Entries from June 2013

Surety Agent Responsibility in the Underwriting Process

by Joshua Malone

Bond applicants and principals seeking surety bonds work with bond producers, such as surety agents and brokers, to satisfy their needs. Surety agents have the responsibility of underwriting surety bonds before submission to the surety for approval. When a surety agent receives a request for a bond from an applicant, the surety bond underwriting process […]

Admiralty Bonds

by Joshua Malone

An admiralty bond, more specifically known as an “undertaking on maritime arrest,” releases impounded ships and tankers arrested from a Defendant by a Plaintiff. United States Federal Courts have jurisdiction over the high seas, and therefore maritime judicial proceedings on the Atlantic coast can occur in the US Eastern District of New York. The court […]

Guarantee Return of Child Bond

by Joshua Malone

Today’s New York Law Journal featured a story about the Second Circuit ordering the return of a child to Singapore in an international custody dispute. The story calls to mind a rare bond our office can underwrite, even if it may not apply to the details of this particular case (Read the story on the […]

Surety Underwriting and Bankruptcy

by Joshua Malone

Surety bonds act like an extension of credit for a principal. Therefore, surety underwriters should familiarize themselves with certain credit terms of the Bankruptcy Reform Act of 1978. The act allows debtors to alleviate the impacts of their debts and other obligations they cannot afford to pay. Additionally, the act also addresses the rights of […]

Miscellaneous Bonds

by Joshua Malone

Our agency issues many different types of commercial surety bonds besides court and fiduciary bonds.  We refer to this class of bonds as “miscellaneous bonds.” The Surety Association of America (SAA) describes miscellaneous bonds as those not within the commercial surety classifications of the SAA Rate Manual. Miscellaneous bonds tend to feature specific requirements and […]

What is a Supersedeas Bond?

by Joshua Malone

This blog post intends to describe and explain one of our specialties – the supersedeas bond. When a judge rules a monetary judgment in favor of a plaintiff, the judge orders the defendant to pay the plaintiff in the amount of the judgment. However, if the defendant disagrees with the judge’s ruling, the defendant appeals […]

Consumer Credit Reports in Suretyship

by Joshua Malone

Sureties may use consumer credit reports to evaluate the risk of a bond applicant. The credit reports give an overview of an applicant’s financial habits, as well as the applicant’s ability to pay financial obligations in a timely manner. They often include payment histories, public record information, and investigative reports. The Fair Credit Reporting Act […]

Ethics and Bonding Agents

by Joshua Malone

Surety bonding agents and other producers have ethical standards to uphold throughout their entire course of business. Agents receive and transmit sensitive and personal information between clients and surety underwriters. Therefore, they have a great responsibility to ensure the only interested parties – the surety and the client – obtain this information. Agents do not […]

Receiver Bond

by Joshua Malone

In business litigation proceedings involving foreclosures, a Plaintiff, often a bank or mortgage lender, requests the court to appoint a receiver for their benefit. The receiver has the job of managing real property after the loan’s principal has defaulted. Most often, the court appoints a neutral third party, usually a prominent attorney, as the receiver. […]

Premium Renewals

by Joshua Malone

Most of the surety bonds we underwrite automatically renew yearly. Therefore, we send invoices to our clients once a year on the month their bond renews. The bond renews the same month we issued during the first year. When clients sign the indemnity agreement, they agree to timely pay all due premiums for the entire […]