Before issuing a new appointment for a surety bondsman or managing general agent, the affidavit must state that which of the following is true?

• A. There are no forfeiters owed to any court, no fines or fees owed to the insurance department, and no premiums or indemnification or forfeiters or fines owed to any insured
• B. The bondsman has no prior criminal convictions
• C. The bondsman has a valid business license
• D. The bondsman resides in the state

Answer: (A)

The key idea is that this affidavit is about financial clearance before a new appointment. It requires the bondsman or MGA to swear that there are no outstanding monetary obligations that could affect their ability to meet obligations. Specifically, the affidavit states there are no forfeitures owed to any court, no fines or fees owed to the Insurance Department, and no premiums, indemnification, or forfeitures or fines owed to any insured. This helps protect the insurer and policyholders by ensuring the applicant isn’t carrying unresolved financial liabilities that could jeopardize bond obligations or claim payments. While other qualifications like criminal history, having a valid business license, or residency are important checks, they are not what this particular affidavit is designed to certify.