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Utah bonds

Utah — Motor Club Bond

Confirm Utah's actual security request before choosing the base amount. Corporate divisions and qualifying net worth can change the required filing.

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Recorded state
Utah
Bond type
Automobile Club / Motor Club Bond
Category
Vehicles, titles & transportation

What this bond does

Section 31A-11-106 sets a $100,000 deposit basis and allows a corporate-surety bond in that sum, in the commissioner's prescribed form, payable to the State. The statute also addresses a qualifying deposit waiver and increased security for a separate corporate division.

Who needs it
The corporation or division using Utah's dedicated motor-club certificate process. Chapter 11 does not treat mere noninsurance travel services or arranging coverage through qualified producers as automatically acting as a motor club.
Who it protects
The statutory condition covers faithful performance in selling or rendering motor-club service and payment of the club's imposed fines, fees or penalties. It provides the stated claimant rights and a noncumulative surety limit across years or periods. It is not auto liability or physical-damage coverage for members' vehicles.

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.

Use the actual certificate and security determination

Have the commissioner's actual request, principal and prescribed undertaking. The $100,000 basis is not a universal selected amount: the statute permits a qualifying waiver and, for a corporate division's added risk, an increase subject to the stated twice-base ceiling.

The liability limit is not cumulative from year to year. The statutory deadline for bringing a claim after bond termination is a claims rule, not a two-year duration selected by this option.

Purchase Now opens Propeller. Match the club role, accepted form, State recipient, actual required sum and dates before applying. The Department's certificate, annual report and renewal instructions remain separate from provider issuance.

Sources

Have these ready

  1. Identify the corporation/division and actual motor-club certificate application.
  2. Obtain the commissioner's security determination rather than assuming the base sum.
  3. Match the prescribed undertaking, principal and State recipient.
  4. Coordinate accepted execution and effective period without treating a claim deadline as a term.
  5. Complete the separate Department authority and annual reporting/renewal requirements.

Questions about this bond

Must every applicant buy the base $100,000 bond?

The statute allows a bond instead of the prescribed deposit and addresses qualifying net worth and corporate-division risk. Have the commissioner determine the actual accepted arrangement before ordering.

Is the two-year claim deadline a two-year bond option?

No. Section 31A-11-106 addresses when an action may be filed after termination. It does not select a term or create an annual increase in the surety's limit.

Does this authorize vehicle liability or physical-damage insurance?

No. Chapter 11 limits what a motor club may provide and distinguishes appropriately authorized insurers. Issuing the security does not grant auto-insurance authority or insure members' cars.

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