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.
There are two and possibly three items which will be required to underwrite your Nebraska managing general agents bond:
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.
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.
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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