Immigration consultant bonds are legally binding agreements between three parties: immigration consultants, the local government agency responsible for regulating immigration consultant activity (typically the secretary of state), and a surety company.
The government agency is the Obligee and establishes the obligations that the licensed immigration consultant (the Principal) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the consultant.
Immigration consultant bonds are required in some states to operate as a licensed immigration consultant. When the surety company issues the bond, they provide the government agency a guarantee that the customers of a licensed immigration consultant will receive payment for financial losses resulting from a violation of the statutes and regulations set forth by the immigration consultant license.
If the immigration consultant fails to meet the obligations set out by the government agency, the surety will pay out damages up to the bond amount. The immigration consultant is liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.
Immigration consultant surety bond costs are determined by the total bond amount and the premium rate. The government agency sets the required bond amount which varies depending on the state. For example, California immigration consultant bonds have a total bond amount of $100,000 whereas Georgia requires a $5,000 surety bond. The surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium.
Premium rates for immigration consultant bonds tend to range between 1% and 2.5% of the total bond amount. During the application process, the surety company evaluates your credit score and financial strength. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing an immigration consultant surety bond. EZSurety offers competitive rates to individuals with low credit scores or other financial issues. EZ Surety has issued immigration consultant bonds in the State of Georgia for premiums as low as $100.