Insurers who employ managing general agents are affected by a new Hawaii State law. The new law is referred to as SB 2697/HB 2544 and has insurers require their managing general agents to acquire a surety bond in a quantity equivalent to $100,000 or 10% of the agent’s sum yearly premiums written nationally for the insurer in the prior calendar year, whichever is more. Additionally, a $1 million errors and omissions insurance policy also must be obligatory.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog.