The Illinois designated agent bond may also be referred to as an Illinois auto dealer bond. They both refer to the same surety bond.
If you or your dealership sells 5 or more vehicles within a calendar year in Illinois, by law, you are required to purchase the Designated Agent surety bond.
AmeriPro Surety Bonds offers you this bond for both first time applicants and those who need to renew their designated agent license.
The purpose of the Illinois designated agent bond is for the benefit and protection of the IL Secretary of State and the people of the state of Illinois.
Your designated agent bond is a financial guarantee that you, as a licensed auto dealer, will comply with all statutes and regulatory admonitions in your professional conduct as it relates to the sale of new or used motor vehicles within Illinois.
Specifically, the Illinois designated agent bond protects the state and your customers --- those “others” --- from acts of fraud, theft, criminal malfeasance and misfeasance committed by motor vehicle dealership, its owners, managers, agents, salespersons, or other employees in the course of their professional duties with the public.
This $50,000 surety bond, then, is not an insurance policy. It is solely for the protection of your customers.
Any claims paid on a surety bond become the legal liability of the principal (that is you, the bond’s purchaser and owner) to reimburse the surety in full for all costs and fees associated.
The premium for your Illinois auto dealer bond will be determined by an application and your credit score.
Applicants may expect to pay a small percentage of the bond’s $50,000 dollar amount; however, the amount you will be asked to pay will be determined almost entirely by your credit score.
Applicants with good credit may pay as little as 1.5% of the bond’s $50,000 amount annually.
As an applicant for the designated agent surety bond, you should bear in mind the following:
The bond’s expiration will be December 31st of the same or the following year, depending on the date and point at which the bond is purchased.
Your bond should be always be kept active, current and run concurrently with the Designated Agent license issues by the Illinois’ Secretary of State.
Failing to do so may cause suspension of your licensing.
AmeriPro Surety Bonds is a surety bonds-only agency providing surety bonds throughout Illinois.
Our agency provides license and permit, contractor, court, and fiduciary bonds.
We are of the firm belief that politeness and efficiency should go hand-in-hand.
We thank you for your consideration of our agency and look forward to working with you.