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Virginia insurance premium finance company bonds.
$500 flat.
Before Virginia will license a company to finance insurance premiums, the applicant files a $50,000 surety bond with the State Corporation Commission. The Bureau of Insurance rule is blunt: no application will be considered until the bond is on file. Ours is $500 flat for a term.
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From application to bond on file.
The Commission will not open your license file until the bond is in it. Here is the whole process, start to finish:
Send us the file
Apply online with your entity type, business address, owner and contact details, and the effective date you need — the date your license application goes to the Bureau of Insurance. The bond amount is already set at $50,000.
Pay & e-sign
This bond is among the thousands of bond types that issue right after purchase.
File it with the Commission
Your executed bond is issued to the State Corporation Commission as obligee, ready to file with your VAPF 1 license application. Wet-ink originals mailed on request.
What it is and who needs it.
What the premium finance company bond actually does
An insurance premium finance company pays an insured’s insurance premium up front and collects it back in installments under a finance agreement. Virginia defines the business broadly in Va. Code § 38.2-4700: any person engaged in whole or in part in financing premiums for insurance on subjects of insurance resident, located or to be performed in the Commonwealth. Under § 38.2-4701, no one may act as a premium finance company in Virginia until it holds a license from the State Corporation Commission, administered by the Commission’s Bureau of Insurance.
The bond requirement comes in two layers. The statute, § 38.2-4708, empowers the Commission to require a premium finance company to enter into a bond with surety approved by the Commission, in the amount the Commission determines is reasonable, conditioned to protect customers and the public. The Commission set that amount in its own rule, 14VAC5-390-50: “No application will be considered unless the applicant files with the Commission a bond in the amount of $50,000.” The bond is written on the Commission’s prescribed form, Bond for Insurance Premium Finance Company, VAPF 4, with a corporate surety acceptable to the Commission.
The bond is only one part of the license review. Under § 38.2-4702 the Commission investigates the applicant and licenses it only if the financial responsibility, experience, character and general fitness of the company — and of its officers and directors, for a corporation — indicate it will operate lawfully, honestly, fairly and efficiently, and if its assets at least equal its liabilities with working capital sufficient to run the business. A license expires on the June 30 after issuance, and § 38.2-4703 lets a licensee renew it on July 1 of each year.
The rule adds that the bond must remain in effect at all times, so it runs continuously alongside each annual license renewal rather than being filed once and forgotten. Under § 38.2-4708 the surety can cancel only on 30 days’ written notice to the Commission, and its liability is capped at the penal sum. It is not insurance for you. If the surety pays a claim by a customer or the public, you repay the surety.
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 $50,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The term is set on the carrier’s application; the premium covers the period shown there.
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 it with the Commission. Your executed bond is issued to the State Corporation Commission as obligee, ready to file with your VAPF 1 license application. Wet-ink originals mailed on request.
What sets the price
The premium is fixed at $500 at the $50,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
No credit check.
One application, issued instantly.
These are the actual issuing fields. No credit check. The effective date, your entity type and business address, the contact and business owner, and a billing address. The $50,000 amount is already filled in.
Start the application →Common questions.
Other Virginia bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, .
Get your license application considered.
The Commission will not look at a premium finance application without the bond. $500 flat, no credit check, bond often issued in the same sitting. Free until issued.