Kentucky non-participating manufacturer bonds.
Quote on review.
A tobacco manufacturer outside the Master Settlement Agreement, a non-participating manufacturer (NPM), must escrow funds on the cigarettes it sells in Kentucky. KRS 131.602(10) lets it post a surety bond for the greater of $50,000 or its largest required escrow over the prior twelve quarters. We quote the premium after a quick review.
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How much does a Kentucky non-participating 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.
Apply, quoted, filed.
NPM bonds run large, so we quote the premium after a quick review rather than issuing sight-unseen. Here is the whole process:
Apply online
Your business details, the bond amount the statute requires, and the effective date — that is the entire application. The application collects no credit information.
Reviewed & quoted
An underwriter reviews your amount and escrow history and returns a price. If a check is ever needed on a bond this size, it is a soft pull that never affects your score.
File with the Attorney General
Submit the executed bond (the Kentucky NPM surety bond form) to the Office of the Attorney General. Wet-ink originals mailed on request.
What it is and who needs it.
What the NPM bond actually covers
Under the Tobacco Master Settlement Agreement, manufacturers that did not sign — non-participating manufacturers — must place money in a qualified escrow account each quarter, based on the cigarettes they sell in Kentucky, under the escrow statutes KRS 131.600 to 131.602. The escrow is a safeguard against future liability.
KRS 131.602(10) lets an NPM (or its importer) post a financial instrument — including a surety bond — as security in connection with that obligation. The amount is the greater of $50,000 or the largest required escrow due from the manufacturer or its predecessor over the immediately preceding twelve calendar quarters.
The bond runs to the benefit of the Commonwealth and is filed with the Office of the Attorney General, which administers NPM certification and the tobacco directory. If the NPM fails to fund the escrow, the state can recover against the bond — and if the surety pays, the manufacturer repays the surety. Enter your required amount and we return a quote after review.
You need this bond if you are
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
File with the Attorney General. Submit the executed bond (the Kentucky NPM surety bond form) to the Office of the Attorney General. Wet-ink originals mailed on request.
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 short form to apply. Quoted within 48 hours.
Submit the application with your required bond amount — an underwriter reviews it and returns a price, then the bond is ready to file with the Attorney General.
Start the application →Common questions.
Other Kentucky bonds.
The same bond in nearby states.
Requirements checked on the carrier’s application, . Page updated .
NPM bond, quoted fast.
Quote on review, filed with the Attorney General the same day as approval.