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What Is An Insurance Broker Bond?

An insurance broker bond is a form of insurance that an insurance broker purchases. The exact amount of the surety bond and its specifications are determined by the state where the business is. An insurance bond protects customers from any illegal or unethical actions on the part of the broker.

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

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