Virginia Contractors Face New Surety Bond Regulations

Jun 26 Posted on June 26, 2017

SB 1113 takes effect on July 1, 2017, and will allow Virginia contractors to post a surety bond as proof of financial responsibility. Current law requires that Class A and B contractors prove a minimum net worth as dictated by their license class with a financial statement or a balance sheet reviewed by a CPA.

Virginia contractors are classified according to the value of the contracts they handle. Contractors handling one contract that totals $120,000 or more, or handling contracts totaling $750,000 or more over a twelve-month period are licensed as Class A contractors. Class B contractors handle one contract valued between $10,000 and $120,000, or contracts totaling between $150,000 and $750,000 over the course of a year. Class C contractors, who are not affected by SB 1113, handle one contract valued at less than $10,000, or contracts totaling less than $150,000 over the course of a year.

Class A contractor license applicants must demonstrate a minimum net worth of $45,000, and Class B contractors must demonstrate a minimum net worth of�$15,000. SB 1113 will allow applicants to obtain a $50,000 surety bond rather than providing a financial statement or balance sheet. When renewing their license, Virginia contractors must show proof of a current surety bond.

Virginia contractors are licensed by the state Board of Contractors, a division of the Department of Professional and Occupational Regulation (DPOR). The DPOR has created a step-by-step guide to becoming licensed as a contractor, and applicants should keep in mind that several counties and cities in Virginia have additional contracting licensure requirements. Check with the county and city in which you will be conducting business before beginning work on a contract to make sure you’re correctly licensed.

SB 1113 specifies that Virginia contractors’ surety bonds are intended to satisfy court-ordered judgments that are not satisfied by the contractor. The surety bond’s liability is for actual monetary loss, court costs, and attorney’s fees incurred in the pursuit of the judgment, and cannot be used for interest or punitive damages assessed against the contractor. The bill also specifies that surety companies must notify the Board when a claim is made against the bond, when a claim is paid out, and when the bond is canceled.

Ready to purchase your surety bond? Get in touch with Single Source Insurance today and learn more about your Virginia contractor surety bond!

How To Get A Texas Auto Dealer License

Aug 4 Posted on August 4, 2016

Texas Dealer License Requirements

Any person who wants to engage in the business of buying, selling or exchanging motor vehicles as a dealer in the state of Texas needs to apply for a Texas auto dealer license.

On the application they will receive a distinguishing number issued by the Motor Vehicles Division. This is popularly referred to as GDN (General Distinguishing Number). If the person wants to sell new motor vehicles, they must acquire a franchise dealer license in addition to the GDN.

The GDN is the basic dealer license that enables a person to buy, sell or exchange any type of used vehicle for which the number has been issued. The GDN licenses are available in many categories and you need to make the choice during the application of a new license. During the application process you can choose one individual license type or apply for multiple license types. If you want to choose multiple types, you may have to submit multiple applications.

License Types

Independent Motor Vehicle � Buy, sell and exchange any type of used ATVs, motorcycles and motor scooters. May also sell neighbourhood vehicles. Buyer�s temporary tags, dealer temporary tags, dealer license plates on motor cycles only may be used. Bond needs to be provided. Get Bonded Now.

Independent Motor Cycle � Buy, sell and exchange used ATVs, motorcycles and motor scooters. Buyer�s temporary tags, dealer temporary tags, dealer license plates on ATVs, motor scooters and motor cycles only may be used. Bond needs to be provided. Get Bonded Now.

Travel Trailer � Buy, sell and exchange used travel trailer. Buyer�s temporary tags, dealer temporary tags, dealer license plates on travel trailers only. Security requirement is exempted.

Trailer or Semitrailer � Buy, sell and exchange used travel trailer and semitrailer. Buyer�s temporary tags, dealer temporary tags, dealer license plates on travel trailers and semitrailers only. Security requirement is exempted.

Wholesale Dealers � Sell and exchange vehicles only with other licensed dealers. A five vehicle display area is not required. Vehicles cannot be sold to retail purchasers. Wholesale vehicle dealers may buy, sell and exchange used vehicles (motor vehicles, motor cycles and travel trailers, used trailer and semitrailer). Metal dealer license plates and temporary tags may be used. Bond needs to be provided. Get Bonded Now.

Wholesale Motor Vehicle Auction � Vehicles can be sold by bid only to licensed dealers. This needs to be done at a permanent location in a bona fide auction. Bond to be provided. GDN should not be made available to any other person for the purpose of auction of vehicles. The GDN may be issued for only one particular wholesale auction at a specified location. A regular motor vehicle GDN may be issued for a location for which a wholesale GDN has been issued. Get Bonded Now.

Independent Mobility Motor Vehicle Dealer License � This license allows the dealer to sell new mobility motor vehicles. This is a motor vehicle that is designed to transport a person with disability.

Now that you have gained knowledge about the different license types, you need to understand how the application process works. Each license type has detailed information about the documents required to apply for each one of them. All licenses are issued for a period of two years and are not transferable to any other dealer.

Understanding Different License Types for Surety Bonds

The total GDN fee is $700.00. The fee for dealer license plate is $90.00. You need to specify the number of metal dealer license plates you require. There is a limit to the number of metal dealer license plates you can order.

You can apply for the metal dealer license plates with a new application, renewal and any time during the license period. You can choose to make the payment using a credit card. The renewal fee for each GDN is $400.00 and for each dealer license plate is $90.00.

If you are planning to relocate to a location that is outside the city limits of the existing location, you may have to make a new application for the license. Relocation of any type has to be conveyed to the licensing authorities so that changes are made to the license.

Documents Attached to Application

Ownership information
Proof of identity � A photo copy of the current driver�s license of owner of the dealership or managing partner of the dealership. If it is a general partnership, then the driver�s license of each partner has to be submitted. Apart from this you may also submit a valid passport or any state issued identification card.
Assumed name certificates � These certificates need to be issued by proper authorities. The Texas Secretary of State is the proper authority for issuing assumed name certificates for corporations, LLCs, LLPs and LP. For general partnership and sole proprietor, it is the county clerk in the county in which the dealership is situated. The assumed name on the application must match with the assumed name that you have registered.
Certificate of incorporation or partnership
Auto dealer surety bond � GDN types (motor vehicle dealer, motorcycle dealer, wholesale only dealer, wholesale motor vehicle auction, independent mobility vehicle dealer) that are not licensed as a franchise dealer need to submit an auto dealer bond of $25,000.00. The car dealer surety bond has to be supported by a power of attorney from a surety company. A separate auto dealer bond is required for each category of license. Get Bonded Now.

When submitting theauto dealer surety bond along with the application, you need to ensure that the surety bond is on forms that matches the approved sample in the package. The business name that is to be on the GDN must be shown on the bond. The information provided on the bond must match exactly with that of the license application. This includes the address.

The auto dealer bond must be issued for at least 2 years and must expire on the last day of the month. This should correspond with the dealer license expiration date. The lease cannot end prior to the bond expiration. The bond must be signed and dated by both the dealer and bonding agent. All required signatures need to be there on the bond.

If there are any kind of typographic errors or misspellings it can invalidate the bond. It needs to be corrected with a rider and power of attorney. If additional locations are applied for, then the address of all these locations must be on the bond.

Application Process

After the application is received it is processed by finance for fees. The Texas Comptroller of Public Accounts processes money orders and checks. The credit card payments are processed by TxDMV Motor Vehicle Division. If the fee is not processed, the license is not approved. The fee process is the first step to issue a Texas car dealer license.

The application is then scanned into the licensing system and a work item number is allotted. Email conformation is sent by the licensing system providing item work number and other basic details. The application is then reviewed with the information that has been provided. If there are any type of deficiencies more information is sought.

The licensing specialist may call or mail you about the list of deficiencies in the application and how they need to be corrected. The deficiencies need to be corrected and relevant documents submitted. This will be checked once again before sending the GDN to the mailing address mentioned in the application form.

Dealer License Renewal

The term of each license is two years. The licensing authorities will send a notice 75 � 90 days prior to expiration. The renewal notice needs to be returned with relevant documents along with the proper fees at least 45 days before the license expiration. The responsibility of maintaining the license is with the dealer and if they do not receive a notice they need to contact the licensing authorities.

One of the important things that you need to remember is that there is no grace period for renewal of license. After the license expires you may not be able to sell and exchange any type of vehicle. The dealer plate also expires with the license. Dealers sending renewal forms after expiration of license may have to pay penalty for renewal. The penalty fee is 50% of the total license fee. The renewal process has to be completed within 90 days or you may have to apply for a new license.

Dealers are advised to provide good contact numbers in the license application or renewal forms so that the licensing authorities can contact them immediately for any kind of additional information. It is best to review the application form and the documents attached before sending them for processing. The name, dates and addresses on the bond should be entered correctly.

If you are uncertain about any of the documents to be submitted or any other aspect of the application, it is best to talk with the licensing authorities so that you are able to make a proper submission. This can ensure quick processing and you may be able to get your Texas car dealer license fast.

How To Get A California Talent Agency License

Aug 3 Posted on August 3, 2016

The legal requirement for a talent agency license may vary from one state to the other. While business licenses are standard for any business, states such as California require a special talent agency license.

You may not be able to operate as a talent agency without getting an appropriate license from the Labor Commissioner. The license that is obtained needs to be posted in a place that is conspicuous. The license number needs to be mentioned in any advertisement that solicits talent for the agency.

Before you choose to apply for a license, it is important that you are aware of who must obtain a license to operate as a talent agency.

Person � Association, company, corporation, individual, firm, limited liability company, manager (or their agents or employees) and society.

Talent agency � Corporation or person that engages in the occupation of offering, procuring or attempting to get employment for artist or artists.

Artists � Actors and actresses that render service on stage and in production of motion pictures, musicals, directors, composers, writers, cinematographers, models and others from the entertainment industry.

Obtaining the Application

The application can be obtained by accessing it online or you can also download it from the DLSE website. Apart from this you can also choose to call the licensing and registration unit from Monday to Friday 8:00 AM � 5:00 PM and request them to send you the form. You can also email the request with a complete mailing address.

The application for the new license must be made in the form that has been specified by the Labor Commissioner. The application form needs to contain the following information.

Proposed business name of the talent agency. It should not be similar or identical to another talent agency that is already licensed.
Proposed place of business and main office address. This address should also be the mailing address.
If the applicant is not a corporation, you may have to submit the names and addresses of all those persons that are financially interested (associates, partners, employees, profit sharers and other persons receiving a share of the net profits). The share of net profit that each person or associate receives also needs to be specified.
If the applicant is a corporation, name, address and title of persons operating on behalf of the corporation has to be specified.
Individual applications must sign and provide full name details. In case of partnership all details of partners need to be provided.
The business or occupation that was conducted by the applicant for at least two years prior to the date of application.

The application that is submitted must be accompanied with two sets of finger prints of the applicant. Apart from this they should also include affidavits of at least two reputed individuals of the city in which the business of the talent agency is to be conducted. This is to ascertain that the applicant is of good character. In case of a corporation it indicates that it has a reputation for fair dealing.

Documents to be Submitted

When submitting a new application form, you may be required to submit the following documents:

Bond (DLSE 306)
Affidavit of Character (DLSE 301-A Rev. 9/11)
Personal Record (DLSE 301-B Rev. 9/11)
Premise Certification (Rev. 1/11)
Nonexclusive Contract Between Artist and Talent Agency (Sample) (DLSE 315A) (Rev. 09/10)
Exclusive Contract Between Artist and Talent Agency (Sample) (DLSE 315B) (Rev. 09/10)
Fee Schedule (Sample) (DLSE 315C)
Request for Live Scan Service
Certificate of Workers� Compensation Insurance
Copy of Driver�s License/Photo ID
Fictitious Business Name Statement (if applicable)
Articles of Organization (if limited liability company)
Articles of Incorporation and Statement of Domestic Stock (if corporation)
Business Tax Registration Certificate (if business is at residence)

The other documents that need to be submitted along with the application include:

Talent surety bond that is required by the Labor Code Sec 1700.15. The bond can be issued by a corporate surety company. The company must be authorized to write surety bonds in California. It must be done on the form prescribed by the Labor Commissioner. The name of the talent agency and the principal of the bond must correspond with the name of the talent agency and that of the principal on the application form.
Contract forms (triplicate) that are proposed to be used in the conduct of the business.
Fees schedules (triplicate)

One of the important things that you need to remember is that incomplete application form and this includes incomplete submission of required documents may delay the licensing process. Apart from these documents the Labor Commissioner may require additional documents to investigate the competency and character of the applicant.

You can resubmit the application form along with all the relevant documents within 30 days of getting notice from the Labor Commissioner.

Investigation

After receipt of the application by the Labor Commissioner a thorough investigation is done to check the character and responsibility of the applicant. The investigation covers the place that has been designated for conducting the business of the talent agency.

Denial of License

The Labor Commissioner may after giving proper notice and hearing deny a license. The license may not be granted to a talent agency if the place where the business is to be conducted endangers the safety and health of the artist. It may also be denied to a person whose license has been revoked within three years from the date of application.

Fees

Filing fees of $25.00 (twenty-five dollars) needs to be paid to the Labor Commissioner at the time when application for license is made. Apart from the filing fees, annual and renewal fees need to be paid each time a license is issued or renewed.

Annual license fee $225.00 (two hundred and twenty-five dollars)
$50.00 for each branch office maintained by the talent agency in California.

A fee of $25.00 will be paid for consent to transfer of the talent agency license. No assignment fee will be required upon the transfer of the license. The location of the talent agency should not be changed without the written consent of the Labor Commissioner. The location can be changed only after getting a proper approval.

Duration of License

The license that is issued to the applicant will be valid till the next birthday of the applicant. In case of a partnership, it will be the birth date of the oldest partner. If the applicant is a corporation, it is the date when the corporation was formed. It is advisable to keep track of the duration of license so that it can be renewed without any delay before the expiry period.

Renewal Application

The renewal applications need to be filed with the Labor Commissioner at least 30 days prior to the start of the new license year. If the renewal application is not filed before the expiration date, then the license expires and cannot be renewed. In such cases a new application may have to be submitted for the license.

Temporary or Provisional License

When an application for new license or renewal has been made and the verification proceedings have not been completed then the Labor Commissioner may provide at his or her discretion a license that is valid for a period not exceeding 90 days. The provisional license is cancelled when the new license is issued after completing all verification process.

Bond Requirement

The talent agency needs to deposit a talent surety bond to the Labor Commissioner prior to the issue or renewal of the license. The surety bond is usually a sum of $50,000.00 (fifty thousand dollars). The surety bond helps protect the obligee against any kind of financial loss. The financial loss could be due to acts of fraud or deceit by the Principal of the talent agency.

Single Source Insurance, LLC has the lowest starting rates in the country starting at $400 per year. �Our online application is simple and you should receive your quote in just a few business hours.

When you get a surety bond, you gain the trust of the obligee. The bond price is usually calculated based on the information that is provided in the application. The surety bond approvals are similar to loans and are based on many factors.

Financial strength and personal credit of the Principal of the talent agency
Liens or judgements
Bankruptcies
Length of time of business
Bond amount
Type of bond

Obligee and Conditions

The surety bonds shall be payable to the people of California with the condition that the person applying for the license will pay all sums that are due to individuals or group of individuals when such person or their agent or representative have received such sums. They will also pay all damages caused to any person by reason of fraud, misrepresentation, deceit, misstatement and any kind of unlawful acts or omissions of the licensed talent agency.

Disposition of Money Collected for Violation

The money that has been collected as fines for violations shall be paid to the State Treasury and credited to the General Fund.

The license that is issued to the talent agency after completing all the formalities contain the name of the licensee, address where the licensee is permitted to carry its business and number and date of the license. The process for applying for a talent agency license in California becomes easier if you are aware of the many modalities to be followed during the application and renewal period.

Purchasing a Florida Financially Responsible Officer Surety Bond

Jun 14 Posted on June 14, 2016

Purchasing a Florida Financially Responsible Officer Surety Bond is easy and inexpensive with Single Source Insurance’s easy application.

The Florida Construction Industry Licensing Board requires a Financially Responsible Officer Bond (also known as a FRO Bond) when the person responsible for the finances of the business is not the qualifying agent. �As with most surety bonds, this bond ensures the responsible person operates faithfully and honestly under the statutes of the bond.

The penalty amount of the FRO surety bond is $100,000. �However, you do not pay this whole amount. �Premiums start at just $900 per year depending on your personal credit and other factors. �Single Source Insurance was the first agency in America to offer this low rate.

Most applications can be quoted the same day and once payment is made, we can usually issue the bond the same day as well.

Applying for the FRO surety bond is easy, simple click on the link below, download the PDF and email or fax back to us:
FRO SURETY BOND APPLICATION

Georgia Auto Dealers Renew Your Surety Bond

Feb 12 Posted on February 12, 2016

The time is coming for all Georgia used car dealers to renew their $35,000 2 year surety bonds.

Georgia car dealers will need to renew their surety bond by February 29th (it’s a Leap year!) in order to avoid a cancellation notice. �Most dealers do not realize that 30 days prior to March 31st (The renewal date of the surety bond) the surety companies will send out a cancellation notice to the State of Georgia. �This is mandated by law.

Renewing your dealer bond is simple, easy, and affordable with our quick online application here. �Rates start at $187 for a 2 year bond based upon credit.

There is NO reason to wait to renew minutes before the deadline.

Scared of high premiums because you have weak credit? �NO PROBLEM – We can finance that larger premium for you!

Apply today online and get a free, no obligation quote at�Georgia Dealer Application.

We DO NOT charge ANY fees!

We send your bond request to the top surety companies in the world for the best rates!

We are also a proud member of the GIADA.

5 Major Differences in Surety Bonds and Insurance

Jan 11 Posted on January 11, 2016

Since most surety bonds are available through insurance companies some mistakenly believe that a surety bond is the same as insurance. Even though they have a few minor similarities, they are not the same. We will discuss five of the differences in this article.

Comparing the Surety Bond to Insurance

Comparison #1 � A surety bond is a three-party agreement that joins the issuer of the bond (the surety) with the second party (the principal) in a financial guarantee to the third party (obligee) that the principal will fulfill all obligations in a contract. The principal relies on the financial strength of the surety in order to obtain a contract with the obligee. Insurance is a two-party agreement where the insurance company agrees to pay the insured in case of loss or damages.

Comparison #2 � Losses are not expected under a surety bond. The contracting company to which a bond is issued must be financially strong and stable to qualify for bonding. The surety company conducts a rigorous background check into the contractor�s reputation, credit worthiness and the skills and ability to complete the project as specified along with other check points. The contractor seeks a surety bond because it is required by the project owner.When an insurance policy is purchased, losses are expected. Insurance rates are adjustable to compensate for the law of averages, expenses and losses.

Comparison #3 � A surety company expects to recover losses occurred. If the principal defaults on the contract and the surety bond must pay the obligee, the surety expects to be repaid by the principal. The surety loaned its assets to the principal and therefore seeks repayment.Repayment is not expected of an insurance claim. The purpose of insurance is to cover losses.

Comparison #4 � The premiums paid for a surety bond act as a service charge for qualifying the principal for the bond. A surety company is more selective of the companies they agree to bond since the bond serves as a non-collateral loan. The surety company charges � percent � 3 percent of the contract amount and is determined by the financial strength of the principal. Premiums are generally paid annually while insurance premiums cover expenses and losses. Most insurance companies can issue an insurance policy to nearly everyone. The issuance of a policy depends on the level of risk. The more risk to the insurance company, the higher the rate and premium will be.

Comparison #5 � As stated before, surety companies are highly selective of the companies they choose to bond. They require several years of business success, stable financial strength and the ability to complete projects on time and within budget. Surety agents are highly trained not to make bad loans.

The insurance agent is generally more flexible since he can write almost any policy at a rate that�s appropriate. The insurer operates on a high volume of business in order to cover every policy holder and make a profit.

As you have just learned there are several major differences between surety and insurance. Their different functions meet a need in business and most business owners use both of them to protect themselves from loss.

How To Get A Florida Car Dealer License

Oct 1 Posted on October 1, 2015

Learn How To Get A Florida Car Dealer License. We’ll teach you everything you need to know about dealer license requirements, bonding, and renewals.

First: You must register and attend a pre-licensing class. �There are several across the state to choose from. �You can always go to the Florida Independent Auto Dealers Association for more information on classes at http://www.fiada.com.

Second: A location will be required and inspected in order to obtain a valid license. Once you have a location, you will need to contact the DMV for an inspection.

Next: You must obtain a $25,000 surety bond with a reputable agency such as ourselves and provide the bond along with the attached power of attorney to the DMV.�You must also provide garage liability insurance of at least $25,000 combined coverage.

If you have any questions on how to obtain your Florida dealer license please do not hesitate to contact us at 855-689-5106 or by email at info@absolutesurety.com.

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