A â€œlife of well bond” or a â€œlife of production facility bondâ€? is required for oil production facilities who have outstanding liabilities to the state or who continually violate existing laws, as stated by Californiaâ€™s AB 1960. The bond needs to ensure that the facility will properly plug and abandon the well, safely decommission the facility, and that financing for any spill and incident cleanup will be provided with limited costs to the state. Once the facility has been properly decommissioned, the bond will be released. This law became effective on January 1, 2009.
Bonding companies are ranked every year by how much premium they book. Our agency has compiled that data and made a tool to allow you to compare year to year. As of now, you can only look back to 2006, but we hope to add more history to it. You can use the Surety Ranking Tool for free.
So tell us what you think in the comment box below. Are any of the results surprising? Do you have any suggestions on how to make the tool more useful? Let us know!
With the AB 180, effective on July 1, 2009, foreclosure consultants are now required to register with the Department of Justice and to obtain a $100,000.00 surety bond. The bond is in favor of the State and to protect the homeowner in case the foreclosure consultant violates the new or existing law in any way. The SFAA and the AIA local counsel worked together on this bill to improve the bond requirements, which makes this bond more available and easier to underwrite.
Arizona’s SB 1174 no longer requires bonds to be filed under existing law with the clerk of the superior court in the notary public’s county of residence. They must now be filed with the Secretary of State. This law was enacted on April, 28, 2008.
HB 2822, which was enacted in Arizona on July 7, 2008 changed the financial responsibility requirements for businesses in pest control. Previously, a cash deposit, certified check, obtaining liability insurance, or obtaining a surety bond was required. With this new law, â€œself-insured retentionâ€? was added as an acceptable method to meet the financial responsibility requirements. The new law also increased the minimum required from $300,000 to $500,000. The insurer issuing the bond is no longer required to be licensed in Arizona. The new law also eliminates the requirement for license suspension if the bond is issued for less than the minimum.
The Arizona Trust Code was adopted by HB 2806, was enacted on May 27, 2008, and was made effective December 31, 2008. This law states that when a court believes the interest of the beneficiaries must be protected, it is required that the trustee obtain a bond to ensure the performance of their duties. If the court has not yet dispensed of it, a bond may be required if it’s in the terms of the trust. The court may decide on the amount of the bond, terms of the trustee’s liability, if any modifications need to be made, and may terminate the bond at any time. Even if the terms of the trust require a bond, banks, national banking associations, savings and loan associations, title insurance companies, and trust companies are not required to give one. Any liability of the sureties or the trustee on the bond for the omissions and acts of the trustee will not be affected or discharged, even if the trustee resigns.