What is an Iowa Travel Agency Bond?
Learn about what this bond can do for your business and how to acquire one!
All Travel Agencies are required to register with the Iowa Secretary of State before conducting business in the State of Iowa, and one of the major requirements in order to become registered is a surety bond.
The surety bond requirement is in accordance with Section 9D.3 of the Iowa Code. The purpose of the bond is to ensure that the registered travel agency will properly fulfill its obligations to its clients.
What is the bond amount?
The bond amount is $10,000.
Those who have excellent credit scores may be eligible to pay a low bond premium. The bond premium starts at $100.
Get your FREE quote today in order to determine what you have to pay!
What are the Travel Agency bond conditions?
- The bond should be issued by a corporate surety who is authorized to conduct business in the State of Iowa such as Surety Bond Authority
- The surety bond should be made payable to the State of Iowa for the benefit of the following:
- Any person who has been injured by the travel agency’s fraud, misrepresentation, or financial failure
- The State of Iowa on behalf of any person who has been injured
- The registered travel agency is obligated to abide by the provisions of Section 9D of the Iowa Code, the rules and regulations of the Iowa Secretary of State, and all the other applicable rules
- If the registered travel agency commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- The surety bond will remain valid until canceled. In the case of cancellation, a 60-day notice is required
How can I obtain this type of bond?
In order to secure this type of bond, the Travel Agency who is applying to become registered must seek the assistance of a surety bond company.
You will first be asked to apply for this bond.
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the pre qualification process is fulfilled, we will execute the bond and send it to you!
If you need further information about this bond, call or email us! We’ll be glad to help you!