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Upcoming Surety bonding requirements this year. This year we will see a lot more new surety bonding requirements from a variety of obligee’s. The reason why this will occur is because of the influx of claims from business defrauding the public. As businesses are facing closure desperate companies are violating the laws to stay open.
More restrictions as well as new bonds have been on the rise. Not to mention higher bond amounts as well as changing of the bond form languages for certain bonds. This has caused many businesses to close their doors do to bonds that were once considered a soft bond form to a hard to place bond.
New bonds as well as higher bond amounts
California last month tried to increase the bond amount required for car dealers from $50,000 to $100,000 the law was struck down but motion to reevaluate the new bill was granted.
So far this year a $50,000 Medicaid bond has been required for DMEPOS suppliers. The Surety bond is being required to hopefully combat fraud performed by DMEPOS suppliers. Even Suppliers of durable medical equipment such as prosthetics, orthodontist must obtain the bond.
Also this year a $25,000 MVD bond has been required for Indiana dealers. I have not seen a surety bond form as of yet but I will keep you posted. Texas MVD bonds have increased from $25,000 to $50,000 as well; the bond will still remain a two year term. Tennessee has also followed the trend by raising there bonds for auto dealers from $25,000 to $50,000 it is also a two year bond. Currently there are talks of increasing contractor license bonds for California as well.