The insurance broker agent bond is a type of surety bond offered by the bonding company. This bond guarantees that the insurance agent or the broker will be accountable for the insurance premiums paid to the company by the customer. The insurance agent or the broker has to procure a license from the department of broker-agent licenses to act as an insurance agent. After getting an appropriate license from the department he/she can act as an agent and collect insurance premium from the customer. Before obtaining a license the individual or the company has to enter in to a bond called insurance agent-broker bond. This bond gives guarantee and protect against dishonesty. He is an independent insurance sales person who searches the market in the interests of clients and may place coverage with any insurance company. The person holding the Broker-Agent license can either act as a broker or an agent.
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