Delaware clarifies surety bond requirement for preneed funeral contracts

 

 

 

 

 

 

 

 

The Delaware State Bank Commissioner has revised the existing regulations for preneed funeral contracts. Previous regulations required a surety bond or an irrevocable letter of credit to secure the funds held in a trust fund for preneed funeral contracts. The amount of the bond is based on the amount of funds held in the trust fund and ranges from $50,000 to $200,000.

The revised regulations clarify that the maximum bond amount is $200,000. The revised regulations also make a technical change to the requirement for the bond to be reviewed on an annual basis by eliminating the specified date on which the review must take place.

Effective August 11, 2014, “Each licensee shall file with the State Bank Commissioner (the “Commissioner”) an original corporate surety bond or an irrevocable letter of credit in a form satisfactory to the Commissioner in accordance with
5 Del.C. §3411. The minimum amount of the surety bond or irrevocable letter of credit is based on the factors identified in that section.”

“Each licensee shall obtain a surety bond or irrevocable letter of credit based upon the maximum dollar value of the trust funds it held as a trustee during the twelve month period ending October 31 that precedes the calendar year for which the bond or irrevocable letter of credit is effective. A licensee who obtains a surety bond that is effective for more than one year or an irrevocable letter of credit shall annually review the amount of the surety bond or letter of credit, to ensure that the minimum required amount is maintained. The minimum required amount of the surety bond or irrevocable letter of credit shall be maintained according to the following”:

  • $50,000 surety bond or irrevocable letter of credit required for licensees who hold a maximum of $50,000 in dollar value of trust funds
  • $75,000 surety bond or irrevocable letter of credit required for licensees who hold $50,001-75,000 in dollar value of trust funds
  • $100,000 surety bond or irrevocable letter of credit required for licensees who hold $75,0001-100,000 in dollar value of trust funds
  • $125,000 surety bond or irrevocable letter of credit required for licensees who hold $100,001-125,000 in dollar value of trust funds
  • $150,000 surety bond or irrevocable letter of credit required for licensees who hold $125,000-175,000 in dollar value of trust funds
  • $175,000 surety bond or irrevocable letter of credit required for licensees who hold $150,001-175,000 in dollar value of trust funds
  • $200,000 surety bond or irrevocable letter of credit required for licensees who hold a minimum of $175,001 in dollar value of trust funds

“Subject to the $200,000 cap, the Commissioner may require a licensee to obtain a larger surety bond or irrevocable letter of credit based upon the licensee’s individual circumstances.”

By posting a Delaware preneed funeral contracts surety bond, principals (licensees) pledge to faithfully comply with all provisions of Chapter 34, Title 5 of the Delaware code and all regulations adopted thereunder. If the principal fails to comply with these terms, the bond protects the state from financial loss that occurs as a result of the licensee’s wrongful acts, fraud, default or misrepresentation while on the job up to the full penal sum of the bond. The principal will reimburse the surety for damages paid out. Although these bonds are continuous in nature, licenses expire annually on December 31.

Visit the State of Delaware’s Office of the State Bank Commissioner’s website to access the surety bond form and for more information about this bond requirement.

The SuretyBonds.com experts are familiar with this surety bond requirement and are on call to answer your questions and to help you purchase the surety bond you need quickly and easily. Give us a call at 1 (800) 308-4358 between the hours of 7 a.m. and 7 p.m. CST Monday through Thursday or between 7 a.m. and 6 p.m. CST on Friday. Or, submit an online bond request, and one of our experts will contact you right away

Upcoming surety bond expiration dates

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At SuretyBonds.com, it’s our mission to make the bonding process fast and easy for all applicants. We do all of the hard work for you when it comes to initially buying the surety bond you need, but we don’t stop there. We also make the renewal process fast and easy for our valued clients.

Our renewal team works hard to stay up-to-date on upcoming bond expiration dates so that we can notify you 90, 60 and 30 days prior to when your surety bond expires. We keep track of when your bond is up for renewal so that you don’t have to. As we get closer to the end of the year, many surety bonds will be expiring. The following bonds will expire during the next few months.

October

October 31: Washington D,C, Motor Vehicle Dealer Bonds

December:

December 31: Florida Franchised Motor Vehicle Dealer Bonds

December 31: Illinois Designated Agent Bonds

December 31: Indiana Mortgage Broker Bonds

December 31: Louisiana Auto Dealer Bonds

December 31: Michigan Secondary Mortgage Bonds

December 31: Montana Auto Dealer Bonds

December 31: Oklahoma Auto Dealer Bonds

December 31: Texas Bingo Gross Receipts Bonds

December 31: Dallas, Texas, Paving Bonds

December 31: Texas Mixed Beverage Receipts Tax Bonds

December 31: West Virginia Auto Dealer Bonds

January:

January 1: New Castle County, Delaware, Contractor License Bonds

Renewing your surety bond to ensure that you stay in compliance with the laws of your state and industry is easy! Most renewals can be handled in just 5 minutes over the phone, and applicants will typically pay a similar rate to what they paid last time they purchased the bond unless something has changed, such as the required bond amount or the applicant’s financial credentials.

Even if your bond isn’t on the list above, the experts at SuretyBonds.com can help you get the bond you need quickly and easily. Simply give us a call at 1 (800) 308-4358 between the hours of a 7 a.m. and 7 p.m. CST Monday through Thursday and between 7 a.m. and 6 p.m. on Friday. Or, submit our instant online contact form, and one of our experts will contact you right away.

SuretyBonds.com now accepting applications for 2015 Small Business Success Scholarship

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Every day, the SuretyBonds team works closely with small business owners and entrepreneurs across the country helping them to launch new ventures and take the road less traveled of starting a new company. Without the ambitions and successes of the small business community, we wouldn’t be here today. We understand the value small businesses add not only to our economy but also to the communities we live and work in. It’s a privilege to be able to sponsor our Small Business Success Student Scholarship Program again this year and invest in the next generation of small business owners. Applications are now open for the 2015 academic year, and we will be awarding $1,500 college scholarships to three students whose lives have been shaped by small business experience.

Who’s eligible?

Any student who will attend college classes full time in the fall 2015 semester AND has small business ownership experience whether personally or through a parent, grandparent or legal guardian is eligible to apply for the SuretyBonds.com Small Business Success Student Scholarship Program.

For more official rules, visit www.suretybonds.com/scholarships/official-rules.

What’s involved?

To apply for the scholarship, students should fill out the entry form on our scholarship website. The essay gives our scholarship committee the opportunity to understand how small business has shaped the lives of each of our applicants.

To apply, complete and submit the entry form at www.suretybonds.com/scholarships/apply.

What’s the timeline?

Scholarship applications are now available online. Applicants must submit their entries by 11:59 p.m. CST on March 31, 2015.

The SuretyBonds.com Scholarship Committee will read through all of the applications and select the top 10 applicants based on their submissions. These applicants will be featured, along with their work, on our blog and Facebook page. Public voting begins on May 1 and ends on May 31. The 3 finalists with the most votes will each receive a $1,500 scholarship. Winners will be notified and announced on Facebook on June 3, 2015.

What’s next?

To apply for the SuretyBonds Small Business Success Scholarship, students should submit their applications online before the March 31, 2015 deadline. Applicants who are selected as part of the top 10 finalists must provide a photo to be used during the voting process.

Please help us reach those students across the country who are interested in pursuing entrepreneurship and creating opportunities for tomorrow. If you know a student who meets the program’s requirements, please share this post via Faceboook, Twitter, LinkedIn or Google+ and encourage him or her to apply. If you’d like to feature information about the SuretyBonds.com Small Business Success Student Scholarship Program through your media outlet, email Scholarships@SuretyBonds.com. Last year, we received over 500 applications and we hope to receive even more this year.

For more information, to view past winners or to apply, visit www.suretybonds.com/scholarships. Read more about our commitment to the small business community here.

SuretyBonds founder and CEO Josh Kayser continues to support entrepreneurs across America and hopes that this is just one of the many ways we’ll do that this year. “We’re blessed to be in a position of growth so this scholarship program is our way of giving back to those who are on the ground floor, creating jobs and fighting the good fight right along with us.”

We can’t to hear your story, and we wish the best of luck to all of our applicants!

Surety Bonds 101: How do I get a surety bond?

Business professionals come to SuretyBonds.com because they’ve been told they need a surety bond by the government agency in charge of licensing/registration for their city/state and industry. Most of the time, these professionals have no idea what a surety bond is, why they need one, how to get one and how much their bond will cost. That’s where our experts come in. Our surety specialists do all of the hard work for you to ensure that you get the surety bond you need quickly, easily and accurately, but we make it a priority to inform our clients about the bonding process from start to finish. We believe that the more you know, the more comfortable you’ll feel allowing us to complete the bonding process on your behalf.

Today, we’re taking a look at how to obtain a surety bond. We’ve broken the process down into 6 easy steps:

  1. Verify which surety bond you need.
  2. Apply for a surety bond.
  3. Get a free, personalized surety bond quote.
  4. Pay for your surety bond.
  5. Verify the information on your bond.
  6. File your surety bond.

To further explain each of the steps in the bonding process, the experts at SuretyBonds.com have created this video guide:

How To Get a Surety Bond: A 6 Step Guide

There are many different types of surety bonds and each one has different nuances to consider. Some bonds can be issued instantly, while others can take up to 48 hours, but the general process to obtain a surety bond is fairly consistent. If you have questions about the bonding process or are ready to purchase the surety bond you need to remain in compliance with the laws of your state and industry, give us a call at 1 (800) 308-4358 between 7 a.m. and 7 p.m. CST Monday through Thursday or from 7 a.m. to 6 p.m. CST on Friday. Or, you can submit a quick online contact form, and one of our experts will contact you right away. Our specialists are here to answer any questions you have and to get you set up with the bond you need quickly, easily and accurately.

To learn more about the bonding process, take a look at SuretyBonds.com’s original infographic. Read more about the topic here.How to Obtain a Surety Bond

Louisiana enacts licensing and surety bond requirements for mortgage servicers

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On June 30, 2014, Act 260 (HB 807) was put into effect by the Louisiana Office of Financial Institutions. The Act adds licensure requirements for professionals engaged in residential mortgage servicing, which is defined as a means of collecting or remitting payment for another or the right to collect or remit payments for another relative to the principal, interest, tax, insurance or other payment under a mortgage loan.

The Act subjects mortgage servicers to the same licensing requirements (application, renewal and surety bond) as other mortgage brokers and lenders in the state. Mortgage servicers must comply with the new licensing requirement — including the posting of a surety bond —  on or before June 30, 2015. The new mortgage servicer licensing requirements, including the surety bond amount, have not been released yet.

If a professional is currently licensed in Louisiana for mortgage brokering or lending activities, there is no requirement for an additional license to perform mortgage servicing. However, if a professional performs mortgage servicing for Louisiana consumers, he or she must designate mortgage servicing as a “business activity” of their Louisiana license in the NMLS (Nationwide Mortgage Licensing System) online licensing system.

The experts at SuretyBonds.com make every effort to stay up-to-date on new surety bond requirements. We’ll feature new information regarding this upcoming surety bond requirement for Louisiana mortgage servicers as soon as we have it. In the meantime, call 1 (800) 308-4358 between 7 a.m. and 7 p.m. CST Monday through Thursday and between 7 a.m. and 6 p.m. on Friday. Or, contact us online 24/7.