Utah Telephonic Seller Surety Bonds (Telemarketing Surety Bonds)

What is a Utah Telephonic Seller Surety Bond?

The Utah Telephone Fraud Prevention Act requires telemarketing organizations to register with the Utah Department of Commerce – Division of Consumer Protection (DOCP) before they can begin operations in the state. This act requires anyone who registers to file a surety bond as security with the DOCP. The bond guarantees that the principal (telemarketing company) will comply with all provisions of The Telephone Fraud Prevention Act and provides protection to any person who is injured by fraud, misrepresentation, breach of contract or financial failure by the principal. If financial damages occur, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.

What are the bond amounts required by the state?

The penalty amount for this bond varies:

$25,000 Bond if:

  • Neither the telephone soliciting business nor any affiliated person has violated any provisions of the act within three years preceding the date of the application; and
  • the telephone soliciting business has fewer than 10 employees

$50,000 Bond if:

  • Neither the telephone soliciting business nor any affiliated person has violated any provisions of the act within three years preceding the date of the application; and
  • the telephone soliciting business has 10 or more employees

$75,000 Bond if:

  • If the telephone soliciting business or any affiliated person has violated any provisions of the act within three years preceding the date of the application.

What are the terms of the bond?

Utah Telephonic Seller Surety Bonds must be filed with the Utah Department of Commerce – Division of Consumer Protection, and the aggregate liability of the surety shall not exceed the penal sum of the bond. The bond has a 1-year term and must be renewed annually by a continuation certificate with the state. The surety may cancel the bond for any reason by giving 90 days advanced written notice to the state. The principal shall keep the bond in force for one year after it notifies the state in writing that it has ceased all activities regulated by the act.

How much will my bond cost?

Pacific Surety is proud to offer a variety of approvals, regardless of credit, for Utah Telephonic Seller Surety Bonds, with rates as low as 1% annually for well qualified applicants. It typically takes just a few hours for a quote, and we have the ability to beat any competitor’s pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.

Additional Resources

Surety Bond Name

Bond Limit

Telephonic Seller Surety Bonds (Telemarketing Surety Bonds) – Utah