The Maryland Premium Finance Bond is required by the State of Maryland in the amount of $50,000 for all premium finance companies in the state. A premium finance company, as defined by the Maryland Code Insurance, is a person that engages in the business of entering into or accepting premium finance agreements, which can mean an agreement:
- By which insured or prospective insured promises to pay a premium finance company the amount advanced or to be advanced under the agreement, together with interest and a service fee, to an insurer or an insurance producer in payment of premiums and
- That contains an assignment or is otherwise secured by an unearned premium or refund obtainable from the insurer on cancellation of the insurance product.
The bond ensures that the bondholder will faithfully observe all the statutes listed of the Insurance Article, Annotated Code of Maryland.
What are the requirements that must be met in order to operate a premium finance company in Maryland?
All applicants must file with the Commissioner the following requirements:
- An application on the form that the Commissioner requires;
- In the case of a corporation or limited liability company, a certificate of good standing issued by the State Department of Assessments and Taxation;
- Evidence of compliance with the financial requirements, mainly a net worth of $250,000, letter of credit in the amount of $50,000 or deposit with the State Treasurer in the same amount or a surety bond.
- The form of the premium finance agreement to be used
- The finance charge, initial service fee, and all other fees and charges to be applied; and
- (2) Application fee of $ 250.
Where can I get a Maryland Premium Finance Company Bond?
Complete our easy to navigate online application. Within one business day, one of our licensed agents will contact you with a no-obligation quote for your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bond experts at Surety1 are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau.