Insurance Consultant Bond - Statewide in Oklahoma

Brief Summary

The amount of an Oklahoma insurance consultant bond depends on the fees you take in, from $5,000 up to $40,000, so the first step is knowing which bracket you fall in. A surety bond lets you meet that figure for a premium instead of putting the full amount up in cash, which the rule also allows.

Oklahoma Administrative Code 365:25-3-12 bars a resident from acting as an Insurance Consultant until a bond in favor of the Insurance Commissioner is filed and kept in force. The bond runs from $5,000 to $40,000 depending on the consultant's fees, and protects any party harmed by the licensee's acts. Since November 1, 2022, the Oklahoma Insurance Department has issued consultants an Insurance Producer license instead of a separate consultant license.

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How to Apply for a Insurance Consultant Bond:

• Find your bond tier using the fees you report in the annual verified statement.
• Legal name and Oklahoma license number exactly as shown with the Oklahoma Insurance Department.
• Owner or principal name and home address for the surety's credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the signed bond in favor of the Insurance Commissioner.
• File the bond with the Commissioner and keep it in force for as long as you act as a consultant.

Detailed Information About the Oklahoma Insurance Consultant Bond:

Consultant licenses became producer licenses in 2022

This is the change most people miss. Under SB 1252, the Oklahoma Insurance Department converted Insurance Consultant licenses to Insurance Producer licenses on November 1, 2022, keeping the same National Producer Number and Oklahoma license number. Title 36, Section 1435.30, the old stand alone consultant licensing statute, is listed as repealed by Laws 2022. Section 1435.2 now defines an insurance consultant as someone who is required to be licensed as an insurance producer and who, for a fee, holds out to the public as offering advice on the benefits, advantages or disadvantages of any policy that could be issued in Oklahoma.

Bond tiers

The bond rule in OAC 365:25-3-12 is still printed in the Oklahoma Administrative Code. It sets the amount by the consultant's fees:

• Under $25,000: $5,000 bond
• $25,000 to $49,999: $10,000 bond
• $50,000 to $74,999: $15,000 bond
• $75,000 to $99,999: $20,000 bond
• $100,000 to $249,999: $25,000 bond
• $250,000 to $499,999: $30,000 bond
• $500,000 to $999,999: $35,000 bond
• $1,000,000 and above: $40,000 bond

The bond is written in favor of the Commissioner and protects any party aggrieved by the acts of the licensee. The rule applies to resident consultants and allows cash in place of a surety bond.

The April 1 fee statement

Every Insurance Consultant must file a verified statement of all fees received from business conducted under the license with the Commissioner on or before April 1 of each year. Keep it accurate, because the bond tiers are set by fee volume and a growing practice can move into a higher bracket.

License fee and term

Under 36 O.S. 1435.23 the insurance producer license fee is $60 for two years, and renewal costs the same as the initial fee. Section 1435.36 limits any license to 24 months. The Department's notice set continuing education at 24 hours, including 3 hours of ethics and 2 hours of legislative update, for renewal applications received on or after November 1, 2022.

Before the bond is issued

Because the license type changed, call the Oklahoma Insurance Department Licensing Division at 405-521-3916 and confirm the current bond form and filing steps for your license before the bond is issued. The surety prices the bond after reviewing the applicant's credit and business history.

Eligibility and Requirements for a Oklahoma Insurance Consultant Bond:

• Bond amount matched to the fee tier in OAC 365:25-3-12, from $5,000 to $40,000.
• Insurance Commissioner named as obligee, with protection for any party aggrieved by the licensee's acts.
• A verified statement of all fees received, filed with the Commissioner by April 1 each year.
• An Oklahoma Insurance Producer license, which replaced the consultant license on November 1, 2022.
• Cash may be deposited instead of a surety bond under the same rule.

Oklahoma Insurance Consultant Bond FAQs:

Official and Additional Resources for the Oklahoma Insurance Consultant Bond: