Illinois insurance producer bonds.
From $100.

When an Illinois insurance producer or business entity handles client premiums and must post a fiduciary bond, the amount is $2,500 or 5% of the premiums you brokered last year, whichever is greater, capped at $50,000. Pricing is 1% of the bond amount, $100 minimum.

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Filed with the Illinois Department of Insurance under 215 ILCS 5/500-130

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Amount is $2,500 or 5% of last year’s brokered premiums — whichever is greater, not to exceed $50,000

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1% of the bond amount, $100 minimum — enter your required bond amount and your exact price appears at the application

1%of the bond amount, $100 minNo credit reviewnot even a soft pullFastinstant approval for most

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How it works

Three steps. One sitting.

Enter your amount, pay, and file. Here is the whole thing:

TODAY · ONLINE

Apply online

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

INSTANTLY

Issued on the spot

Most applications approve instantly — the executed bond is generated as soon as you pay. Larger amounts may get a quick review.

SAME DAY

File with the Department of Insurance

Submit the executed bond where the Department of Insurance directs for your producer or business entity license. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the producer bond actually covers

Illinois licenses insurance producers under the Insurance Code (215 ILCS 5). When a producer or business entity holds client premium money in a fiduciary capacity — including surplus line producers — Section 500-130 conditions the license on a continuous bond standing behind those funds.

The bond is conditioned on full accounting and due payment of premium funds that come into the producer's hands. If a producer collects a premium and fails to remit it to the company or person entitled to it, the harmed party can recover against the bond.

The amount is $2,500 or 5% of the premiums you brokered in the prior calendar year, whichever is greater, capped at $50,000. A business entity can satisfy the requirement with a bond in the entity's name. Enter your figure — the premium is 1% of that amount, $100 minimum.

215 ILCS 5/500-130 (Insurance Code)Under 215 ILCS 5/500-130, an insurance producer's bond is continuous in form and in the amount of $2,500 or 5% of the premiums brokered in the previous calendar year, whichever is greater, not to exceed $50,000 in aggregate liability. The bond is conditioned on full accounting and due payment of premium funds; a business entity may meet the requirement with a bond in the entity's name. The surety may cancel on 30 days' written notice. Confirm your required amount with the Department of Insurance.

You need this bond if you are

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An insurance producer holding premium funds subject to the fiduciary bond requirement

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A surplus line producer whose transactions trigger the bond

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A business entity meeting the requirement with a bond in the entity’s name

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Replacing a cancelled bond after a surety gave 30 days’ notice

One application, issued on the spot.

Submit the application with your required bond amount — the executed producer bond is generated instantly, ready to file.

Start the application →

FAQ

Common questions.

How much is the Illinois insurance producer bond?Pricing is 1% of the bond amount, with a $100 minimum. The bond amount is $2,500 or 5% of the premiums you brokered last year, whichever is greater, capped at $50,000. Enter your amount at the application for your exact price.

How do I figure out my bond amount?Take 5% of the premiums you brokered in the previous calendar year. If that is under $2,500, your bond is $2,500. If it is over $50,000, the bond caps at $50,000. Send us your figure and we’ll confirm.

Can a business entity carry one bond for its producers?Yes. Under 215 ILCS 5/500-130, a business entity can meet the requirement with a continuous bond in the entity’s name, in the amounts the statute sets.

Is there a credit check?The application collects no credit information — there's no credit section at all. Larger bond amounts are more likely to see a review.

What does the bond protect against?It backs the premium money you hold in trust. If you collect a premium and fail to remit it to the company or person entitled to it, they can claim against the bond — and if the surety pays, you repay the surety.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Illinois bonds.

Producer bond, issued today.

Pricing from $100. Enter your required amount and file the same day.

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Your premiumfrom $100

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