The North Carolina Department of Insurance (NCDOI) requires designated insurance agents to be licensed as a broker through the National Insurance Producer Registry (NIPR). According to the terms of this license and state insurance laws, licensees must obtain the $10,000 Designated Agent Insurance Bond, otherwise known as the Designated Agent Bond.
Jet Insurance Company provides the Designated Agent Bond to ensure that the broker will comply with all conditions pertaining to their insurance license and client contracts. The surety bond also acts as a financial guarantee to the North Carolina public and NCDOI if the licensee violates insurance laws or commits a breach of contract.
If you are looking to utilize your broker license as a designated insurance agent, Jet can help you secure the required Designated Agent Bond quickly and at an affordable rate!
With Jet, the bond will cost you a flat fee of $100 for one year, or you can choose to pay $10 monthly. Please refer to our chart below to see all of your pricing options.
The Jet team works hard to offer you affordable prices, convenient payment options, and a quick online bond application. Jet’s monthly payment option is exclusive to the market and a great choice for designated agents who are looking to keep their bond and license active for the long haul.
Designated agents are defined as brokers who represent the interests of a buyer or seller; one agent working as a broker or specifically for a designated agency will represent the seller while another stands in for the buyer. This is required to ensure that client information is kept separate and allows the agents to act in the best interest of their respective clients. The Designated Agent Bond is required by the NCDOI Commissioner to provide a legal and financial guarantee to the respective clients that insurance laws will be followed and all contractual obligations will be fulfilled.
Jet can file the bond for you! The original signed and sealed Designated Agent Bond is required to be filed with the North Carolina Department of Insurance office and must remain active for the duration of the designated agent’s license. Failure to comply will result in the revocation of the agent’s broker license.
Once you have submitted your bond application and completed payment, Jet will file the original signed and sealed surety bond with the NCDOI and send you a copy for your records. If you would prefer to file the bond yourself, our application process allows you to select that option. The original bond form should be mailed to the following address:
North Carolina Department of Insurance
1204 Mail Service Center
Raleigh, NC 27699
For those initially applying for a North Carolina broker insurance license, the online application is filled out and submitted through the NIPR website. Once approved, NIPR will send the new licensee a custom National Producer Number (NPN). The NPN is required to be listed on the accompanying Designated Agent Bond Form so this step will need to be completed before the bond application process may begin. If you are already licensed and unsure what your NPN is, you can look it up through the NPN search engine.
Applying for a North Carolina Designated Agent Bond is easy with Jet! Our online application will take you through all the necessary steps in just a few minutes. You will only need to provide the appropriate information such as your personal NPN.
Once payment has been completed, the Jet team will file the bond for you free of charge and send you an electronic copy. Otherwise, you can select to have the original bond form sent to you for direct filing with the NCDOI. The choice is up to you.
With Jet’s monthly payment option, there is no need for renewal of the Designated Agent Bond! Your payments will continue to come out of a preferred account until cancellation of the surety bond is requested. If you ever wish to change the payment method on file just call us or send an email and we will update it accordingly.
For those who choose either an annual or multi-year option, Jet will send you a bond renewal invoice prior to the expiration date. No additional paperwork or fees will be requested, just provide the renewal payment and Jet will take care of the rest for you!
You can cancel the Designated Agent Bond at any time with Jet! Upon receiving your written cancellation request (via email is fine), the Jet team will proceed with sending notice to the NCDOI. The bond’s liability will then be released by the Commissioner within 30 days of the cancellation notification date.
Regarding refunds, brokers are responsible for payment during the 30-day cancellation period as the bond is still active. For those paying monthly, the payments will stop coming out of your account at the end of the 30 days. For brokers who choose to pay for the bond in full up front, Jet will review your bond after cancellation to see if there is any unearned premium available for reimbursement.
Brokers operating as designated agents are expected to follow all rules of their license as well as insurance laws pursuant to North Carolina General Statutes Chapter 58, Article 33. Failure to do so may lead to the revocation of the broker’s license, criminal charges brought on by the Commissioner, or civil action that could result in a surety bond claim. Key actions that could cause a claim to arise are listed below:
Clients that believe the designated agent has brought financial harm upon them by committing any of the above violations may file an official complaint with the NCDOI that will later be reviewed and investigated by the Commissioner. If the violation complaint is proved legitimate, the Commissioner may advise the complainant to take civil action while the NCDOI invokes separate penalties upon the agent. It is in the agent’s best interest to resolve any dispute with the client and the NCDOI before severe license penalties, criminal charges, civil action, or a bond claim is pursued. If civil action is taken against the agent by the financially harmed client and is validated by the state court, the bond can be used to cover financial damages as well as a reasonable attorney's fee fixed by the court.
Upon receiving confirmation of a bond claim from the court, immediately contact Jet and be ready to provide supporting documentation. Jet will proceed with a thorough review of the claim details, the Commissioner’s investigation, all documentation you provided, and the state court’s findings.
For justified claims, Jet will make payment up to the full bond limit of $10,000. It is important to note that surety bonds act as an extension of credit and the licensee will be held accountable for their actions, therefore the agent is obligated to reimburse Jet for any paid out claims. Failure to do so will lead to future difficulties obtaining the Designated Agent Bond.