---
title: "What Is Surety Bond? Definition | Epic Life Glossary"
description: "A surety bond is a three-party promise in which a surety company guarantees that a person will meet an obligation. If the person fails, the surety pays..."
url: https://epicline.preview.multisites.ai/glossary/surety-bond
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Agent licensing and appointments

# Surety Bond

A surety bond is a three-party promise in which a surety company guarantees that a person will meet an obligation. If the person fails, the surety pays and then seeks repayment.

## Why it matters

Some states or carriers require an agent or agency to hold a bond as a license condition, so customers or the state can be paid if funds are mishandled. It is not insurance for the agent. The bonded person must repay the surety for any claim. Most life insurance agents never need one, but requirements vary by state and entity type.

Source: [law.cornell.edu](https://www.law.cornell.edu/wex/surety_bond)

[Read next, for agentsHow life insurance licensing works across multiple states](https://epicline.preview.multisites.ai/careers/licensing)

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