If you are trying to license your appraisal management company, your state may require you to purchase a surety bond as a part of the licensing process. Here's your quick guide to the surety bonding process.

1. APPRAISAL
MANAGEMENT BOND
PRESENTED BY:

2. What is this Bond?
If you are trying to license your appraisal
management company, your state may
require you to purchase a surety bond as a
part of the licensing process.
It serves as a guarantee to your state
licensing agency that your company will
follow all state and federal laws regulating
your business.

3. The 3 entities involved:
PRINCIPAL
The person or business
that is required to
purchase a surety bond.
OBLIGEE
The agency that requires a
surety bond to be
obtained by the principal.
SURETY
The Surety Bond Company
that serves as the
underwriter of the bond.

4. How does this
surety bond work?
When a consumer experiences some financial loss or damage due
to the actions of the appraisal management company, then the
consumer can file a claim against the bond. The surety company will
determine if the claim is valid.
If it is a valid claim, then a payment up to the full amount of the
bond will be paid out. The appraisal management company will then
be liable for repaying the amount that the surety company paid out
to the consumer.

5. How much is this
surety bond?
Each state is different when it comes to pricing
for these bonds.
The cost is only a percentage of the total bond
amount that you need.
The Cost is also know as the “Bond Premium”.

6. How does the bond
benefit your business?
If your business is in a state that requires an appraisal
management bond before becoming licensed, then obtaining
the bond will make the process that much easier to complete.
Also, consumers have more confidence in working with a
business that is bonded. Telling your potential customers that
yours is a licensed appraisal management company will
increase the likelihood that they will contact your company for
their needs.

7. https://suretybondauthority.com/appraisal-management-bond/
SOURCE:
800-333-7800
www.suretybondauthority.com