The Georgia Insurance Premium Finance Company Bond is required by the State of Georgia, Commissioner of Insurance at the amount of $25,000 in order to obtain a Premium Finance Company License.
The Georgia Code defines an “Insurance Premium Finance Company” as a person engaged in the business of entering into insurance premium finance agreements, which is an agreement where an insured or prospective insured promises to pay to a premium finance company the amount advanced under the agreement to an insurer or agent in payment of premiums on an insurance contract together with a service charge. All persons who wish to be in this business will need to get a license first.
What are the requirements in order to get a Premium Finance Company License?
The following requirements, which can be found in the Georgia Code, must be submitted to the Insurance Commissioner in order to obtain a license:
- A completed application (form GID-21)
- A license fee of $500 for full power premium finance company or $300 for limited power premium finance company
- Must maintain a minimum balance of $5,000 in a capital account
- A Georgia Insurance Premium Finance Company Bond in the amount of $25,000 issued by a company licensed in Georgia
- Note: Surety1 works with over a dozen “A” rated surety markets that are licensed in Georgia!
What is the purpose of a Georgia Insurance Premium Finance Company Bond?
The bond states that the finance company will fully and faithfully comply with the requirements of the Insurance Premium Finance Company Act, as amended, and the laws of this State, and will properly account for all money collected in connection therewith. If a client of the insurance premium finance company feels they were wronged due to the unlawful or unethical operation of the company, they can make a claim on their bond. Unlike insurance, if settled, the surety company (the company that issues the bond) will pay out the claim, however the bond principal (the insurance premium finance company in this case) must repay the surety for any losses incurred. The bond is required to be maintained in full force as long as the company is licensed.
Where can I get a Georgia Insurance Premium Finance Company Bond?
In order to obtain this bond, simply fill out our free online application! One of our licensed agents will contact you within one business day with a quote for the price to obtain your bond (the “premium”). If you choose to move forward after receiving your quote, we will have you sign any necessary paperwork and remit the premium payment, at which time we will ship your completed Georgia Insurance Premium Finance Company Bond to you via USPS Priority Mail (with overnight shipping options also available).
Why choose Surety1?
At Surety1, our agents work with over a dozen “A” rated surety markets to ensure we are finding you the lowest price for your bond. We’ve been issuing surety bonds since 2003 and our quality, reliable service has led us to an A+ rating by the Better Business Bureau! Licensed in all 50 states.