Surety Bond News

The bond required of Georgia continuing care facilities now guarantees something new thanks to a new law. The new law is named SB 166 and states that the bond serves as financial assurance to guarantee the contractual obligations of the continuing care provider to the facility’s residents instead of just guaranteeing compliance with regulations alone.

The state of Georgia has enacted a new law affecting the Georgia Department of Transportation. The new law, which is named HB 137, terminates the $500,000 surety bond previously required of the Director of Planning for the Georgia Department of Transportation. The previous legislation set the bond requirement in order to guarantee that the responsibilities would be met by the Director of Planning.

Legislators in the State of Georgia have implemented a new surety bond bill concerning driver training schools. The new bill, which is titled HB 269, raises the current surety bond required of driver training schools from $2,500 to $10,000 in order for them to stay legal with the state. The higher bond amount provides four times the protection for anyone using services or doing business with driver training schools should a school not follow the rules set by the state.

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.