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Illinois Public Adjuster Bond: A Comprehensive Guide
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This guide provides information for insurance agents to help their customers obtain an Illinois Public Adjuster bond
At a Glance:
- Average Cost: $140 per year or $14 per month
- Bond Amount: $20,000
- Who Needs it: All public adjusters operating in Illinois
- Purpose: To protect insureds from financial harm if the public adjuster commits fraud or fails to pay them all funds owed
- Who Regulates Public Adjusters in Illinois: The Illinois Department of Insurance
Background
Illinois Code 215 ILCS 5/1515 requires all public adjusters operating in the state to obtain a license from the Department of Insurance. The Illinois legislature enacted the licensing requirement to ensure that public adjusters do not engage in unethical business practices. To provide financial security for the enforcement of the licensing law, public adjusters must purchase and maintain a $20,000 surety bond to be eligible for licensure.
What is the Purpose of the Illinois Public Adjuster Bond?
Illinois requires public adjusters to purchase a surety bond as part of the application process to obtain a license. The bond ensures that insureds will receive compensation for financial harm if the public adjuster fails to abide by the regulations outlined in Illinois Code 215 ILCS 5/1560. Specifically, the bond protects insureds if the public adjuster commits fraud, engages in unfair business practices, or fails to pay them all claims funds owed. In short, the bond is a type of insurance that protects insureds if the public adjuster violates the terms of their license.
How Can an Insurance Agent Obtain an Illinois Public Adjuster Surety Bond?
BondExchange makes obtaining an Illinois Public Adjuster bond easy. Simply log in to your account and use our keyword search to find the “public adjuster” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Not an agent? Then let us pair you with one!
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Is a Credit Check Required for the Illinois Public Adjuster Bond?
No, a credit check is not required for the Illinois Public Adjuster bond. Because the bond is considered relatively low risk, the same rate is offered to all public adjusters in Illinois regardless of their credit history.
How Much Does the Illinois Public Adjuster Bond Cost?
The Illinois Public Adjuster bond costs just $140 per year or $14 per month.
Who is Required to Purchase the Illinois Public Adjuster Bond?
Illinois requires public adjusters to purchase a surety bond as a prerequisite to obtaining a professional license. To paraphrase Illinois Code 215 ILCS 5/1510, a public adjuster is a person that acts on the behalf of or aids insureds in negotiating the settlement of first-party insurance claims.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Public Adjusters Become Licensed in Illinois?
*This section focuses exclusively on the licensing process for individual public adjusters. For information on licensing business entities as public adjusters, see here.
Public adjusters in Illinois must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the state’s licensing page for details on the process.
License Period – The Illinois Public Adjuster License is valid for two years from the date of issuance and must be renewed before the expiration date
Step 1 – Pass the Exam
Illinois requires public adjusters to pass a state exam before applying for licensure. The exam is administered through Pearson Vue, and public adjusters can register for the exam and access study materials here, the examination fee is $92. Public adjusters are not required to take the exam if they currently are or have been licensed as a public adjuster in a state that required an exam and their license is/was in good standing.
Step 2 – Purchase a Surety Bond
Public adjusters must purchase and maintain a $20,000 surety bond.
Step 3 – Get Fingerprinted
Illinois requires public adjusters to get their fingerprints taken (see here for consent form) and pass a background check. A list of approved live-scan vendors can be found here.
Step 4 – Complete the Application
All Illinois Public Adjuster License applications should be submitted to the Department of Insurance at the following address:
Illinois Department of Insurance
320 West Washington Street
Springfield, IL 62767-0001
Public adjusters must complete the application in its entirety, and submit the following items:
-
- $250 application fee
- Surety bond
- Sample contract to be used with consumers
How do Illinois Public Adjusters Renew Their Licenses?
Public adjusters should submit their completed renewal applications, including a $250 fee, to the Department of Insurance at the following address:
Illinois Department of Insurance
320 W. Washington Street
Springfield, IL 62767-0001
The Illinois Public Adjuster License is valid for two years from the date of issuance and must be renewed before the expiration date. All public adjusters must complete 24 hours of continuing education each renewal period, and three of those hours must be devoted to ethics.
What are the Insurance Requirements for Public Adjusters in Illinois?
Illinois does not require public adjusters to purchase any form of liability insurance as a prerequisite to obtaining a license. Public adjusters must purchase and maintain a $20,000 surety bond.
How do Illinois Public Adjusters File Their Bonds?
Public adjusters in Illinois should submit their completed bond forms, including the power of attorney, to the Department of Insurance at the following address:
Illinois Department of Insurance
320 W. Washington Street
Springfield, IL 62767-0001
The surety bond requires signatures from the surety company and the public adjuster. The surety company should include the following information on the bond form:
- Legal name and address of the individual buying the bond
- Surety company’s name and address
- Date the bond is signed
What Can Illinois Public Adjusters Do to Avoid Claims Made Against Their Bonds?
To avoid claims against their bonds, public adjusters in Illinois must follow all license regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not commit fraud
- Do not engage in unfair business practices
- Pay all funds owed to insureds
What Other Insurance Products Can Agents Offer Public Adjusters in Illinois?
Most reputable public adjusters will purchase business liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Illinois Public Adjusters?
Agents can obtain a full list of all Illinois public adjusters through the NAIC. However, agents may need to pay a fee to do so. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
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