Long-term care facilities in Illinois who elect to accept and manage funds of some or all of its residents are required to submit a surety bond to the Illinois Department of Public Health (DPH). This surety bond guarantees that the principal (care facility) protects and manages resident funds ethically and in compliance with all regulations in Section 2-201(5) of the Nursing Home Care Act. If the facility fails to fulfill the bond’s terms, a claim can be filed against the bond by the harmed party. If the claim is validated, the surety will reimburse the harmed party up to the penal sum of the bond to resolve the claim. The principal is than required to reimburse the surety for all amounts paid out, including any attorney fees.
The bond amount for an Illinois Patient Trust Bond varies and is based upon the following:
- The maximum dollar amount of all resident funds accepted and managed by the principal at any time during the one year period preceding the date of execution of the bond
Or
- The estimated dollar amount of all resident funds to be accepted and managed by the principal at any time during the one year period following eh date of execution of the bond
If at any time the bond becomes insufficient to guarantee the security of the residents’ funds, the principal and surety shall execute a rider to the bond raising the dollar amount of the penal sum to an amount adequate to guarantee the security of all residents’ funds.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.