The Arizona Third Party Bond is required by the Arizona Department of Transportation. The bond is enforce to help protect any person who suffers loss from the following reasons from the Arizona Third Party Bond.
1. Nonpayment by the principal of any fee or tax paid to the principal by that person
2. Insolvency or discontinuance of business
3. Failure to comply with authorized duties
The Arizona Revised Statutes defines “authorized third party” as an entity that has executed a written agreement and is authorized by the department to perform limited or specific functions such as title and registration, motor carrier licensing and tax reporting, dealer licensing, driver licensing, etc.
In order to be a third party, you must be authorized by the Department of Transportation. One of the requirements that need to be submitted along with the application form is a surety bond, with the applicant as the principal and the state as the obligee. The surety bond must be issued by a surety company that is licensed to do business in the state of Arizona. The amount is at least $100,000 per location as per the Arizona Revised Statutes.
This surety bond ensures the state that you will do your business in a professional manner, and should there be anyone who suffers financial loss due to your inability to follow rules and regulations, that person will be properly compensated.
The process is easy. To receive your free, no obligation quote, simply complete this easy to navigate, online application form. Within 1 business day you will be contacted by one of our surety experts. Then you sign some important paperwork, make payment (all major credit cards accepted)and your bond will be shipped to you via USPS priority mail. Overnight shipping is also available.
Our company, Surety Solutions Insurance Services, Inc (Surety1) has been writing Arizona surety bonds since 2003 and maintains a A+ rating by Better Business Bureau.
Friendly agents available to answer your questions.