Arizona — Managing General Agent Bond
The Arizona Managing General Agent Bond is a specific financial security instrument required by insurers when they engage a managing general agent to perform underwriting or claims settlement functions. This bond ensures that the managing general agent maintains financial accountability to the insurer for all business transacted under their professional agreement.
Continue to our secure checkout partner, Propeller (opens in a new tab).
- Recorded state
- Arizona
- Category
- Insurance professionals
What this bond does
The primary purpose of this bond is to protect the insurer from financial losses that may result from the managing general agent's actions while operating under their contract. By maintaining this bond, the agent demonstrates the necessary fiscal responsibility to handle premiums and claims on behalf of the insurance company.
- Who needs it
- This bond is intended for individuals, firms, associations, or corporations acting in the capacity of a managing general agent in Arizona. Insurers are legally required to verify that their appointed agents hold this protection as a component of their written contractual agreement.
- Who it protects
- The bond serves as a financial guarantee provided by the managing general agent for the protection of the insurer. The obligation is specifically tied to the agent's performance in collecting monies and managing insurance business, ensuring that the insurer is shielded from losses caused by the agent's failure to adhere to statutory or contractual duties.
Your bond option
This is the option on record for this bond.
- Bond optionPurchase Now (opens in a new tab)Continue to our secure checkout partner, Propeller (opens in a new tab).
The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.
Sources
- Arizona Revised Statutes 20-311.02 (opens in a new tab)Checked October 18, 2026
Have these ready
- Verify your total annual written premium produced for the insurer in the prior calendar year to calculate the 10% bond amount requirement.
- Ensure your bond coverage meets the state-mandated minimum of $100,000 or the calculated amount, not to exceed $500,000.
- Coordinate with your insurer to provide the necessary audited financial statements confirming your positive net worth.
- Confirm that your contract with the insurer specifies all duties, underwriting guidelines, and territorial limitations as required by law.
Questions about this bond
How is the bond amount determined?
The bond amount is 10% of the managing general agent's total annual written premium produced nationwide for the insurer in the prior calendar year, subject to a minimum of $100,000 and a maximum of $500,000.
Who is protected by this bond?
This bond is designed specifically for the protection of the insurer that has entered into a contract with the managing general agent.
Are there financial reporting requirements besides the bond?
Yes, the agent must provide the insurer with an independent audited annual financial statement for the two most recent fiscal years to prove a positive net worth.
Can I assign my managing general agent contract to another entity?
No, a managing general agent is expressly prohibited from assigning their contract, either in whole or in part.