Illinois requires insurance producers and public adjusters to maintain surety bonds to protect consumers and the Department of Insurance from financial losses. The bond amount varies by license type: producers need $2,500-$50,000 (based on 5% of prior year premiums), while public adjusters need a flat $20,000 bond per…
Overview
What it is.
Illinois requires insurance producers and public adjusters to maintain surety bonds to protect consumers and the Department of Insurance from financial losses. The bond amount varies by license type: producers need $2,500-$50,000 (based on 5% of prior year premiums), while public adjusters need a flat $20,000 bond per…
Who usually needs it
Insurance producers (brokers/agents) without a direct contract with an insurer must obtain a bond ranging from $2,500 to $50,000 based on premiums brokered. Public adjusters acting on behalf of insureds in first-party claims require a $20,000 bond.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$2,500ObligeeIllinois Department of InsuranceBond classLicense BondCategoryInsuranceBondIllinois Insurance Producer / Adjuster BondPlain descriptionIllinois requires insurance producers and public adjusters to maintain surety bonds to protect consumers and the Department of Insurance from financial losses. The bond amount varies by license type: producers need $2,5…Who needs this bondInsurance producers (brokers/agents) without a direct contract with an insurer must obtain a bond ranging from $2,500 to $50,000 based on premiums brokered. Public adjusters acting on behalf of insureds in first-party c…
FAQ
Common questions.
Who needs the Illinois Insurance Producer/Adjuster Bond?
This bond is required for insurance producers (brokers/agents) who do not have a direct contract with an insurance company and public adjusters who act on behalf of insureds in first-party claims settlements. The bond protects the Illinois Department of Insurance and consumers from financial losses due to violations like fraud, negligence, breach of contract, or failure to pay owed funds.
How do I file the Illinois Insurance Producer/Adjuster Bond?
The bond must be submitted with your license application through the NIPR electronic filing system (nipr.com). Upload the signed bond form (including power of attorney) to the NIPR document warehouse alongside your fingerprints, approved customer contract, and license fee. For public adjusters, mail original documents if required to: Illinois Department of Insurance, 320 W. Washington Street, Springfield, IL 62767. The bond must be executed by an authorized surety and is continuous in form, requiring 30 days' notice for termination.
What is the bond amount for Illinois insurance producers and public adjusters?
The bond amount varies by license type. Insurance producers (brokers/agents) without a direct insurer contract need a minimum of $2,500 or 5% of premiums brokered in the previous year, whichever is greater, up to a maximum of $50,000. Public adjusters must maintain a flat $20,000 surety bond as required by 215 ILCS 5/1560.
