Nebraska Managing General Agents Bond
AmeriPro Surety Bonds | 844-589-9732
MGA’s – Nebraska
In Nebraska, managing general agents are licensed and regulated by the state’s Department of Insurance.
A surety bond is required as a prerequisite to licensing. The amount of the surety bond required is a formula which is as follows:
It is the GREATER of $100,000 surety, or 10% of the total amount of premium written nationwide in the prior calendar year, with a MAXIMUM surety bond amount of $500,000.
Qualifying and the Premium
There are two and possibly three items which will be required to underwrite your Nebraska managing general agents bond:
- There is a standard surety bond application, which our agency can begin with you over the phone, but will require your completion, along with your signature for a review;
- There is the review by an underwriter, which also includes a credit check. As an important note, applicants will need good credit in order to be approved for this surety bond by our agency;
- It is possible, but not likely, that a financial statement may be requested for amounts which are particularly high (i.e. $450,000). This will be requested, if at all, on a cases by case basis to be determined by the underwriter, not our agency.
Approval for this bond will be contingent upon your good credit and will be at 1% of the surety bond amount required.
Once the bond has been approved and the premium paid, our agency issues your bond immediately. The original bond, signed by us as Surety and the Power of Attorney (POA) form will be mailed to you.
You will sign your bond as Principal and file the bond and the POA with the Department.
Premium and Renewals
Your 1% premium for the managing general agent bond is good for one year. Thereafter, based upon your production levels, a new and different surety bond amount will likely be required.
You have the option to prepay your bond for up to 3 years, which will save you over annual renewals. However, you should keep in mind that you may require a different surety bond amount at renewal, and it may therefore be the wiser course to renew annually.
Purpose of Your Surety Bond
Your surety bond serves as a financial guarantee that you will be in compliance with Rule 59 as amended. The surety bond more generally is a guarantee of your compliance with all statutes and rules involved in being a managing general agent.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout Nebraska. Our agency also provides surety bonds nationwide.
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