Learn how to become licensed as a lottery retailer in Nebraska, and speak with an Single Source Insurance agent today about purchasing the lottery bond you�ll need.
How Can I Get Licensed As a Lottery Retailer?
To gain the extra income from selling lottery tickets in your retail establishment, you�ll need to obtain a license from the Nebraska Lottery Division of the Department of Revenue. Learn more about the role of lottery brokers and why lottery bonds are required.
What Are the Steps in the Licensing Process?
On the Nebraska Lottery website, you�ll find the necessary application forms and instructions for downloading, completing, and submitting them. There is no fee for submitting the application.
Your signature on the application authorizes the Nebraska Lottery to conduct certain background checks, including a credit history, and will consider that information in deciding whether to grant you a license as a lottery agent. In some cases, license approval is contingent upon providing a surety bond in an amount to be determined by the Nebraska Lottery.
Why Is a Nebraska Lottery Bond Required?
A lottery bond usually is required when the Nebraska Lottery (the “bond’s “obligee”) has concerns about a license applicant’s level of financial strength and responsibility. The purpose of the bond is to help ensure that a licensed lottery agent (the bond’s “principal”) operates in full compliance with Lottery statutes and, in the event of a violation that causes financial harm to the Nebraska Lottery or the public, will compensate the injured party. This combination of prevention and compensation protects the Nebraska Lottery and the public against financial loss.
How Do Nebraska Lottery Bonds Work?
There are three parties to the legally binding Nebraska lottery bond agreement: the obligee, the principal, and the bond�s guarantor�the �surety.� The terms of the surety bond agreement legally obligate the principal to pay all valid claims, but the surety guarantees that the principal will pay them.
When a claim is received, the surety investigates it and, if it is legitimate, approves it for payment. However, as the guarantor, the surety will pay it initially. In making that payment, the surety is lending the funds to the principal, creating a debt that the principal is, by law, obligated to repay. �Failing to repay the surety for funds paid on the principal�s behalf can subject the principal to legal action by the surety.
How Much Does a Lottery Bond Cost?
The annual premium for a Nebraska lottery bond is a small percentage of the required bond amount. That percentage (the premium rate) is set by the surety through an underwriting assessment of the risk the surety will be taking on in paying claims and waiting to be repaid by the principal. The main factor in that assessment is the principal�s personal credit score.
A high credit score is a sign of a financially responsible individual who presents a low risk to the surety. A low risk level is rewarded with a low premium rate. Someone whose credit score leaves something to be desired represents a higher risk and will be assigned a higher premium rate.
Request a convenient online quote today, or call and speak with one of our surety bond experts who can answer your questions about Nebraska lottery bonds.