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Crime Coverage for Illinois Community Association Funds

Illinois conditions a designated community association manager’s access to and disbursement of association funds on fidelity or crime insurance. Public Act 104-746, effective July 31, 2026, makes the coverage amount the maximum available to protect funds in the manager’s or firm’s custody or control; the management agreement can determine who pays. 1,2

What Is Fidelity Bonds?

Fidelity coverage can reimburse certain losses when employees steal money or property they handle. If employees manage company funds, customer property or benefit-plan assets, identify each owner and compare the required protection for each interest. Read the national Fidelity bonds guide.

Illinois Requirements

RequirementDetails
Coverage before fund accessThe designated manager or employing firm may not access and disburse association funds unless fidelity or crime insurance is in place for loss or theft of those funds. 1
Amount, covered people and payerCoverage must be the maximum available for funds in the designated manager’s or firm’s custody or control and cover statutory manager, firm and personnel; the association may secure and pay unless the management agreement provides otherwise. 1,2

What to Watch for in Illinois

  • Use the money in custody or control as the limit input

    The law sets the amount by reference to funds the manager or firm holds or controls for the association, not a flat statewide dollar amount. Reconcile operating and reserve accounts, approval authority and peak balances with the quote, and retain the management agreement’s allocation of who pays. 1

  • A crime policy may satisfy the statutory label, but compare the actual grant

    Public Act 104-746 changed Section 55 to allow fidelity or crime insurance. That does not establish that every crime policy meets the required association-fund protection; compare the covered loss, people, entity and maximum available amount in the actual wording. 1

  • Check the association and manager roles separately

    The Act defines community associations across condominium, cooperative, townhouse, villa and certain other residential developments, while the insurance condition is triggered for a designated manager or firm that accesses and disburses those funds. Confirm the service arrangement instead of applying the rule to every employer. 1,2

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. 3,5,4

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. 7,6,10,11,8

Surplus Line Association of Illinois

  • 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. 8
  • 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. 9

Providers With Documented State Licenses

These providers publish a national listing for Fidelity bonds; the state records document licenses for the entities and roles shown below. Some records rely on company-reported information rather than independent regulator verification. A national listing does not confirm the product is available in Illinois. Check the regulator’s license lookup and confirm state availability for your business when requesting a quote.

  • TechInsuranceSpecialty Program Group LLCInsurance producer · checked 2026-09-28TechInsurance’s current licensing page names Specialty Program Group LLC / SPG Insurance Solutions and lists state license numbers, but labels Rhode Island “Individual licenses” rather than identifying a license for the named agency. RI is omitted because this disclosure does not establish agency authority there; this is a search limitation, not an assertion that the company is unlicensed. The remaining state entries are company-reported and are not an insurance product availability map. 18
  • VouchVouch Specialty Insurance Services, LLCInsurance producer, Surplus-lines broker · checked 2026-09-28Vouch’s licenses page, effective January 16, 2025, lists producer licenses in all 50 states and DC. Its separate surplus-lines table includes Idaho number 870820, while a footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses. Because those statements conflict for Idaho, this record keeps Idaho producer-only and does not treat the table number as established agency surplus-lines authority. The page is company-reported and does not establish product availability. 19

Questions to Ask Before You Buy in Illinois

  1. Which funds can the designated manager or firm access, control or disburse, and what is the peak balance?
  2. Does the proposed crime or fidelity form cover all required people and the association’s funds at that amount?
  3. Does the management contract assign premium payment to the association or manager?

Fidelity Bonds in Illinois: FAQ

Must the policy be labeled a fidelity bond? 1

The amendment permits fidelity or crime insurance. The label alone is not enough: the policy must protect association funds against loss or theft at the required available amount and include the statutory covered group. 1

When did the current wording take effect? 1,2

Public Act 104-746 states an effective date of July 31, 2026. The older codified ILCS page still displayed the prior version when checked, so this guide uses the enacted Public Act for the amendment and effective date. 1,2

Fidelity Bonds in Other States

Other Coverage in Illinois

Sources

  1. Public Act 104-0746, §30 amending 225 ILCS 427/55. Illinois General Assembly; Act §30; amendment to Section 55 and source note; effective July 31, 2026; extends scheduled repeal to Jan. 1, 2032. Accessed 2026-09-28.
  2. 225 ILCS 427/10, /20 and /55, Community Association Manager Licensing and Disciplinary Act. Illinois General Assembly; Official ILCS chapter page read Sept. 28, 2026; displayed the pre-amendment Section 55 and Jan. 1, 2027 sunset, so it is used only for the scope/definitions, not amended insurance wording. Accessed 2026-09-28.
  3. Illinois Department of Insurance. Illinois Department of Insurance; Official agency homepage and agency information. Accessed 2026-09-28.
  4. File a Complaint. Illinois Department of Insurance; Official insurance complaint intake and consumer phone. Accessed 2026-09-28.
  5. Calculating & Remitting Taxes: Surplus Line Tax. Surplus Line Association of Illinois; Current surplus-line tax applicability and rate. Accessed 2026-09-28.
  6. 215 ILCS 5/445: Surplus line. Illinois General Assembly; Subsections (3)(a), (12): tax and code applicability. Accessed 2026-09-28.
  7. 215 ILCS 5: Illinois Insurance Guaranty Fund. Illinois General Assembly; Article XXXIV: cap, net-worth exclusions, exceptions, and non-admitted insurer exclusion. Accessed 2026-09-28.
  8. Illinois FAIR Plan Association. Illinois FAIR Plan Association; Plan overview and current eligibility information. Accessed 2026-09-28.
  9. 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.
  10. 50 Ill. Adm. Code § 2701.130: Taxes. 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.
  11. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  12. Licenses and Carriers. 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.
  13. Insurance Producer 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.
  14. About Hiscox US 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.
  15. 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.
  16. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  17. Insurance Licenses by State. 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.
  18. 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 .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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