Category: Bond Articles

Indiana Bill to Require Bonding in P3s Goes to Study

Indiana HB 1301, as introduced, contained the amendments that SFAA drafted to require the design and construction portion of P3s to be bonded in Indiana. Our bonding amendments were part of the Insurance Department’s bill, and would have required 100% bonds, just as the Indiana Little Miller Act requires for any other project. In the House Insurance Committee, the bill was amended to require 50% payment and performance bonds, and on second reading on the House floor, the bond amount was further reduced to 25% before it later passed the House. It was not possible to reach an agreement to move HB 1301 forward in the Senate. It is likely that the issue of bonding on P3 projects in Indiana will be sent to a summer study committee, which is where the issue was last summer.

Members should visit Government Relations / General Info (Members) for more information.

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.

SFAA Promotes the Value of License Bonds as Federal and State Governments Explore Occupational Licensing Reform

Members should visit Government Relations / General Info (Members) for more information.

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.