Single Source Blog - Surety News - Page 26

On the Single Source Insurance blog, we’ve talked about the factors that determine the cost of your surety bond. Today, we’ll talk about what you can do to make sure you get the best price for your bond.

1. Maintain a good credit score. An underwritten surety bond’s premium will vary depending on your financial history. A good credit score shows that you are a reliable borrower, and the surety company takes on less risk when principals have a strong financial history. If you are considering getting a business license that requires a bond, but your credit score is low, consider strengthening it before applying for the license.
2. Shop around. Get more than quote to find the lowest priced bond. Single Source Insurance can work with you to get the lowest premiums available!
3. Have a realistic idea of the cost of your bond.�If you need a $100,000 surety bond, your premium will be much higher than if you needed a $10,00 bond. If your credit is low, your bond premium will be higher than if you had a high score. You can get a free quote from Single Source Insurance, so you have nothing to lose by applying and finding out what the bond will cost you.
4. Keep your bond claim-free.�As long as you don’t break any of the terms of your bond, there’s no reason for any claims to be made against it. Before purchasing your surety bond, talk to an Single Source Insurance specialist to ensure you understand the terms. Make sure your premium is paid when it’s due and that your bond is current.
5. Have relevant industry experience.�If you’re experienced in your field, there’s always a chance you can get a lower bond premium. Again, talking to your surety company is the best option to figure out your options.

Still have questions about getting a lower bond premium? Single Source Insurance is here to help�give us a call and get a fast, free quote today!

Getting licensed and bonded as a Michigan professional investigator is easier than you think�keep reading for a quick walkthrough of the process.

Professional investigator license and surety bond

The professional investigator license is issued by the Michigan Department of Licensing and Regulatory Affairs (LARA). Investigators have to meet many requirements in order to be eligible for licensure and to legally do business:

• U.S. citizen
• At least 25 years old
• High school diploma or equivalent
• Has never been convicted of a felony or a misdemeanor involving weapons, assault, fraud, controlled substances, or alcohol more than once
• Must have three years’ related experience
• Has not been dishonorably discharged from the U.S. military
• Obtain a $10,000 surety bond
• Five notarized reference statements from persons unrelated to the applicant and who have known the applicant for at least five years
• Copy of certificate of incorporation, if applicable
• Names of all officers, members, or partners, if applicable

First-time applicants should be sure to thoroughly read the application and include all required information. Professional investigator licenses are valid for three years. The initial licensing fee is $750, and renewal is $300. Relicensure if the license is allowed to expire is $750. If an investigator is applying for, renewing or relicensing a branch office license, the fee is $125.

Why do investigators need this bond?

Michigan investigators need the $10,000 surety bond to guarantee their compliance with the Professional Investigator Licensure Act. They promise to be properly licensed and not act outside the scope of their license. If a person suffers damages from a “willful, malicious and wrongful act” by the bondholder, the person can file a claim on the bond to seek reimbursement.

The bond protects the state from liability and the public from financial damages. The principal�the investigator�is the person liable for their unlawful actions. Should a claim be paid from the bond, the investigator must reimburse the surety for the claim amount.

Ready to get the licensing process started? Get in touch with Single Source Insurance today!

Photo by�Linh Nguyen�on�Unsplash

Minnesota grain buyers and grain storage warehouses or elevators need licenses and surety bonds. HF 2717, introduced in the 2017 legislative session, might increase the required bond for grain buyers.

Getting licensed and bonded

Grain buyers and storage elevators apply for licensure through the Minnesota Department of Agriculture. A grain buyer is anyone buying grain for the purpose of reselling it or products made from it. Storage elevators store grain for the public, and they are required to apply for a buyer’s license as well. Each business location needs its own license.

Here’s some of the information grain buyers will need to provide on the application:

• Minnesota tax ID number or social security number
• Legal name and mailing address
• Workers’ compensation information, if applicable
• List of licensed locations
• Inform whether or not grain will be purchased on credit
• Surety bond ranging from $10,000 to $150,000
• License fee ranging from $110-$700

The license fee is calculated based on the buyer’s gross annual grain purchases (GAGP)�a chart is included on the application to help you determine your fee amount. The surety bond amount is also based on GAGP:

• GAGP of $100,000 or less�$10,000 bond
• GAGP $150,000-$750,000�$20,000 bond
• GAGP $750,000-$1,500,000�$30,000 bond
• GAGP�$1,500,000-$3,000,000�$40,000 bond
• GAGP�$3,000,000-$6,000,000�$50,000 bond
• GAGP�$6,000,000-$12,000,000�$70,000 bond
• GAGP $12,000,000-$24,000,000�$125,000 bond
• GAGP exceeding $24,000,000�$150,000 bond

First-time grain buyer licensees and grain storage warehouses need a $50,000 surety bond. The grain storage application asks for much of the same information as the buyer application. But, they also need to inform the Department of the grain storage rates, have additional insurance, and pay a warehouse exam fee based on the facility’s bushel capacity.�The license period runs from July 1-June 30 and it must be renewed annually.

Possible surety bond increase for grain buyers

Some Minnesota grain buyers might see a bond increase if HF 2717 becomes law in the coming year. The bill is being reviewed by the House Agriculture Policy Committee. Since�it might be voted on in this year’s legislative session, grain buyer licensees should keep HF 2717 on their radar�bond amounts won’t change for buyers under a GAGP of $3,000,000. These are the proposed bond amounts:

• GAGP�$3,000,000-$6,000,000�$300,000 bond
• GAGP�$6,000,000-$12,000,000�$400,000 bond
• GAGP $12,000,000-$24,000,000�$500,000 bond
• GAGP exceeding $24,000,000�$600,000 bond

Contact the Department about grain buyer and storage warehouse licenses and bonds at (651) 201-6011. If you’re ready to get a surety bond, get in touch with Single Source Insurance today!

If you’re considering becoming a Michigan notary public, keep reading to find out how to be commissioned and why you’ll need a surety bond.

Applying for a Michigan notary public commission

Notaries public act as fraud prevention, confirming the identities of the parties signing the documents. If you work or want to work as a notary in Michigan, make sure to read the Michigan Notary Public Act to ensure you understand the scope of your duties.

Michigan notary applicants receive their commission from the Secretary of State. There are many qualifications applicants must meet, including:

• At least 18 years old
• Resident or business owner in Michigan; must live or maintain a business in the county in which you request appointment
• U.S. citizen or proof of legal presence
• Read and write English
• No felony convictions in the previous ten years

This list is not complete so be sure to review the qualifications before applying. Here’s some of the information would-be notaries are asked to provide on the application:

• Name, address, phone number, DOB, email, and driver’s license number
• $10 filing fee
• $10,000 surety bond

Michigan notaries’ commission expiration date is determined in a unique way: it expires six years from your next birthday at the time you are commissioned. So, if you were commissioned in November 2017, and have a birthday this month, your license would expire on your birthday in January 2024. You can apply to be recommissioned no more than 60 days before expiration.�Notaries can charge up to $10�for each notarial act they perform.

Unlike many states, Michigan does not require notaries to purchase a stamp or seal. However, since documents may require the stamp or seal if they are sent out of state, you may want to purchase one or the other. Michigan notaries are also not required to keep records, though if they do, they must keep the records for five years.

Why do notaries need a surety bond?

Since a notary’s job is to prevent fraud, the surety bond is their guarantee that they will perform notarial acts as the law dictates. The $10,000 bond required of Michigan notaries protects anyone from suffering financial damages as a result of bad or unethical business practices.�The state does not allow personal assets or blanket bonds in lieu of this bond.

Michigan notary bond premiums generally range from $50-$100 for a one-year term. Make sure your bond is continuous for the length of your commission or be sure to renew it annually. It’s easy to get this bond�just get in touch with Single Source Insurance today!

As of January 2, 2017, Arizona collection agencies submit license applications via the Nationwide Multistate Licensing System (NMLS). Arizona joined many states in the U.S. that use the NMLS as a tool for financial institutions to submit licensing information.

Getting a license

Though applicants submit their information to the NMLS, the agency that grants Arizona collection agencies’ licenses is the state�Department of Financial Institutions�(AZDFI). Here’s some of the information the state asks for on the application:

• Legal name approved by the Secretary of State or Arizona Corporation Commission
• Background checks for anyone with 20%�ownership or more
• List of owners and indirect owners
• List of executive officers, partners, etc.
• Name of business’s CPA
• Surety bond

If an agency is applying to do business at more than one location, the applicant needs to submit�branch applications�for each additional location.�The�application comes with a nonrefundable $1,500 fee, plus $500 per branch location. The licensing year is from January 1 through December 31. Agencies can renew their license from November 15 through January 1 with no penalty, and until January 31 with a penalty.�Collection agencies’ license renewal is $600, plus $200 per branch location renewal. Fees are also assessed if the agency changes its name, address, or active managers.

Arizona collection agencies are required to keep a record of any fake names used by debt collectors, and submit thefictitious names report twice a year on July 1 and December 31. The report should list the collectors’ names, any fake names they use, and their home address.

How much does the Arizona collection agency surety bond cost?

The collection agency surety bond amount is determined by the gross annual income of the agency in the preceding year, as follows:

• No more than $250,000 in annual income�$10,000 surety bond
• $250,001-$500,000�$15,000 bond
• $500,001-$750,000�$25,000 bond
• $750,001 or more�$35,000 bond

This surety bond is collection agencies’ guarantee that they will pay their clients any funds collected within thirty days of collection, minus the agency’s fees. If the total amount collected is less than five dollars, then payment can be delayed another thirty days.

The cost of Arizona collection agencies’ bonds varies, since the bond amount varies. Qualified applicants applying for a bond can expect to pay 1-5% of the bond’s total amount�that’s anywhere from $250-$1,250 for a $25,000 surety bond.

More questions about the license? Get in touch with AZDFI. Questions about getting bonded? Get in touch with Single Source Insurance today!

Photo by�Cole Keister�on�Unsplash

Nonpublic postsecondary schools in Georgia need get bonded during the application process�how do they become authorized and why do they need a bond?

How do schools get authorization?

Private postsecondary schools, both for- and not-for-profit, and degree or nondegree granting, are authorized by the Georgia Nonpublic Postsecondary Education Commission (GNPEC). The GNPEC’s goal is to make sure that authorized schools are financially stable, to confirm to the government and to students that the curriculum meets minimum standards. In the case of trade or vocational schools, the Commission provides assurance to employers that students have earned the skills they earn certification for upon program completion.

Schools apply for authorization�not accreditation or licensure�and have to meet the state’s minimum standards. To be eligible to apply, the applicant (whether an individual or a business organization) needs to submit an Institutional Proposal. The proposal needs to contain:

• Basic information like the school’s address, mission statement, and names of known personnel
• List of all program names and certifications or degrees awarded
• Needs Assessment justifying the school’s authorization using Georgia Department of Labor information

Nonpublic postsecondary schools need to submit the proposal via email to GNPEC�Deputy Director Laura Vieth. After their Institutional Proposal is approved, schools can then start the process of applying for a Certificate of Authorization. Applicants are interviewed by the GNPEC to go over the application process and get approval to proceed, at which time they’re given login information for the online application portal.

Though the complete list is much longer, these are a few pieces of information schools need to provide GNPEC:

• Minimum Standards Self-Evaluation form
• New program application for each program the school will offer
• Entrance requirements and entrance information students are given
• Enrollment Agreement/Student Contract
• Postsecondary school’s educational goals
• Example of certificate or diploma awarded
• Preliminary bond approval letter (do not apply for a surety bond until your Standards Administrator tells you to do so)

A Standards Administrator will be assigned to nonpublic postsecondary schools’ applications once the Application Evaluation fee (ranging from $1,000-$5,000) is paid and a complete application submitted. They help schools complete the rest of the process and review the school’s curriculum and financial stability. The GNPEC has compiled a full list of the process, so make sure you know what to expect when applying.

Once granted, schools’ Certificates of Authorization are good for a maximum of one year, and they need to apply for renewal at least 60 days before it expires.

Getting a nonpublic postsecondary school surety bond

When the institution meets the GNPEC’s standards, it’s time to get a surety bond. The institution will also need to pay the Tuition Guaranty Trust Fund fee and the Authorization fee (see the fee schedule for more information). The surety bond’s minimum amount is based on the larger of the institution’s annual gross tuition for the year prior, or the current year’s anticipated gross tuition:

• Gross tuition of $50,000 or less�$20,000 bond
• $50,001-$100,000�$30,000 bond
• $100,001-$200,000�$50,000 bond
• $200,001-$300,000�$75,000 bond
• $300,001-$400,000�$100,000 bond
• $400,001-$500,000�$150,000 bond
• $500,001 or more�$200,000 bond

The surety bond is required of some schools to reassure students that the school meets the state’s minimum standards to operate. If the school misrepresents its degrees or certifications, or otherwise causes financial damages to students, the surety bond provides a means of recovering tuition and fees already paid.

Ready to get this surety bond? Get in touch with Single Source Insurance today!