Texas Airlines Reporting Commission (ARC) Surety Bonds

What is an Airline Reporting Commission (ARC) Bond?

Travel agents and agencies are required by the Airline Reporting Corporation (ARC) to obtain a surety bond to guarantee that they will forward payments they receive from the customers to airline carriers they work with. If a travel agent fails to forward any payments to the ARC or a carrier, these parties can file a claim against the bond.

I am applying with the ARC. What bond amount do I need?

The bond amount for new applicants is $20,000. After two years, the amount can be decreased by half. The ARC will evaluate and determine the appropriate amount depending on your average net cash for the last twelve months. Bond amounts can range between $10,000 and $100,000. The ARC does accept multiple bonds to meet the required coverage.

What is the fine print for ARC Surety Bonds?

Surety bonds must be maintained as long as the agent holds an ARC accreditation. Because the ARC is a federally regulated entity, travel agents throughout the U.S. must comply with these guidelines. In addition, certain states have specific bonding requirements to operate as an agent or agency. The surety may cancel the bond by giving 30-days written notice to the ARC.

How do I get an ARC Surety Bond?

Pacific Surety can obtain approvals for almost all credit situations with rates as low as .85% for well qualified applicants. Unlike other agencies that require collateral, Pacific Surety can provide the bond for an annual premium. We are licensed in all 50 states and take the extra steps needed to ensure your bond is issued correctly the first time on the required bond form. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.

Can I get an ARC Bond with bad credit?

Pacific Surety offers a wide range of approvals, regardless of credit, for ARC Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure that you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium.

To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.

Pacific Surety proudly offers Airline Reporting Commission / ARC Bonds in the following states:

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