What is the MAIF Producer's Bond?

The MAIF Producer's Bond is a $10,000 surety bond mandated by the Maryland Automobile Insurance Fund. This bond serves as a financial guarantee that producers will adhere to all applicable statutes, regulations, and rules when conducting business on behalf of MAIF. It ensures that producers properly account for and remit all monies received in connection with their insurance activities.

My Maryland Auto

Why is the Bond Required?

Under Section 20-511 of the Insurance Article, Annotated Code of Maryland, every producer must file a surety bond with MAIF as a condition of their authority to transact business. This requirement is in place to protect the Fund and its clients from potential financial losses resulting from a producer's negligence, misconduct, or failure to comply with legal obligations.

Key Requirements for MAIF Producers

To become an authorized MAIF producer, you must:

1. Obtain a $10,000 Surety Bond: The bond must name the Maryland Automobile Insurance Fund as the obligee and be issued by a surety company authorized to operate in Maryland.
   My Maryland Auto

2. Complete the Application for Authority: Submit the "Application for Authority to Transact Maryland Automobile Insurance Fund Business," ensuring all information is accurate and up-to-date.
   My Maryland Auto

3. Provide Necessary Documentation: This includes a completed W9 form, a business license from the Maryland Insurance Administration (if applicable), a property and casualty license, and banking information for direct deposit of commissions.
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4. Complete Mandatory Training: New producers are required to complete MAIF's online training program. Instructions for accessing and completing the course will be provided upon receipt of your application.
   My Maryland Auto

Cost of the MAIF Producer's Bond

The premium for the $10,000 MAIF Producer's Bond varies based on the applicant's creditworthiness and financial history. While the bond amount is fixed at $10,000, the cost to the producer (the premium) is typically a small percentage of this amount. For instance, premiums can start as low as $100, but rates may vary depending on individual circumstances.

Steps to Obtain the MAIF Producer's Bond

1. Choose a Reputable Surety Company: Select a surety company authorized to write bonds in Maryland and familiar with MAIF's requirements.

2. Complete the Bond Application: Provide necessary information, including personal and business details, to the surety company.

3. Undergo Credit Evaluation: The surety will assess your credit history to determine the premium rate.

4. Pay the Premium: Once approved, pay the determined premium to activate the bond.

5. Submit the Original Bond to MAIF: Ensure the bond, complete with the surety's seal, is filed with MAIF as part of your application package.
   My Maryland Auto

Maintaining Compliance

It's crucial to maintain the bond continuously during your tenure as a MAIF producer. Failure to do so can result in the termination of your authority to write business on behalf of MAIF. The bond includes a cancellation clause, allowing the surety to terminate the bond with 30 days' written notice to MAIF and the producer.

How Axcess Surety Can Assist

At Axcess Surety, we specialize in providing surety bonds tailored to meet specific requirements like those of MAIF. Our services include:

• Competitive Premium Rates: We strive to offer affordable rates based on your financial profile.

• Streamlined Application Process: Our efficient procedures ensure quick approvals, minimizing delays in your licensing process.

• Expert Guidance: Our knowledgeable team is ready to assist you through each step, ensuring all requirements are met with ease.

Partnering with Axcess Surety ensures a hassle-free experience, allowing you to focus on serving your clients effectively.

Get Started Today

Don't let bonding requirements impede your progress. Contact Axcess Surety today to secure your Maryland Automobile Insurance Fund Producer's Bond efficiently and at a competitive rate.

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Ensure compliance and peace of mind with Axcess Surety by your side.