A premium finance company is a company that lends money to a person or company to cover insurance premiums. The person or company, in turn, repays the finance company with interest for the money provided as a loan.
In Florida, premium finance companies are regulated by the Office of Insurance Regulation, Department of Financial Services.
Premium finance companies are also regulated by Chapter 627, Part XV, which deals with premium finance companies and agreements.
Section 627.828 mandates that you obtain surety bond requirement of $35,000.
The purpose of the $35,000 surety bond requirement is not to protect the premium finance company.
The bond’s requirement is for this purpose: It protect others, your customers, from acts of theft, fraud, willful misconduct, and criminal misrepresentation in the performance of your duties as a premium finance company.
The bond’s financial protection extends also to wrongful acts committed by employees, managers, and owners of the premium finance company.
Although there is an insurance policy required which does protect the premium finance company this, again, this surety bond exists solely for the protection of others.
Besides this, the surety bond is a normal prerequisite for licensing with the state.
The premium represents the cost you will pay to obtain the required surety bond.
Applicants with good credit may pay as little as 2%, or $700 annually, for a Florida premium finance company bond.
Those with poorer credit scores will pay more; however, AmeriPro Surety Bonds will work to find you the best surety bond pricing available for you.
Forming a premium finance company in Florida involves:
A far more detailed list of requirements is found through reading the Department’s application.
AmeriPro Surety Bonds is a surety bonds-only company which provides license and permit, fiduciary, court, and contractor bonds in Florida.
Our agency also provides surety bonds nationwide.