Surplus lines Surety Bonds in the State of Illinois will no longer be required, effective August 14,2012.
The surplus lines bond helps ensure that the broker will conduct business within the rules and regulations of the State, in doing so the bond helps protect consumer’s investments.
As a result of new legislation (Public Act 97-0955) filed and signed into law by Governor Quinn, this bond is no longer required in the State of Illinois. The House Bill 1577 included changes bringing the state regulations into conformity with the federal Nonadmitted and Reinsurance Reform Act (NRRA).
This bill eliminates the following:
- Surplus line producer prelicensing course requirements
- Requirement for a license bond and,
- Conflict between the statute and Illinois regulations regarding due/payable taxes based on filings with the Surplus Line Association of Illinois.
The Illinois Department of Insurance has informed us that bonds currently in force may be cancelled effective 8/14/12.
Anytime a bond is no longer needed is a sad day for the Surety world. 🙁