As a condition of licensing with the state of Iowa, health clubs which have not yet opened have the option to post a $150,000 surety bond. The Attorney General’s Office is the obligee (i.e., they are the ones for whose benefit the bond is obtained) for this surety bond and it is a condition of licensing with the state.
Qualifying for the $150,000 Iowa health club bond is by means of an application --- much of which we can take from you over the phone --- but which will also require your signature.
Additionally, there is an underwriter review who will also review your credit. Our agency uses a “soft inquiry” credit which will not adversely affect your credit score. Applicants will need to have good credit to qualify, and if approved, your $150,000 health club surety bond will cost you just 1%, or $1500 annually.
Once the bond has been approved and paid for, it is issued immediately. A copy of the bond can be emailed to you; however, it is the original surety bond, which you will sign as the surety’s Principal, that you will file with the Secretary of State.
For those who may need their bond beyond a one year period, our agency offers you the ability to prepay this bond for up to 2 or 3 years.
Prepayment, besides lengthening the time between renewals, offers you a savings over renewing the Iowa health club surety bond annually.
The premium breakdown and savings are as follows:
The purpose of the health club bond is a financial guarantee which ensures that all contractual obligations and rules are met in accordance with Iowa state law.
The bond protects the state and consumers (who, in this case, would be those applying or contracting for a health club membership) from acts of fraud or misrepresentation by a licensed health club facility.
AmeriPro Surety Bonds is a surety bonds only agency which provides license and permit bonds throughout Iowa. Our agency also provides surety bonds nationwide.
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