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All Surety Bonds / Insurance Industry Surety Bonds / Insurance Agent / Broker Bond

Insurance Agent / Broker Surety Bond  We Accept Visa & Mastercard

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Apply by Fax - Download Surety Bond Application and Fax to: (916) 737-5737
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Insurance Agent / Broker

State and local governments require insurance brokers to have an Insurance Broker bond to ensure that their practices are ethical and operate according to the law. These bonds protect both consumers and the general public against fraud and unethical behavior on the part of the broker.

The bond protects against predatory practices such as:

• Using inflated or false quotes to increase profit
• Coercing clients to purchase inappropriate insurance products
• Encouraging clients to misrepresent themselves on insurance applications
• Encouraging clients to misrepresent their financial situation on insurance applications

The insurance broker bond also protects companies that provide brokers with insurance products. Since the broker acts as an intermediary between the insurance company and the consumer, the company needs to know it receives payment for its products. Insurance brokers often sell many different "brands" of insurance, and the bond reassures each insurance supplier that it will receive the money collected by the broker.

Bond prices are typically based on your credit score, a thorough financial check, and your financial history.

The insurance broker must be able to cover the face value of the bond since the broker could potentially have to pay the whole amount if a valid claim is ever filed against the bond. Bond values are usually based on the volume of business or projected business.

Insurance brokers who have poor or little credit can still obtain a bond but will have to go through a Surety Bond company that specializes in less than perfect credit bonds. Since the underwriting is more complex and the bond represents a greater risk for the surety company, lower credit bonds have higher rates.

 
 
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