What is a California Insurance Broker Bond?
To become an insurance broker in California, the California Producer Licensing Bureau requires a surety bond to obtain proper licensing.
Who Needs a California Insurance Broker Bond?
In the State of California, insurance brokers, also known as insurance agents, sell, solicit, or negotiate insurance between their clients and insurance providers. The California Producer Licensing Bureau oversees insurance brokers and requires a California insurance broker bond to become licensed in the state.
Why Do I Need a California Insurance Broker Bond?
California insurance broker bonds ensure that the principal will adhere to all state laws and regulations defined by the California Producer Licensing Bureau. Any licensed insurance brokers who fail to conduct business honestly, ethically, and in compliance with the law and cause personal or financial loss to another can have a claim filed against the surety bond. Once the claim has been completed, the broker is responsible for reimbursing the surety for all damages paid out and associated legal fees.
How Much Does a California Insurance Broker Bond Cost?
The California Producer Licensing Bureau requires insurance brokers to post a $10,000 bond. Most often, California insurance broker bonds can be purchased for a $100 flat rate and without a credit check. A California insurance broker bond is valid for two years and must be renewed to maintain licensing.
Get Started Today!
To become an insurance broker or insurance agent, you must first purchase an insurance broker bond. Don’t delay your application.