What is a Maryland Automobile Insurance Fund Producer’s Bond?
Learn about the importance of this surety bond and how to easily apply for one!
What is an Automobile Insurance Fund Producer’s Bond?
It is a way to ensure that the fund producer will provide a satisfactory record of and pay all the premiums, return premiums, or other monies that he or she will receive from any person beholden to the Maryland Automobile Insurance Fund.
Also, the fund producer should deposit into an account for premiums all monies received.
The surety bond must be submitted when applying to the Maryland Automobile Insurance Fund as a fund producer.
The Obligee (bond’s beneficiary) can file for a claim if the fund producer fails to comply with the required duties or has violated any of the relevant laws and rules that govern fund producers in the State of Maryland.
This requirement is in line with Section 20-511 of the Annotated Code of Maryland.
What is the Automobile Insurance Fund Producer’s Bond amount?
The bond amount is $10,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium! Bond premium starts at $100.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get an Automobile Insurance Fund Producer’s Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
Step 1: Bond Application
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
Our expert surety bond agent will guide you through the entire process – from the time you have applied until the bond is issued to you.
Step 2: Assessment
Next, you will be asked to submit a few important information that our underwriter will need to assess the following:
- Your credit score
- Your financial strength
- Your job or business history
To avoid any delays, make sure that you have gathered the right information needed before submitting.
BOND ISSUANCE
Once the underwriting process is done, we will immediately issue your bond and send it to you.
What are the surety bond conditions?
- If the fund producer commits a violation, the aggrieved party will be eligible to file a claim against the surety bond up to its maximum value
- The surety bond agent or company should be authorized to conduct business in the State of Maryland
- The fund producer is obligated to comply with the provisions of the Maryland Insurance Code as well as the rules and regulations of Maryland Auto
- The surety bond should be made payable to the Maryland Auto