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Kansas bonds

Kansas — Motor Vehicle Dealer Bond — New/Used/Salvage

Kansas new and used vehicle dealers maintain a $50,000 bond for covered buyer and seller losses from licensing violations. If your request concerns salvage dealing, match that class to the Department's instructions before applying.

Also known as Kansas Motor Vehicle Dealer Bond

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Recorded state
Kansas
Category
Vehicles, titles & transportation

What this bond does

Indemnity for losses sustained by buyers or sellers due to license-violating acts

Who needs it
New vehicle, used vehicle, and salvage vehicle dealers
Who it protects
Buyer and seller losses resulting from the licensee's acts that constitute grounds for license suspension or revocation

Your bond option

This is the option on record for this bond.

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.

Bond Amount

New and used vehicle dealers are required to maintain a $50,000 surety bond.

Alternative Security

Licensees may satisfy bonding requirements by depositing cash or certificates of deposit of $50,000 or more with the state treasurer.

Sources

Have these ready

  1. Match the new, used or salvage role to the Department’s actual request before selecting the form; do not infer identical requirements for every class from this title.
  2. Have the legal applicant name, requesting party and any required form available for the provider application.
  3. Compare the requested sum and effective dates with the actual option and issued document.

Questions about this bond

How are bond proceeds paid?

After a final Kansas court judgment confirming a violation that is grounds for license action, the director may authorize payment of bond proceeds.

Does the same rule apply to every class in the title?

Use the Department's request for your new, used or salvage role. The cited $50,000 requirement is stated here for new and used dealers.

How do I apply for the bond?

Purchase Now opens RLI in a new tab through The Southern Agency. Apply there, then submit the issued bond through the separate licensing process.

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