Today we’re going to look at several examples of how surety bonds are required for certain occupational licenses and professions and how to apply for such a surety bond.
The example we’re using today is the Illinois professional appraisal management company license. And it’s required under article five of the licensing provisions that any applicant or applicant company has a surety bond in place. So the first thing you need to do is fill out the application for the register and this is a copy of the renewal form. And every year when you do your renewal you need to get another bond. As you can see the renewal fee for this license is very expensive. It’s $4,000 if you do it on time, $4,500 if you do it late. Even after paying the fee and going through all the licensing requirements. You still are required to get a surety bond from the bonding company. And the way that that bond works is you’ll have to fill out several sections of that bond form. Which in this case is the AMC one zero. Zero three form and you’ll see that’s the surety bond form that the surety company will need to sign and fill in with your information. The bond required for this license is $25,000 paid to the obligate and we’ll talk about the different, contacts and the different principles of the bond, but one question comes up. What is the surety underwriter going to be looking for when you apply for your bond and you apply for your application for bond they’re going to make sure that you are qualified to receive that bond to guarantee. They’re going to look at things like your credit score, have you ever declared bankruptcy? They’re going to look to see if you have any felony convictions. They’re also going to look to see what kind of experience you have in the field of profession that you’re getting your bond for in this case appraisal management it may also be things like car dealerships. contractors. Private investigators also need bonds for their industries as well. They’re gonna look to see what kind of debt load you have. Are you over buried with debt because that may affect your ability to follow through on this license or this contract? They’re gonna look at things like did he ever have any prior claims against you as a principle of the bond? The obligation is the person who is, receiving the benefits of the bond. If you have any previous license problems you have discipline actions suspensions revocations that may also affect your ability to get a bond.
So if you’re required to have a bond for a particular license such as this appraisal management license, make sure you work with a high-quality professional bonding agency to get your underwriting done properly and have your bond issued so that your license can be enabled by the board or the government agency of the state or even the federal government, if that’s the case.