Alabama premium finance company bonds.
$350 — 1% of $35,000.
Alabama licenses insurance premium finance companies through the Department of Insurance, and the Department's licensing instructions require a $35,000 surety bond with the application. The premium is 1% of the bond amount — $350 for the $35,000 bond. Any credit screen is a soft pull only — it never affects your score.
Trusted by industry leaders
How much does an Alabama premium finance company bond cost?
$350 for the $35,000 bond: 1% of the bond amount.
Three steps. One sitting.
Premium finance license bonds are among the simplest filings in surety. Here's the entire process:
Apply online
Business details, an effective date, and a term. That is the application — no financials, and any credit screen is a soft pull that never shows as a hard inquiry.
Pay & e-sign
This bond is checkout-priced at 1% of the bond amount — $350 — so it issues the moment you pay. Your executed bond and power of attorney generate on the spot.
File with the Department of Insurance
Your executed bond arrives by email, ready to submit with your premium finance license application to the Alabama Department of Insurance. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
Alabama regulates insurance premium finance companies — the lenders that advance an insured's premium to the insurer and collect it back in installments — under Ala. Code § 27-40-1 et seq. A license from the Department of Insurance is required to engage in the business, and the Department's licensing instructions require a $35,000 surety bond written by a carrier licensed in Alabama.
It's a three-party arrangement: you (the principal), the surety carrier, and the State of Alabama (the obligee). The bond stands behind your compliance with the premium finance chapter — the rate, notice, and cancellation rules that protect Alabama insureds who finance their premiums through you.
It is not insurance for you — if the surety pays a claim, you repay the surety. Premium finance licenses renew each October 1, so the bond has to stay continuously on file; we track the term and send renewal notices 60 and 30 days out.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $35,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department of Insurance. Your executed bond arrives by email, ready to submit with your premium finance license application to the Alabama Department of Insurance. Wet-ink original mailed on request.
What sets the price
The premium is 1% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual issuing fields — business details, an effective date, and a term. That is the application.
Start the application →Common questions.
Other Alabama bonds.
The same bond in nearby states.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Finish your premium finance license today.
$350 — 1% of the bond amount — issued the moment you pay, soft pull only. Free until issued.