In North Carolina, health clubs or prepaid entertainment entities are required to furnish a surety bond to the state’s Attorney General Office, Consumer Protection Division.
The amount of surety bond required will depend on several factors; and AmeriPro Surety Bonds will help you obtain and file the amount required at a fair price.
According to Article 21, §66-119, the minimum amount of surety bond required is $10,000; however, that minimum amount is currently $25,000, not $10,000.
While the minimum amount of surety bond required is $25,000, the maximum amount required will be no greater than $250,000 regardless of the amount collected.
According to North Carolina law, the amount of health club/ prepaid entertainment surety bond required is calculated as “liabilities”, defined as the value or money received from contract buyers in advance, less the value of the prorated service offered by your company.
While AmeriPro Surety Bonds can provide you with the definition of the contracted amount, you will want to confirm with the licensing Department the amount of surety that you are required to purchase.
Our agency will then facilitate obtaining that surety bond amount for filing with the Department.
The purpose of this surety bond is to serve as a financial guarantee for your customers.
More specifically, according to Article 21, the surety bond protects those buyers who lose money due to the bankruptcy or closing of a health club or prepaid entertainment facility.
The bond’s existence allows these persons to file a claim against your surety bond; however, the bond will pay no more in aggregate than the face amount required, regardless of the number or dollar amount of claims.
As owner of this surety bond, you ultimately shoulder the responsibility for any claims (were that the case) paid against your bond. This means that you are responsible to reimburse the surety for all claims and costs paid against your bond.
The bond’s price is a reflection of the amount of surety bond purchased.
In addition to the surety bond amount, the premium will be determined by the following: Information provided on a surety bond application and your credit score.
Applicants with “good credit” may expect to pay as little as just over 1% annually for this bond; however, the amount that you will be required to pay may vary greatly.
While there are so many factors which determine the surety bond amount required, know that AmeriPro Surety Bonds will work to find you the best surety bond pricing.
Once issued, the bond’s term is for one year.
Presumably, the amount of bond that you would be required to purchase would fluctuate from year to year, and our agency will help you to obtain whatever amount is required.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout North Carolina.
Our agency also provides surety bonds nationwide.
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