Surety Bond

[alicia]

Can someone please explain when you need a surety bond? If you are independent and using an FMO, do you need one? I think the answer is yes but I just want to clarify.

Does anyone know of a reputable place to get one?

Thanks for your help.

 

[alicia]

I'm still trying to get clarification on getting a surety bond. I found the below on the IL website.
"Is a surety bond required?

Yes. If you do not have a direct contract with the insurer you are required to maintain a bond in the amount of $2,500 or 5% of the premiums brokered in the previous calendar year, whichever is greater, but not to exceed $50,000 total aggregate liability. Non-residents are no longer required to maintain a surety bond."

So, what is a direct contract? Does that mean a captive assignment such as State Farm, Allstate, etc. If I am independent and have direct contracts with the insurers, Mutual of Omaha, Forethought, etc, do I need to get a surety bond?

When wouldn't you have a direct contract with an insurer?

Can anyone clarify? Are these silly questions?

 

[OCinsurance]

I would be happy to quote a surety bond for anyone here that is seeking one. I can quote them in 40 states.

 

[ShanHikari]

You need Errors & Omissions insurance, you need a Surety Bond for owning a agency, but apparently not in CA according to the DOI and a few companies I've talked too.

 

[buysurety]

You need Errors & Omissions insurance, you need a Surety Bond for owning a agency, but apparently not in CA according to the DOI and a few companies I've talked too.

...it's important to emphasize that bond requirements vary by state.