Georgia Insurance Premium Finance Company Bond Guide
If you are applying with the Georgia Commissioner of Insurance to provide insurance premium financing agreements, you’ll need a surety bond.
Bond Overview
- Purpose: To guarantee compliance with the Insurance Premium Finance Company Act
- Who Needs It: Any party engaging in insurance premium finance agreement business
- Regulating Body: The Georgia Office of Insurance and Safety Fire Commissioner
- Required Coverage: $25,000
- Premium Rate: $250 for a 1-year term
Read on to learn more about the bond requirements.
What Is a Georgia Insurance Premium Finance Company Bond?
A Georgia insurance premium finance company bond is required by the Commissioner of Insurance to hold companies liable for upholding state regulations.
It creates financial security if finance companies harm the state or the public by acting unethically or illegally.
How Much Do Insurance Premium Finance Company Bonds Cost in Georgia?
The state-required $25,000 bond costs a flat rate of $250 for a 1-year term. Or, you can save 25% by selecting a 3-year term — making your premium just $208.33 per year of coverage.
Buy your bond instantly online in minutes.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Georgia Insurance Premium Finance Company Bond Work?
As with all surety bonds, this creates a legally-binding financial contract between three parties:
- Principal: The insurance premium finance company owner(s)
- Obligee: The Georgia Office of Insurance and Safety Fire Commissioner
- Surety: The underwriting surety company
As the principal, you are responsible for upholding the bond terms.
If you break any provisions of the Georgia Insurance Premium Finance Company Act, harmed parties can file claims for up to $25,000. The surety will pay valid claims, but you must reimburse the surety.
Who Needs an Insurance Premium Finance Company Bond?
Any insurance premium finance company applying for a business license in Georgia needs to submit a $25,000 bond or another form of $25,000 security.
How Do I Get an Insurance Premium Finance Company Bond in Georgia?
With SuretyBonds.com, you can get your bond instantly online with no application or credit check. Simply enter your information and check out online.
You’ll receive your official bond documentation via email shortly after purchase. Be sure to sign and file the original bond form and power of attorney with the Enforcement Division, Office of Commissioner of Insurance.
How Do I Complete the Bond Form?
Make sure you submit the original, unaltered bond form provided by the Commissioner of Insurance. Ensure each person’s name is typed below the signature line and all blanks are completed.
See further instructions attached to the bond form GID-028-NT.
How Do I Renew My Insurance Premium Finance Company Bond?
You can renew your bond by simply paying your renewal invoice when prompted. These bonds remain continuous until cancelled as long as you pay your premium and avoid bond claims.
The surety can cancel the bond by providing 30-days notice to the Insurance Commissioner.
