This year’s surety bonding criteria. We’ll see a lot of new surety bonding criteria from different obligees this year. This will happen as a result of an explosion of lawsuits from businesses that have defrauded the public. Businesses who are facing closure are breaking the law in order to remain open, find out more here.
More limits have been imposed, as well as the issuance of new bonds. Not to mention increased bond quantities and changes to bond type languages for specific bonds. Many companies have had to close their doors as a result of bonds that were once considered soft bonds being difficult to position.
Bonds with higher bond quantities as well as new bonds
California attempted to raise the bond sum needed for car dealers from $50,000 to $100,000 last month, but the legislation was struck down. However, a motion to reconsider the new bill was granted.
DMEPOS suppliers have been forced to post a $50,000 Medicaid bond so far this year. The Surety bond is being needed in the hopes of combating DMEPOS supplier fraud. Suppliers of long-lasting medical devices, such as prosthetics and orthodontists, are often needed to receive the bond.
Dealers in Indiana must also post a $25,000 MVD bond this year. I have yet to come across a surety bond type, but I will keep you updated. Texas MVD bonds have now been raised from $25,000 to $50,000, with a two-year limit remaining. Tennessee has followed suit, raising the bond amount for car dealers from $25,000 to $50,000, with a two-year term. There are currently discussions in California about increasing contractor licence bonds as well.