What is a California Insurance Broker Surety Bond?
A California Insurance Broker Surety Bond is required for any individual or business that seek to become an insurance broker in the state. The bond amount is $10,000 and must be submitted to the state before receiving a license to operate.
California Insurance Broker licenses come in different classes depending on the type of license the broker wishes to specialize in. License types include:
- Accident and Health
- Automobile
- Casualty
- Life
- Personal Lines
- Property
Obtaining a California Insurance Broker Surety Bond ensures your clients that you and your organization maintain a thorough and updated understanding of all insurance laws in California, as well as guarantees them that their specific needs will be treated in a lawful and unbiased manner.
How does a California Insurance Broker Surety Bond work?
These license and permit surety bonds protect both the state and public against unlawful and fraudulent actions of the principal (insurance broker). They ensure the principal will follow all regulations and laws pertaining to insurance brokers. If the principal engages in unethical or unlawful business practices, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then responsible for reimbursing the surety for all monies paid out, including any attorney fees incurred by the surety in defense of the claim.
What are the terms of a California Insurance Broker Surety Bond?
California Insurance Broker Surety Bonds are filed with the California Department of Insurance and must be issued by a resident agent of California. The bond shall remain in full force and effect until the surety is released from further liability by the commissioner or the bond is canceled.
The surety can cancel the bond at anytime by giving thirty (30) days written notice to the Commissioner of Insurance. The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
How much does a California Insurance Broker Surety Bond cost?
California Immigration Consultant Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer those with qualifying credit rates starting at $75 annually or $100 for two years.
To find out how much your California Insurance Broker Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a California Insurance Broker Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for California Insurance Broker Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is.
Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I get a California Insurance Broker Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7837 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.