North Carolina Professional Solicitor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a North Carolina Professional Solicitor Bond
At a Glance:
- Lowest Cost: 1% of the bond amount per year, based on the applicant’s credit
- Bond Amount:
- $20,000 if the solicitor generated less than $100,000 in contributions in the previous fiscal year
- $30,000 if the solicitor generated between $100,000 to less than $200,000 in contributions in the previous fiscal year
- $50,000 if the solicitor generated $200,000 or more in contributions in the previous fiscal year
- Who Needs it: All professional solicitors operating in North Carolina
- Purpose: To ensure the public will receive compensation for any damages if the solicitor violates licensing law
- Who Regulates Professional Solicitors in North Carolina: The North Carolina Secretary of State
Background
North Carolina Statute 131F-16 requires all professional solicitors operating in the city to obtain a license from the Secretary of State. The North Carolina legislature enacted the licensing requirement to ensure that solicitors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, professional solicitors must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the North Carolina Professional Solicitor Bond?
North Carolina requires professional solicitors to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the solicitor fails to comply with the regulations set forth in North Carolina Statute 131F-16. Specifically, the bond protects the public in the event the solicitor engages in any acts of fraud or misrepresentation. In short, the bond is a type of insurance that protects the public if the professional solicitor violates licensing law.
How Can an Insurance Agent Obtain a North Carolina Professional Solicitor Surety Bond?
BondExchange makes obtaining a North Carolina Professional Solicitor bond easy. Simply login to your account and use our keyword search to find the “solicitor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (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.
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Is a Credit Check Required for the North Carolina Professional Solicitor Bond?
Surety companies will run a credit check on the solicitor to determine eligibility and pricing for the North Carolina Professional Solicitor bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the North Carolina Professional Solicitor Bond Cost?
The North Carolina Professional Solicitor bond can cost anywhere between 1% to 7.5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. BondExchange also offers monthly pay-as-you-go options for these bonds. The chart below offers a quick reference for the bond cost on the $20,000, $30,000, and $50,000 bond requirements.
$20,000 Professional Solicitor Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $200 | $20 |
| 625 – 679 | $300 | $30 |
| 575 – 624 | $740 | $74 |
| 550 – 574 | $1,000 | $100 |
| 500 – 549 | $1,500 | $150 |
$30,000 Professional Solicitor Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $300 | $30 |
| 625 – 679 | $450 | $45 |
| 575 – 624 | $1,125 | $113 |
| 550 – 574 | $1,500 | $150 |
| 500 – 549 | $2,250 | $225 |
$50,000 Professional Solicitor Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $500 | $50 |
| 625 – 679 | $750 | $75 |
| 575 – 624 | $1,875 | $188 |
| 550 – 574 | $2,500 | $250 |
| 500 – 549 | $3,750 | $375 |
Who is Required to Purchase the Bond?
North Carolina requires professional solicitors to purchase a surety bond as a prerequisite to obtaining a business license. To paraphrase North Carolina Statute 131F-2, a professional solicitor is a person that generates donations on behalf of any charitable organization or sponsor.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Professional Solicitors Apply for a License in North Carolina?
Professional solicitors in North Carolina must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the application instructions for details on the process.
License Period – All North Carolina Professional Solicitor Licenses expire on March 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Professional solicitors must purchase and maintain a surety bond with the following limit:
-
- $20,000 if the solicitor generated less than $100,000 in contributions in the previous fiscal year
- $30,000 if the solicitor generated between $100,000 to less than $200,000 in contributions in the previous fiscal year
- $50,000 if the solicitor generated $200,000 or more in contributions in the previous fiscal year
Step 2 – Complete the Application
All North Carolina Professional Solicitor License applications should be submitted online or mailed to the following address:
North Carolina Department of the Secretary of State
Charitable Solicitation Licensing Division
P.O. Box 29622
Raleigh, NC 27626-0622
Solicitors must complete the application in its entirety and pay a $200 fee
How do North Carolina Professional Solicitors Renew Their Business Licenses?
Professional solicitors can renew their licenses online or mail a completed renewal application to the following address:
North Carolina Department of the Secretary of State
Charitable Solicitation Licensing Division
P.O. Box 29622
Raleigh, NC 27626-0622
All North Carolina Professional Solicitor Licenses expire on March 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Professional Solicitors in North Carolina?
North Carolina does not require professional solicitors to purchase any form of liability insurance as a prerequisite to obtaining a business license. Professional solicitors must purchase and maintain a surety bond with the following limit:
- $20,000 if the solicitor generated less than $100,000 in contributions in the previous fiscal year
- $30,000 if the solicitor generated between $100,000 to less than $200,000 in contributions in the previous fiscal year
- $50,000 if the solicitor generated $200,000 or more in contributions in the previous fiscal year
How Do North Carolina Professional Solicitors File Their Bonds?
Professional solicitors should file their bonds online or mail their bond forms, including the power of attorney, to the following address:
North Carolina Department of the Secretary of State
Charitable Solicitation Licensing Division
P.O. Box 29622
Raleigh, NC 27626-0622
The surety bond requires signatures from both the surety company that issues the bond and from the solicitor. The surety company should include the following information on the bond form:
- Legal name of the entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can North Carolina Professional Solicitors do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, professional solicitors in North Carolina must adhere to all licensing regulations in the state and ensure they do not engage in any acts of fraud or misrepresentation.
What Other Insurance Products Can Agents Offer Professional Solicitors in North Carolina?
North Carolina does not require professional solicitors to purchase any form of liability insurance as a prerequisite to obtaining a business license. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of 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 North Carolina Professional Solicitor Customers?
North Carolina conveniently provides a public database to search for active professional solicitors in the state. However, agents must know the name of a company before obtaining its license information, so it may be worth it to ask to Secretary of State’s office for a comprehensive list. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.