Georgia Insurance Premium Finance Company Bond

A Georgia Insurance Premium Finance Company Bond is a type of surety bond required by the Georgia Office of Commissioner of Insurance (OCI) for businesses that are licensed to finance insurance premiums. The bond amount is $25,000 and the cost of the surety bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Georgia Insurance Premium Finance Company Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

1. Complete the easy to navigate and secure online application. ¹
2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.
3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Georgia Insurance Premium Finance Company Bond will be shipped to the bond applicant.
^{1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.} 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

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Who Needs This Surety Bond?

You need a Georgia Insurance Premium Finance Company Bond if your business operates in Georgia and finances insurance premiums for clients. This includes businesses like:

• Premium finance companies: Companies financing insurance premiums for policyholders.
• Lenders who finance insurance premiums
• Brokers who arrange premium financing: Brokers who connect policyholders with premium financing companies might also need the bond, depending on the specific way they structure their services.

Essentially, if your business model involves advancing funds to cover insurance premiums for clients in Georgia, you’ll likely need this bond to comply with state regulations.

Here’s a breakdown to help clarify who might need the bond:

• Brokers who act as agents for premium finance companies: If a broker acts solely as an agent for a licensed premium finance company, they typically wouldn’t need a separate bond themselves. They’re essentially representing the already-bonded company.
• Brokers who independently arrange financing: If a broker works independently and arranges financing directly with lenders (banks, credit unions, etc.) for clients’ insurance premiums, they might need the bond. This is because they’re essentially acting as a middleman between the policyholder and the lender, and taking on some financial responsibility.

The gray area:

The situation gets trickier when brokers connect policyholders with multiple premium finance companies or lenders. Here, it depends on the specific details of their service.

• If the broker simply provides information and facilitates the connection, they likely wouldn’t need a bond.
• But, if the broker collects premiums from policyholders or holds any funds related to the financing, they might be seen as taking on some financial responsibility and require a bond.

Both a Full Powers License and Limited Powers License require a Georgia Insurance Premium Finance Company Bond.

Here’s what a Georgia broker can do to clarify their situation:

Consult the Georgia Office of Commissioner of Insurance (OCI): The OCI is responsible for licensing and regulating premium finance companies. They can provide the most definitive answer on whether a broker needs a bond based on their specific business practices. Contact them at (404) 463-6000 or visit their website https://oci.georgia.gov/.

How to Get an Insurance Premium Finance License

Getting a Georgia Insurance Premium Finance License involves several steps. Here’s a roadmap to guide you through the process:

1. Determine License Type: There are two main types of Premium Finance Company licenses in Georgia Choose the license that best suits your business model.:
   1. Full Powers: Allows your company to finance premiums for any agent in the state.
   2. Limited Powers: Restricts your company to financing premiums only through a specific agency (if that agency chooses to collect fees for the service).

2. Minimum Capital Requirement:
   2. Georgia requires a minimum capital account balance of at least $5,000 https://oci.georgia.gov/. You’ll need to demonstrate you have this amount available.

3. Complete Licensing Forms:
   • Obtain the necessary licensing forms from the Georgia Office of Commissioner of Insurance (OCI) website https://oci.georgia.gov/. These typically include:
   • Application form (GID-40 for Full Powers, or GID-28-EN for Limited Powers)
   • Convenience and Advantage Documentation (Form GID-40 required for Full Powers only)
   • Financial Statements
   • Citizenship Affidavit
   • Obtain a Georgia Insurance Premium Finance Company Bond

5. Submit Your Application:
   • Once you’ve completed all the forms and obtained the bond, submit your application package to the OCI. You can typically submit it online or by mail. There’s a filing fee associated with the application.

6. Background Check and Investigation:
   • The OCI will conduct a background check on your company and its principals. They may also investigate your business practices.

7. Licensing Decision:
   • The OCI will review your application and notify you of their decision. If approved, you’ll receive your license.

Additional Resources:

• Georgia Office of Commissioner of Insurance (OCI) – Premium Finance Companies: https://oci.georgia.gov/
• National Association of Premium Finance Companies (NAPFC): https://www.npfa-association.org/

Remember: This is a general overview. It’s advisable to consult the OCI website for the latest information and specific requirements.

The information provided above is for general informational purposes only and does not constitute legal advice.  Do not rely solely on the information presented here as a substitute for professional legal counsel