Easy Guide to Insurance Broker Bonds
We are legally licensed to issue insurance broker bonds in all 50 states. Whether you’re an insurance professional in Florida, California, New York or Georgia, we can bond you!
Although most brokers work ethically and according to industry laws, purchasing insurance can still be risky for consumers who reveal personal information to their brokers. For this reason, most states require insurance brokers to be bonded before they can be licensed. In some states, such as New Mexico and New Jersey, insurance broker bonds are called “public adjuster and independent adjuster bonds.” But what are surety bonds, and why do you need one?
State Specific Costs
Insurance broker bond costs and requirements vary greatly as the bond amounts and regulations surrounding each license are established on a state level. Select your state below for more information about insurance broker bonds in your area.
- New Mexico
- North Carolina
- South Carolina
Pay a Low Rate for Your Insurance Broker Bond
Most states require insurance brokers to post bonds in amounts ranging from $10,000 to $20,000. Although most surety bond rates are calculated between 1 and 20% of the bond amount, We works with a number of underwriting markets that specialize in freely written bonds. As a result, we can issue insurance broker bonds to every applicant for just 1% of the bond amount. This means that insurance brokers in California can get bonded for just $100. Qualified applicants who need public adjuster bonds in New Jersey can get 2 years of coverage for just $100.
Get an Insurance Broker Bond, No Matter Your Credit
Don’t let bad credit keep you from getting the bond you need! Because insurance broker bonds are freely written, they do not require a credit check. This means that applicants with poor credit scores can get bonded for the same low rate that good-credit applicants get.
Learn More About Insurance Broker Bonds
So how do insurance broker bonds work? This specific type of surety bond ensures that insurance brokers fulfill their duties ethically and according to the laws of their city and state. In most cases, an insurance broker must file proof of a surety bond before he or she can obtain a business license.
The exact obligations an insurance broker is expected to fulfill under a bond’s terms depends on the exact legal language found on the form, which varies by state. Generally speaking, most insurance broker bonds allow harmed parties to file a claim against the bond if an insurance broker commits any of the following wrongdoings:
- using inflated or false quotes to increase profit
- coercing consumers into purchasing inappropriate insurance products
- encouraging customers to misrepresent themselves on insurance applications
- encouraging customers to misrepresent their financial situation on insurance applications
If a claim is filed and proven to be valid, the consumer and/or government agency can be reimbursed for financial losses and other consequences. Some insurance broker bond forms might also guarantee the larger insurance company that the broker represents will receive proper payment for its products. As with all contracts, you should fully understand the terms you’re agreeing to before purchasing and signing a bond.
Apply for your surety bond
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