How much does an insurance broker bond cost in California?
The California Producer Licensing Bureau requires insurance brokers to post $10,000 surety bonds prior to conducting business.
SuretyBonds.com issues these 3-year bonds instantly for just $110! Simply click “Buy Now” to visit our secure payment portal where you can buy your bond directly from our site. It only takes a few minutes to be on your way to getting bonded as an insurance broker in California.
|Bond Type||Bond Amount||Cost|
|$10,000 Insurance Broker Bond 3-year term||$10,000||$110|
Why do I need this bond?
By posting a California insurance broker bond, principals (insurance brokers) pledge to handle all funds received appropriately and apply them to the services and products requested by the client. If the principal or his/her solicitors and employees fail to conduct ethical and lawful business, the bond protects consumers from financial loss up to the full amount of the bond. The principal must reimburse the surety for all damages paid out.
What’s the fine print?
Insurance broker bonds in California remain in full force and effect until the surety is released from further liability by the insurance commissioner or until the surety cancels the bond. The surety can cancel the bond by delivering written notice of cancellation to the commissioner at least 30 days prior to the effective termination date.
How to become an insurance broker in California
Completed insurance broker registration applications should be sent to the Insurance Commissioner of California. The following materials must be included in a completed registration application:
- $10,000 surety bond
- Action Notice of Appointment
- Business Entity Endorsement
- Action Notice of Solicitor
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