There are situations where you might have secured a surety bond, only to find out you no longer need it or you would like your money back. Is this possible? Can you get a refund for a surety bond you’ve already purchased?
The short answer is: it depends.
Please note that this post is a generic overview about getting money back for all types of surety bonds. If you are looking for information on getting money back specifically for a Bail Bond or a Probate Bond, please read our respective articles:
Common Situations Where You Might Want a Surety Bond Refund
- You secured a bond and decided to not apply for a license
- You secured a bond and tried applying for a license, but it is taking too long/it is too expensive, so you decide you want to give up pursuit
- You secured a bond and were denied a license
- You secured a bond and closed your business 6 months later (or mid-term through the bond)
- You secured the wrong bond type and want a refund to get the correct bond
- You secured a bond but you found out you are not required to get a bond
The above situations are mostly geared toward situations where you have just purchased your bond. But, you might also be looking for a refund many years after first purchasing your bond. For example:
- You secured a bond and years down the road you surrender your license and are mid-way through a renewal term that you have already paid for
Specific Surety Bond Refund Examples We’ve Heard Of
- You secured a Personal Representative Bond, only to find out the judge changed their mind about requiring a bond
- You secured a Lost Title Bond and found your title
- You secured a Lost Title Bond and found out you do not need one or that you cannot get approved for one at the DMV (due to a lien on the vehicle or another reason)
- You secured a Mortgage Bond but decided to stop pursuing a license
- You secured a Mortgage Bond and have since surrendered your license
So…Can You Get A Refund?
The answer is tricky.
Generally speaking, when you purchase a bond it is considered “fully earned” for its first term. Usually, a bond term is one year, but sometimes more.
This means that if you purchase a bond and want a refund at any point during the first year (or first term of the bond), this usually cannot happen.
There are specific cases where a refund might be possible. Such cases might include, but are not limited to:
- If you never submitted your bond to the Obligee/State and you can send the original bond back to the surety company, sometimes a full or partial refund can be provided
- If you cancel your bond mid-term, in rare circumstances a pro-rated refund can be provided
- If you cancel your bond after the first term and have paid for a renewal term, a pro-rated refund will generally be provided
You might be wondering how much money you can get back if you are approved for a refund. The amount of money you paid for the bond (known as the bond premium) may be fully or partially refundable in some of the above situations. The amount of the bond premium you get back is based upon the surety company and the time of cancellation.
Getting a Refund
Refunds are not usual occurrences, nor are they required by the surety.
If you are looking for a refund on your surety bond, contact the surety company that issued your bond.
If you purchased your bond from us, Surety Solutions, you can contact us directly here.