The Illinois Insurance Producer/Business Entity Bond is a type of surety bond required by the Illinois Department of Insurance. The amount of the Illinois Insurance Producer/Business Entity Bond is between $2,500 and $50,000. The exact amount of the bond depends on the insurance producer’s or business entity’s premium volume from the previous year. The bond is required by the Illinois Department of Insurance (IDOI) to protect consumers from financial losses if the producer or business entity fails to meet their obligations.
The bond amount is calculated as follows:
- $2,500 if the producer or business entity’s premium volume was less than $50,000 in the previous year.
- 5% of premium volume if the producer or business entity’s premium volume was $50,000 or more in the previous year.
How to get an Illinois Insurance Producer/Business Entity Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Illinois Insurance Producer/Business Entity Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
The cost of the bond is usually between 1% and 3% of the bond amount, subject to a minimum premium and fees of $150 to$250. Surety1 will shop its many markets to procure the right price at the right terms.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
To be an insurance producer or business entity in Illinois, you must meet the following requirements:
- Be at least 18 years old.
- Be a resident of the United States or a resident of a Canadian province that has a reciprocal agreement with Illinois.
- Have a good moral character.
- Pass the required state and federal insurance exams.
- Obtain an Illinois insurance producer license.
- Obtain an Illinois business entity license, if applicable.
To obtain an Illinois insurance producer license, you must:
- Complete a pre-licensing education course.
- Pass the General Insurance Exam and the State Exam for each line of authority you wish to sell.
- Submit an application to the Illinois Department of Insurance (IDOI).
- Pay the applicable license fee.
To obtain an Illinois business entity license, you must:
- Form a business entity in Illinois, such as a corporation, limited liability company (LLC), or partnership.
- Register your business entity with the Illinois Secretary of State.
- Submit an application to the IDOI.
- Pay the applicable license fee.
Once you have obtained the required licenses, you can begin selling insurance in Illinois. You must renew your licenses annually and complete continuing education courses as required by the IDOI.
Here are some additional tips for becoming an insurance producer or business entity in Illinois:
- Start early. The licensing process can take several weeks, so it is important to start early.
- Make sure that you meet all of the requirements. Any incomplete or inaccurate information on your application may delay the processing of your application.
- Keep a copy of all documentation that you submit to the IDOI. This documentation may be required for future audits or other purposes.
- If you have any questions about the licensing process, you should contact the IDOI at 1-800-545-0490.
I hope this information is helpful.