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Tennessee bonds

Tennessee — Motor Vehicle Dealer Bond

Tennessee motor vehicle dealers use at least $50,000 bond security for covered title-delivery and prepaid title or registration charges. Prepare the dealership's license details and begin with RLI.

Also known as Tennessee Motor Vehicle Dealer Bonds

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Recorded state
Tennessee
Category
Vehicles, titles & transportation

What this bond does

Indemnity for loss caused by nonpayment of fees/taxes or failure to deliver a clear title.

Who needs it
Motor Vehicle Dealer as defined in Tenn. Code Ann. § 55-17-102(17).
Who it protects
Any person, including the Tennessee Motor Vehicle Commission and the State of Tennessee, who suffers a specified loss.

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

Tennessee requires a bond in the amount of fifty thousand dollars.

Covered Losses

The bond covers retail customer losses related to title delivery and prepaid registration fees.

Bond Term

The bond is effective for the term of the dealer's license and may be continued.

Sources

Have these ready

  1. Use the dealership’s legal name and license expiration date, and keep title-transfer and prepaid-fee obligations in view when reviewing the form.
  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

What is the minimum bond amount?

The bond amount must be at least fifty thousand dollars.

Does this cover title issues?

Yes, it covers the failure to deliver a valid vehicle title free and clear of prior liens.

How are claims made?

Claims must be made directly to the surety company.

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