# Colorado Preneed Funeral - Burial Contract Seller Surety Bond

Source: https://a1suretybonds.com/colorado/pre-needs-funeral-agent-license-bonds

## Key facts

- State: Colorado
- Term: 1 year
- Verified against the official source: [doi.colorado.gov](https://doi.colorado.gov/sites/doi/files/documents/Application%20Instructions%20for%20Preneed%20Contract%20Sellers.pdf) on October 25, 2026
- Apply online: https://a1suretybonds.com/application/index/1482/6

Effective March 17, 2023, the Colorado Division of Insurance (DOI) issued an update to [3 CCR 702-2 Regulation 2-1-12 Section 5(1) ](https://www.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=10715&fileName=3%20CCR%20702-2); which states:

Prior to selling any preneed contracts in this state, every preneed contract seller shall file an application with the Commissioner for the issuance of a license to sell preneed contracts in accordance with section 10-15-103, C.R.S. The initial application and each subsequent renewal application shall include either;

- A surety bond posted in the amount of one hundred thousand dollars ($100,000) to honor preneed contract obligations; or
- A current balance sheet, income statement, and statement of cash flow to demonstrate that the applicant has a net worth of at least one hundred thousand dollars ($100,000), either signed by a certified public accountant, or if prepared by the applicant or a public accountant, accompanied by a current tax return.

This will apply to the filing of the January 1, 2022–December 31, 2022 annual report which is due March 31, 2023.

### What are Pre-Need Funeral Burial Contract Seller Surety Bonds?

In the state of Colorado, a pre-need funeral burial contract seller surety bond is a requirement to secure a license allowing the licensee to sell pre-need funeral burial contracts. The surety bond protects consumers if a pre-need funeral contract seller fails to fulfill their obligations. The bond acts as a guarantee to consumers that they will receive the services they have paid for in advance.

### Why are Pre-Need Funeral Burial Contract Seller Surety Bonds Required in Colorado?

Colorado requires pre-need funeral contract sellers to obtain surety bonds to ensure consumer protection and compliance with the state's requirements. In the event that a licensed burial contract seller fails to fulfill their obligations, the bond will provide compensation to affected consumers. This helps to maintain a level of consumer confidence in the pre-need funeral contract market when someone can show they are licensed and bonded.

### How to Obtain a Pre-Need Funeral Burial Contract Seller Surety Bond in Colorado

To obtain a pre-need funeral burial contract seller surety bond in Colorado, follow these steps:

- Determine the bond amount required by the state of Colorado (minimum $100,000).
- Submit an application for the bond and pay the premium.
- Wait for the bond to be issued and provide a copy to the state of Colorado Division of Insurance with your licensing application or renewal packet.

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Preneed Funeral / Burial Contract Seller Surety Bond

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A1 Surety Bonds (The Surety Syndicate, LLC), a nationwide surety bond agency · (800) 737-4880 · info@a1suretybonds.com · https://a1suretybonds.com
Requirements are set by each state or agency and can change; the obligee's current instructions and the law control.