Surety Bond News

There are new contractor license bond requirements to follow in Kentucky State. A new bill named HB 247 requires radon mitigation and measurement professionals to acquire a $10,000 surety bond in order to be legally registered with the state. The surety bond must be issued by a corporate surety company who is licensed within the state. The surety company’s liability is equal to the total amount of the bond; like most commercial bonds the new law authorizes cancellation of the surety bond by the surety with advance written notification.

Real estate appraisal management companies have a new surety bond requirement to meet in the state of Kentucky in order to stay legal. The new law is called HB 288 and requires real estate appraisal management companies to acquire a surety bond in order to guarantee the responsibilities and duties expected of them. The bond amount required will vary based on regulations and the real estate appraisal company itself, but the bond can’t surpass $500,000. As always, the liability of the surety who provides the bond can’t surpass the bond amount itself. This bond requirement benefits anyone who will be doing business with real estate appraisal management companies because they will be covered by a maximum $500,000 surety bond.

Kentucky State presented a new law relating to debt adjusters. The new law, which is named HB 166, requires debt adjusters to acquire a $25,000 surety bond from a surety company authorized to operate in the Commonwealth. The surety bond is for the benefit of any individual who experienced injuries or damages that was the outcome of a debt adjuster’s infringement of the law. The surety bond must be active for two years following the debt adjuster’s termination of services. HB 166 authorizes direct actions on the surety bond.

Public adjusters must follow a new bill that was enacted in the State of Kentucky. The new bill is referred to as HB 233 and implements the model public adjuster legislation of the National Association of Insurance Commissioners (NAIC). Now public adjusters must acquire a surety bond or an irrevocable letter of credit that can be no less than $20,000. The surety bond would be for the benefit of any individual in Kentucky who suffered damages caused by the public adjuster’s erroneous procedures, failure to act, conviction of deceit/fraud, or conviction of unjust trade practices.

The State of Kentucky introduced a new bill relating to debt adjusters. The new bill is called HB 166 and requires debt adjusters to acquire a $25,000 surety bond from a surety company authorized to operate in the Commonwealth in relation to registration. The surety bond is for the benefit of any individual undergoing an injury or loss that originated from the debt adjuster’s infringement of the legislation. The surety bond also must be active for two years after the debt adjuster halted to supply its services. HB 166 also authorizes actions on the surety bond.