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.

Public adjusters must follow a new bill that was enacted in the State of Kentucky. The new bill is referred to as HB 233 and implements the model public adjuster legislation of the National Association of Insurance Commissioners (NAIC). Now public adjusters must acquire a surety bond or an irrevocable letter of credit that can be no less than $20,000. The surety bond would be for the benefit of any individual in Kentucky who suffered damages caused by the public adjuster’s erroneous procedures, failure to act, conviction of deceit/fraud, or conviction of unjust trade practices.

New legislation in the state of Kansas is affecting public adjusters in the state. The new bill, which is titled HB 2214, obliges public adjusters to be licensed and to present substantiation of financial accountability. A surety bond in a quantity that the Insurance Commissioner concludes to be appropriate can be used to satisfy the financial responsibility requirements. The surety bond must permit recovery by the Insurance Commissioner on behalf of any individual in the State who received damages ensuing from the erroneous acts, failure to act, conviction of fraud or conviction of unjust practices of the public adjuster. In place of the surety bond, an irrevocable letter of credit (ILOC) may be submitted. HB 2214 is based on the National Association of Insurance Commissioners’ model act.

A new law written in the state of Idaho enacts the NAIC public adjuster model legislation. The new law, SB 1397, requires substantiation of financial dependability through a surety bond or letter of credit. The surety bond must be at least $20,000, and it has to approve the Department of Insurance to make recovery on behalf of any individual who suffers damages following erroneous acts, a failure to act, or conviction of unfair practices/fraud as a public adjuster. The sureties are allowed to terminate the surety bond with 30 days written notice to the Department and the licensee. SB 1397 was enacted on March 18th, 2008.