(215 ILCS 5/511.104) (from Ch. 73, par. 1065.58-104)
(Section scheduled to be repealed on January 1, 2027)
Sec. 511.104.
Bond requirements for administrators.
(a) Every applicant
for an administrator's license shall file with the application and shall
thereafter maintain in force while so licensed, a fidelity bond in favor
of the people of the State of Illinois executed by a surety company and
payable to any party injured under the terms of the bond. The bond shall
be continuous in form and in one of the following amounts:
(1) For an administrator which maintains an ATF but |
| does not maintain a 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;
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(2) For an administrator which maintains a CASA but
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| 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;
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(3) For an administrator which maintains both an ATF
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| and a CASA, the greater of the amounts in subparagraphs (1) or (2) above, but not to exceed $1,000,000.
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Such bond is required of an administrator who maintains or should maintain
funds in a fiduciary capacity as set forth in Section 511.112 of this Code
unless the administrator is contracted with the insurer as an
administrator and if the plan is fully insured by the insurer on whose
behalf the funds are held.
(b) Such bond shall remain in force and effect until the surety is
released from liability by the Director or until the bond is cancelled by
the surety. The surety may cancel the bond and be released from further
liability thereunder upon 30 days' written notice in advance to the
Director. Such cancellation shall not affect any liability incurred or
accrued thereunder before the termination of the 30-day period. Upon
receipt of any notice of cancellation, the Director shall immediately notify
the licensee.
(c) The license required by Section 511.102 shall automatically
terminate if the bond required by this Section is not in force. Within 30
days thereafter, the administrator shall return the license to the Director
for cancellation.
(Source: P.A. 84-1431 .)
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