Illinois Long-Term Care Facilities Need a Surety Bond to Manage Resident Funds

When a nursing home facility accepts and manages a resident's funds, the facility must take care to keep the funds safe. The Illinois Department of Health requires nursing home facilities who manage a resident's funds to obtain a surety bond. The bond amount is determined by the amount of funds the facility is managing.

A surety bond guarantees that the nursing home facility will abide by the Nursing Home Care Act, which states requirements regarding a resident's funds:

• The facility accepts funds from a resident for safekeeping and managing.
• The facility maintains a written record of all financial arrangements and transactions of the resident's funds.
• The facility must provide a written itemized statement at least quarterly, of all financial transactions.
• The facility must keep funds in a separate account from the facility's funds, with withdrawals only made by the resident or other persons entitled to make the request.
• The facility must put funds over $100 in an interest-bearing account, where the interest is paid to the resident. The facility may keep up to $100 in a non-interest-bearing account or petty cash fund for the resident.
• Upon the death of a resident, the facility must provide the executor or administrator of the resident's estate with complete accounting of all the resident's personal property, including any funds being held.
• The facility must provide a surety bond to the Departments of Health and Insurance to insure against loss, theft and insolvency.

How Much Will This Bond Cost?

The premium you pay for an Illinois Long-Term Facility Resident Fund Surety Bond depends on the bond amount and your financials. Our low rates start at 1% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

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