Alabama Preneed Funeral Agent Bond Guide
If you offer preneed funeral contracts in Alabama, you’ll likely need this surety bond.
Bond Overview
- Purpose: To protect prepaid funeral funds
- Who Needs It: Preneed funeral agents in Alabama
- Regulating Body: The State of Alabama Department of Insurance
- Required Coverage: $1,000—$100,000
- Premium Rate: 1–10% based on credit score
Learn all about the bond requirements and process in this guide.
What Is an Alabama Preneed Funeral Agent Bond?
An Alabama preneed funeral agent bond ensures that agents operate ethically and follow all rules and guidelines. This bond offers financial protection if an agent mishandles prepaid funeral funds.
How Much Do Preneed Funeral Agent Bonds Cost?
Alabama preneed funeral agent bonds cost a small percentage of the required coverage amount, typically 1–10% based on credit score.
Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Preneed Funeral Agent Bond?
The Alabama Department of Insurance requires this bond for funeral agents to be able to offer prearranged funeral agreements.
You can also get insurance or submit a letter of credit as proof of financial security. However, a surety bond is often the most affordable option, requiring only a small upfront premium and no collateral.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Alabama preneed funeral agent bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- 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 DOI as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does an Alabama Preneed Funeral Agent Bond Work?
A preneed funeral agent bond creates a legal contract between these three parties:
- Principal: You, the funeral agent filing the bond
- Obligee: The Alabama Department of Insurance requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of Administrative Code 395-X-9-.01.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your preneed funeral agent bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
