New surety bond requirements

Upcoming bond requirements this year. This year we will see many more new bond requirements from a variety of creditors. The reason this will happen is because of the influx of claims from companies that defraud the public. As businesses face closure, desperate businesses are breaking laws to stay open.

More restrictions as well as new bonuses have been on the rise. Not to mention higher bonus amounts, as well as changing bonus form languages ​​for certain bonuses. This has caused many companies to close their doors due to bonds that were once considered a form of soft bond to hard bond to place.

New bonuses and higher bonus amounts
Last month, California tried to increase the required bond amount for auto dealers from $50,000 to $100,000; the law was struck down, but the motion to reevaluate the new bill was granted.
So far this year, a $50,000 Medicaid bond has been required for DMEPOS providers. The bond is required to combat fraud by DMEPOS vendors. Even providers of durable medical equipment, such as prosthetics, orthodontists must get the bond.

Also this year, a $25,000 MVD bond has been required for Indiana dealers. I haven’t seen a bond form yet, but I’ll keep you posted. Texas MVD bonds have also increased from $25,000 to $50,000; The bond will remain for a term of two years. Tennessee has also bucked the trend by increasing auto dealer bonuses from $25,000 to $50,000; it is also a two-year bond. There is also currently talk of increasing contractor license bonuses for California.