IL third party administrator bonds.
From $100. $50,000 bond minimum.

Illinois requires a licensed third party administrator that holds funds in a fiduciary capacity to file a fidelity bond with the Department of Insurance under 215 ILCS 5/511. The statutory minimum bond amount is $50,000; we issue whatever amount applies from $100, and the application collects no credit information.

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Required for an Illinois TPA license under 215 ILCS 5/511 when you hold funds in a fiduciary capacity

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Sized by statute — 5% of administered funds, $50,000 minimum to a $1,000,000 maximum

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From $100, soft pull only — enter your required bond amount and the premium updates

1% of amount$100 minimum$50,000statutory minimumFastapproval for most

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How it works

Apply to filed in one sitting.

No underwriting queue for the standard TPA fidelity bond — enter your amount, pay, and file with the Department of Insurance. Here is the whole thing:

TODAY · ONLINE

Apply online

Your business details, the bond amount your license requires, and the effective date — that is the entire application.

INSTANTLY

Issued on the spot

The application collects no credit information; most bonds issue instantly upon payment. Larger amounts may get a quick soft-pull review that never affects your score.

SAME DAY

File with the Department of Insurance

Submit the executed bond with your TPA license application or renewal. Wet-ink originals mailed whenever the Department insists on them.

About this bond

What it is and who needs it.

What the TPA bond actually covers

Illinois licenses third party administrators — firms that collect premiums or adjust or settle claims for insurers and benefit plans — through the Department of Insurance under Article XXXI¼ of the Insurance Code (215 ILCS 5/511 et seq.). A TPA that maintains funds in a fiduciary capacity must file and maintain a fidelity bond while licensed.

The bond runs in favor of the people of the State of Illinois, payable to any party injured under its terms. It backs the administrator’s honest handling of the funds it holds — it is a fidelity guarantee, not insurance for the TPA.

By statute (215 ILCS 5/511.104) the amount is 5% of the aggregate funds administered, with a $50,000 minimum and a $1,000,000 maximum. The license automatically terminates if the bond is not in force, so we track it and notify you well before expiration.

215 ILCS 5/511 (Article XXXI¼)Illinois third party administrators are licensed by the Department of Insurance under 215 ILCS 5/511 et seq. A TPA holding funds in a fiduciary capacity must maintain a fidelity bond in favor of the people of Illinois. Under 215 ILCS 5/511.104 the amount is 5% of the funds administered, subject to a $50,000 minimum and a $1,000,000 maximum; the license terminates automatically if the bond lapses.

You need this bond if you are

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Applying for an Illinois TPA license and will hold funds in a fiduciary capacity

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A claims or benefits administrator collecting premiums or settling claims for insurers

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Renewing a TPA license whose fidelity bond is expiring or was non-renewed

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Growing the funds you administer and needing to raise your bond to the statutory 5%

One application, issued on the spot.

Submit the application with your required bond amount ($50,000 minimum) — the executed bond is generated instantly, ready to file.

Start the application →

FAQ

Common questions.

How much is the Illinois TPA bond?Pricing is 1% of your bond amount, with a $100 minimum. By statute the bond amount equals 5% of the funds you administer, with a $50,000 floor and a $1,000,000 ceiling — enter your required amount at the application and your exact price appears.

Why is the minimum $50,000?It’s set by 215 ILCS 5/511.104. The fidelity bond can’t be smaller than $50,000 regardless of how little you administer, and rises to 5% of administered funds up to a $1,000,000 cap.

Is there a credit check?The application collects no credit information, and most applications approve instantly. If a check runs on a larger amount, it is a soft pull only — it never affects your credit score.

What does the bond protect against?It protects the people of Illinois and any party injured if the administrator mishandles the funds it holds in a fiduciary capacity. If the surety pays a claim, you repay the surety — it is not insurance for you.

What happens if the bond lapses?Your TPA license automatically terminates if the bond is not in force. We track expiration and send renewal notices well in advance, with autopay available, so a missed email never costs you your license.

Related bonds

Other Illinois bonds.

TPA fidelity bond, issued today.

Pricing from $100, $50,000 statutory bond minimum. Enter your required amount and file with the Department of Insurance the same day.

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Your premiumfrom $100

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