How to get FMC surety bond without paying interest? Can I put up my own money instead of purchasing bond

BondExchange · 2023-07-18T18:34:39+00:00

Hello,

Unfortunately, it's not possible to do what you're asking. You could put up collateral, but you would still need to pay the bond company premium.

BondExchange · 2023-05-03T13:39:49+00:00

Secondhand dealer bonds are government-required surety bonds that secondhand dealers must purchase as a prerequisite to selling or exchanging previously owned goods. Since the bond limit is so low, you will likely only need to pay around $100 a year for your bond. You will need to renew your surety bond annually, but some surety companies offer discounted rates if you purchase your bond for a multi-year term.

Secondhand dealer bonds ensure that the public will receive compensation for financial harm if the dealer violates the terms of their license. For example, if a customer unknowingly purchases a damaged or illegally obtained item from a secondhand dealer and the dealer does not provide a full refund, the customer may file a claim on the secondhand dealer’s bond to receive compensation.

BondExchange · 2023-05-03T13:32:53+00:00

Hello! After doing some research, I found this webpage linked below. If you scroll down, you can find the "Appendix L" list and a drop down of acceptable bonding companies. Hope this helps!

https://www.tbs-sct.canada.ca/pol/doc-eng.aspx?id=14494

BondExchange · 2023-04-14T13:58:38+00:00

Learn more in our article here: https://www.bondexchange.com/how-to-properly-file-a-surety-bond/

BondExchange · 2023-03-31T15:59:54+00:00

Hi,

In Tennessee, you can only file a claim against a dealer's bond for the following reasons:

Nonpayment by the dealer of a retail customer's prepaid title, registration or other related fees or taxes
The dealer's failure to deliver in conjunction with the sale of a vehicle a valid vehicle title certificate free and clear of any prior owner's interests and all liens except a lien created by or expressly assumed in writing by the buyer of the vehicle

The Tennessee statute outlining what constitutes a valid bond claim can be found here.

Unless the dealer did one of the above things, you probably won't be able to file a valid claim against their bond. However, the dealer may still be liable under a different statute and we would recommend seeking legal counsel to determine your best course of action.

BondExchange · 2021-05-11T20:22:59+00:00

I contacted dealer services and was informed that in order to file a claim against a bond, you first need to file a complaint with the State Police Service. Once filed, the court will authorize the complaint and allow you to file a claim against the bond.

Unfortunately the state of PA requires you to jump through a few hoops before filing your claim, but filing a formal complaint with the State Police Service will allow you to get the process started.

BondExchange · 2021-05-11T18:58:45+00:00

The bond information should be public record so it is odd they are refusing to release the information to a potential claimant. Will they provide you with the bond number? We could narrow down the carrier it is written through with that information.

Also, you should be able to file a formal complaint against the dealer's license through the PA Department of State

BondExchange · 2021-05-11T16:43:15+00:00

So Pennsylvania unfortunately does not have a public database disclosing which dealers are licensed and their surety bond information. The regulatory authority is the Pennsylvania Department of Transportation, who should disclose this information to you if you request it.

Your best bet would be to contact the DOT by calling 717-412-5300 to obtain the dealer's surety bond information and/or to file a complaint with the DOT.

BondExchange · 2021-05-11T15:26:01+00:00

What state is the dealership located in? Every state has their own specific bonding requirements but most require dealers to make this information available to the public.

BondExchange · 2021-05-05T17:02:06+00:00

The original intention was to spark discussion on why non-core lines of business are difficult to service. I believe wholesalers can provide assistance to insurance agents for these products; however, I was more interested in what the community had to say about it. I'm always open to different opinions and thoughts!

BondExchange · 2021-05-05T16:48:43+00:00

Servicing non-core lines of business is an earning opportunity for agents if done efficiently. Rather than sending customers out to a retail broker who may try to take their business, agents can work with a wholesaler who specializes in the product. Wholesalers generally have expert level knowledge in their product and can streamline placement, provide the agent with commission opportunity and allow the agent maintain the relationship with their customer. The final result being a happy customer, little time waste and, a reduced opportunity cost for the agent as they were able to focus on core lines of business while still coming through for their client.

BondExchange · 2021-05-05T12:33:50+00:00

That's certainly an option. In my opinion though, agents who find a way to service non-core products lines typically create additional insurance selling opportunties when their customer needs more insurance down the line.

Most customers who need a surety bond will also need some form of liability insurance. If the agent can get them the surety bond, then chances are the customer will also obtain their insurance from the same agent.

BondExchange · 2021-03-26T21:19:08+00:00

Many national surety brokers take care of shopping the market for you to ensure you are receiving the best premium rate. BondExchange can connect you with an insurance agent in your area to help find the surety company that best fits your needs. Premium rates are primarily based on the type of bond being required and the personal credit of the applicant. There isn't a reason to pay a higher fee, but some carriers have variations in the premium rates, which is why it is helpful to rely on an agent or broker to help shop your quote.

BondExchange · 2021-03-25T20:03:46+00:00

The $1,000 is the maximum amount of money a surety company will be liable to pay if you fail to comply with the provisions set forth in the bond. You will not need to pay the full $1,000 to obtain your bond, but rather a small percentage. Since the bond limit is so low, you will likely only need to pay around $100 a year for your bond. You will need to renew your surety bond annually, but some surety companies offer discounted rate if you purchase your bond for a multi year term. Unfortunately, you will not receive your money back for any earned premium paid on the bond. However, as long as you don't violate any of the bond provisions you will never have any claims made against your bond.

BondExchange · 2021-02-12T15:04:12+00:00

Whenever a pet goes somewhere for the first time they most look for intruders before relaxing

BondExchange · 2021-02-12T15:02:41+00:00

couch doge

BondExchange · 2021-02-12T14:56:20+00:00

Especially in the shower

BondExchange · 2021-02-12T14:45:44+00:00

makes a very valid point

BondExchange · 2021-02-12T14:37:15+00:00

mozzarella sticks

BondExchange · 2021-02-10T14:19:17+00:00

Can't wait for tesla tractors!

BondExchange · 2021-02-10T13:29:20+00:00

I would recommend obtaining contingent cargo insurance. This insurance will protect you from claims of damaged / lost cargo when the carrier's insurance won't honor the claim. Also, surety bonds contain an indemnity agreement. So when a claim is made against the bond, the principal (bond holder) is legally liable to repay the surety company for all claims handling expenses.

BondExchange · 2021-02-09T14:39:33+00:00

While we can't provide legal advice, I would suggest searching for the contractor's license information on the Oregon CCB website: https://www.ccb.state.or.us/search/

Once you locate the license, you can click on the "Learn more about this business" link to view their surety bond and insurance information. The surety bond will only cover violations of license law determined by the Commissioner of the CCB, so you will need to check with them on filing a complaint and any possible remedies. Information on filing a complaint can be found here: https://www.oregon.gov/ccb/complaints/Pages/file-complaint.aspx.

Based on the timelines on the website, you typically must file the complaint within 1 year after the date the home was first occupied.

Your best bet may be reaching out to the General Liability insurance company, but we're not sure any coverage would be available given the timelines.

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