1 (800) 308-4358
Mon-Fri 7am-7pm CST
  1. 1. Choose A State
  2. 2. Choose A Bond
  3. 3. Enter Your Contact Info
  4. 4. Receive Your Free Quote

Illinois Third Party Administrator Bond

How much does a third party administrator bond cost in Illinois?

The Illinois Department of Insurance requires third party administrators to post surety bonds in varying amounts prior to conducting business. Applicants should verify their required bond amount with the state prior to bonding.

Your required bond amount and a review of your personal credit report will directly impact the premium price you’ll pay for your Illinois surety bond. Request your free bond quote now!

Bond Type Bond Amount Cost by Credit Score*
680 and up 679 - 600 599 or lower
Third Party Administrator Bond Varies Starts at 1% 4-8% 10%+ Apply Now
*The bond premium rate quotes provided to you through this website are for pricing comparisons and quotation estimate purposes only. The bond rate quotes provided are based on general assumptions that may or may not be applicable to you and are subject to change at any time. These rate quotes do not constitute an offer of insurance, nor is any contract, agreement, or bond coverage implied, formed or bound by the provision of rate quotes. Bondability, final bond premium rate quotes and an offer of insurance, if any, will be determined by the insurance company providing your bond. You must contact us directly to obtain a quote for binding purposes.

We can provide your free surety bond quote within 1 business day of submitting your application. Call 1 (800) 308-4358 or click here to get started!

Why do I need this bond?

By posting a third party administrator surety bond in Illinois, principals (third party administrators) pledge to comply with all provisions of Section 511.104 of the Illinois Insurance Code. Under this code, principals must:

  • identify, to the Director, any ownership interest or affiliation of any plan sponsor or insurer
  • provide services as an administrator pursuant to the written agreement (with the plan sponsor or insurer)
  • maintain all written agreements with plan sponsors or insurers in his or her principal place of business for at least 5 years
  • provide the names and addresses of insurers and plan sponsors to the Director
  • use advertising that solely pertains to the approved plan
  • deliver all policies, certificate booklets, termination notices or other written communications to beneficiaries
  • accept compensation from beneficiaries only after services have been received
  • and more

If the principal violates the terms of his or her bond agreement and a person or company suffers financial loss as a result, the surety will cover damages up to the full bond amount. The principal must reimburse the surety for any damages paid out.

Request your free surety bond quote now!

What’s the fine print?

Illinois third party administrator bonds are continuous in form. The surety can cancel this bond by giving 30 days’ written notice of its intent to terminate to the Director of the Department of Insurance in Springfield, Illinois.

How to become a third party administrator in Illinois

To become licensed as a third party administrator in Illinois, applicants must:

  • complete the application form prescribed by the Director
  • supply a list of the names, addresses and official positions of all individuals who are involved in the affairs of the administrator (board of directors, board of trustees, executive committee, etc.)
  • pay the mandatory $200 filing fee for the initial license
  • and more

Take the first step toward becoming licensed in Illinois, by applying for your free surety bond quote now!

Ready to get started?

Get a FREE Third Party Administrator Bond Quote Today!

Third Party Administrator Bond form

Third Party Administrator License Application

Insurance 215 ILCS 5 - Illinois Insurance Code

Illinois Department of Insurance - Licenses

Illinois Department of Insurance

Free Shipping
30,000 Satisfied
Customers Nationwide
No Hidden Fees