Single Source Blog - Surety News - Page 11

Who Needs a Travel Agent License?

Only 13 states require licensing, registration, or bonding of travel agents, technically known as �sellers of travel.�

What Are the Licensing Requirements?

The licensing or registration requirements and procedures differ depending on which of those states you want to operate in as a travel agent.

In general, you can become a travel agent with no formal education beyond high school, though some people pursuing a career in travel sales complete a certificate program. Others earn an associate or bachelor degree in tourism or some aspect of the hospitality industry.

Some states require travel agencies to register as sellers of travel in addition to registering as a business. They may even require some form of financial security, such as a deposit into a special fund or the purchase of a surety bond.

Why is a Surety Bond Involved?

Travel agencies often receive deposits from clients that they then turn over to tour operators, hotels, and other travel industry operators. The states that require a security deposit or surety bond do so because of the potential for clients to suffer a financial loss due to a travel agent�s unethical or unlawful business practices.� The bond ensures that these clients are compensated for their loss.

Even in states that don�t impose a bonding requirement, many travel agents choose to purchase a type of surety bond known as a fidelity bond for their own protection. A fidelity bond will protect you against being held liable for money lost through theft, fraud, or other dishonest act by an employee, and it will compensate the injured party for their loss.

Advertising the fact that you chose to get bonded can be a very effective marketing strategy. People will see it as a demonstration of your commitment to running an honest and ethical business with your clients� best interests at heart.

How Does It Work?

Most surety bonds protect the state or consumers, not the bonded individual. However, fidelity bonds are actually an insurance product that protects the insured�the travel agent.

Let�s say you buy a fidelity bond that provides blanket coverage for the dishonest acts of any of your employees. Subsequently, one of your employees absconds with a $2,000 cash deposit from a client. The client would have a valid claim against the bond, a claim that would be paid by the company that issued the bond.

What Does It Cost?

The annual premium you�ll pay for a fidelity bond depends largely on two key factors: the amount of coverage and the number of employees who will be covered.

If you�re buying a bond to meet a state requirement, the state dictates the dollar amount. But if you�re voluntarily purchasing a fidelity bond, you get to choose the amount of coverage. You also have the choice of covering only specific employees or buying blanket coverage for all of them.

Get Bonded Today

Whether you need to buy a bond to get licensed or are choosing to buy one, give us a call or request a quote online today.

Who Needs a Florida Telemarketing License?

Most businesses and individuals engaged in commercial sales via telephone need to be licensed by the Florida Department of Agriculture and Consumer Services, but there are some exceptions. The types of businesses that are not required under the Florida Telemarketing Act to be licensed are identified in Section 501.604 of the Act.

Both telemarketing businesses and the salespeople working for them must obtain a Florida Telephone Seller license.

What Are the Licensing Requirements?

Both business applications and salesperson applications can be submitted online through the Department’s website, which provides all required forms and a checklist of the tasks that must be accomplished. These include, among other requirements, providing sample telemarketing scripts and sales materials and purchasing a $50,000 telemarketer surety bond.

Why Is a Surety Bond Required?

The purpose of the surety bond is to ensure compliance with relevant sections of the Florida Telemarketing Act and other applicable laws and regulations. The bond also ensures that funds will be available to compensate those with a valid claim for damages resulting from the telemarketer�s unlawful or unethical business conduct.

How Does It Work?

There are three parties to a telemarketer surety bond agreement, which is a legally binding contract:

-������ The �obligee� requiring the bond (the Department of Agriculture and Consumer Services)

-������ The �principal� purchasing the bond (the telemarketing business or salesperson)

-������ The �surety� underwriting and issuing the bond (the surety bond company)

When a claim is filed against a telemarketer bond, the surety company that issued the bond will first investigate to make sure that it is valid. If it is, the surety company will try to work out a settlement with the claimant. If that�s not successful, the principal will be responsible for paying the claim.

However, it�s common practice for the surety to step up and pay a claim on behalf of the principal, essentially advancing funds to the principal. The legal obligation for paying claims belongs to the principal alone, who must reimburse the surety for any claims paid by the surety.

What Does It Cost?

The principal will pay an annual premium for a telemarketer surety bond that is only a small percentage of the required $50,000 bond amount. The surety�s primary consideration in assigning a premium rate to is the principal�s personal credit score.

There is an inverse relationship between a principal�s credit score and the premium rate�the higher the credit score, the lower the premium rate, and vice versa. A high credit score earns a premium rate somewhere between 1% and 4%, or $500 to $2,000. Those with credit challenges should still be able to get bonded, but will pay a higher premium rate.

Get Bonded Today

Give us a call or request a quote online for the surety bond you will need for your telemarketing business or as an individual telemarketer.

Who Needs a California Real Estate Broker License?

California requires real estate professionals who want to operate a brokerage firm to obtain a license as a California real estate broker. Bear in mind that you must have a certain amount of experience working in real estate before you can get a broker�s license.

What Does the Licensing Process Involve?

Before you can apply for a California real estate broker�s license you must have the following:

-������ Five years of full-time or four years of part-time experience as a real estate license, or

-������ A bachelor�s degree with a major or minor in real estate, or

-������ Real-estate related work experience equivalent to two years of sales experience (e.g., as a real estate developer, loan officer, property manager, etc. or as a licensed real estate agent or broker from another state or country)

In addition to obtaining documented evidence of your education and experience, you�ll need to complete eight college courses in specific brokerage subjects. You can�t apply for your license until you have passed all eight courses.

The remaining steps in the licensing process then include:

1.������ Get fingerprinted unless you have already been fingerprinted to become licensed as a California real estate agent.

2.������ Complete the Combined Broker Examination and License Application, and attach evidence that you have met all education and experience requirements. Indicate whether you want the Department of Real Estate (DRE) to schedule you for the real estate exam or prefer to do that yourself. Pay all applicable fees.

3.������ Pass the 5-hour broker exam within two years of submitting your application for licensing.

4.������ Consider obtaining a surety bond to demonstrate your commitment to ethical business conduct.

Why is a Surety Bond Recommended?

California does not require real estate brokers to purchase a license bond. However, voluntarily purchasing one or more types of fidelity bonds is a smart move for any real estate broker. It provides important financial protection for you and your business in the event that an employee commits a dishonest act, such as theft or forgery�occurrences that aren�t normally covered by general liability insurance.

Being bonded can give you a competitive advantage in marketing your business. Some clients, particularly commercial clients, will only work with a broker who is bonded. To other consumers, a fidelity bond is a sign that you are trustworthy and will be proactive in protecting their interests.

How Does It Work?

While most surety bonds protect the state and/or consumers but not the bonded individual, a fidelity bond is actually a form of insurance policy and protects the real estate broker as well as the broker�s clients. You can purchase one that covers dishonest or unethical acts committed by certain designated individuals only or by any member of your staff.

Depending on the terms of the fidelity bond you purchase, you may have to wait until criminal charges have been filed or an employee has been convicted to file a claim against the bond.

What Does It Cost?

The annual premium for a fidelity bonds is a small percentage of the total bond amount. The exact percentage is based on the total amount of coverage requested and the number of employees to be covered.

Get Bonded Today

If you agree that voluntarily purchasing a fidelity bond for your California real estate brokerage is a good idea, give us a call or request a quote online.

Who Needs a California CPA License?

Anyone who wants to work as a CPA (Certified Public Accountant) in the state of California must be licensed by the California Board of Accountancy (CBA). You do not need to be an American citizen or even a resident of California to be licensed as a California CPA.

What Does the Licensing Process Involve?

The following is an overview of California�s CPA licensing process. You�ll need to access the CBA website for detailed instructions. The process doesn�t begin in earnest until you have met certain education, testing, and experience requirements. Take a look at the necessary steps:

1.������ Verify completion of at least 150 semester hours of undergraduate study that meet the following criteria:

-� � � �24 hours of certain accounting subjects,

-������ 24 hours of approved business subjects,

-������ 20 hours of accounting, and

-������ 10 hours of ethics.

Simply having a bachelor�s degree isn�t sufficient unless the coursework meets the above criteria.

2.������ Establish an online account with the CBA and have every educational institution you’ve attended forward official, sealed transcripts to the board.

3.������ Apply to sit for the American Institute of Certified Public Accountants� standardized CPA exam. You will receive your Authorization to Sit (ATT) once your transcripts have been received and approved by the CBA.

4.������ Sign up for your NASBA Notice to Schedule (NTS) upon receipt of your ATT.

5.������ Schedule yourself to take the CPA exam at a specific testing center upon receipt of your NTS. You can take the four exam sections one at a time over an extended period. You must pass all four sections before you can apply for your license.

6.������ Fulfill the work experience requirement by working under a California licensed CPA for a minimum of one year, including at least 500 hours of auditing or attestation. Obtain the necessary documentation from your supervisor(s)—Certificate of General Experience (CGE) and Certificate of Attest Experience (CAE)—and submit to the CBA.

7.������ Take the CBA�s California Professional Ethics Exam (PETH).

8.������ Complete and submit your CPA license application along with the required photo, fingerprint packet, criminal conviction disclosure, and application fees.

9.������ Consider obtaining a surety bond to demonstrate your commitment to ethical business conduct.

Why is a Surety Bond Recommended?

The kind of work that CPAs do requires the highest level of trustworthiness and ethical conduct. Purchasing one of the types of surety bonds classified as fidelity bonds provides financial protection for your clients and for yourself.

For example, you might decide to purchase a fidelity bond to protect yourself against fraud, theft, or embezzlement by your employees with access to payroll funds or other client assets. Such bonds can cover specific named employees or provide blanket coverage for all employees or a class of employees.

Being bonded gives you a competitive advantage in marketing your services. The fact that you voluntarily purchased such protection makes a powerful statement about your commitment to your clients.

How Does It Work?

Unlike most surety bonds, which protect the state and/or consumers but not the bonded individual, a fidelity bond is actually a form of insurance policy. If you purchase a fidelity bond, the company that underwrote and issued it will pay any valid claim filed by you or by a client who has suffered a covered financial loss stemming from the dishonest or unethical actions of an employee.

In some cases, criminal charges must be filed or the employee must be convicted before a claim will be paid.

What Does It Cost?

The cost of a fidelity bond is a small percentage of the total bond amount you request. The company issuing the bond will assign you a premium rate based on the amount of coverage you choose and the number of employees the bond will cover.

Get Bonded Today

Request an online quote today for a fidelity bond that will enhance your reputation as a CPA and give you a competitive advantage. Or, contact us to discuss your bonding objectives with one of our surety bond professionals.

Who Needs a Florida Real Estate License?

Florida�s Department of Business and Professional Regulation issues licenses to real estate professionals who want to operate within the state. There are two different licenses: Real Estate Sales Associate and Real Estate Broker.

In many cases, a Florida-licensed real estate sales associate will gain some work experience and then upgrade to a real estate broker license.

What Does the Licensing Process Involve?

To apply for either of these licenses, you must complete certain pre-licensing courses (63 classroom hours for associates and 72 for brokers). Both licenses also require a post-licensing course (45 classroom hours for associates and a total of 60 hours for brokers).

There are multiple variations on the licensing process, depending on the specific type of license and your own background�previous real estate licenses held, real estate experience in Florida or other states, military service, and so on. The best way to find out what the registration process would include for you specifically is to visit the relevant pages on the department�s website.

Although Florida does not require real estate professionals to purchase a license bond or any other surety bond, doing so voluntarily is highly recommended.

Why is a Surety Bond Recommended?

One type of surety bond that is particularly appropriate for real estate agents and brokers is a fidelity bond. This is a popular type of bond for businesses that handle funds and financial documents.

A fidelity bond provides protection for you and your business if a client suffers a loss due to a criminal committed by your employee. You can also purchase coverage that will make you whole in the event that an employee steals, embezzles, or misappropriates funds from you.

Buying a fidelity bond is a smart move because general liability insurance doesn�t normally cover losses resulting from employee theft, forgery, embezzlement, or other criminal acts.

Obtaining a fidelity bond is also smart from a marketing standpoint. Advertising that your business is bonded shows potential clients that you are serious about protecting their interests.

How Does It Work?

A fidelity bond is actually a form of insurance that provides financial protection for you as well as your broker�s clients. You can purchase one that covers dishonest or unethical acts committed by only certain employees or by any employee.

Depending on the terms of the fidelity bond you purchase, you may have to wait until criminal charges have been filed or an employee has been convicted to file a claim against the bond.

What Does It Cost?

The annual premium for a fidelity bond is based primarily on the amount of coverage you choose and the number of employees covered by the bond.

Get Bonded Today

If you�re interested in voluntarily purchasing a fidelity bond for your Florida real estate business, call today or request a quote online.

Who Needs an Insurance Agent License?

Throughout the country, anyone who wants to become an insurance agent must go through the process of obtaining a license in all of the states where they plan to do business. The first thing you�ll need to do is decide what type(s) of insurance (also known as �lines of authority�) you will specialize in. These include life, health, property and casualty, and more.

Next, you�ll need to decide whether you want to operate as an insurance agent or as an insurance broker. Insurance agents represent insurers, which can sometimes be more than one specific insurance company. Brokers represent individuals and companies that want to buy insurance and will find them the best policy available in the insurance marketplace.

What Are the Licensing Requirements?

Licensing requirements differ by state, and in most states, they also differ by line of authority. To find out the requirements you�ll need to meet, check with the state agency that regulates the insurance industry in each state in which you are seeking a license.

In general, you�ll need to:

• Be at least 18 years old
• Complete a certain number of hours of pre-licensing education for your chosen line(s) of authority
• Pass the applicable state licensing exam(s)
• Undergo a background check

In the majority of states plus Washington, D.C., insurance agencies and insurance brokers must purchase a surety bond as a condition of doing business within the state. In some states, a single bond can cover everyone working in an agency, but in others, a separate bond is required for each individual agent or �producer.�

Why is a Surety Bond Required?

The primary purpose of an insurance agent�s surety bond is to guarantee that insurance agents operate in accordance with all applicable state insurance laws and regulations. The bond also protects the state and the public against financial losses incurred as a result of an insurance agent�s unlawful or unethical business conduct. It ensures that funds will be available to pay damages to the injured party.

How Does It Work?

The surety bond agreement is a legally binding document that brings together three parties: the obligee, the principal, and the surety. The obligee is the state�s insurance regulatory body, the principal is the insurance agent or broker who is required to purchase the bond, and the surety is the company that underwrites and issues the bond.

The obligee sets the required bond amount�also called the bond�s penal amount�which is the maximum that will be paid out on a claim. If the principal violates the terms of the bond agreement, the injured party can file a claim against the bond.

The principal is legally obligated to pay all valid claims, but in many cases, the surety will pay a claim initially and then collect reimbursement from the principal.

What Does It Cost?

The annual premium for any surety bond is a small percentage of the bond�s penal amount. The surety sets the premium rate for each bond applicant. If the bond is for an agency or insurance brokerage company, it is issued in the name of the owner(s). The primary factors the surety takes into account are the personal credit score and financial stability of the owner(s).

Bond applicants who have good credit and are financially stable typically are assigned a premium rate in the range of 1% to 5%. Those with lesser credit and finances should still be able to get bonded, but will pay a higher premium rate.

Get Bonded Today

Request an online quote or give us a call today to discuss your bonding needs so you can meet these insurance agent license requirements.