AFSB 151

why was there a switch from personal suretyship to corporate

personal suretyship was unreliable and protected by laws favorable to them

does insurance regulate surety or surety regulate insurance

insurance regulates surety

whats a cosurety

2 or more sureties that execute the same bond obligation with a principal

agent vs broker

agent: represents the insurer

broker: represented those seeking insurance

power of attorney

written document authorizing 1 person to act as another persons agent

independent adjuster

independent claims rep who handles claims for insurers for a fee

what party in surety buys the bond

the princpal

what is the only way a principal will not held liable for paying for its obligations it didn’t compelete

bankruptcy

what does the surety have to pay if the princpal defaults

up to the penal amount BUT non more than the amount of actual loss of the obligee

what is the kind of bond that the entire bond amount must be paid regardless of how much it actually cost

forfeiture bond

is a 3rd party entitled to indemnirfication

yes

what is the obligee paid if a contractor accepts a bid bond but refuses to enter into the contract

difference between the principals bid and the next lowest bid

do sureties like contracts with less or more options after a default

more

what resolution do sureties like and dislike

dislike: having to hire another to finish the project

like: pay penal amount

miller act

requires a separate performance and payment bonds for material and labor provided for federal work