Insurance intermediaries that finance insurance premium must provide a Georgia premium finance company bond, among other specific licensing requirements. Georgia las defines an “insurance premium finance company” as a person engaged in the business of entering into insurance premium finance agreements by which an insured or prospective insured promises to pay to a premium finance company the amount advanced or to be advanced under the agreement to an insurer or to an insurance agent or insurance broker in payment of premiums on an insurance contract together with a service charge. The Georgia insurance premium finance company bond is one of two methods of complying with the states solvency requirements for premium finance companies. Georgia Code § 33-22-5, states that each premium finance company must deposit with the Commissioner securities acceptable to the Commissioner in the amount of $25,000.00, or file a Georgia premium finance company bond made payable to the Commissioner, executed by the applicant as principal and by a corporate surety authorized to do business Georgia in the penal sum of $25,000.00, and conditioned that the licensee will conduct his business in accordance with Title 33, Chapter 22 and the laws of Georgia. The Georgia premium finance company bond also guarantees that the licensee will properly account for all moneys collected in connection with his or her premium finance business. The bond shall remain in full force and effect until the surety is released from liability by the Commissioner or until the bond is canceled by the surety. There is a thirty day cancellation provision in the bond form. Each premium finance professional should carefully read the finance agreement and record keeping provisions of the statute in order to fully understand what the Georgia premium finance company bond obligation encompasses. Georgia surety leader, Surety One, Inc. specializes in bonding for the insurance sector. We offer bond terms to ALL applicants regardless of credit and financial statement condition. We also offer superlative fidelity bond coverages to protect against losses due to employee dishonesty. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Georgia premium finance company bond application or information about premium finance company bonds in any state where you wish to obtain an operating authority.
