A New Jersey Insurance Broker’s Bond is a type of surety bond that is required by the New Jersey Department of Banking and Insurance (DOBI). The bond is designed to protect consumers from financial losses that may result from the broker’s wrongful acts or omissions. Purpose of the Bond. Anyone who acts as an insurance broker in the state of New Jersey must obtain a New Jersey Insurance Broker’s Bond. This includes individuals and businesses that sell insurance products, such as life, health, property, and casualty insurance. The primary purpose of the New Jersey Insurance Broker’s Bond is to protect consumers from financial losses that may arise due to the broker’s:
- Misappropriation of funds: The bond safeguards consumers’ funds entrusted to the broker for transactions like premium payments, escrow funds, or commissions.
- Unintentional errors: The bond compensates for unintentional errors or omissions on the broker’s part, such as incorrectly processing insurance policies or failing to properly account for funds.
- Fraudulent activities: The bond covers losses caused by the broker’s intentional acts of fraud or misrepresentation, such as misrepresenting insurance coverage or forging documents.
The minimum amount of the New Jersey Insurance Broker’s Bond is $150,000. The DOBI may require a higher bond amount depending on the size and complexity of the broker’s business. The cost of the surety bond is usually between .75% 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 New Jersey Insurance Broker’s Bond
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. 2
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the New Jersey Insurance Broker’s 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.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required
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.
How to Get a New Jersey Insurance Broker’s License
To obtain a New Jersey Insurance Broker’s License, follow these steps:
- Complete a pre-licensing education course. The New Jersey Department of Banking and Insurance (DOBI) requires all insurance brokers to complete a pre-licensing education course before taking the state licensing exam. There are several approved pre-licensing courses available online and in person.
- Pass the New Jersey Insurance Licensing Exam. The exam covers topics such as insurance law, insurance products, and ethics. You can take the exam at a Pearson VUE testing center in New Jersey.
- Apply for a New Jersey Insurance Broker’s License. You can apply for a license online through the NIPR (National Insurance Producer Registry). You will need to submit your pre-licensing education course completion certificate, your exam score report, and a fingerprint-based background check.
- Pay the license fee. The license fee is $85.
- Provide a New Jersey Insurance Broker’s Bond if you are starting your own brokerage.