North Carolina Insurance Broker Bond
North Carolina Insurance Broker Bond Information
A $15,000 Insurance Broker Bond (also called a Broker Insurance Bond) is required by the North Carolina Depatment of Insurance. The bond guarantees compliance with state insurance laws, providing protection to any person or business that may have been harmed as a result of a negligent act committed by a licensed insurance agent. Insurance brokers typically must post a surety bond in addition to being licensed to sell, negotiate and transact insurance business.
What Does an Insurance Broker Bond Protect Against?
The bond ensures proper accounting of premiums and other funds collected by the broker during the process of obtaining insurance coverage. Such transactions may involve licensed insurers, agents, premium finance companies, or associations of insurers under any plan for the placement of insurance under the laws of the state of North Carolina. The bond may be canceled with 30 days' prior written notice provided by the surety to the licensee and the Commissioner. The aggregate liability of the surety is limited to the stated bond amount.