Single Source Blog - Surety News - Page 27

Sometimes, you might need a surety bond even if you don’t own a business. One of these bonds is the lost title surety bond. Keep reading to find out when you might need it.

In Arizona, vehicles that are registered and operated in the state and less than 35 years old need to have a title. This also applies to travel trailers and mobile homes that are less than 20 years old. If the title is lost, stolen, or damaged and illegible, the owner of the vehicle needs to apply for a new title through the state Department of Revenue.

Getting a new title requires providing proof of ownership�but since a title often serves as this proof, there need to be other means of ownership verification. If the Alabama DOR is not satisfied with the vehicle owner’s proof of ownership, they can require the replacement title applicant to get a three-year lost title surety bond. Regardless, vehicle owners do need a valid bill of sale for the vehicle they’re titling, or current registration in the applicant’s name to apply for the surety bond.

Lost title bond amounts vary depending on the type of vehicle and its age:

Trailers:
– Less than five (model) years old: $25,000
- At least five but less than ten years old: $10,000
– Ten or more years old: $5,000

Passenger vehicles and pickup trucks:
– Less than five years old: $50,000
- At least five but less than ten years old: $25,000
– Ten or more years old: $10,000

Trucks, buses and RVs
– Less than five years old: $100,000
- At least five but less than ten years old: $50,000
– Ten or more years old: $25,000

Motorcycles
– Less than five years old: $25,000
- At least five but less than ten years old: $10,000
– Ten or more years old: $5,000

Manufactured homes
– Less than ten years old: $50,000
– Ten or more years old: $25,000

If you apply for a lost title replacement and the state of Alabama needs a surety bond from you, make sure your bond amount has been confirmed by the state before getting in touch with Single Source Insurance.

Know your bond amount and ready to get started? Get in touch today!

Arizona home inspectors need a $25,000 surety bond to be licensed. Keep reading to find out how to get licensed and bonded.

Home inspectors are licensed by the Arizona State Board of Technical Registration. Before applying, home inspector applicants should make sure to be familiar with state laws for their profession, found in Chapter 1 of Title 32 of the Arizona Revised Statutes. On the application, the Board asks for information that includes the following:

• Nonrefundable $100 application fee
• Completed fingerprint card plus $42 processing fee
• Copy of results of the National Home Inspector Examination showing successful completion, taken within two years of the application
• Proof of completion of at least 84 hours of training from an approved, accredited facility
• Log of 30 parallel inspections (completed with the supervision of a licensed inspector)
• Arizona Statement of Citizenship
• Government-issued photo ID
• Report Checklist Supplement
• Verification of Experience form completed by a certified home inspector
• Applicant’s personal and contact information
• $25,000 surety bond

The Board can take anywhere from two to six months to process an application, and refunds are not issued if the application is incomplete. Home inspectors need to apply for license renewal annually and pay all fees that are required.

When Arizona home inspectors purchase their $25,000 surety bond, they are guaranteeing that they will adhere with all Arizona laws relating to their profession or industry. Those include their Standards of Professional Practice as well as the Arizona Revised Statutes. The Board can revoke or suspend an inspector’s license and assess fines of up to $2,000 per violation, in addition to other punishments. Consumers who suffer loss as a result of the home inspector’s negligence or disregard for the law can file claims against the inspector’s bond. If paid, the inspector must reimburse the surety for the amount of the claim or claims.

Ready to get an Arizona home inspector surety bond? Get in touch with Single Source Insurance today!

Some Florida construction businesses designate financially responsible officers, and those officers need to get a $100,000 surety bond. Find out what they do and why they need a surety bond.

What is a financially responsible officer?

Florida financially responsible officers do just what their name implies�they take on responsibility for all financial aspects of a construction business. They have authority over all financial aspects of the business, including contract approval, checks, and payments on the business’s behalf. These officers are separate from primary qualifying agents, individuals who are responsible for general business and project management.

Financially responsible officers�need to submit an application with the Florida Department of Business and Professional Regulation (DBPR). Some of the information the application requires for new officers includes:

• Name of construction business for which applicant will be the financially responsible officer
• Construction business’s primary qualifying agent’s name and license number
• Applicant’s personal information, including social security number and any other names the applicant has used
• $100,000 surety bond
• $200 application fee
• Credit report for applicant from a nationally recognized credit reporting agency
• Proof of satisfaction of any liens, judgments, and bankruptcy discharges, if applicable
• Electronic fingerprints

If the officer changes or is removed another application needs to be submitted to the DBPR to confirm the changes. Make sure to fill out the correct sections of the application�II and VIII for removing an officer, III through VIII for a new officer, and the entire application for changing officers.

Why do officers need a surety bond?

Financially responsible officers in Florida need a surety bond for the protection of the state and consumers. The Construction Industry Licensing Board is the bond’s obligee, or the entity requiring the bond. The $100,000 bond is the officer’s promise to accurately keep the business’s books and records and pay the State Treasury all required payments.

Should the financially responsible officer fail to keep accurate records, or fail to make required payments to the state, the surety bond is a means of recovering any lost funds. A claim can be filed against the bond, and the surety pays out on any proven claims. Then, the principal (the officer) is required to reimburse the surety company. This way, the state isn’t held responsible and doesn’t lose money if the officer fails to adhere to the law.

Ready to get a Florida financially responsible officer surety bond? Get in touch with Single Source Insurance today!�

In Mississippi, daily fantasy sports operators became subject to new laws in July 2017. Senate Bill 2541 created the Fantasy Contest Act and was set to expire on July 1, 2017. State lawmakers were expected to pass permanent legislation before that date—which they did on March 13, 2017, when Gov. Bryant signed House Bill 967 into law. Among other things, the law requires a surety bond from DFS operators in the state.

SB 2541 vs HB 967

SB 2541 appointed a task force to create a legal framework for daily fantasy sports to operate in the state of Mississippi. The industry is regulated by the Mississippi Gaming Commission (MGC). This bill allowed DFS companies to operating legally until regulations were put in place for the industry.

Those permanent regulations were implemented with HB 967’s passage and July 1, 2017 effective date. This bill created procedures for the registration and taxation of daily fantasy sports in Mississippi.�DFS operator applicants�need to register with the MGC and provide information that includes the following:

• Business name and contact information (phone numbers, physical and mailing addresses, etc.)
• Tax ID number
• Business type (partnership, LLC, etc.)
• Names and addresses of all partners, owners, directors, and stockholders
• List of executive employees with their addresses and job titles
• DFS contest operator’s personal information, including among other things, name, date of birth, social security number, home address, and distinguishing marks or tattoos
• Recent photograph of operator applicant
• Surety bond to protect players’ funds

Daily fantasy sports operator applicants must disclose their finances in depth when registering�including listing all assets�bank accounts, business investments, real estate holdings, stocks and bonds�belonging to the operator and their spouse and dependents (if applicable). Applicants must also list all debts owed to them and/or their spouse and dependents, as well as all debts owed by any of those individuals.

Along with a completed application, DFS operators pay a nonrefundable $5,000 fee to the MGC for their three-year license term. Applicants must submit their registration application through the mail addressed to the Mississippi Gaming Commission, Attn: Paul Waldorp. If you’re submitting with USPS, use this address:

P.O. Box 23577 Jackson, MS 39225

Those submitting with FedEx or UPS should use a different address:

620 North St., Suite 200 Jackson, MS 39202

DFS surety bond

Both SB 2541 and HB 967 stipulate that financial assurance is required of daily fantasy sports operators to secure players’ funds. Bond coverage amount will vary depending on the applicant, since it needs to cover the total account balances of all players. For DFS companies with a large number of users, like DraftKings or FanDuel, this can mean a big surety bond.

The bond is in place so that players don’t lose the money in their accounts on the sites. Should the company go under and a player lose the money in their account, the player can file a claim against the surety bond to recover that money. DFS companies are motivated to prevent that from happening, since they have to repay the surety for any claims that are paid out.

Daily fantasy sports operators have the option of maintaining a combination of surety bonds, cash or cash equivalents, an irrevocable letter of credit, and payment processor reserves and receivables as proof of financial security.

Ready to get a surety bond in Mississippi? Get started with Single Source Insurance!��

Louisiana proprietary schools are private businesses offering vocational or occupational courses, and students do not receive academic degrees. These schools need to be licensed and bonded to operate legally.

The state of Louisiana’s Board of Regents regulates proprietary schools and issues their licenses. Anyone who represents the school, also called solicitors, agents, or recruiters, also needs to be licensed by the Board. While proprietary schools can’t issue academic degrees, they can award certificates or diplomas. Proprietary schools accredited by a federally recognized accreditation body can offer Associate in Occupational Studies degrees.

Applicants for a proprietary school license need to submit all the information listed on the Board’s checklist, including:

• Completed application form PSC-1
• Notarized commitment statement, form PSC-2
• Appropriate documentation from the Secretary of State validating business’s legal structure
• Current audited financial sheet prepared by a licensed CPA
• List of equipment available for use in classes
• Copies of enrollment agreements and refund policies approved by the Proprietary Schools Commission
• Copies of all advertising materials and diplomas or certificates
• School catalog
• $10,000 surety bond for Certificate of Registration, form PSC-3
• Blanket surety bond for all solicitors, or individual solicitor bonds
• $2,000 license fee
• $100 fee per solicitor
• Outline and fee schedule for each course of study

This is not a complete list�the Board’s website contains all the information you need to submit, including application and bond forms. Applications must be submitted at least 60 days prior to the next scheduled Board meeting, which they list on their website.

Louisiana proprietary schools need a $10,000 surety bond as protection for their students. Should the school close before students complete their course of study, resulting in losses of tuition and fees, they can file a claim against the surety bond to recover those losses. Similarly, school recruiters need a bond of $1,000—or a blanket bond covering all the school’s solicitors—to protect students should the recruiter misrepresent the school or the credentials it offers consumers. If a proprietary schools opts for a blanket bond, each recruiter needs $1,000 of coverage—five recruiters means a $5,000 bond is required.

See the Board of Regents’ website to get familiar with laws for proprietary schools and solicitors to ensure you don’t engage in any practices that may result in a claim against your surety bond.

Ready to get bonded in Louisiana? Single Source Insurance can help!�

Photo by�Mikael Kristenson on Unsplash