Alabama Marine Sanitation Device Inspector Bond: A Comprehensive Guide

February 21, 2022

Alabama Marine Sanitation Device Inspector Bond

This guide provides information for insurance agents to help their customers obtain an Alabama Marine Sanitation Device Inspector Bond

At a Glance:

  • Average Cost: Between $100 to $1,250 per year based on the applicant’s credit
  • Bond Amount: $10,000
  • Who Needs it: All Alabama marine sanitation device (MSD) inspectors appointed as special agents
  • Purpose: To ensure the MSD inspector adheres to the terms of their special agent contract
  • Who Regulates Hunting and Fishing Special Agents in Alabama: The Alabama Department of Conservation & Natural Resources (DCNR)

Background

Alabama statute 220-6-.61 requires all MSD inspectors to become appointed as special agents prior to conducting inspections on behalf of the DCNR. The Alabama legislature enacted the appointment requirement to ensure that special agents adhere to the DCNR’s standards when conducting inspections. To ensure that inspectors adhere to the terms of their special agent contract, (MSD) inspectors must purchase and maintain a $10,000 surety bond prior to becoming special agents.

What is the Purpose of the Alabama Marine Sanitation Device Inspector Surety Bond?

Alabama requires all (MSD) inspectors to purchase a surety bond as part of the application process to become appointed as a special agent. The bond ensures that the DCNR will receive compensation for financial harm if the inspector fails to comply with the terms outlined in their special agent contract. Specifically, the bond protects the DCNR in the event that the special agent fails to remit inspection fees. In short, the bond is a sort of insurance that protects the DCNR if the special agent violates the conditions of their contract.

Alabama Marine Sanitation Device Inspector Bond Form

Alabama Marine Sanitation Device Inspector Bond Form

How Can an Insurance Agent Obtain an Alabama Marine Sanitation Device Inspector Surety Bond?

BondExchange makes obtaining an Alabama Marine Sanitation Device Inspector bond easy. Simply log in to your account and use our keyword search to find the “marine” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

Is a Credit Check Required for the Alabama Marine Sanitation Device Inspector Bond?

No, a credit check is not required for the bond. Because the bond is considered relatively low risk, the same low rate is offered to all Alabama special agents, regardless of their credit history.

How Much Does the Alabama Marine Sanitation Device Inspector Bond Cost?

The Alabama Marine Sanitation Device Inspector Bond can cost anywhere between $100 to $1,250 per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.

$10,000 Marine Sanitation Device Inspector Bond Cost

Credit Score Bond Cost (1 year)
720+ $100
680 – 719 $150
650 – 679 $200
600 – 649 $400
550 – 599 $750
500 – 549 $1,250

Who is Required to Purchase the Bond?

Alabama requires all MSD inspectors to purchase a $10,000 surety bond prior to becoming appointed as a special agent. To paraphrase Alabama statute 220-6.61, a “special agent” is an individual that has been appointed by the DCNR to conduct annual inspections of marine sanitation devices.

How does Alabama Marine Sanitation Device Inspectors Obtain Their Special Agent Appointment?

MSD inspectors in Alabama must complete several steps to secure their special agent appointment. Below are the general guidelines, but applicants should refer to the Alabama statute 220-6-.61 for details on the process.

Step 1 – Purchase a Surety Bond

Marine sanitation device inspectors must purchase and maintain a $10,000 surety bond

Step 2 – Acquire a Federal TIN/EIN

Inspectors must possess a Taxpayer Identification Number or an Employer Identification Number.  Additionally, inspectors must apply for an Alabama taxpayer identification number, and can do so by mailing an application to

Department of Public Safety
301 S. Ripley Street
Montgomery, AL 36130

Step 3 – Obtain a Local Business License

The DCNR requires inspectors to obtain all applicable business licenses required by their local county/municipality. Inspectors should contact their local municipal authority for assistance in obtaining any and all required local business licenses.

Step 4 – Complete the Required Training

Inspectors are required to attend training provided by the Marine Patrol Division for the purpose of learning how to inspect marine sanitation devices. Contact the Marine Patrol Division at [email protected] to schedule a training session.

Step 5 – Submit the Special Agent Agreement

All Alabama MSD inspector special agent agreements should be mailed to the following address:

Alabama Department of Conservation and Natural Resources
64 North Union Street
Room 438
Montgomery, AL 36130

How Do Alabama Marine Sanitation Device Inspectors File Their Bond?

MSD inspectors should mail the completed bond form, including the power of attorney, to the following address.

Alabama Department of Conservation and Natural Resources
64 North Union Street
Room 438
Montgomery, AL 36130

The bond requires signatures from both the surety company that issues the bond and from the special agent. The surety company should include the following information on the bond form:

  • The legal name and address of entity/individual(s) buying the bond
  • Surety company’s name, address, and phone number
  • Date the bond goes into effect
  • Date the bond is signed
  • Date the bond is terminated
  • Witness Signatures for the surety company and special agent

What Can Alabama’s Marine Sanitation Device Inspectors Do to Avoid Claims Against Their Bonds?

To avoid claims on their bond, MSD inspectors in Alabama must ensure that they adhere to all provisions outlined in their special agent contract, which includes

  • Remitting all required inspection fees
  • Accurately filling out inspection reports

What Other Insurance Products Can Insurance Agents Offer Special Agents in Alabama?

Alabama does not require MSD inspectors to purchase liability insurance as a prerequisite to obtaining their special agent appointment. However, most reputable agents will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Alabama Marine Sanitation Device Inspector Customers?

Alabama unfortunately doesn’t provide a public database to search for active MSD inspectors in the state. We suggest contacting the Marine Patrol Division directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-03-21T13:05:56-04:00