Transmitter Bond

If a business transmits money, it is likely that business must purchase a money transmitter bond. This form of insurance is required by companies that use the banking system to transfer, wire, or otherwise send money between parties. The bond assures that the money will be handled as expected and that the company will act legally and ethically. If a problem occurs, the bond will reimburse the party whose money was mishandled. Because of the risk involved in this type of bond, rates are typically higher than for many other types of bonds.

Before companies purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

 

Money transmitter bonds are required by any company that acts as a third party between persons exchanging currency through online means. As an example, if you owned a page where anyone could buy and sell items such as eBay, and you did not wish to use the services of an existing money transmission company like PayPal, you are required to obtain a bond and license before beginning to transact.

The money transmitter bond is in place to protect consumers from fraudulent acts or mismanagement of finances committed by your business that may cause them to suffer monetary loss. The bond is used to return any lost money that the complainant has suffered should the claim be found to be valid.

The bond does not protect you from any kind of lawsuit or prison time that may be incurred by committing financial fraud or other crimes associated with the responsibility of making sure payments are delivered correctly. The sole purpose of the bond is to protect the consumer from all possible malpractice by you and your employees.

The bond is not an insurance policy; all monies that are used to pay consumers from your bond must be reimbursed to the bond broker by your company after the fact.

The application process for acquiring a money transmitter licence requires in depth screening of personal and business finances. You will also be required to get signed affirmations from your employees to ensure that they have read and understood the laws in relation to monetary fraud.


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.