What is a Michigan Information Purchaser Bond?
In Michigan, information purchasers are required to submit a surety bond to comply with its licensing requirements.
The Information Purchaser Bond is required before any individual or company can purchase and obtain information regarding vehicle registrations, driver’s licenses, personal identification cardholders, snowmobile registrations, and other personal records from the Department.
The bond guarantees that information purchasers follow all applicable state laws and statutes that regulate the purchasing and selling of personal information.
Information can be purchased if it is used:
- For matters related to motor vehicle and driver safety or auto theft
- For verifying the accuracy of personal information registered by an individual to a business
- For legitimate research undertakings and statistical reports for academic, scholarly, or commercial purposes by a bona fide research agency/organization
- For investigative purposes for civil or criminal proceedings in federal, state, or municipal courts
- For news purposes in connection with preparing and disseminating reports concerning the whole or part of the operation of a motor vehicle or public safety
- For persons requesting information applying to himself or herself
What are the bond conditions?
- The Surety must be authorized to issue surety bonds in the State of Michigan.
- The Principal (information purchaser) and Surety will pay the Department or any person whose personal information is included on any record or list of information purchased from the Department if a claim is filed against the bond.
- The Principal and Surety must pay all sums to the Department for information obtained to the Principal, or the Principal’s agent, that has been unpaid for six months or more and after at least three requests for payment have been sent to the Principal’s last known address filed with the Department.
- The bond and all renewals will not exceed the penal sum of the bond amount.
- The coverage of the bond is continuous; however, the Surety may cancel the bond by giving 30 days’ written notice to the Michigan Department of State, Information Services Division.
What is the bond amount?
The bond amount is set at $25,000.
The cost of the bond is a percentage of the bond amount. It typically covers 1%-5% of the bond amount. The cost may vary and is subject to a surety underwriter’s evaluation for your credit score and financial credentials.
How do I obtain an Information Purchaser Bond?
We have made the surety bond procedure easier for you! Just follow these simple steps:
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you can learn more about your bond costs, get your FREE quote HERE!
Once we have received your application, we will immediately start the bonding process. We will inform you about the important documents that you need to submit for the next step, which is the underwriting process.
STEP 2: An underwriter will take a thorough look at the following:
- Your financial strength
- Your job performance history
- Your credit score
STEP 3: After the underwriting process has been fulfilled, we will issue your surety bond and send it to you immediately!
Contact us today!