Crime Protection Policy Schedule Endorsement Filing (SFAA-F-294), XX-FM-21, Loss Cost Filing Number XX-FLC-13 status report updated for Members on the Regulatory Filings / Countrywide Filings page. |
Category: Bond Articles
bond articles
bookmark_borderDraft Meeting Minutes posted
Draft Minutes from the following
recent meetings have been posted for Members:
- Fidelity Claims Advisory Committee meeting – January 24, 2018
- Board of Directors meeting – December 7, 2017
- Commercial Surety Advisory Committee meeting – December 6, 2017
- Fidelity/Fidelity Claims Advisory Committee meeting – November 8, 2017
- e-Business Advisory Committee conference call – October 4, 2017
- Diversity & Human Resources Advisory Committee meeting – September 28, 2017
- Actuarial Advisory Committee meeting – September 13, 2017
- Contract Bonds Advisory Committee meeting – September 13, 2017
- Government Affairs Advisory Committee meeting – September 13, 2017
- Communications Advisory Committee conference call – September 12, 2017
- Surety Claims Advisory Committee meeting – June 20, 2017
- Fidelity Advisory Committee meeting – May 10, 2017
- International Advisory Committee meeting – May 10, 2017
- Surety Claims / Corporate Counsel Advisory Committees meeting – January 18, 2017
- Joint Automation Committee meeting – September 24-25, 2015
- Statistical Advisory Committee meeting – September 2, 2015
Members should navigate to the Board and Committees section of the website for for additional information
about SFAA Board and Advisory Committees.
bookmark_borderSFAA Objects to Proposed Montana Rules Eliminating Aggregate Liability Provision for Public Adjuster
SFAA Objects to Proposed Montana Rules Eliminating Aggregate Liability Provision for Public Adjusters’ Bond |
SFAA advised against a proposed rule from the Montana Commissioner of Securities and Insurance that would delete a provision limiting the surety’s aggregate liability to the bond amount for the bond required from public adjusters. SFAA noted that the proposed rules could affect the bond’s availability by increasing the surety’s financial exposure. The proposed rules state that the intent of the changes is to remove superfluous language without changing the meaning of the rule. Our comments noted that eliminating the limit on the surety’s aggregate liability could result in a material, unintended change as the statute does not limit the surety’s aggregate liability.
Members should visit Government Relations / General Info (Members) for more information.
bookmark_borderSFAA Submits Recommendations on Oregon Mortgage Servicers License Bond Rules
SFAA Submits Recommendations on Oregon Mortgage Servicers License Bond Rules |
SFAA made recommendations on the claims provisions to the Oregon Department of Consumer and Business Services concerning proposed rules for bonding mortgage loan servicers. The rules would require the bond to remain in place for five years after the mortgage servicer ceases to be licensed in the State. Direct actions also are permitted on the bond and claims must be filed before the bond expires. SFAA recommended that two or three years for the limitations period for claims would be more workable. SFAA also recommended that the limitations period to take action on the bond should begin when the surety cancels the bond or when the servicer ceases to be licensed, whichever occurs earlier. We recommended that the rules be clarified so that the claimant has a period of time after the bond is cancelled or the license period ends to make a claim, and that the claims period is not long that that it increases uncertainty for the surety, which could impact the availability of the bond.
The bond or letter of credit would have to be in an amount ranging from $50,000 to $200,000, based on the mortgage servicer’s total unpaid principal balance of residential mortgage loans in Oregon. SFAA did not comment on the bond amount specifically, but noted that a higher bond amount would require the bond principal to have greater financial resources based on the surety’s underwriting process.
Members should visit Government Relations / General Info (Members) for more information.
bookmark_borderFederal Agency Withdraws Hard Rock Mining Rule
Federal Agency Withdraws Hard Rock Mining Rule |
The U.S. Environmental Protection Agency (EPA) will not adopt final regulations for its proposed financial responsibility requirements for hard rock mining operations for metals and non-metallic fuel minerals that SFAA opposed. Surety bonds would have been accepted to meet the requirement and SFAA noted that the bond requirement could have been duplicative of existing state and federal reclamation bonding requirements. We also opposed provisions that would have permitted direct actions on the bond. Other stakeholders also noted the potential for duplicative financial responsibility requirements and the potential problems with the direct action provisions. The EPA agreed with these concerns and will not move forward with its proposal.
bookmark_borderSFAA Working on Oklahoma Bill that Prohibits Retainage When Bonds are in Place
SFAA Working on Oklahoma Bill that Prohibits Retainage When Bonds are in Place |
SFAA and AIA are working with the local surety association in Oklahoma to address HB 2676, which would prohibit the withholding of retainage from the general contractor on public buildings and public works projects if bonds under the Little Miller Act are in place. Oklahoma’s bond threshold is $50,000, and existing law provides that not more than 5% of the contract price may be withheld. For subcontractors, the bill provides that either retainage of not more than 5% may be withheld or performance and maintenance bonds could be required as a condition of the subcontract.
Members should visit Government Relations / General Info (Members) for more information.
bookmark_borderSFAA Addressing Proposed Bond Threshold Increase and P3 Pilot Program in Vermont
SFAA Addressing Proposed Bond Threshold Increase and P3 Pilot Program in Vermont |
SFAA is addressing HB 917, which would increase the bond threshold from $100,000 to $500,000. As drafted, the bill would have provided for a $1 million bond threshold. The bill also would provide for a pilot program for the Agency of Transportation to enter into public-private partnerships (P3s) for transportation infrastructure projects. The state legislature would set the requirements and would have to approve each P3 project, unless the project will have a project lifetime cost that is less than $2 million or the project has been approved in the most recently adopted Transportation Program. The bill does not specify a bonding requirement for this P3 program. The program would expire on July 1, 2023.
Members should visit Government Relations / General Info (Members) for more information.
bookmark_borderComprehensive Legislative Reports posted for Members
Comprehensive Legislative Reports for Commercial Surety, Contract Surety and Fidelity posted for Members. Navigate to: |
bookmark_borderERISA Dishonesty Bond Filing Status Report posted for SFAA Members
ERISA Dishonesty Bond (SFAA-F-303; XX-FM-24) Status Report posted for Members on the Regulatory Filings / Countrywide Filings page. |
bookmark_borderMassachusetts Form Filing Requirements – Fidelity and Crime Filings Status Report posted
Massachusetts Form Filing Requirements – Fidelity and Crime Filings Status Report posted for Members on the Regulatory Filings / Countrywide Filings page. |