The licensing supervision and recipient of a Maine premium finance company bond is no longer the insurance regulator, but rather the Consumer Credit Protection Office of the Department of Finance. The insurance premium financing Act having been repealed by the legislature, premium finance companies are now regulated under MRSA 9-A §2-302. Premium finance is now considered a “supervised loan”. A Maine insurance premium finance company bond must be written in the amount of $50,000 and issued by a surety company authorized to conduct business in Maine and delivered to the Superintendant of Consumer Credit. The bond must run concurrent with the period of time during which the license will be in effect (ordinarily two years). The bond must run to the State for the use of the State and of any person or persons who may have a cause of action against the finance company under the Act. The Maine premium finance company bond must be conditional that the finance company will faithfully conform to and abide by the provisions of the Act and to all rules lawfully made by the administrator under the Act and will pay to the State and to any such person or persons any and all amounts of money that may become due or owing to the State or to such person or persons from the licensee under and by virtue of this Act during the period for which the bond is given. The Maine insurance premium finance company bond must cover all claims collected, property converted and losses occasioned by the licensee during the term of the license covered by the bond, but the aggregate liability of the surety for any and all claims which arise under the bond is limited to the penal sum of the bond. National surety leader, Surety One, Inc., specializes in bonds for the insurance and financial services sector. We will offer terms to ALL applicants for this bond class regardless of temporary fluctuations in the principal’s financial condition. We also offer superlative fidelity bond coverages for finance company operations. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for a Maine premium finance company bond application or information about premium finance company bond support in any state where you wish to obtain a license.
