$10,000 Michigan Non-Depository Sales Finance Company: Branch Location Bond

Businesses are required to file a $10,000.00 bond with the State of Michigan Office of Financial and Insurance Regulation (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.

Non-Depository Sales Finance Company: Branch Location Bond

State/Jurisdiction:

How much does the Michigan Non-Depository Sales Finance Company: Branch Location bond cost?

Michigan Non-Depository Sales Finance Company: Branch Location bonds typically cost between $100 and $1,000 depending on the personal credit, license history, and experience of the business owners and the surety carrier issuing the bond.

Credit Premium Rate Bond Cost
1.00% $100
1.50% $150
3.00% $300
3.75% $375
5.00% $500
6.00% $600
6.25% $625
7.00% $700
7.50% $750
8.00% $800
10.00% $1000

Is a Credit Check Required for Michigan Non-Depository Sales Finance Company: Branch Location Bonds?

Surety carriers will run a credit report as part of underwriting the bond because the business ultimately must reimburse the surety bond company for any claims made on the bond.

Why is the Michigan Non-Depository Sales Finance Company: Branch Location bond required?

Businesses are required to purchase and file a $10,000 bond with the State of Michigan Office of Financial and Insurance Regulation to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the Michigan Non-Depository Sales Finance Company: Branch Location bond work?

Michigan Non-Depository Sales Finance Company: Branch Location bonds must be issued by an insurance carrier admitted by the Michigan Department of Insurance. The insurance company issuing any surety bond, such as the Michigan Non-Depository Sales Finance Company: Branch Location bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the State of Michigan Office of Financial and Insurance Regulation as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.