Surety bonding agents and other producers have ethical standards to uphold throughout their entire course of business.
Agents receive and transmit sensitive and personal information between clients and surety underwriters. Therefore, they have a great responsibility to ensure the only interested parties – the surety and the client – obtain this information. Agents do not have the authority to distribute their clients’ information to other parties, nor can they take advantage of any client’s finances or personal identification.
The National Association of Surety Bond Producers (NASBP) has a “Code of Ethics” all bond producers should adhere to. The Code’s preamble states all bond producers should “hold the affairs of their clients in strictest confidence,” as well as strive to improve their surety skills and the prestige of the surety business. To view the NASBP’s code of Ethics, click here.
Surety bond producers must always act honestly and faithfully on behalf of the surety as well. For example, agents cannot abuse the authority they have with seals and powers of attorneys by issuing fraudulent bonds or issuing bonds without the sureties’ approval. Nor should an agent issue a bond with more liability than the limits written on the POA.
Furthermore, agents have the responsibility of explaining all language of the indemnity agreement clearly to their clients and must not lie or deceive them. Agents who act within the proper standards of ethics gain their clients trust and earn a positive reputation. As a result of following the proper ethical standards, an agency attracts more and more clients and builds prestige.