Indiana NPM bonds above the $50,000 minimum.
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Indiana sizes a non-participating manufacturer’s bond to the greater of $50,000 or its escrow obligation for the year the bond is posted. If your Indiana cigarette sales push escrow past $50,000, this is your bond, written for the larger amount. It is underwritten on your file; a surety specialist returns your quote.
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How much does an Indiana Non-Participating Tobacco Manufacturer Bond cost?
It is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
Sized to your escrow, filed with the AG.
Get the amount right first — the statute will not accept less than the year’s escrow obligation. Here is the whole process, from sizing to filing:
Size it and send us the file
Estimate this calendar year’s Indiana escrow deposit — units sold in Indiana times the IC 24-3-3-12(2) rate as adjusted for inflation — and enter the greater of that figure or $50,000. Add the manufacturer’s legal name, federal EIN, address, and owner and contact details.
A surety specialist quotes it
A specialist reviews the manufacturer’s financials and the amount requested, then returns a premium quote. A large escrow obligation can bring a request for financial statements or collateral; if so, it arrives as one checklist.
Bind, sign & file
Once you bind, the executed bond arrives with the surety’s power of attorney, written on the Attorney General’s NPM Bond Form with your amount in the “other amount” box. Submit it to the Tobacco Enforcement Section; the bond takes effect when the office accepts it.
What it is and who needs it.
When the statute outgrows the minimum
Every tobacco manufacturer selling cigarettes to Indiana consumers outside the Master Settlement Agreement must pay into a qualified escrow fund for each cigarette sold in the state, due by April 15 of the following year (IC 24-3-3-12). IC 24-3-3-11 defines a “unit sold” as an individual cigarette, and IC 24-3-3-12(2)(E) sets the base rate at $0.0188482 per unit for 2007 and each year after, adjusted for inflation.
IC 24-3-5.4-13.6 requires a newly qualified non-participating manufacturer, and any NPM the Attorney General finds to be an elevated risk, to post a bond equal to the greater of $50,000 or that year’s escrow obligation. The Attorney General’s NPM Bond Form carries two amount boxes — the $50,000 minimum and a blank for a larger figure. This page is the blank box: the bond for a manufacturer whose Indiana volume makes the escrow number the bigger one.
At the unadjusted base rate, escrow passes $50,000 at about 2.65 million cigarettes a year — roughly 132,000 packs of 20 — and at a lower volume once the inflation adjustment is applied. Size the bond to your projection for the calendar year you post it; an under-sized bond does not satisfy the statute.
What the surety stands behind. The bond must come from a corporate surety located in the United States, run in favor of the State of Indiana, and cover the manufacturer’s obligations for the year posted and the next. If deposits are missed, the Attorney General’s form forfeits the bond for the escrow owed plus penalties, costs, fees and interest, and a surety cancellation gives the manufacturer 60 days to replace it before removal from the directory.
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 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
Term and renewal are set in the underwriter's quote.
Keep the bond in force for as long as the obligation behind it runs.
How to file it
Bind, sign & file. Once you bind, the executed bond arrives with the surety’s power of attorney, written on the Attorney General’s NPM Bond Form with your amount in the “other amount” box. Submit it to the Tobacco Enforcement Section; the bond takes effect when the office accepts it.
What sets the price
This bond is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
One application, one underwriting review.
These are the actual fields — the bond amount you need, the manufacturer’s legal name and federal EIN, entity type, address, and owner and contact details. Submit once and a specialist returns your quote, typically within one business day. Free until issued.
Start the application →Common questions.
Other Indiana bonds.
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Bond your full Indiana escrow obligation.
Tell us the amount, get a specialist quote in about a business day, and file a bond on the Attorney General’s own form. Free until issued.