Sign License Bond

If you are asked to sign a license bond you are entering into a legally binding contract with local government authorities to ensure that you are following all procedures and laws that provide safety for all concerned and that proper business practices are in use at all times.

When you apply to receive a new business license, in most cases, you will be required to have a bond in place prior to being able to commence operations in your location.

The bond agreement is set up between three parties, the licensee, the bond broker and the local government agencies that represent the consumer, known as the principal, surety and obligee respectively.

There are many different businesses that require bonds to be in place before being able to open your business including motor vehicle dealerships, contractors such as plumbers or electricians, importers, insurance agents and the list goes on.

Bonds are required by law in a lot of states for a wide variety of occupations. The licence bonds protect your consumers from any acts of fraud that may be alleged throughout the term of your business. Your bond broker will investigate any claims that may be made against your bond for legitimacy before deciding whether or not it is a valid and returning to the customer a sum of money to compensate for any financial loss that they may have suffered through the negligence or malpractice of you or your employees.

You will need to have a bond policy for the entirety of the time that you hold a license to work in your field. Most bonds are payable as an annual fee, which is a very small percentage of the total amount of cover the policy offers.


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.