New Mexico Insurance Premium Finance Company Bond Guide
Learn the ins and outs of the bonding process for your insurance premium finance company in this guide.
Bond Overview
- Purpose: To protect clients insurance premium financing company clients from fraud or theft
- Who Needs It: All insurance premium finance companies operating in New Mexico
- Regulating Body: The New Mexico Superintendent of Insurance
- Required Coverage: $10,000
- Premium Rate: $100 for a 1-year term
What Is a New Mexico Insurance Premium Finance Company Bond?
This type of surety bond ensures that insurance premium financing companies in New Mexico operate ethically and legally.
The state requires this bond as part of the licensing process to ensure compliance with laws and regulations, especially in regards to handling premium payments.
How Much Do Insurance Premium Finance Company Bonds?
The state-required $10,000 New Mexico insurance premium finance company bond costs $100 for a 1-year term. Or, you can select a 3-year term to save $50.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does the Bond Contract Work?
An insurance premium finance company bond binds three parties in a legal contract:
- Principal: The insurance premium finance company filing the bond
- Obligee: The New Mexico Superintendent of Insurance requiring the bond
- Surety: The provider issuing the bond
If you steal or mishandle premium payments or otherwise break the bond terms, the bond can be used to settle claims.
While the surety will initially pay claims, you must reimburse the surety in the end.
Who Needs an Insurance Premium Finance Company Bond?
The Superintendent of Insurance requires all New Mexico insurance premium financing providers to file this $10,000 bond. It is a mandatory part of the state licensing process.
How Do I Get My Bond?
You can buy your New Mexico insurance premium finance company bond instantly online. Simply enter your information and checkout online.
We’ll email the official bond form to you in minutes.
How Do I Renew My Bond?
This bond expires annually. You can renew your bond by simply paying your renewal premium when prompted.
How to Get an Insurance Premium Financing Company License in New Mexico
To apply for a license with the New Mexico Office of the Superintendent of INsurance, gather the following materials:
- $100 application fee
- $10,000 surety bond policy
- Articles of incorporation or equivalent
- Company by-laws
- Certificate of compliance from the state
- Certificate of good standing from the state
- Copy of insurance premium financing agreement
- Complete contact processing form
- Signed renewal notice
Mail this complete packet to the address below:
Office of Superintendent of Insurance (OSI)
Attn: Company Licensing Bureau
1120 Paseo De Peralta, Room N-421
Santa Fe, New Mexico 87501
