License & Permit
Insurance Agent Bond
A license bond a few states require of insurance agents and brokers who handle client premiums.
- Required by
- State insurance departments
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state insurance department that the agent will account for and pass on the premiums clients pay. In Illinois, a producer who places business with insurers it has no contract with must keep a bond in force, and the bond guarantees compliance with the state's producer law. A client or insurer who loses premium money can make a claim.
Who needs it
- Insurance producers placing business with insurers they are not appointed with
- Insurance brokers who collect premiums
- Agencies in states that require a producer bond
What the underwriter looks at
- Personal credit
- Premium volume
- License and complaint history
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
Does every agent need a bond?
No. Most states do not require one. Illinois is the clearest example: it applies when a producer places business with insurers it has no agency contract with.
How is the Illinois amount set?
It is based on premiums placed in the prior year, with a set minimum for new producers. We will confirm the current figure with you.
Is a surplus lines broker bond the same thing?
No. Surplus lines brokers have their own bond tied to surplus lines taxes and filings.