Surety Bond News

On 03/27/2008, the state of West Virginia enacted SB 292. The new law authorizes the Commissioner of Banking to make a claim for an unpaid civil administrative penalty or an unpaid assessment invoice against a mortgage lender’s license bond. The law in place allows claims against the bond directly from consumers. The new law became active on June 7, 2008.

There is a new MVD (Motor Vehicle Dealer) bond law in the state of West Virginia under the name of HB 4364.The new law more than doubles the mandatory amount of the motor vehicle dealer license bond from $10,000 to $25,000. The new law was enacted on 04/01/2008 and became active on 06/8/2008.

SB 704 is a new law enacted in West Virginia which regulates viatical settlement providers and brokers. The law requires licensure and proof of financial accountability through a surety bond, cash, or cash equivalents. The bond must be $250,000 and from a surety company licensed in the state. The Commissioner of Insurance has the authority to waive the financial requirement if the applicant shows proof that an instrument has been filed within the applicant’s home state. The bond acquired would have to be in favor of the State; it would also have to sanction the Insurance Commissioner to make recovery for any individual in this state suffering damages that resulted from failure to act, faulty performance, conviction of fraud or conviction of deceitful methods of the viatical settlement provider or agent. The National Association of Insurance Commissioners model legislation is the reason for the up rise of this new law.