Michigan Premium Finance Company Bond Guide
If you’re applying for a premium finance company license in Michigan, you’ll need this surety bond.
Bond Overview
- Purpose: To protect customers who purchase insurance premium loans if the lender acts illegally
- Who Needs It: All companies providing insurance premium financing in Michigan
- Regulating Body: The Michigan Department of Insurance and Financial Services
- Required Coverage: $10,000
- Premium Rate: $100–$500 for most applicants based on credit score
Keep reading to learn how to navigate the bonding process for your insurance premium financing company.
What Is a Michigan Premium Finance Company Bond?
A Michigan insurance premium finance company bond protects customers who purchase insurance premium loans if the business breaks financial industry regulations or acts illegally.
The Michigan Department of Insurance and Financial Services requires this bond as part of the licensing process for insurance premium financing providers in the state.
How Much Do Premium Finance Company Bonds Cost in Michigan?
Michigan insurance premium finance company bonds cost a small percentage of the bond amount, typically 1–5% based on credit score.
Qualified applicants often pay just $100 for the $10,000 bond. Apply for your free, personalized quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a Premium Finance Company Bond?
The Michigan Department of Insurance and Financial Services requires this bond for companies that issue loans to help other businesses or individuals pay for insurance premiums.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Michigan insurance premium finance company 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 email you the bond shortly after purchase. Be sure to file the bond with the Michigan Department of Insurance and Financial Services as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Michigan Premium Finance Company Bond Work?
As with all surety bonds, an insurance premium finance company bond creates a legal contract between three parties:
- Principal: You, the insurance premium finance company filing the bond
- Obligee: The Michigan Department of Insurance and Financial Services requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding all applicable provisions of the Michigan Insurance Code of 1956.
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 Do I Renew My Bond?
These bonds expire annually. To renew your insurance premium finance company bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
