A surety bond is a 3-party contract between the principal, obligee and surety carrier. The principal is who’s being required by the obligee to post the surety bond. The obligee requires the surety bond to transfer the risk of the principal’s performance from the obligee to the surety carrier. If the principal does what they
Surety bond underwriting is the pre-approval evaluation by the surety of both the bond performance requirements determined by the obligee and the principal’s current financial situation to assess the risk related to the performance criteria and the principal’s ability to reimburse the surety should a claim occur. Bonds are financial guarantees of the principal’s performance to established criteria by the obligee.
New York City — The Association of Car Wash Owners has abandoned its lawsuit to stop the 2015 Car Wash Accountability Law, the Bill de Blasio administration announced Feb. 11. The association’s move to drop its suit comes after its loss in December when an appeals court upheld the labor-backed law, which including a two-tier
Dentists who provide durable medical equipment and who participate in a CMS billing program now must submit a DMEPOS surety bond, according to a new requirement the Centers for Medicare and Medicaid Services released in Nov. 2018. A DMEPOS surety bond is a license and permit surety bond required by CMS for all suppliers of
MASSACHUSETTS — The Department of Labor Standards now requires a $250,000 surety bond for any professional employer organization, or PEO, that conducts business in the state. State lawmakers passed HB 4723 in 2018, joining over 40 other states in having similar PEO licensing requirements. The state law defines a PEO as any person engaged in
WASHINGTON — Updates to the Consumer Loan Act include surety bond requirements for student loan services. Student loan businesses must post a $30,000 bond as part of the requirements to receive and maintain a license from the Washington State Department of Financial Institutions to able to legally work within the state. These updates are part