Definitions

  • Administrator- An administrator is responsible for conducting the duties in accordance with the provisions of the court with respect to the handling of an estate. Administrators are typically required to post an Administrators Surety Bond (Link to Administrator Bonds Page), also known as a Probate Surety Bond (Link to definition for Probate
  • Application- An application is a form used to collect information needed to apply for and underwrite a Surety Bond (Link to a1suretybonds.com/surety-bonds)
  • Balance Sheet- A balance sheet is a statement of the assets, liabilities and net worth of a business; it lists the balance of income and expenditure over a period of time.
  • Bankruptcy Trustee Surety Bond- A bankruptcy trustee surety bond (Link to a1suretybonds.com/surety-bonds) is a court surety bond (Link to http://a1suretybonds.com/court-surety-bonds)required by all bankruptcy courts in all states. It guarantees that the trustee will act according to the court ruling. i) Chapter 7- Chapter 7 allows the bankruptcy trustee to cancels most of your debt and sometimes they may have to liquidate some of your property to pay back your creditors. ii) Chapter 13- Chapter 13 is an adjustment of your debt according to your current monthly income. It allows you to keep your property and pay back creditors over the course of three-five years.
  • Bid Bonds- Bid Bonds guarantee that a contractor will enter into a contract at the amount bid and post the required payment and performance bonds.
  • Blanket Public Surety Bond- A blanket public official bond covers each public employee of the public entity stated on the bond to the stated amount of the bond
  • Blanket Position Surety Bond- Blanket position bond is a position style of blanket bond. With a blanket position bond, the employer is insured against the actions of employees who hold specific positions within the firm.
  • Capacity- the maximum amount of a bond of which a surety can write
  • Commercial Surety Bonds- Commercial bonds are a group of bonds that is part of the surety line of business that is comprised of license, permit, and miscellaneous bonds. These bonds are required by law or regulation against loss in the event of violation of regulations or ordinances under which the license or permit is required
  • Commercial Blanket Surety Bonds- Commercial blanket bond a type of fidelity bond which insures an employer against loss from dishonest acts committed by employees and covers all employees in the regular service of the employer during the term of the bond.
  • Conservator- A conservatorship is a court case where a judge appoints a responsible person or organization to care for another adult or minor who cannot care for himself or herself or manage his or her own finances
  • Court & Probate Surety Bonds- Court Bonds are required at significant points in the litigation process. These bonds guarantee the duties of the administrators, trustees, guardians, executors and other fiduciaries of an estate either in Bankruptcy or Probate Courts. Probate bonds are required for the estate of incompetent persons, minors and deceased persons. The bonds provide a guarantee to the courts and the heirs of an estate that the process of proceeding through probate is accomplished within the legal requirements and that all assets are properly accounted for. The bond protects the estate until all steps have been completed.
  • Damages- Monetary amount of injury or harm a plaintiff has suffered.
  • Defendant- the accused in a court case
  • Dishonesty Surety Bonds- are bought by employers to protect against losses by embezzlement or theft by employees. It protects an employer from dishonest employees.
  • Employee Retirement Income Security Act of 1974- protects the retirement assets of Americans by implementing rules that qualified plans must follow to ensure that plan fiduciaries do not misuse plan assets.
  • Errors and Omission Insurance- A professional liability insurance that protects companies and individuals against claims made by clients for inadequate work or negligent actions. Errors and omissions insurance often covers both court costs and any settlements up to the amount specified on the insurance contract.
  • Executor- An entity or person appointment to execute a will
  • Fidelity Surety Bonds- a fidelity bond protects the business owner from theft of customer's property by employees. It also provides assurances to a business for losses caused by the dishonest acts of its employees.
  • Fiduciary- A person legally authorized and appointed to hold assets in trust for another person.
  • Fiduciary Surety Bonds- required for someone overseeing another person’s assets. This bond assures that the fiduciary will handle assets ethically and legally and also compensate any who are victims of fraud by the fiduciary.
  • Funds Control- disbursement or funds administration, on a construction project can be requested by a surety company under various circumstances. Funds control enlists the services of a 3rd party organization to collect, disperse and oversee the monies collected on a job throughout the course of its completion.
  • General Indemnity Agreement- guarantees that all business and personal assets will be available to the surety to repay a loss if a claim arises.
  • Indemnity- An agreement between two parties wherein one party holds another harmless and guarantees to compensate for any loss of damages.
  • Individual Bonds- A term generally used in regard to public official bonds such as a Treasurer bond
  • Janitorial Bonds- a janitorial bond protects the business owner from theft of customer's property by employees. It also provides assurances to a business for losses caused by the dishonest employees.
  • Large Deductible Plans- an insurance plan in which the insured is responsible for reimbursing the insurer for claims up to a certain dollar amount.
  • License & Permit Surety Bonds- are required by a unit of government as a prerequisite for obtaining a permit or license.
  • Maintenance Surety Bonds- Guarantees the owner of a project that the contractor will fix all maintenance issues during the specified period of time.
  • Medicare Provider Surety Bonds- are required for suppliers of orthotics, prosthetics, durable medical equipment and supplies are required by the federal government to obtain this bond. Medicare bond guarantees that the obligee will be able to recoup losses due to fraudulent activity or abusive billing practices of the principal.
  • Minor- a person who is not of legal age.
  • Miscellaneous Surety Bonds - Miscellaneous Bonds cover performance of contracts and agreements with private parties and government agencies. This category encompasses all bonds that are not otherwise classified. Examples of Miscellaneous Surety Bonds are lost securities, utility deposit, Union wage and welfare.
  • Name Schedule Public Official Surety Bonds- protects against dishonest public officials. These bonds are usually required by ordinances and statutes.
  • Notary Errors & Omission Insurance- helps protect the notary from damaging lawsuits arising out of notarial omissions and mistakes.
  • Notary Public Surety Bonds- guarantees that the notary public will faithfully perform the duties of the office as notary public are prescribed by state laws. It provides coverage for any damages sustained from a notary’s misconduct or negligence.
  • Obligee- a person to whom another us bound by contract or other legal procedure
  • Open Penalty Surety Bonds- a bond without a limit of liability of the surety.
  • Ordinance- a piece of legislation enacted by a municipal authority
  • Payment Surety Bond- guarantees that workers, subcontractors and suppliers are paid according to contract.
  • Penalty- monetary amount or penalty limit for not fulfilling a surety bond
  • Performance Surety Bonds- issued by a bank or insurance company to guarantee satisfactory completion of a project by a contractor.
  • Plaintiff- a person who brings a case against another in court.
  • Plaintiff Court Surety Bonds - required by certain courts in the course of litigating a case. It is required when the plaintiff asks the court to require the defendant to perform or prevent the defendant from performing a particular act. It is also required to protect the defendant against loss in case the court decides the injunction should not have been granted.
  • Position Schedule Surety Bonds- a fidelity bond that insures an employer for loss caused by dishonest acts of employees. A specific amount of coverage is listed for each position held.
  • Premium- amount of money paid for a bond or insurance premium
  • Principal- the business or person whose obligations are guaranteed by a bond
  • Public Official – someone who holds a public office (ex. school board official or mayor)
  • Public Official Surety Bonds- bonds that protect again the lack of performance of duties or dishonesty of a public official
  • Rate- the percentage of money used to determine the bond premium
  • Reclamation Bonds- bonds that insures an entity will restore to its original condition
  • Replevin- a legal action used for the recovery of property wrongfully detained or taken.
  • Retrospective Plan Bonds- an insurance bond in which the final premium amount is based on an administrative charge or incurred losses.
  • Self-Insurers Retention Plan Bonds- bonds used for Workers’ Compensation and usually are liability and other coverage where only unaffordable or limited coverage is available.
  • Small Business Administration (SBA)- SBA has programs to help minority owned and small businesses obtain surety bonds.
  • Supply Surety Bond- bonds that covers the contract of a supplier and all losses should a supplier not deliver supplies and materials as contracted.
  • Surety- a person who is legally responsible for the debt, delinquency, contracts or liability of another.
  • Surety Bonds- a three party agreement between the project owner (Obligee), a contractor (Principal and the surety company. The bonds guarantees that the contracted work will be completed on budget and on time and it will cover any losses incurred by poor performance.