What is the bond requirement amount for insurance producers in Illinois?

In Illinois, the bond requirement for insurance producers is set at either $2,500 or 5% of the premiums brokered, whichever is greater. This ensures that insurance producers have a financial backing to protect consumers against potential losses due to failure to perform their obligations, such as misappropriation of funds or failing to pay premiums collected on behalf of clients.

The structure of this requirement reflects a balance between the need to protect consumers and the assurance that licensed producers are held to a standard of accountability. By allowing a bond amount that can scale based on the premiums brokered, it adapts to the size of the producer's operations, ensuring that smaller producers are not disproportionately burdened while still providing adequate protection.

This aspect of Illinois law demonstrates the regulatory framework established to maintain both consumer confidence in the insurance industry and to ensure that producers operate with the necessary financial responsibility.