Surety Bond News

A new law was introduced in the state of Arkansas concerning proposed insurer bond requirements. The new law, which is referred to as SB 806 terminates the surety bond that a proposed insurer could acquire to get hold of certification from the Insurance Department. The previous law required a surety bond or other alternative security in the quantity of $100,000. As stated above, other types of security may still be utilized. SB 806 was enacted on March 31st, 2009.

On March 5th, 2009, a new law was introduced in the state of Arkansas relating to the sheriff and tax collector-treasurer bond requirements. The new law, which is called SB 701, requires the sheriff and tax collector-treasurer in Monroe County to obtain a surety bond to guarantee the fulfillment and faithful performance of their responsibilities that come with their occupation. SB 701 was enacted on March 24th, 2009.

Money transmitters in the state of Arkansas are affected by a new law update named SB 450. The new law was enacted on March 19th, 2009 and eradicates the alternative types of security that is allowed to be submitted under present law for the license bond requirements for money transmitters; only a surety bond is authorized under the new law. SB 450 was introduced on 2/23/2009.

In the state of Arkansas a new bill was introduced on February 3rd, 2009 affecting existing law concerning vehicles hauling coal. The new bill, titled SB 300, revoked the existing law regulating the Department of Arkansas State Police weighing vehicles transporting coal. The coal weighing official/manager was required to obtain a $5,000 surety bond. Now that the law was removed, the bond requirement was also terminated. This bill revision was enacted on March 10th, 2009.

In the state of Arkansas, a law concerning “general business corporations” and their ability to write surety bonds in municipalities was altered. Titled HB 2231, the law as presented, would have authorized “general business corporations” to write certain license, permit and notary public surety bonds in municipalities in the State. The said corporations would only have been obliged to register with the Insurance Commissioner and deposit securities in a quantity of $10,000. The general business corporations could not have issued surety bonds over $5,000 before the law was revised. The opposition to this bill was lead by CNA Surety and was victorious in having the bill amended. The new law states that the surety’s responsibility on a notary bond shall be exclusively to the State and the surety bond is only for the State’s benefit. HB 2231 also restricts the surety company’s aggregate liability to the amount of the surety bond. The changes permitting general business corporations to write surety bonds while lacking the license of an insurer and entirely subject to state insurance regulation were taken off of the bill.