California Immigration Consultant Bonds

What Is a California Immigration Consultant Bond and Its Purpose?

Immigration consultants are in high demand, but that doesn�t mean that all of them are equally competent or ethical. A California Immigration Consultant bond provides protection for clients by guaranteeing that the consultant operates in compliance with the relevant portion of the state�s Business and Professions Code. This two-year, $100,000 surety bond is a type of license and permit bond that must be purchased as part of the licensing process.

Who Needs It?

Anyone who wants to operate as an immigration consultant in California must purchase a California Immigration Consultant Bond.

How Does It Work?

A surety bond contract is a legally binding agreement involving three parties:

• Obligee.�The party requiring the purchase of the bond, in this case the California Secretary of State, is the obligee. The obligee sets the required bond amount and the terms and conditions the immigration consultant must abide by to avoid claims being filed against the surety bond.
• Principal.�The party required to purchase the bond, the immigration consultant, is the principal. The principal guarantees to abide by certain rules and regulations and maintain a certain standard of ethical behavior.
• Surety. The company that underwrites and issues the bond is the surety.

The bond is the principal�s pledge to void such unethical and unlawful actions as:

• Making false claims to a client, or guaranteeing a certain outcome with no basis in fact
• Suggesting to the client that the consultant can arrange special favors or treatment from U.S. government
• Charging a fee to refer the client elsewhere for services the consultant can�t provide

Violation of these or other prohibitions can result in a client filing a claim against an immigration consultant�s surety bond. In such cases, the surety will investigate to ensure the claim�s validity and then try to negotiate a settlement. Often the surety will go ahead and pay a claim and collect reimbursement from the principal. Paying the cost of claims is ultimately the sole responsibility of the principal.

What Does It Cost?

The surety examines each application and assigns an appropriate premium rate based on the applicant�s personal credit score and financial situation. Applicants with good credit typically pay a premium rate that within 1% to 3%. Since the surety�s primary concern is the principal�s ability to reimburse the surety for claims paid by the surety, applicants with poor credit will likely pay a higher premium.

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Launch your career as an immigration consultant in California by getting the surety bonds you need at the best rate possible. Apply with Single Source Insurance today!

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