Colorado — Preneed Contract Seller Bond
Colorado's published preneed application instructions offer a $100,000 bond as an alternative to the specified financial statements demonstrating $100,000 net worth. Identify which route the Division of Insurance accepts for your seller before applying. Buying this bond does not replace the preneed contract, trust or licensing documents.
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- Recorded state
- Colorado
- Bond type
- Cemetery / Preneed Bond
- Category
- Real estate & property
What this bond does
Provide the Division's accepted bond for the preneed seller's financial-qualification route and the obligations stated in its Bond of Preneed Contract Seller.
- Who needs it
- The individual or entity seeking or maintaining Colorado authority to sell contracts for future funeral, entombment or cremation goods or services, using the accepted bond route.
- Who it protects
- The actual $100,000 form runs to Colorado and requires performance of the governing Act's agreements and conditions, including its broad indemnity to the State for covered claims and expenses from granting the license. Persons covered by a preneed contract, their beneficiaries, heirs or estates may proceed against it upon the principal's default.
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
- Colorado Division of Insurance — Pre-Need Funeral Contracts (opens in a new tab)Checked October 27, 2026
- Division — Application Instructions for Preneed Contract Sellers (opens in a new tab)Checked October 27, 2026
- Division — 2023 Bond of Preneed Contract Seller (opens in a new tab)Checked October 27, 2026
- Colorado General Assembly — enacted HB22-1228 summary and history (opens in a new tab)Checked October 27, 2026
Have these ready
- Confirm the Division-accepted financial-qualification route for the actual seller.
- Match the applicant and accepted trade name to Secretary of State records.
- Prepare the contract forms, trust and provider agreements, operations plan and any insurance-funding documents.
- Use the complete Division-accepted $100,000 undertaking and actual effective date.
- Arrange execution and Division filing, with renewal and cancellation duties kept distinct.
Questions about this bond
Does every preneed seller have to use the bond route?
The published application instructions describe the $100,000 bond as an alternative to specified financial statements showing the required net worth. Confirm which route Corporate Affairs accepts for the particular seller and application.
Does annual license renewal create another $100,000 limit?
No. The actual form states an aggregate limit regardless of the number of claims or length of the license and its renewals. Match its continuation and notice terms rather than treating each renewal as fresh security.
What follows Purchase Now?
Propeller's Colorado Preneed Contract Seller application opens in a new tab. Match the seller, accepted financial route, full Division form and actual dates, then complete execution and the license filing. Payment does not approve the seller, its contracts, trustee or insurance arrangements.