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The first year’s premium on all bonds is fully earned upon issuance. Pro-rated return on premium may be available on subsequent renewal years at the discretion of the surety company.
By purchasing a bond, user agree to the terms of indemnity of the underwriting surety company. For specific indemnity terms for each underwriting surety company, please contact us at 866-546-4605 prior to purchase.
User agree that the validity of user electronic signature is the same as a hand-generated signature.
In order for The Warnock Agency, its affiliates, and/or their agents to assess the Applicant in connection with the possible issuance of a Bond, it may be necessary to obtain information from third party sources. The individuals signing below have an interest in having The Warnock Agency do business with the Applicant. To assist The Warnock Agency in gathering underwriting data, these individuals hereby authorize The Warnock Agency Inc to perform the following: (1) Secure consumer reports from consumer reporting agencies (2) Make such pertinent inquiries as may be necessary from other sources in order to verify the information supplied. To the extent required by law, the Company will, upon request, provide notice whether or not a consumer report has been requested by Company, and if so, of the name and address of the consumer reporting agency furnishing the report.
IMPORTANT: This is an application for a bond. A bond is a credit relationship. A bond is not an insurance policy. The Applicant (Principal) and Indemnitors are jointly and severally responsible for the obligations covered by the bond and the conditions of the Indemnity Agreement contained in this application.
READ CAREFULLY. User purchase, electronic signature or wet signature binds user to legal obligations should this bond be executed. In consideration of The Warnock Agency, Inc., www.ezsuretybonds.com, Merchant’s Bonding, American Contractors Indemnity Co, Great American Insurance, Ohio Casualty Insurance, Old Republic Surety & Insurance Companies, Platte River Insurance Companies, Capitol Indemnity Corporation, United States Fire Insurance Company, or any other Surety Company referred to hereafter as “Surety”, issuing the bond applied for, the undersigned hereby agree for themselves, their heirs, successors and assigns, jointly and severally:
- To pay Surety an annual premium in advance each year during which liability under the bond shall continue in force until satisfactory evidence of termination of the Surety’s liability is furnished to the Surety. First year’s premium is fully earned upon issuance of the bond by Surety.
- To indemnify Surety against all losses, liabilities, costs, damages, attorney’s fees, and expenses the Surety may incur or has incurred due to the execution or issuance of the bond on, before or after this date including any modifications, renewals or extensions of the bond or the enforcement of the terms of this indemnity agreement.
- The Surety or its representatives shall have the right to examine the credit history, department of motor vehicle records, employment history, books and records of the undersigned or the assets covered by the bond, or the assets pledged as collateral for the bond. Privacy Notice: All nonpublic personal information gathered pursuant to the application shall not be disclosed except as permitted by law.
- The undersigned agree to waive notice of the execution of the bond, notice of any fact, knowledge or information affecting the undersigned’s rights or liabilities under the bond that Surety may have or discover prior to or after execution of the bond.
- The undersigned, upon written demand, shall deposit with Surety a sum of money or other security requested by Surety to cover any claim, suit, expense, or judgment that Surety may in its absolute discretion determine is necessary and the deposit shall be pledged as collateral security on any such bond or other bonds the Surety may have issued for the undersigned. The undersigned agrees that such collateral security may be used, without limitation to the above or otherwise, to pay for any fees or costs incurred by Surety in the defense or prosecution of any claim between Surety and undersigned regarding this agreement, including any claims for a return or reduction of the collateral security, or any bond or bonds issued by Surety. The undersigned expressly grants Surety the authority to retain the collateral security until Surety determines in its sole discretion that retention of such collateral security is no longer required. The undersigned hereby irrevocably appoints Surety as their attorney in fact to execute any documents necessary to perfect Surety’s security interests in any collateral submitted to Surety. Surety shall have the exclusive right to determine if any claim or suit shall be denied, paid, compromised, defended or appealed. An itemized statement of payments made by Surety shall be prima facie evidence of the obligation of undersigned due to Surety. The undersigned agree that it is their responsibility to defend their own interests.
- Surety and undersigned agree that the place of performance of this agreement, including the promise to pay Surety, and venue for any suit, arbitration, mediation or any other form of dispute resolution shall be at the sole discretion of Surety.
- The undersigned confirms that Surety shall have every right, defense or remedy including the rights of exoneration and subrogation.
- Unless specified by law or stated in the bond that the bond cannot be cancelled, Surety may cancel bond by mailing a notice of cancellation in the U.S. mail or other form of suitable mailing to the Obligee and Principal at the last address provided to Surety and cancellation shall become effective thirty (30) days after the date of deposit with the postal service.
- If any of the provisions of this agreement are determined to be void or unenforceable under the laws of any place governing its construction or enforcement, this instrument shall not be void or vitiated thereby but shall be construed and enforced with the same effect as though such provision(s) omitted.
- In making this application for the hereinabove described bond the undersigned warrants all statements provided are true and hereby agrees to notify Surety or its agent, of any change within 48 hours after such change has occurred. Regardless of the date of signature or purchase, this indemnity is effective as of the date of execution and renewal of the aforementioned bond(s) and is continuous until Surety is satisfactorily discharged from liability pursuant to the terms and conditions contained herein and in the bond(s).
Broker Commission Agreement and Compensations Definition
Suret(ies) sell insurance products and services through insurance agents and brokers, commonly referred to as “Producers.” The compensation paid to producers is designed to encourage them to sell products, place profitable business with the surety(ies), and provide services to policyholders.
A producer may receive one or more of the below payments, depending on the Producer’s business relationship with its surety(ies).
Producers are generally paid a Base Commission for the sale and service of policies. Base Commission is a fixed percentage of the policy premium or a fixed amount per policy set prior to the sale (effective date) of the policy to which it applies. The percentage or amount may vary depending on certain factors, such as the type of product, the risk classification, whether the policy is new or a renewal, whether another policy is written for the same insured, and the services provided to the policyholder. In some cases, the percentage or amount may be negotiated on a transaction by transaction basis, and may vary by Producer based, at least in part, on the Producer’s past performance and the expected value of the Producer’s future business.
Like Base Commission, Supplemental Commission is a fixed percent of premium or a fixed amount per policy, which is set prior to the sale of the policy to which it applies. Eligibility for, and the amount of, Supplemental Commission paid on current business is based upon a Producer’s ability to meet certain past production, growth, profitability or other historical performance objectives established by the surety(ies).
Contingent Commission is generally a particular percent of the premium written during a preceding performance period or a particular sum that is based upon a Producer’s ability to meet certain production, growth, profitability or other performance objectives established by us for that preceding period. As such, eligibility for, and the amount of Contingent Commission cannot be determined until after the sale of bonds that occur over a given period of time. Contingent Commission is generally paid separately from Base Commission on an annual or other periodic basis. By executing this document user specifically acknowledge user understanding that we may enter into such contingency arrangements.
Producer Administrative Fees
Some producers may charge their customers a fee on their own account related to services they provide to their customers. Any such fee would not be part of the premium charged by the surety, would not be charged on the surety’s behalf, and may be in addition to receiving compensation from the surety. This can include a placement contingency fee. Producer fees are for services that are not customarily performed by agents. These services may include underwriting, financial reviews, agency billing, credit card processing, renewal billing, and rate negotiation.
Consent to Rate
Certain applicants may or may not qualify for standard (filed) rates or we may choose to place certain applicants on non-standard surety programs. By executing this disclosure applicant clearly understands the deviation from standard or filed rates and specifically consents to the same. Certain risks may require broker placement fees in addition to premium. Applicant acknowledges these cost issues and specifically consents to the same. By purchasing a bond, user understand that ALL premiums, commissions and fees have been combined into the quote, that all fees are FULLY earned upon execution of bond(s) and/or policy(ies) and user consents to that/those fees as quoted. Upon request, a fee or rate schedule is available.