If you are engaged as an insurance premium finance company operating in Maryland, you are required under the Annotated Code of Maryland section 23-202(a)(4) to file a Maryland Insurance Premium Finance Company Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Maryland Premium Finance Company Bond holds you accountable for your business decisions.
By possessing a Maryland Premium Finance Company Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.