California Escrow Agent Bond – For Fidelity Bond Deductible
Know the importance of this bond and how you can easily apply for one!
What is a California Escrow Agent Bond – For Fidelity Bond Deductible?
This bond is required to be submitted to the California Department of Business Oversight by the following persons (officers, directors, trustees, or employees of the escrow agent):
- Persons who have access to money or negotiable securities that belongs to the escrow agent or in the possession of the escrow agent.
- Persons who draw checks upon the escrow agent or upon the trust funds of the escrow agent.
The purpose of this bond is to ensure that the aforementioned persons will comply with Sections 17200 – 17215 of the California Financial Code when doing their work. This bond will also ensure that the escrow agent will be indemnified in case the aforementioned persons commit any fraudulent acts.
This bond complies with Section 17203.1 of The California Financial Code.
How much does a California Escrow Agent Bond – For Fidelity Bond Deductible cost?
The bond premium will start at 1% of the bond amount for applicants with excellent credit scores.
The bond amount will be determined by the Commissioner of Business Oversight of the State of California.
How can I get a California Escrow Agent Bond – For Fidelity Bond Deductible?
You can get this bond from us by using our easy and fast application process. Here’s how:
APPLY FOR AN ESCROW AGENT BOND HERE! Once we have received your application, we will inform you about the important information or documents that you must submit to move forward to the next step of the bonding process, which is underwriting.
During the underwriting process, our expert underwriter will assess the following:
- Your financial capability
- Your business or job performance history
- Your credit score
It’s important to provide us with clear and organized information to prevent any delays. Our expert underwriter will check everything that you’ve submitted, and once that’s done, you’ll be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you.
How does a California Escrow Agent Bond – For Fidelity Bond Deductible work?
This bond is a 3-party agreement. The persons involved are as follows:
Principal – officers, directors, trustees, or employees of the escrow agent who have access to money, negotiable securities, or who draw checks.
Obligee – State of California
Surety – surety bond provider
If the Principal commits a fraudulent act, the Principal and the Surety will both be indebted to the person (Obligee) who’s been harmed by the said act. The Obligee can be any person or an escrow agent who employs the Principal.
It’s the duty of the Principal to settle a bond claim. The Surety will step in and pay it on behalf of the Principal if the Principal fails to do so. However, the Principal must repay the Surety once the claim has been settled.
Submit your application HERE!