New Jersey Shores Up Student Loan Servicer Regulations
As the nation grapples with a growing student loan debt crisis, a wave of states have pushed through so-called “Student Loan Bill of Rights” legislation aiming to educate generally unsophisticated borrowers and regulate student loan services at the state level. New Jersey’s version, Assembly Bill 455
Breaking into the Ground Truth of Subdivision Bonds
The Subdivision Bond is a tool used by local governments to guarantee the commitments made by land developers in their site plan. Often, developers are allowed by local statute to receive a Certificate of Occupancy (for commercial developments) and record their subdivision plat before completing all of the infrastructure improvements in their plan (street paving, storm drains, landscaping, etc). This provision allows developers to begin selling...
Colorado Auto Dealer Bonds Just Got Even Less Risky
The State of Colorado recently passed legislation limiting a consumer’s ability to recover losses or damages from motor or powersport vehicle dealers. Senate Bill 20-140 revised the current legislation to allow for consumers to recover from the bond only if the loss or damage is a result of fraud by a licensed dealer or salesperson. The previous s...
Alabama Doubles Down to Curb Auto Dealers' Bad Behavior
Alabama recently passed House Bill 393 (AL HB393) which amends auto dealer license requirements and practices in Code of Alabama 1975. Many of the revisions and additions are set to take place October 1st, 2020. Some ma...
Utah “Bonds” E-Cigarette Makers to Hefty New Tax
In an effort to limit vaping while raising tax revenue for the state, Utah Governor Gary Herbert signed SB37 Electronic Cigarette and Other Nicotine Product Amendments, establishing a 56% tax on all e-cigarette sales and a bond requirement to financially guarantee the payment of such taxes. The bill imposes the same tax regulations on e-cigarettes and vaping products as traditional tobacco products. Previously, e-cigarettes were exempt from Utah State tobacco ta...
COVID Payment Deferrals: Should Sureties Ignore Credit Scores?
Changes to credit reporting have impacted the informational value of credit scores leaving Sureties to wonder…
The New Virginia Skill Game Machine Bond - Opportunity or Peril?
Businesses are scrambling to meet the deadline for registration on July 10, 2020 (extended from July 7, 2020). The surety requirement has proven difficult to fulfill for many businesses due t
What is Stacking Liability and Why Does it Matter?
Adverse bond language comes in many forms and perhaps none are as pernicious as Stacking Liability, where successive bonds result in a separate...
Fidelity Bonds: COVID Hits Demand, not Claims
Will the fidelity market experience the one-two punch of lower premium volume and increased claims activity in what has traditionally been a low-risk, and growing, category? While concerned a
Health Club Bonds: “Recession-Resistant”, not COVID-Immune
In our continued effort to analyze the risks posed to the Surety industry by COVID-19, we examine health club bonds, their risk in more normal economic conditions, and the potential for heigh
BMC-84 Freight Broker Bonds: Invalid Claims Obscure Results
Freight brokers comprise a notable subset of surety bond business, as licensed brokerages are required to post some form of security in order to comply with licensing requirements. Brokers ca
Travel Agent Bonds: Hundreds of little Thomas Cook’s?
Seller of Travel bonds weren’t on the radar for many Sureties until the Thomas Cook bankruptcy in 2019. With most trips now grounded and travel agencies facing ruin, Suretypedia puts the spot
Sales Tax Bonds: “Tide’s Out, Time to Discover Who’s Swimming Naked”
In our third installment, Suretypedia delves into Sales Tax bonds and how the current pandemic may open doors to a heightened claims environment
Utility Deposit Bonds: As Restaurants Go Dark, Claims Will Light Up
Continuing our series on how the COVID-19 crisis is affecting certain bond types, Suretypedia examines how Utility Deposit bond form language and grace periods granted by utilities may increa
Contractor Bonds: Executive Guide to the Coming Elevated Claims Environment
Surety executives, underwriters and claims handlers are suddenly confronted with a whole new environment to navigate. In the first of a series drilling into how the COVID-19 crisis is affecti
“Stay-at-Home”: List of Essential Services Matters Greatly to the Surety Industry
Despite the CA and NY “Stay-at-Home” Orders, Essential Businesses, including construction, can continue work outside the home. We believe the Orders have sown considerable confusion in the pu
The Miller Act: Understanding Requirements and Recoverable Costs
Many regulations exist in the construction industry, most designed to protect contractors, businesses, and the vendors and suppliers used to complete projects.
Suretypedia’s Guide to Obligees
The surety bond industry is one of the most opaque, misunderstood niche lines...
Suretypedia’s Guide to Indemnity Agreements
Most surety industry terminology isn’t widely used or well understood outside of the circle of industry professionals ...
Suretypedia’s Guide to Bond Claims
Many people find the attributes and outcomes of surety bond claims confusing because they are very different...
Suretypedia’s Guide to Bond Forms
Surety bonds are among the oldest contracts in the world; however, they are often misunderstood...