Entries from August 2013

Public Official Bonds

by Joshua Malone

Public Official bonds protect the government and its citizens from the improper actions of a public official. The Federal government, as well as many local and state governments, may require these bonds from their public servants, officials, sheriffs, deputies, and other employees. Bond forms vary depending on the position, but most government authorities draft their […]

Open Penalty Bonds

by Joshua Malone

A court or miscellaneous bond sometimes has an open penalty, which simply means a bond penalty does not have a finite limit. Open penalty bonds carry many risks and hazards because the surety does not know the exact amount of liability it must guarantee. A typical bond has a fixed bond penalty, which means the […]

More About Qualified Domestic Trusts (QDOTs)

by Joshua Malone

In a previous blog post, I discussed the requirements and characteristics of a Qualified Domestic Trust (QDOT) bond. This post supplements the previous one by including more helpful information. Alternatives to QDOT bonds include irrevocable letters of credit or having a bank as the US trustee. A surety bond is the best option for an […]

Game of Chance Bonds

by Joshua Malone

Game of Chance bonds are necessary in the states of Florida and New York for the benefit of the states’ contestants participating in a sweepstakes or contest run by a private entity. The bonds guarantee the company’s contest will honor their rules and regulations, including the eventual awarding of prizes to the entitled winners. The […]

Administration Bond

by Joshua Malone

Surrogates require administrators to obtain an administration bond guaranteeing their faithful distribution of the deceased’s assets (when the deceased lacks a “Will and Final Testament.”) When a person dies intestate, it means they died without leaving behind a “Will and Final Testament.”* A will specifies whom the deceased intends to leave their belongings to. Without […]

Court Bond Documents Required for Applicants

by Joshua Malone

When a bond applicant submits an application, the applicant must also submit relevant court papers for most of the bonds we issue. The court documents are a necessary part of the underwriting process. Underwriters and producers need to fully examine and understand the extent of the obligation. This includes knowing the identity of the obligee, […]