Surety Bond News

Individual mortgage loan originators in Georgia State no longer need to obtain a surety bond for themselves. A new law titled HB 239 gets rid of the requirement for individual mortgage loan originators which requires them to acquire a surety bond. In its place, the new law states that individual originators must be covered under a sponsoring mortgage broker or mortgage lender; so the individual bond is not necessary.

Self-insured workers’ compensation plans are affected by a new bill in the State of Georgia. The new bill is named HB 1101 and boosts the minimum quantity of the security deposit required for self-insured workers’ compensation plans from $100,000 to $250,000. HB 1101 also requires the security to be active until every claim under the plan has been closed or if the self-insurer is inactive and all applicable statutes of limitation have expired. The previous legislation stated that the State Board of Workers’ Compensation established whether or not a deposit must stay in place.

Georgia State presented a new law regarding the Trust Code. The new law is named SB 131 and modifies the Trust Code within the state. SB 131 states that a trustee is required to attain a surety bond only when the court finds it essential to defend the interests of the trust, or if the trust instrument required one. The new law also authorizes the court to release the requirement, decrease or boost the quantity of a surety bond, release a surety, or authorize the replacement of another bond with a matching or separate surety company. Regulated financial service institutions eligible to do trust business within the State are not asked to acquire a surety bond. The new law authorizes the surety bond to be attained by an individual residing in the State or by a state authorized commercial surety. SB 131 also states that the surety bond must be in a quantity equivalent to twice the value of the estate, but allows a commercially acquired surety bond to be in a quantity equal to the value of the trust estate.

SB 310 is a new Georgia State law that was enacted relating to pharmacy benefit managers. The new law requires pharmacy benefit managers to attain a license and also attain a $100,000 surety bond from a state authorized corporate surety company. The sureties have the option to terminate the surety bond with 30 days written notification. Additional terms of the surety bond will be established using policies. Also, a $250,000 minimum errors and omissions insurance policy or “other appropriate liability insurance” also is necessary.

In the state of Georgia, a new bill was put in to place concerning the Department of Transportation bond requirements. The new bill is referred to as SB 200 and amplifies the surety bond required under present law for the deputy commissioner of transportation as well as for the treasurer of the Department of Transportation (DOT) from $100,000 to $500,000. In addition, SB 200 formed the director of planning within the DOT, who also must obtain a surety bond in the amount of $500,000. SB 200 became active upon enactment.