Surety Bond News

The State of Illinois implemented a new bill regarding public adjusters within the state. The new bill, which is titled SB 660 conforms the present legislation to the new NAIC model legislation concerning public adjusters. SB 660 boosts the present surety bond required for such licensees from $5,000 to a minimum quantity of $20,000. The new bill also authorizes an irrevocable letter of credit to be utilized, which the previous law did not. The surety bond must be in favor of the State and the Director of Insurance is certified to make recovery on behalf of any individual suffering damages from flawed procedures, failure to act, conviction of fraud/unjust practices in their official capacity.

The State of Illinois introduced a new law regarding debt settlement providers. The new law, which is referred to as HB 4781, asks debt settlement providers to become licensed and to acquire a $100,000 surety bond. At first HB 4781 would have called for a minimum $1 million surety bond, but it was modified within committee in the House. The Director of the Division of Financial Institutions has the ability to require a larger surety bond quantity calculated by the disbursements that the provider executed in the prior year. The surety bond must be issued by a state licensed insurance company to perform the commerce of fidelity and surety insurance.

In the State of Illinois, new law was introduced affecting Eastern Illinois University. The new law, which is titled SB 2009 provides for a renewable energy center pilot project at Eastern Illinois University. SB 2009 obliges Eastern Illinois University to obtain a performance bond because of its partnership contract with an energy conservation measure provider. The surety bond fastens the energy savings from the contract as demanded under the Public University Energy Conservation Act. SB 2009 became active directly after enactment.

New legislation was introduced in the state of Illinois concerning care facilities. The new law, which is named SB 1704, requires care facilities to attain a surety bond or alternative security to protect resident funds that a facility’s employees managed against loss, thievery, and insolvency. SB 1704 became active on July 1st, 2010.

HB 4011 is a new bill that was introduced in the state of Illinois relating to mortgage loan originators. The new bill requires mortgage loan originators to be covered under a surety bond in a quantity based on the loans originated. Any licensees that are a member of staff or exclusive agent of an individual subject to the present surety bond requirements for mortgage broker/lenders could utilize the employer’s bond to satisfy this requirement; this is only if the surety bond supplies coverage for the originator and is based on the employer’s loan originations. HB 4011 provides for the promulgation of regulation regarding the surety bond obligation. The present Illinois law asks mortgage broker and lenders to attain a $20,000 license bond and acquire a $100,000 fidelity bond. The new bill did not modify these amounts. HB 4011 became active upon enactment.