South Carolina Insurance Broker Bond
Learn the importance of this surety bond for insurance brokers in South Carolina!
What is an Insurance Broker Bond?
As part of the licensure requirement, insurance brokers are required to submit a surety bond along with an accomplished broker’s application (form 3520), a current Producer Appointment or a broker pre-licensing certificate, and a biennial license fee.
The surety bond will serve as a guarantee to the South Carolina Department of Insurance that the insurance broker will conform to the laws and regulations of the State when placing insurance with the following:
- A surplus lines insurer who has been approved by the Director to conduct business in the State of Carolina
- A licensed insurance agent in an insurance carrier licensed in this State of Carolina
Any act contrary to the relevant laws, rules, and regulations that has been committed by the insurance broker will be a ground for a bond claim.
When this happens, the person who has suffered damages will be eligible for a financial compensation.
This requirement is mandated by Section 38-45-20 of the South Carolina Code of Laws.
What is an Insurance Broker 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 Insurance Broker Bond?
In order to secure this type of bond, the licensed insurance broker must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
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 prequalification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of South Carolina
- The Obligee of the bond will be the State of South Carolina
- The licensed insurance broker must obey the provisions of Chapter 45 of the South Carolina Code of Laws as well as the rules and regulations of the South Carolina Department of Insurance
- If the licensed insurance broker commits a violation, the aggrieved party will be eligible to file a claim against the surety bond up to its maximum value