Bond-Pro | Surety Technology

State ups oversight on project (Travelers)

Final payment being withheld until completion State officials are withholding millions of dollars in payment from the contractor of the new Broughton Hospital until the project is completed. The amount of the final payment will be around $6 million, said Mark Benton, North Carolina deputy secretary of health services...

January 30, 2018 Bond-Pro Webmaster Blog, Claims, Repost.

Louisiana First Circuit Holds that Private Works Act Surety Cannot Raise Pay-if-Paid Defense (Hanover)

The Louisiana First Circuit recently held that a Private Works Act payment bond surety cannot raise a pay-if-paid provision in its principal’s contract as a defense to a claim against the bond. Bear Industries, Inc. v. Hanover Insurance Co. involved the construction of a Wal-Mart Supercenter in New Roads,...

January 29, 2018 Bond-Pro Webmaster Blog, Claims, Repost.

Trade credit insurers will be hit by Carillion claims: ABI

Trade credit insurers are expected to pay some £31 million to help firms in the supply chain recover from the collapse of UK construction company Carillion, according to the Association of British Insurers (ABI). And the collapse could also trigger legal action with potential claims for negligence and wrongful...

January 26, 2018 Bond-Pro Webmaster Blog, Claims, News, Repost.

Ziggurat: the crumbling edifice of surety bonds

Summary: This Expert Insight looks at the case of Ziggurat (Claremont Place) v HCC International Insurance Company PLC and considers the implications of the case for the surety industry generally, particularly in the context of construction insolvency. I read the decision in Ziggurat with some incredulity. Overall I’d...

January 24, 2018 Bond-Pro Webmaster Blog, News, Repost.

Trump spending plans offer surety benefits and risks

The potential boon to the US construction industry from the Trump administration’s infrastructure rebuilding plans poses benefits and risks for the surety sector, according to AM Best. The future of the US surety market “should remain bright” if plans to rebuild US bridges, highways and other infrastructure come to...

January 22, 2018 Bond-Pro Webmaster Blog, News, Repost.

Expected U.S. Infrastructure Boom Poses Benefits, Risks to Surety Sector

OLDWICK, N.J.–(BUSINESS WIRE)–The steady economic recovery of the last few years and the abundance of capital competing for construction business has led to a distinct buyer’s market in the U.S. surety sector. However, according to a new A.M. Best report, it remains to be seen whether the quality of...

January 17, 2018 Bond-Pro Webmaster Blog, News, Repost.

Builders in Virginia and Oregon have new regulations regarding bonds for their contractors

The states of Virginia and Oregon adopted new legislation in 2017 that introduced surety bond requirements for contractors. In Virginia, the new bond legislation reduced financial burdens on contractors which were otherwise required to demonstrate a certain amount of net worth. In Oregon, a surety bond requirement was introduced...

January 14, 2018 Bond-Pro Webmaster Blog, Legislation, Repost.

U.S. surety reinsurance soft market terms continue into 2018

U.S. Surety reinsurance risk adjusted rate reductions have continued into the start of 2018 with the market still characterised by abundant capacity, however, rate reductions were lower than those of previous years due to some price increases seen in loss affected programmes, according to Willis Re. Some loss affected...

January 12, 2018 Bond-Pro Webmaster Blog, News, Repost.

Alaska to Add Money Transmitter License to NMLS and Adopt Electronic Surety Bonds

Starting on February 1, 2018, the Alaska Department of Commerce, Community & Economic Development, Division of Banking & Securities will start accepting applications for the Money Transmitter License on NMLS. The checklist for the license will be available here shortly. Current licensees must submit a license transition request through...

January 10, 2018 Bond-Pro Webmaster Blog, News, Repost.

Sompo International U.S. Insurance to Acquire Lexon Surety Group

Sompo International, a Bermuda-based specialty provider of property and casualty insurance and reinsurance, announced today that its U.S. Insurance platform has reached an agreement to purchase the operating subsidiaries of Lexon Surety Group LLC (Lexon). \ Lexon, the second largest independent surety insurer in the U.S., is comprised of...

January 4, 2018 Bond-Pro Webmaster Blog, Clients, M&A, News, Repost.