Never Filed Bond

[Mother Bond]

I obtained an Auto Dealer Bond a few months back. It turns out that I never started the dealership, nor filed the bond with the DMV. Will I be able to return the bond for a refund?

[Surety Queen]

Originally Posted by Mother Bond

I obtained an Auto Dealer Bond a few months back. It turns out that I never started the dealership, nor filed the bond with the DMV. Will I be able to return the bond for a refund?

Honestly? It depends upon which surety wrote the bond. As a rule, the first year's premium is fully earned - meaning there would be no refund. However, in some circumstances - if it can be proved that the bond was never filed with the State - Surety will consider a refund. Best to discuss the situation with your account representative.

[h2o]

Originally Posted by Surety Queen

Honestly? It depends upon which surety wrote the bond. As a rule, the first year's premium is fully earned - meaning there would be no refund. However, in some circumstances - if it can be proved that the bond was never filed with the State - Surety will consider a refund. Best to discuss the situation with your account representative.

Should the original bond be returned?

[Surety Wizard]

You should definitely return the bond so it can be sent back to the Surety Company and destroyed. The Surety Company will either give you a refund or have to cancel the bond.

[Surety Queen]

Originally Posted by Surety Wizard

You should definitely return the bond so it can be sent back to the Surety Company and destroyed. The Surety Company will either give you a refund or have to cancel the bond.

Don't get your heart set on getting a refund. It really depends on the Surety, whether or not the bond was actually filed with the Obligee, and how far into the bond term it's being returned. Talk to your account representative to see what applies in your situation.

[Bond Magician]

Originally Posted by Surety Queen

Don't get your heart set on getting a refund. It really depends on the Surety, whether or not the bond was actually filed with the Obligee, and how far into the bond term it's being returned. Talk to your account representative to see what applies in your situation.

Have there ever been any instances where premium was refunded?

[Surety Queen]

Originally Posted by Bond Magician

Have there ever been any instances where premium was refunded?

Yes