies.
Please see below for more information regarding the bond amount.
- For an administrator which maintains an Administrator Trust Fund (ATF) but does not maintain Claims
Administration Services Account (CASA). The greater of $50,000 or 5% of contributions and premiums projected to be received or collected in the ATF for the forthcoming plan year from Illinois residents, but not to exceed $1,000,000;
- For an administrator which maintains a CASA but does not maintain an ATF. The greater of $50,000 or 5% of the claims and claim expenses projected to be held in the CASA for the forthcoming year to pay claims and claim expenses for Illinois residents, but not to exceed $1,000,000;
- For an administrator which maintains both an ATF and a CASA. The greater of the amounts in subparagraph (1) or (2) above, but not to exceed $1,000,000.
How do I obtain an Illinois Third Party Administrator Bond?
Surety Solutions Insurance Services Inc was established in 2003. Although our headquarters are located in California, we are actually licensed in all 50 states. We have also partnered with several surety markets to ensure that we would only offer the best rates for all our clients. Our application processing time is also very fast, with some applications taking just a business day to get approved!
If you wish to get this surety bond from us, please fill out and submit an online application form. You will then be contacted by our licensed agents who will give a no-obligation quote for your bond. If you find the price to your satisfaction, just pay the said amount and sign all the paperwork. We will then send the surety bond through USPS Priority Mail or overnight delivery. With an A+ rating from the Better Business Bureau, you can only expect the best service from us here at Surety1.