The City of Indianapolis (Marion County) requires contractors to be licensed and to provide Indianapolis Contractor License Bonds. Article I of Indianapolis – Marion County Code Section 875-101 reads, (1) “Any person, partnership or corporation that has entered into a contractual relationship to engage in any construction, land alteration (as defined in section 561-109 of this […]
Like most states, Kansas requires motor vehicle dealers to be licensed and maintain an active Motor Vehicle Dealer License Bond. Kansas statute 8-2404 (a) says, “No vehicle dealer shall engage in business in this state without obtaining a license as required by this act.” One of the requirements to get and maintain an active dealer […]
For many contractors, Accounts Receivables are the largest asset on their balance sheets. Understanding how accounts receivables are viewed by surety bond underwriters is crucial to getting surety bonds and maximizing a company’s surety bond capacity. What Are Accounts Receivable? Accounts Receivables are monies owed to a company for services or goods that they have […]
On July 1, 2020, Arkansas made an important change to their contractor licensing code. The changes allow Arkansas contractor to post a surety bond in lieu of financial statements. Background of the Requirements Per Arkansas Code 17-25-304, contractors were previously required to provide the state either a Reviewed Financial Statement or a Compiled Financial Statement […]
Work in Progress Reports are vital to surety bond underwriting. Without good reports, it is impossible to accurately predict where a contractor stands currently and forecast the company’s future. Unfortunately, many contractors and surety bond agents do not know how to read these reports or understand the importance of them. You can read an abbreviated […]
Auto Dealers in Alabama must file a Motor Vehicle Dealer and Designated Agent Bond with the state to obtain and keep a valid license. Alabama continues to grow in the auto industry. In fact, three of the top ten American made vehicles come from Alabama, so it is not surprise that the state requires a […]
Truck drivers in Texas may be required to post a Superheavy Surety Bond. The bonds are also called Oversize Permit Bonds. What is a Superheavy Surety Bond? The bond protects the state highways for damage that may be incurred because of the use of heavy equipment. The vehicle must still have a permit under Chapter […]
Under Medicare, an Accountable Care Organization (ACO) needs a repayment mechanism such as a surety bond. Accountable Care Organizations are groups of hospitals, doctors, medical suppliers, and other healthcare providers that come together to give high quality health care to Medicare patients. According to the Centers for Medicare and Medicaid Services, when an ACO succeeds […]
Contractors and other surety bond Principals are often frustrated that surety bond underwriters will not count retirement assets towards their bond capacity. This article explains how surety bond underwriters account for retirement assets and what Principals can do if they want to use these assets for surety bond purposes. What are Retirement Assets? Retirement assets […]
Understanding how surety bond underwriters look at trusts can have a significant impact on Bond Principals and the surety bond capacity they can obtain. Here is more information about how underwriters view surety bonds and trusts. What are Trusts? A trust is a legal, fiduciary arrangement where assets are held by a third party for […]