Arkansas Professional Employer Organization Surety Bond
The Arkansas Professional Employer Organization Recognition and Licensing Act A.C.A. § 23-92-404 (2015) states that no person shall provide, advertise, or otherwise hold itself out as providing professional employer services in Arkansas unless the person is licensed as a professional service organization. Because the PEO acts as a fiduciary, the law imposes strict financial requirements as part of licensing. A PEO applicant must provide a financial statement setting forth the financial condition of the professional employer organization as of a date not earlier than one hundred eighty (180) days before the date the financial statement is submitted. The financial statement must be prepared in accordance with generally accepted accounting principles, and unless the professional employer organization provides Arkansas professional employer organization surety bond as set forth in § 23-92-408, the financial statement must be prepared to full audit standards by a certified public accountant licensed to practice in Arkansas or the state of domicile of the PEO.
The PEO surety bond must be written in the amount of at least one hundred thousand dollars ($100,000). The bond guarantees that the principal will not violate the provisions of the regulating statute or violate rules, regulations, or orders lawfully promulgated by the Commissioner of Insurance under the same, or fail to pay any wages due under any contract made by the PEO in the conduct of its business. The surety bond must be issued by a corporate surety or insurer authorized to do business in Arkansas. Further information may be obtained from the regulator's website at www.insurance.arkansas.gov/peo.htm. Application and bond materials should be submitted to:
Arkansas Insurance Department
Professional Employer Organization Surety Bonds / Registration
1200 W. Third Street
Little Rock, AR 72201
Arkansas surety bond leader, Surety One, Inc. offers immediate approval of your professional employer organization bond request. Our special programs afford each applicant bonding capacity regardless of credit and/or financial condition. Operating in multiple states? We offer surety bonds in all states and offer fidelity bond coverages for this class of business as well. Call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for an Arkansas professional employer organization surety bond application or for information on any surety need
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
