What Is a Georgia Insurance Counselor Bond?
Insurance counselors in Georgia have to obtain an insurance broker bond as a part of the licensing process. You have to present it to the state Office of Commissioner of Insurance.
The surety bond is a guarantee for state authorities and for your customers that your counseling business will adhere to the law. It ensures your compliance with the Georgia Insurance Code. If you transgress from these rules, a harmed party can file a claim against you to receive a financial compensation.
Just like other Georgia surety bonds, the insurance counselor bond is a three-party contract. Your insurance counseling company is the principal. The Georgia Commissioner of Insurance is the obligee that requires the bond. The surety is the third entity that provides the bonding.
Questions about Insurance Broker Bonds
Who needs to obtain this bond?
In Georgia, it is not legal to provide insurance counseling services for life, accident and sickness, property, casualty, and personal illness without a proper license. That’s why if you want to engage in such activities, you need to obtain a Georgia insurance counselor license from the Commissioner of Insurance. Posting a surety bond is one of the main requirements. It should be presented in the official bond form.
The bond protects your customers from any potential misuse and fraud you might engage in, such as providing misleading information in your counseling.
How much does it cost to get bonded?
Your bond price is formulated on the basis of the bond amount that you have to obtain. You need to post a $5,000 Georgia insurance counselor bond. However, this is not the cost you have to cover. You only need to pay a bond premium, which is a fraction of it. If you qualify for the standard bonding market, you can pay as low as 1%-5% of this amount.
How exactly is your bond price set? The most important factors your surety considers are your personal credit score, business records, assets and liquidity, as well as business experience. You can expect to pay less for the bond if your profile is solid.
Need more details on how your bond cost is formulated? Our surety bond cost page provides a complete overview on the topic.
|Bond Type||Surety Bond Amount||Credit Sore|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Georgia Insurance Counselor Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
Can I get a bond with bad credit?
Lance Surety Bonds runs its Bad Credit Surety Bonds program to help applicants with problematic finances. If you are struggling with issues such as low credit scores, tax liens, bankruptcies, or civil judgements, this option can be of use.
The rates for bad credit bonds are in the range of 5%-10%. While the price is higher because of the increased risk, you can still get a top rate with us. We work with a number of A-rated, T-listed surety companies, which allows us to select the best option for your case.
How do I get my Georgia insurance counselor bond?
You can apply online today for a free bond quote. In case you want to see your exact bond price, you have to complete the full application and send us your paperwork.
Do you want to learn more about the bonding process? You can refer to our How to Get Bonded page for further details.
If you need help or have any questions, just call us at (877) 514-5146. Lance Surety Bonds’ specialists are here to assist you.
What happens in case of a bond claim?
The surety bond that you obtain when getting licensed guarantees your legal compliance with the Georgia Insurance Regulations set in Title 33 of the state Code. It ensures you will provide your professional services as an insurance counselor according to your contractual obligations and by following state rules. If you engage in any unlawful activities and they harm your customers, an affected party can file a claim on your bond. If the claim is proven, you have to reimburse the claimants up to the penal sum of your bond.
As this illustrates, bond claims should be avoided as much as possible. They can cause both financial and reputational harm to your business.