There is a new law involving appeal bonds classified as SB 2509. The new Rhode Island bill caps the supersedeas bond at $50 million for all appellants together despite the worth of the judgment; this is done to stay the carrying out of a judgment associated to the Master Settlement Agreement. SB 2509 became law even though the Governor did not provide his signature. The new law was enacted on 07/08/2008.
-
Rhode Island Appeal Bond Amendment
September 26, 2009 by Eric WeisbrotCategory: Court Bonds, Surety NewsTags: appeal bond, Rhode Island, RI | Comments (0)
-
Rhode Island Guardianship Bond Amendment
September 22, 2009 by Eric WeisbrotThere is new law named HB 7985/SB 2743 in the state of Rhode Island which affects guardians. The new alterations to the existing law permit waiver of surety on the guardian’s bond despite the worth of the ward’s estate. Before the new modifications, the law required a bond for estates that were worth at least $10,000 or more. The SFAA and AIA worked together to overcome the bill, but they were unsuccessful; it was put through the Senate after 11 hours of the session. HB 7985/SB 2743 became law regardless of the governor who did not sign the bill.Category: Court Bonds, Surety NewsTags: bond requirements, guardianship bond, legislation, Rhode Island, RI, surety bond | Comments (0)
-
Texas Guardian Surety Bond
August 6, 2009 by Eric Weisbrot
The state of Texas has enacted a new law under the name HB 3080 which makes a temporary guardian or guardian and the surety on the bond liable for any excess compensation that they received. This happens when the court reduces or eliminates his/her compensation pursuant to the new law’s provisions that allows the court to do so under certain conditions.Category: Court Bonds, Surety NewsTags: bond requirements, court, guardian, guardianship bond, legislation, texas, tx | Comments (0)
-
Arizona Trust Bond Requirement
June 11, 2009 by Lisa Grimsley
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. Category: Court Bonds, Surety NewsTags: arizona, bond requirements, legislation, surety bond | Comments (0)
-
Understanding the Surety Process
January 17, 2009 by Heidi WolfThe surety underwriting procedure can often be viewed as being an agonizing ordeal for insurance agents as well as applicants needing to obtain bonds. Many times, the entire process can be very aggravating and stressful if an applicant is under a specific deadline or needs a bond very quickly. Here are some items that the surety company will most likely require. It is important to know what crucial information that a surety company or agency will require in order to be approved for any type of surety bond.
Like insurance, the surety industry is recurring. In the mid 90s, the surety industry was very pliable, and there was little underwriting being performed. A combination of the slowing economy and the poor underwriting practices from years prior caused the surety industry to suffer for the first five of five consecutive years in 2000. However, a booming economy led to more bond approvals and issuance, even for applicants that were less than qualified.Fortunately, these losing years caused the market to fluctuate almost overnight underwriting standards were tightened and premiums increased substantially. Capacity quickly became an issue for contractors, particularly at both the small and large ends of the spectrum. Small, emerging contractors were finding it increasingly more difficult to obtain any bonding capacity and large contractors were also feeling the affects of the more stringent industry. The market has fluctuated over the past couple of years, and contract bonds and some commercial bonds can still be difficult to obtain. Some items that are crucial to obtaining prior to applying for a surety bond are:
A surety bond is a form of credit. The underwriter requiring financial information from an applicant is making a credit decision without ever meeting the contractor or applicant.. There may be a substantial amount of paperwork required; however, it may be the extra paperwork required that will get an applicant approved for a bond. An underwriter will most likely request the following:
Business financials It is beneficial and most often a requirement that these are prepared by a CPA. If it is a new company, submitting the most recent business financials will suffice.
Category: Auto Dealer Bonds, Bid Bonds, Commercial Bonds, Contract Bonds, Contractor License Bonds, Court Bonds, General Bonding, Misc. Commerical Bonds, Money Transmitter Bonds, Mortgage Banker Bonds, Mortgage Broker Bonds, Performance Bonds, Subdivision Bonds, Telephone Solicitor Bonds, Title Agency Bonds, Wage & Welfare BondsTags: application process, procedures, surety process, underwriting | Comments (3)
