Georgia revises surety bond requirement for vehicle service agreement sellers

vehicle

Signed into law on May 7, 2012, Georgia HB 1067 exempts retail installment sellers of vehicle service agreements from the existing reinsurance requirements provided that the seller meets certain financial criteria.

Specifically, section 10 of HB 1067 states the following:

(5) Upon the request of the Commissioner, posts a security deposit or surety bond in an amount not to exceed $250,000.00 and in the manner prescribed by the Commissioner through regulation.”

Click here to read HB 1067 in its entirety.

This law was enacted as part of a larger legislative movement to ensure that insurance agents, agencies, subagents, counselors, adjustors, etc. adhere to the licensing and registration requirements set forth by the state.

Originally introduced in February of 2012 and passed by both the House and Senate the following month, this bill was sponsored by Reps. Carl Rogers, Richard Smith, Edward Lindsey and Charlie Bethel.

If you need a surety bond in Georgia or any other state, contact an expert surety specialist online 24/7 or by phone at 1 (800) 308-4358 Monday through Friday from 8 a.m. to 7 p.m. CST.