North Carolina premium finance company bonds.
From $100.
North Carolina requires every licensed insurance premium finance company to post a surety bond with the Commissioner of Insurance. Under G.S. 58-35-15 and 11 NCAC 13 .0302, a Type B company posts $25,000 and a Type A company $5,000 to $25,000, sized to its receivables. Premiums cost 1% of the bond amount, $100 minimum.
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How much does a North Carolina premium finance company bond cost?
1% of the bond amount, from $100 at the $5,000 minimum. Enter your amount in the calculator for the exact price.
Apply to filed in one sitting.
Size the bond from your license type, pay, and attach it to your Department of Insurance application. Here is the whole process:
Apply online
Your company details, the bond amount your license type requires and the effective date. That is the application, and it collects no credit information.
Pay & e-sign
The premium is 1% of the bond amount, $100 minimum, shown before you pay. The bond issues the moment you pay, with the surety’s power of attorney attached, and runs to a June 30 expiry.
File with the Department of Insurance
Upload the executed bond and power of attorney to your license application or renewal in the North Carolina License Management System, or email them to the NC Licensing Office. NCDOI accepts electronic copies.
What it is and who needs it.
What the premium finance bond actually guarantees
An insurance premium finance company advances an insured’s premium to the insurer or producer, and the insured repays it with a service charge under a premium finance agreement (G.S. 58-35-1). Under G.S. 58-35-5(a), no person except an authorized insurer may engage in that business in North Carolina without a license from the Commissioner of Insurance, and 11 NCAC 13 .0303(b)(7) makes the surety bond part of the license application. Banks, trust companies, savings and loans, credit unions and the other businesses G.S. 58-35-10 lists, licensed insurers charging approved installment fees, and property and casualty producers who extend credit only to their own policyholders are exempt from the Article.
It’s a three-party arrangement: your company (the principal), the surety carrier, and the Commissioner of Insurance of the State of North Carolina (the obligee), to whom NCDOI’s bond form binds your company and the surety. The condition is that your company conducts the business in full compliance with North Carolina’s premium finance statutes and the Commissioner’s rules, and the surety’s total liability for all breaches never exceeds the bond amount.
The amount follows your license type: G.S. 58-35-5(e) defines the two types and 11 NCAC 13 .0302 sets the bond for each. A Type A company finances the premiums of one insurance producer or agency and posts $1,000 for each $5,000 of premium finance accounts receivable, or fraction of $5,000, determined as of December 31 of the licensing year, with a $5,000 minimum and a $25,000 maximum: receivables of $62,000 are twelve full units plus a fraction, so that company posts $13,000. A Type B company finances for more than one producer or agency and always posts $25,000. The renewal application carries a computation of the bond amount, so a Type A bond can change at renewal.
It is not insurance for you — if the surety pays a claim, your company repays the surety. The bond is continuous through renewals until the Commissioner releases the surety or the surety cancels on 30 days’ written notice to the Commissioner and your company, and under 11 NCAC 13 .0305 a canceled bond leaves the license void until a proper replacement is received. Licenses run to June 30 (G.S. 58-35-15(c)); the NC Licensing Office (Pearson VUE) emails renewal instructions to existing licensees.
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
The bond runs to June 30 whatever day you buy; the premium covers the period to that date.
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. Upload the executed bond and power of attorney to your license application or renewal in the North Carolina License Management System, or email them to the NC Licensing Office. NCDOI accepts electronic copies.
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 application, priced from your amount.
These are the actual issuing fields — company details, the bond amount your license type requires and an effective date. The application collects no credit information.
Start the application →Common questions.
Other North Carolina bonds.
Premium finance license waiting on one bond.
Enter the amount your license type requires, see your price, and file it with the Department of Insurance. Free until issued.