§ 107a.10 — Bond requirements

Illinois § 107a.10

• Jurisdiction: Illinois
• Topic: REGULATION
• Ch. 215: INSURANCE
• Act 215 ILCS 5/: Illinois Insurance Code.
• Art.: Article V 3/4 - Group Workers' Compensation; Pools; Pooling; Insolvency Fund

Text

(a) An administrator shall obtain and maintain in force fidelity bonds on employees, officers, or positions in an amount not less than the amount set forth in the column "Minimum Amount of Bond", based on the amount of assets administered on behalf of pools by the administrator (as determined from year to year) stated in the annual statement of the pools as filed with the Department. All such bonds shall be written with at least a one-year discovery period and, if written with less than a 3-year discovery period, shall contain a provision that no cancellation or termination of the bond, whether by or at the request of the insured or by the underwriter, shall take effect before the expiration of 90 days after written notice of the cancellation or termination has been filed with the Department unless an earlier date of cancellation or termination is approved by the Department. (b) The bonds shall include all employees, officers, or positions for the following perils, which may be covered under separate policies: (1) dishonesty of employees and officers; (2) robbery, burglary, larceny, theft, false pretense, hold-up, misplacement, mysterious disappearance, and damage or destruction while property is in any bank, any recognized place of safe deposit, or in transit; and (3) forgery or alteration. (c) The bond shall be written by an insurer licensed to transact business in the State of Illinois. (d) Schedule of assets in relationship to amount of bond: TOTAL ASSETS MINIMUM AMOUNT OF BOND $500,000 or less .......... . . . . . . . . . . $20,000 plus 6% of total assets more than $ 500,000 and not more than $1,000,000 ..... . . . . . $50,000 plus 4% of assets over $500,000 more than $1,000,000 and not more than $3,000,000 ..... . . . . . $70,000 plus 3% of assets over $1,000,000 more than $3,000,000 and not more than $5,000,000 ..... . . . . . $130,000 plus 2% of assets over $3,000,000 more than $5,000,000 and not more than $10,000,000 ..... . . . . . $170,000 plus 1.5% of assets over $5,000,000 more than $10,000,000 ....... . . . . . . . $245,000 plus 0.75% of assets more than $10,000,000

Legislative History

(Source: P.A. 91-757, eff. 1-1-01 .)