--- title: "Preparing Illinois digital-asset operations for insurance review" description: "Illinois has a new digital-asset statute and kiosk law with different scopes and implementation timelines." canonical: "https://spot.insure/coverage/digital-assets/illinois" page-type: "coverage-state-guide" updated-at: "2026-09-28" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Spot Score, get_rankings for current provider rankings, search_provider_reliability to filter Spot Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/digital-assets/illinois) # Preparing Illinois digital-asset operations for insurance review Illinois’s Digital Assets and Consumer Protection Act reaches covered exchange, transfer, storage and administration activity involving residents, subject to statutory exclusions and federal preemption. IDFPR says covered businesses have until July 1, 2027 to register; the separate kiosk act already took effect in 2025. Map your service and legal entity before describing your insured exposure.[^1][^4][^2] **Coverage:** [Digital assets](/coverage/digital-assets) · [Illinois](/coverage/states/illinois) ## What Is Digital Assets? Digital-asset coverage may address custody, theft and business-liability risks, but a custodian’s policy may protect the custodian rather than you. If you hold or safeguard assets, verify the insured entity, wallets, key-loss protection and valuation. [Read the national Digital assets guide](/coverage/digital-assets). ## Illinois Requirements | Requirement | Details | | --- | --- | | Map covered business activity | Identify whether you exchange, transfer, store assets for residents or administer assets, and check the Act’s express exclusions for securities or commodities activity, certain banks and fiduciaries, merchant use, software and network participation.[^1] | | Track the transition separately | IDFPR states the digital-asset business registration deadline is July 1, 2027. Kiosk provisions took effect when the laws were signed on August 18, 2025; confirm current rulemaking and any later department guidance before relying on implementation details.[^4][^3][^2] | ## What to Watch for in Illinois ### The Act has meaningful exclusions The law excludes some activity, including certain regulated securities or commodities activity, specified financial institutions, ordinary-course merchant use, and software or network work without control of transactions. Apply the exact statutory conditions to your operations.[^1] ### IDFPR’s live rules page remains a currentness check The Department page reviewed here still described first-notice proposed rules and a comment period ending June 29, 2026. Check for later final rules before relying on procedure or deadlines beyond the statute and its current agency guidance.[^3] ### Kiosk obligations are a separate track The Digital Asset Kiosks Act has its own operator, location and transaction controls. A business hosting a kiosk should determine whether it is the operator, a contracted location, or only the property host.[^2][^3] ## Who Regulates Insurance in Illinois **Illinois Department of Insurance.** The Department licenses and oversees insurers and insurance producers doing business in Illinois, reviews regulated insurance activity, and investigates complaints about coverage, claims, premiums, and sales.[^7][^9][^8] - [Regulator website](https://idoi.illinois.gov/) - [License lookup](https://idoi.illinois.gov/companies/agent-lookup.html) - [File a complaint](https://idoi.illinois.gov/consumers/file-a-complaint.html) - Phone: (866) 445-5364 ### Surplus-Lines Tax and Stamping Office **Reported tax rate:** 3.5% of taxable premium plus a 0.04% stamping fee; separate 1% fire marshal tax on taxable fire premium When Illinois is the insured’s home state, the broker reports and remits a 3.5% tax on gross taxable surplus-line premium less returned taxable premium. The separate SLAI stamping fee is 0.04% for policies effective on or after January 1, 2023; a 1% fire marshal tax also applies to taxable fire premium.[^11][^10][^14][^15][^12] [Surplus Line Association of Illinois](https://www.slai.org/) **Illinois guaranty fund limits:** For covered claims against a member insurer, the Illinois Insurance Guaranty Fund generally caps its obligation at $500,000 per claim; workers’ compensation claims are excepted from that dollar cap. This fund does not protect policies issued by nonadmitted surplus-lines insurers. The net-worth exclusions apply to covered claims against member insurers.[^12] **Illinois FAIR Plan:** If you cannot obtain basic property coverage in the voluntary market, the Illinois FAIR Plan offers a residual-market option for eligible property. Check its current eligibility and coverage limits before relying on it for a commercial location.[^13] ## Providers With Documented State Licenses No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. [Check the regulator’s license lookup](https://idoi.illinois.gov/companies/agent-lookup.html) and confirm availability with a provider when requesting a quote. ## Questions to Ask Before You Buy in Illinois 1. Which Illinois-facing service does each entity perform: custody, transfer, exchange, digital-asset administration, kiosk operation or only software? 2. Who owns and controls customer and company wallets, including any service provider or affiliate? 3. Does the insurance submission name the entities and third parties whose acts or custody create the claimed risk? 4. Ask whether key loss, external theft, employee crime, customer liability and protocol or network events are treated separately in the proposed terms. ## Digital Assets in Illinois: FAQ ### Does Illinois registration establish that a digital-asset policy is required or available? No. Registration and insurance are separate questions. The cited act and IDFPR information describe regulation and timing; they do not promise insurance or make a coverage grant.[^1][^4][^6][^5] ### When does Illinois require covered digital-asset businesses to register? IDFPR currently states a July 1, 2027 registration deadline. The Department also reports that implementing rules were proposed, with comments through June 29, 2026, so check for later final rules before relying on procedural details.[^4][^3] ## Digital Assets in Other States - [Alabama](/coverage/digital-assets/alabama) - [Alaska](/coverage/digital-assets/alaska) - [Arizona](/coverage/digital-assets/arizona) - [Arkansas](/coverage/digital-assets/arkansas) - [California](/coverage/digital-assets/california) - [Colorado](/coverage/digital-assets/colorado) - [Connecticut](/coverage/digital-assets/connecticut) - [Delaware](/coverage/digital-assets/delaware) - [District of Columbia](/coverage/digital-assets/district-of-columbia) - [Florida](/coverage/digital-assets/florida) - [Georgia](/coverage/digital-assets/georgia) - [Hawaii](/coverage/digital-assets/hawaii) - [Idaho](/coverage/digital-assets/idaho) - [Indiana](/coverage/digital-assets/indiana) - [Iowa](/coverage/digital-assets/iowa) - [Kansas](/coverage/digital-assets/kansas) - [Kentucky](/coverage/digital-assets/kentucky) - [Louisiana](/coverage/digital-assets/louisiana) - [Maine](/coverage/digital-assets/maine) - [Maryland](/coverage/digital-assets/maryland) - [Massachusetts](/coverage/digital-assets/massachusetts) - [Michigan](/coverage/digital-assets/michigan) - [Minnesota](/coverage/digital-assets/minnesota) - [Mississippi](/coverage/digital-assets/mississippi) - [Missouri](/coverage/digital-assets/missouri) - [Montana](/coverage/digital-assets/montana) - [Nebraska](/coverage/digital-assets/nebraska) - [Nevada](/coverage/digital-assets/nevada) - [New Hampshire](/coverage/digital-assets/new-hampshire) - [New Jersey](/coverage/digital-assets/new-jersey) - [New Mexico](/coverage/digital-assets/new-mexico) - [New York](/coverage/digital-assets/new-york) - [North Carolina](/coverage/digital-assets/north-carolina) - [North Dakota](/coverage/digital-assets/north-dakota) - [Ohio](/coverage/digital-assets/ohio) - [Oklahoma](/coverage/digital-assets/oklahoma) - [Oregon](/coverage/digital-assets/oregon) - [Pennsylvania](/coverage/digital-assets/pennsylvania) - [Rhode Island](/coverage/digital-assets/rhode-island) - [South Carolina](/coverage/digital-assets/south-carolina) - [South Dakota](/coverage/digital-assets/south-dakota) - [Tennessee](/coverage/digital-assets/tennessee) - [Texas](/coverage/digital-assets/texas) - [Utah](/coverage/digital-assets/utah) - [Vermont](/coverage/digital-assets/vermont) - [Virginia](/coverage/digital-assets/virginia) - [Washington](/coverage/digital-assets/washington) - [West Virginia](/coverage/digital-assets/west-virginia) - [Wisconsin](/coverage/digital-assets/wisconsin) - [Wyoming](/coverage/digital-assets/wyoming) [Other Coverage in Illinois](/coverage/states/illinois) ## Sources [^1]: [Public Act 104-0428, Digital Assets and Consumer Protection Act](https://ilga.gov/Documents/Legislation/PublicActs/104/PDF/104-0428.pdf) — Illinois General Assembly; Signed August 18, 2025; §§1-5, 1-10 definitions, activity and exemptions; application and transition provisions. Accessed 2026-09-28. [^2]: [Public Act 104-0429, Digital Asset Kiosks Act](https://ilga.gov/Documents/Legislation/PublicActs/104/PDF/104-0429.pdf) — Illinois General Assembly; Signed August 18, 2025; operator/location provisions and effective clause. Accessed 2026-09-28. [^3]: [Digital Assets Resources for Businesses](https://idfpr.illinois.gov/banks/digital-assets/resources-for-businesses.html) — Illinois Department of Financial and Professional Regulation; Current agency page, proposed rules and June 29, 2026 comment deadline; kiosk location reporting. Accessed 2026-09-28. [^4]: [Office of Innovation — Digital Assets](https://idfpr.illinois.gov/about/innovation.html) — Illinois Department of Financial and Professional Regulation; Current page states July 1, 2027 registration deadline and notes rules implementation is ongoing. Accessed 2026-09-28. [^5]: [Insurance](https://www.bitgo.com/solutions/insurance/) — BitGo; Current page: custody and key-control description; direct-insured entity and location/entity eligibility qualifiers. Accessed 2026-09-28. [^6]: [Performance Management — Supplemental Requirements & Guidance](https://assets.lloyds.com/media/70173180-5d36-4eb1-b7fd-f2cec93863a9/Performance-Management-Supplemental-Requirements-and-Guidance.pdf) — Lloyd’s; January 2020, pp.44–46: historic underwriting considerations for key security, hot/cold storage, code/network risk, insured identity and valuation; historical market guidance only. Accessed 2026-09-28. [^7]: [Illinois Department of Insurance](https://idoi.illinois.gov/) — Illinois Department of Insurance; Official agency homepage and agency information. Accessed 2026-09-28. [^8]: [File a Complaint](https://idoi.illinois.gov/consumers/file-a-complaint.html) — Illinois Department of Insurance; Official insurance complaint intake and consumer phone. Accessed 2026-09-28. [^9]: [Agent Lookup](https://idoi.illinois.gov/companies/agent-lookup.html) — Illinois Department of Insurance; Department page explains use of Illinois SBS Lookup for agents, brokers, and business entities; Department home provides company license lookup. Accessed 2026-09-28. [^10]: [Calculating & Remitting Taxes: Surplus Line Tax](https://www.slai.org/docs/surplus-line-filing-taxes/remitting-taxes-surplus-line-tax/) — Surplus Line Association of Illinois; Current surplus-line tax applicability and rate. Accessed 2026-09-28. [^11]: [215 ILCS 5/445: Surplus line](https://www.ilga.gov/Documents/legislation/ilcs/documents/021500050K445.htm) — Illinois General Assembly; Subsections (3)(a), (12): tax and code applicability. Accessed 2026-09-28. [^12]: [215 ILCS 5: Illinois Insurance Guaranty Fund](https://www.ilga.gov/legislation/ILCS/details?ActID=1249&ActName=Illinois+Insurance+Code.&ChapAct=215+ILCS+5%2F&Chapter=INSURANCE&ChapterID=22&MajorTopic=REGULATION&Print=True&SeqEnd=165100000&SeqStart=159400000) — Illinois General Assembly; Article XXXIV: cap, net-worth exclusions, exceptions, and non-admitted insurer exclusion. Accessed 2026-09-28. [^13]: [Illinois FAIR Plan Association](https://www.illinoisfairplan.com/) — Illinois FAIR Plan Association; Plan overview and current eligibility information. Accessed 2026-09-28. [^14]: [Stamping Fees: Fee Calculation](https://www.slai.org/docs/surplus-line-filing-taxes/remitting-stamping-fees-fee-calculation/) — Surplus Line Association of Illinois; Current stamping fee 0.04% of premium for policies effective January 1, 2023 or later; may be passed to insured. Accessed 2026-09-28. [^15]: [50 Ill. Adm. Code § 2701.130: Taxes](https://www.ilga.gov/agencies/JCAR/EntirePart?titlepart=05002701) — Illinois Joint Committee on Administrative Rules; Surplus line producer pays 1% fire marshal tax on gross premiums less returned premiums for insurance subject to the Fire Investigation Act. Accessed 2026-09-28. [^16]: [Licenses](https://www.at-bay.com/licenses/) — At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21. [^17]: [Licenses and Carriers](https://www.coalitioninc.com/legal/licenses) — Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535.. Accessed 2026-09-22. [^18]: [Insurance Producer Licenses](https://www.corgi.insure/broker-licenses) — Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown.. Accessed 2026-09-28. [^19]: [About Hiscox US Insurance](https://www.hiscox.com/about-hiscox-insurance) — Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16. [^20]: [Licenses](https://www.nextinsurance.com/insurance-licenses/) — ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885.. Accessed 2026-09-28. [^21]: [About Risklytics](https://www.risklytics.ai/about/) — Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16. [^22]: [Insurance Licenses by State](https://www.techinsurance.com/legal/licenses) — TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number.. Accessed 2026-09-28. [^23]: [Licenses](https://www.vouch.us/legal/licenses) — Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict.. Accessed 2026-09-15. Updated 2026-09-28. This guide is informational and does not determine whether a policy is available or meets your needs. [Editorial policy](/editorial-policy). To suggest a correction, [contact Spot](/contact) with a supporting source. ## Agent and Developer Resources - [Markdown page](https://spot.insure/coverage/digital-assets/illinois.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)