Insurance License Hub

The Illinois Third Party Administrator license

Third Party Administrator

Handles other people's premiums or claims, and its bond is sized to the money it touches: five percent of what it expects to hold for Illinois residents next year, on a $50,000 floor and a $1,000,000 ceiling. Acting without the license is a Class A misdemeanor.

Course

None

This license has no pre-licensing course route.

Ways in

1

There is no state exam for this license.

Exam

n/a

Not required on any of the routes below.

Every way to qualify

  1. Route 1 File the people behind it and a bond sized to the money

    No state exam for this license

    The people behind it

    • The names, addresses and official positions of the individuals responsible for the conduct of the administrator's affairs, including every member of the board of directors, board of trustees, executive committee or other governing board or committee, the principal officers of a corporation or the partners of a partnership, with a non-refundable $200 filing fee that becomes the initial license fee if the Director issues one.

    and the fidelity bond

    • A continuous fidelity bond in favor of the people of the State of Illinois, payable to any party injured under it, in the greater of $50,000 or 5 percent of the contributions and premiums projected to be received in the administrative trust fund for the coming plan year from Illinois residents, or 5 percent of the claims and claim expenses projected to be held in the claims and settlement account, whichever account the administrator keeps, and the greater of the two where it keeps both, capped at $1,000,000. The surety may cancel on 30 days' notice to the Director, and the license terminates automatically if the bond stops being in force.

    215 ILCS 5/511.102(b) makes acting as an administrator without a license a Class A misdemeanor, which is a criminal penalty in the licensing section itself and something only Maryland's public adjuster subtitle also carries here. 511.105(b) keeps the license in effect for as long as the bond is in force and $200 is paid before the anniversary date, so it is annual rather than biennial. 511.109 lets the Director examine any applicant or holder. There is no examination of the applicant and no pre-licensing course. A third party administrator license is also one of the three things that let an entity act as a travel administrator under 1650(a), and one of the two that let a person act as a managing general agent under 141a(b).

    Read at ilga.gov on 2026-08-20

No national seller sells a course for this license. There is no examination: the qualification is a corporate record and a bond scaled to the money handled.