Passed on October 24, 2018, Pennsylvania Senate Bill 764 will go into effect next year. Among other changes included in the legislation, Senate Bill 764 expands upon the surety bond requirement for recreational vehicle dealers to include additional activities that would require a bond. Under the law, a recreational vehicle is considered to be a vehicle, “primarily designed as temporary living quarters for recreational, camping or travel use, which either has its own power or is mounted on or drawn by another vehicle.” Examples of recreational vehicles include travel trailers, vehicle park trailers, slide-in campers, camping trailers, and motorhomes.
With Senate Bill 764 passing, who needs a surety bond?
In addition to the current requirement for recreational vehicle dealers to have a $30,000 surety bond, Senate Bill 764 states that a bond will be required of dealers who seek to conduct vehicle shows, exhibitions, vehicle rallies, and sales of vehicles off-premises. The bond is intended to ensure money is available in the event a claim is filed against the dealer due to unpaid taxes, license fees, judgments against the dealer, etc. Dealers who already have a $30,000 bond in place do not need to obtain a new bond to engage in these activities.
How do I get my recreational dealer surety bond?
Applicants engaging in any of the activities listed above as they pertain to recreational vehicles must obtain a surety bond to comply with Pennsylvania law. Dealers may get their surety bond by contacting an insurance agent who works with a surety company and can issue bonds. Once a dealer has found an agent with whom they are comfortable working, they will be required to fill out an application for their surety bond. Information to be provided on the application pertains to the owners of the company getting a bond. When the application is submitted, it will be reviewed by an underwriter who will either approve or deny the application. If the request is approved, the applicant must pay a premium for their bond before it can be issued. Once the bond has been issued, the applicant must sign and submit the original surety bond to the Pennsylvania Department of Transportation Bureau of Motor Vehicles.
How much does a surety bond for recreational dealers cost?
The cost of a surety bond for recreational vehicle dealers is based heavily on the qualifications of the business owner(s), such as credit history and current assets. When an underwriter approves the application for a bond, they will determine the percentage of the total bond amount the applicant must pay—called a premium—to have their bond issued.
Highly qualified applicants, or applicants who an underwriter determines to be low risk, may be approved for their surety bond for around 1% of their required bond amount. This means that a qualified applicant may have to pay just $300 for their $30,000 bond. Choosing a surety provider with access to several markets can be helpful in securing the lowest available rate.
Need to get a surety bond in Pennsylvania?
The experts at SuretyBonds.com can answer any questions you may have about Pennsylvania recreational vehicle dealer bonds, as well as get you a free, no obligation quote. Give us a call at 1 (800) 308-4358 or visit SuretyBonds.com to learn more!