What is a Surety Bond?
A Surety Bond guarantees whatever the underlying statute, state law, municipal ordinance, or regulation requires. They may be required for a number of reasons.
EXAMPLE " The payment of certain sates taxes and fees "
A Surety Bond provides consumer protection as a condition to granting licenses related to " Motor vehicles "Mortgage Brokers Contracting services and other professional regulated licenses. Each State has its own surety bond amount as well as Bond form. The Bond form can be obtained from the obligee
A Surety Bond is a contract among at least three parties: The Principal, is the party that undertakes the obligation.
The Obligee, Is the party who receives the benefit of the Bond. (Obligee meaning obligator)
Surety bonding Company is the entity issuing the bond. We only use admitted carriers with the highest rating in your state.
SIMPLY STATED a Surety Bond is a written agreement that usually provides for monetary compensation in case the principal fails to perform the acts promised set forth in the bond form
A Surety Bond is a reverse Insurance policy where the principal Indemnifies the surety and pays back all fees and expense the surety may have suffered due to a claim. On this note the Surety will review your personal credit, financial strength to determine surety credit.
There are many types of Bonds, but the two general categories are contract and commercial. Commercial or you can call them License and permit bonds are a general class of bonds required of a person or entity to obtain a license or a permit in any city, county, or state such as a MVD Bond needed to obtain a dealer license or Mortgage Broker Bond needed to transact loans.
You can learn more about Surety Bonds here. Find out how to underwrite a bond. What different types of bonds are needed for business and surety news.
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