NOTICE: SURETY ONE, INC., IS A SURETY BOND UNDERWRITER AND GENERAL AGENT EXECUTING BONDS ON BEHALF OF VARIOUS SURETY COMPANIES. ALL OF OUR INSURANCE CARRIERS ARE QUALIFIED BY THE U.S. TREASURY, APPEARING ON THE CURRENT “T-LIST” CIRCULAR OF SURETIES QUALIFIED TO ISSUE BONDS FOR FEDERAL OBLIGATIONS. EACH INSURER ALSO CARRIES AN A.M. BEST RATING OF A-EXCELLENT OR BETTER.
ERISA bonds are mandated by federal law, and the regime administered by the U.S. Department of Labor. Federal rules are very clear about surety bonds (fidelity bonds) and about what surety companies are acceptable to the U.S. government for the issuance of bonds. The federal code reads as follows:
31 U.S.C. 9304-9308 ACT OF CONGRESS OF JULY 30, 1947, AS AMENDED (U.S. CODE, TITLE 31, SECTIONS 9304-9308) AUTHORIZING THE ACCEPTANCE OF CORPORATE SURETY COMPANIES ON BONDS GIVEN TO THE UNITED STATES
Sec. 9304. Surety corporations
(a) When a law of the United States Government requires or permits a person to give a surety bond through a surety, the person satisfies the law if the surety bond is provided for the person by a corporation–
(1) incorporated under the laws of–
(A) the United States; or
(B) a State, the District of Columbia, or a territory or possession of the United States;
(2) that may under those laws guarantee–
(A) the fidelity of persons holding positions of trust; and
(B) bonds and undertakings in judicial proceedings; and
(3) complying with sections 9305 and 9306 of this title.
(b) Each surety bond shall be approved by the official of the Government required to approve or accept the bond. The official may not require that the surety bond be given through a guaranty corporation or through any particular guaranty corporation.
So what does this mean to YOU? It means that your insurance or surety bond agent _MUST_ issue your bond using one of the companies approved by the U.S. Treasury. Would you like to verify that your ERISA bond company is approved? Easy! You may search the list of ‘t-listed’ surety companies here.
The preeminent rating agency for insurance companies is AM Best. AM Best observes a surety company’s market conduct, financial performance and other factors in order to assess the company’s long term stability. Stability is important to the purchaser of a surety bond or fidelity bond because the bond applicant certainly expects the insurer to faithfully guarantee what it has promised to guarantee. If you would like to search AM Best for your surety bond company’s rating you may do so here.
