Surety Bond News

West Virginia has a new enactment for medical discount providers referred to as HB 4404. The law requires a surety bond equal to or more than $35,000 to be posted by discount medical establishments. The bond attained by the discount medical organizations must be in favor of the Insurance Commissioner for the advantage of individuals that may be damaged by the organization’s breach of the new law; it is mandatory that the insurance company who wrote the bond is licensed in the state.

Due to a new Texas law referred to as HB 4341, discount medical health programs are now required to post a $50,000 surety bond. Any insurers that already have a certificate of authority under existing law would be exempt from this new requirement. The new law directs the Insurance Department to determine the specifics of the law. This new requirement will be effective on April 1, 2010.