Archive for June, 2009

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Different bonding needed for contractors

Friday, June 5th, 2009

What is bonding?
Bonding is where a principal obtains an extension of surety credit. In most cases when you refer to bonding you are referring to a contractor that has obtained bonding for their business like a bond line.

What is a Bond Line
A bond line is where the contractor has a line of surety credit to be used for future construction projects. Underwriting for performance bonds can be a long process but if you a bond line you do not have to reapply for every bond or bid bond you need.  When you have established a bonding relationship with the surety the surety normally requests updated financials every quarter.

What is a Bid Bond
In order to obtain a bid bond you must first qualify for what the final bond will be. There is some confusion about bid bonds.  You must qualify for the total contract amount not just what the bid bond will be. So if you need a $10,000 bid bond the surety is not underwriting off of that amount, but what the final bond will be. Usually a bid bond is an percentage of the total contract amount so if your bid bond is $10,000 and it is   5% of the total contract amount the final bond needed would be $200,000. So the surety will underwrite your application off of the final contract amount

What is a Final Bond
A final bond is also called a payment and performance bond. A final bond is when you have been awarded a bid. The bid bond than turns into the final bond you must sign the final bond reflecting the full contract amount and turn the bond into the obligee.

What is a Contractor license bond
A contractor license bond is a state requirement giving you the legal ability to perform constructions jobs in the state your business is operating in.  Obtaining a contractor license bond is usually the last step for the state to grant you your license.

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Surety Bond:Foreclosure bond

Friday, June 5th, 2009

New surety bond requirement for California the $100,000 Foreclosure bond which must be written for a two year term. All foreclosure consultants must carrier this Surety bond along with paying an $850 licensing fee and registering with the state. With influx of complaints and fraudulent acts commented by foreclosure consultants have forced the state to do something.  “California is awash with con artists who prey on vulnerable families facing foreclosure,” said state Attorney General.  Brown said those who fail to register and post the bond will be in violation of state law, and subject to criminal penalties of up to a year in jail and fines ranging from $1,000 to $25,000 per violation.  Consultants are required to have the bond no later than July 1st.  If you need fast service and a company that flexible underwriting give us a call so we can help you stay complaint with the new state mandate.

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Group Health Insurance for the state of Arizona

Thursday, June 4th, 2009

we are excited to announce that we can help your business lower the cost of group health insurance for the state of Arizona

Health Insurance is on the rises save money without sacrificing benefits for your employee.

Give us a call today 480-626-8916

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what is the Surety Bond form:

Wednesday, June 3rd, 2009

A surety company is the entity that is backing the bond.  The bond form is not provided by the Surety Company but by the principal. This does not mean that the surety does not have a copy of the bond but it may be outdated. Always check with the oblige for the bond form.  After the surety company has approved your application the surety will require a GIA (General Indemnity Agreement) along with payment and other underwriting conditions. Once the surety company receives the original documentation they will then issue the bond. The bond consists of two parts the first part is the bond form.  The second part of an issued bond is the Power of Attorney. When you receive the original bond it should have the Power of attorney signature, Surety company seal as well as a power of attorney. A common mistake occurs when the principal receives the bond is where to send it. Please don’t send the original bond back to the surety company. The Surety bond should be sent to the obligee unless specified differently. If you send the bond back to the surety they may loss it and your license will be delayed it is the principals responsibility to deliver the bond to the appropriate place.
In order to become a surety bonding company you must file with the Department of Insurance “DOI”. Every state has different criteria for the company to meet such as financial strength, and you must file your company with each State.  The State does not assign a rating normally an independent third party does.  After reviewing the risk by an entity such as AM Best or Fitch a rating is assigned. In order for a surety to write bonds for the Federal Government the surety must become Treasury listed also known as T-Listed. So if you need a federal license like an ICC bond check to see if they are T-Listed.
Without surety bond companies when a company performs work for the federal government our tax dollars would be in jeopardy.

I hope this has helped you, you can find out different types of surety bonds and other surety news on our Surety bond blog. What to know what is the cost of a surety bond is ? How much a surety bond costs and how a surety bond agent underwrites a bond.

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Features Of Maine Surety Bonds

Tuesday, June 2nd, 2009

Surety bonds of all kinds are issued in the state of Maine. Maine surety bonds are issued as per the rules, regulations and statutes of the state and federal government. Maine surety bonds are required to ensure the faithful performance of obligation of the obligator to the obligee and protect the obligee against the default action of the obligator with regards to the contract. All kinds of Maine surety bonds are issued to the applicant who requires under law and to engage in the business legally. Maine surety bonds like ME Mortgage Broker Bond, ME MVD bond, ME auctioneer bond, ME credit services organization bond, ME janitorial service bond and many other kinds of surety bonds are also issued in the state.

Maine surety bonds are issued to the applicant who requires to files a surety bond to obtain a license and permit to the activity performed by the applicant. Without the license and permit, no person can engage in any activity of business in the state Maine. Therefore the applicant of license and permit is required to obtain Maine surety bond as per his requirement and bond amount. Maine surety bonds help the obligee to sue the principal and surety for the non-performance of the obligation within the contract time and value specified in the contract. Maine surety bond helps the obligee to claim any damages or losses incurred by the default act or non-performance of contract by the obligator and the surety.

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Performance Of Maryland Surety Bond

Tuesday, June 2nd, 2009

Surety bonds of all kinds are offered in the state of Maryland to facilitate the applicant of the state. Maryland surety bonds are issued to protect the obligee against the default act and to ensure guaranteed obligations of the contract. Nowadays, issuing of surety bonds becomes important requirement and the applicant of any license in the state is required to obtain the Maryland surety bonds as per their requirements. Maryland surety bonds are issued in different denominations and we offer all kinds of Maryland surety bond in our company. Maryland surety bonds are issued as per the statute and ordinance of the state and the Maryland surety bonds compiles with the required statutes of the jurisdictions.

The main purpose of issuing surety bond is to guarantee obligatory performance to the obligee and to prevent any default act by the obligator. Maryland surety bonds are issued to satisfy the requirements of the people in the state and ensure proper compliance in the state. Maryland surety bonds are issued to the applicant, to obtain license and permit from the licensing department of the state. The people who are engage in the activity of business in the state of Maryland, is required to obtain license and permit from the state Maryland. Maryland surety bonds protect the people against the default act of the obligator.

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Current States On Mortgage Broker Bonds

Tuesday, June 2nd, 2009

Mortgage broker bonds are at present being written at low  rates for those who  qualify.  Not all bond companies are providing low rates for mortgage broker surety bonds. Some of the sureties are  not eager to write these bonds  for the reason of high risk Surety bond language. Therefore, it is very important for your surety agent to have access with the flexible  markets.

Integritybonds.com  is a Surety Bond agency that can  bond your business  in most cases in all 50 states, even with credit issues.  We access to over 18 surety markets and we just don’t write Mortgage broker bonds we can also write contractor license bonds and of course MVD bonds.  Surety bonds are our specality our online surety application make it easy to deal with us.

We have excellent rates for those who qualify for bonding.  We also have less than perfect credit programs desigedn to help the small businsess owner who cant come up with the collateral needed to post for the bond.   if you need to get approved fast we are the ones you can count on.  Call us today for a free consultation and get approved

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Integritybonds.com Offers Minnesota Surety Bonds

Tuesday, June 2nd, 2009
Minnesota offers all kinds of surety bonds to the people to meet their requirements in different obligations. Surety bonds are provided in Minnesota as per the rules, regulations, statutes and ordinance of the state. Minnesota surety bonds protect the obligee against the default act or non-performance act of the contractor with regards to the contract. Minnesota surety bonds are offered in different amounts and in different premiums with separate bond forms to the person required.

Minnesota surety bonds compiles with all statutes of the state and ensures a guaranteed performance of the contract to the obligee as per the words implied in the contract. Incase of default of the contractor, the obligee can sue the contractor and the person who gave surety in court of law. The surety can also be asked to complete the contract or pay the losses incurred as per the statutes of the state Minnesota.

Minnesota surety bonds becomes popular in the state and most of the people started obtaining different kinds of surety bonds offered in required amount to ensure their contract with full performance. Integritybonds.com provides surety bonds in all kinds and in different amounts as per the requirements of the people and we compiles with all statutes and ordinance of the state Minnesota.

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