Legal Service Plan Bond Guide
Several states require legal service insurance corporations and/or prepaid legal service plan sponsors to file a surety bond as financial security.
Bond Overview
- Purpose: To protect policyholders from insolvency or misconduct by a legal expense insurance provider or sponsor
- Who Needs It: Legal service insurance plan providers or sponsors
- Required Amount: $25,000–$100,000, varies by state
- Premium Rates: Typically 1–10% based on credit score
Keep reading to learn all about the bonding process, then apply for your same-day quote.
What Is a Prepaid Legal Service Plan Bond?
A legal service plan bond, also known as a prepaid legal service bond, holds sponsors responsible for upholding state regulations. The bond also protects clients from loss if a plan sponsor mishandles funds.
There are also bond requirements for corporations that provide legal service insurance, connecting attorneys and organizations. Under the surety bond, legal insurance corporations are held financially responsible for operating legally and ethically.
How Much Do Legal Service Plan Bonds Cost?
Prepaid legal service plan bonds typically cost 1% to 10% of the total bond amount. The bond coverage requirements vary by state, but range between $30,000 and $100,000.
For example, Texas requires for-profit legal service contract providers to file a $50,000–$100,000 bond based on annual revenue, while Georgia requires a $25,000 prepaid legal services bond. Select your state below to learn more and get a free quote today.
How Do Prepaid Legal Service Plan Bonds Work?
As with all surety bonds, a legal service plan bond creates a legal contract between three parties:
- Principal: You, the legal plan sponsor or legal expense corporation filing the bond
- Obligee: The state department requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding all state legal provisions, rules and regulations.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety.
How to Get a Legal Service Plan Bond
SuretyBonds.com provides the fastest and easiest way to get a prepaid legal service plan bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within 24 hours
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file it with the appropriate state department as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Do I Renew My Legal Service Plan Bond?
Legal expense insurance plan bonds typically expire annually. A SuretyBonds.com representative will contact you with renewal instructions and an invoice to keep your bond active before your term ends.
How Do I Update My Legal Service Plan Bond Form?
If you need to update any information on your bond form, call 1 (800) 308-4358 or email [email protected], and one of our friendly representatives will be happy to assist you.
Can I Get Bonded With Bad Credit?
Don’t let your financial situation keep you from getting the bond you need. Our Bad Credit Bonding Program gives 99% of applicants access to auto bonds.
Why Buy Your Bond From SuretyBonds.com?
SuretyBonds.com is the nation’s top surety provider. We offer the best service, fastest delivery and most affordable prepaid legal service and legal expense insurance bonds in the industry.
