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Debt Management Service Providers Must Post 50000 Surety Bond

by Surety Admin 4. September 2010 10:40
A number of states once again introduced the Uniform Debt Management Services Act of the National Conference of Commissioners on Uniform State Laws (NCCUSL). The bill would require debt-management service providers to post a $50,000 surety bond. The Commissioner of the Office of Financial and Insurance Regulation could increase or decrease the required amount of the bond based on certain conditions of the licensee. Of note, the bill would require sureties to have an “A” rating from a nationally recognized rating service and licensed in the State. The bond would run to the State for the benefit of the State and individuals who enter into agreements with the provider. The bill would allow a certificate of insurance, bonds or other obligations of the United States or the State, or a letter of credit to be furnished in lieu of a surety bond.
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Surety Blog Categories:  Commercial Bonds | Surety Law Changes

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