Why should I choose Pacific Financial Association, Inc. to fulfill my surety requirement?
Pacific Financial is by far the largest issuer of broker surety instruments (BMC-85 trust fund agreements) in the United States. In 13 years, we have issued over 10,000 BMC-85’s and we currently have over 4,500 active brokers with us which is more than 7 times the amount of our nearest competitor. We are the most experienced company in this field. Our only business is issuing BMC-85 trust fund agreements. By concentrating on only one thing, we can provide you with the best possible service in the industry.
Why should I choose a BMC-85 (trust fund) over a BMC-84 (bond)?
A BMC-84 is a type of freight broker bond issued by an insurance company and a BMC-85 is a trust fund agreement issued by a financial institution such as Pacific Financial Association, Inc. Although, either one fulfills the surety requirement for your brokerage, your interests are better protected with a BMC-85 from Pacific Financial Association, Inc. A trust fund’s biggest advantage over a bond is the control that you have as a broker. When a claim is presented against a trust you are notified immediately. If you can provide a valid reason why the claim should not be paid it won’t. When bonding companies receive a claim they will make the decision for you. They may not even contact you. We believe that since this is your company and your money, you should have a stake in the decisions.
How easy is it to become a broker?
There are 3 things the Federal Motor Carrier Safety Administration (FMCSA) requires from a broker. You must file an OP-1, a BOC-3 and you must fulfill the $10,000 surety requirement by filing either a BMC-84 or BMC-85.
I want to apply, what do I need to do?
Simply fill out our online application and we’ll have an approval for you within a couple of hours. Or call us at 800-595-2615 and speak with one of our underwriters. They will be able to go over our options with you, fax or e-mail an application to you and then help you fill it out.
Do I have to have $10,000 to start?
Only one (1) of our four (4) plans requires that you put $10,000 cash in your trust fund up front. If you do not have $10,000 in cash one of our other plans may better fit your needs. Click on our Pricing tab to view all of our plans.
I have less than perfect credit can I still get approved?
We are always able to approve you on some basis. We are more than willing to work with you to try to come up with a workable solution.
What is an OP-1?
The OP-1 is a federal form you must file in order to get your temporary broker MC#. Once you have met all the requirements this will become your permanent MC#. This can be filed on your behalf by a permitting service or you can file this online yourself with the FMCSA.
What is a BOC-3?
This is the filing for your agents for service of process. It lists an address within each state where legal paperwork may be served to your brokerage and then forwarded on to you.
After filing, how much time do I have to file my BOC-3 and my BMC-85 before my OP-1 application is dismissed?
If you have not fulfilled all the broker requirements within 20 days of filing your OP-1 application the FMCSA will issue you a notice that you have 60 days from the date of the notice in which to meet all the requirements or your application will be dismissed.
After I am approved what do I have to do?
When we call you about your approval we will make arrangements to get legal documents to you. We send these out via email or second day FedEx (overnight FedEx is available for $30). Once you receive the documents, they need to be signed and returned. The day that we receive them, they will be electronically filed with the FMCSA.