Medicaid Bonds

Medicaid bonds are an absolute necessity for any businesses who submit bills to Medicare. This is a type of medical license bond which ensures that professionals are adhering to the rules as prescribed by the Centers for Medicaid and Medicare Services (CMS). All personal care agencies and those providing durable medical equipment, prosthetics, orthotics and supplies (DMEPOS), may require a bond. Whether or not your business actually requires a DMEPOS bond will depend on the laws in your state, so be sure to do your research and follow the guidelines in the area where your business operates. These bonds are required for as long as your business carries out the prescribed functions and assists in regulating the actions of companies submitting bills to Medicare, and helps provide some peace of mind to their clients. There are some exceptions to this rule, but generally every medical service provider with a National Provider Identifier Number (NPI) will need a minimum of a $50,000 Medicaid bond.

In 2009 CMS brought forth new regulations requiring the existence of these bonds to protect the public and help control the existence of fraudulent claims made to Medicare. Some exceptions to these rules include DMEPOS which are government operated, some physicians and occupational therapists, as well as state licensed orthotic personnel who work in private practice and bill to Medicare only for prosthetics, orthotics and supplies.

An application for a Medicaid bond can be obtained by visiting the website of the United States Department of Treasury’s listing of certified bond companies. The estimated cost per bond is approximately 3% of the actual value of the bond. While some businesses will require a minimum bond in the amount of $50,000 be advised that depending on the type of services you provide you could be required to hold a higher valued bond. Additionally, if you are a service provider with multiple locations, note that a Medicaid bond is required for each location which is or will be submitting bills to Medicare.

Each Medicaid bond must include certain aspects such as:

  • within 30 days of receiving notice from the CMS, pay any unpaid claims or penalties;
  • a statement claiming liability for unpaid claims which occur during the period of the bond’s existence;
  • a statement that actions may be brought forth by the CMS;
  • indicate the DMEPOS as supplier, CMS as obligee and surety as surety

To obtain a bond, suppliers can start by contacting their insurance company or agent, preferably one that works in surety bonds. The insurance agent will request information such as corporate financial statements, personal statements, tax returns, agreement of indemnity, application for a National Provider Identifier number, surety application, as well as any other documents which they may deem as being of assistance during the application process. The application for the Medicaid bond will ask the business owner relevant information required in assessing the value required for the surety, such as: information on the ownership of the business and its name and location; business’ nature including the equipment it provides to its clients. Also of importance are the annual billings the business already makes to Medicare and the business’ accreditation documents.

There are also a myriad of insurance companies and brokers available on the internet which businesses can choose to apply to online for these bonds. This may be convenient if your current insurance broker doesn’t deal with bonds or if you’d like to investigate various price options.

For consumers looking to receive Medicare benefits, contact the local Medicare office in the state you reside in and inquire about the next steps to take to receive benefits. 

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License Bond

A license bond is a type of surety bond. In fact, license bonds represent a big chunk of different surety bonds, with diverse objectives and conditions. Surety bonds are specialized bonds. They act as any other type of bond, but they have the objective of establishing an enforceable contract and a financial guarantee where it is stated that the purchaser of the bond will act within the regulations and laws ruling the industry. In some industries, state government agencies might require a special bond prior to issuing a license or a permit. These special bonds are called license bonds or permit bonds. There are many examples of industries that require bonding prior to issuing any professional license. New auctioneers will have to buy a license bond if they want to obtain a license to operate an auction house; telemarketing companies or businesses require a bond before they can start any business by phone.

Because license bonds are surety bonds, they are contracts where three parties are involved, each one of them with their own responsibilities.

The Principal is the individual or company that needs to purchase the bond in order to obtain a license or a permit. When the principal obtains the bond, he is agreeing to act within the limits of the laws that regulate that specific industry. It is a financial guarantee that every regulation will be followed with the only objective of bringing honest and quality service to the client.

The Obligee is the party that will require the bond to be purchased before issuing any permit or license. State government entities are usually the ones to represent the Obligee party in a license bond contract. Many state government agencies require special bonding prior to issuing a license. Used car dealers, travel agencies, mortgage brokers and collection agencies are just some of the industries that require a license bond prior to issuing or renewing a professional license.

The third and final party is known as the Surety. This is the party that will sell, underwrite and issue a bond. Since sureties need to have a strong financial support, insurance companies are usually the ones to play this part. As the issuers of the bond, sureties have certain specific responsibilities with both the obligee and the principal. If the principal deliberately or accidentally acts outside the established limits of the law or regulations that control the industry, the obligee can make a claim against the bond. Whenever a claim is made, the surety will have the obligation to study the situation in order to determine if the claim is valid. In an event of a valid claim, the surety will pay the obligee for any amount required to cover the damages and harms made when the principal failed to act within the law. The surety will then turn to the principal and ask for a reimbursement of the paid amount plus any legal fees incurred during the claim’s investigation.

It is very clear that license bonds and insurance are two different things, and they should not be confused. In an insurance deal, there are only two parties: the insurance company and the insured individual or company. The insured party never pays reimbursement whenever the insurance company has to make a payment in his name. In a license bond, there are three parties, and the principal always has to make a reimbursement whenever the surety pays in his name. This is mainly because a license bond is a guarantee aimed for the customer, not the principal.

A license bond comes as a prerequisite of many licenses businesses. It is an efficient way for a principal to guarantee that they will work following any regulations involved in the industry. It also works for the obligee, protecting it from any financial loss if the principal fails to follow the established guidelines and laws. With a license bond, government institutions have better regulation over the industry and the services it provides; it is a way to ensure quality service, honest transactions and good business relationships between the principal and the client. 

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Learn the Use of a Fidelity Bond

The definition of fidelity is faithfulness to obligations, duties or observances. In business a fidelity bond is used to protect a business from certain types of damages that are caused by their employees. These bonds are designed to protect the business from issues that are not covered by other type of insurance or policies that they may have.

The most common reasons that a business would need to make a claim on a fidelity bond is when an employee damages the business through dishonest or negligent actions. The fidelity bond is an insurance policy for business to protect them from monetary damages.

Who can get a fidelity bond?

The fidelity bonds only protect a business for their paid employees. It does not protect self-employed individuals and independent contractors. The definition of a paid employee is any employee that has federal taxes withheld from their paycheck.

It is very common for businesses in the financial field to maintain fidelity bonds. Insurance companies and brokerages often deal with large sums of money. They need to have a way to recover any money that is lost because of dishonest employees. The fidelity bond provides the companies with the ability to do that.

What does it cover?

The biggest question that a business has is what the fidelity bond will cover. In the case of dishonest protection, the fidelity bond will protect the business against fraudulent activity that caused the business to lose money. Some of the reasons that a claim will be filed against the bond include:

  • Employee theft
  • Counterfeiting
  • Fraud

In the case of claims that are filed because of negligent actions, there are also several areas where the bond will offer protection. Employees that cause deliberate damage to the businesses property can create situations that could result in a claim. If the employee takes a hammer to the business’s equipment, that would be an example. Claims can also be filed if the employee does not do their job properly and because of the negligence, property is damaged. If an employee leaves the safe open and the money is stolen out of it, it could result in a claim.

There are some things that the fidelity bonds do not cover. Accidents by employees are not covered. If a business loses money because an employee does not do their job well, they cannot make a claim. Other exceptions can be written into the4 bond when it is purchased.

Types of fidelity bonds

Most fidelity bonds are purchased through companies that offer a variety of surety bonds and other bonds. There are some businesses that are able to get free fidelity bonds though local governments that want the businesses to hire certain groups of people. The bonds can entice businesses to hire people that are considered to be risky such as individuals convicted of a crime or individuals with certain types of handicaps. Fidelity bonds can range from a few thousand dollars to tens of thousands of dollars in coverage.

Where to get them

The fidelity bonds can be purchased from companies that specialize in these types of products. They will require the business to provide information about their reputation in the industry that they are in. They will also have to supply financial statements to the company that is offering the bond. There is no guarantee that a bond will be issued. If the company offering the bond thinks it is too risky they will either deny the coverage or they will charge more for the bond. If a company is going to get a fidelity bond, they can go through a pre-qualification process that can make it easier to get the bond later on.

Businesses need to rely on their employees. Most successful businesses will say that it is thanks to the hard work of their employees. In the event the employees do not do the things they are supposed to, the fidelity bond will provide the protection they need.

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Keep a Project Going with Supply Bonds

There are many things that can go wrong on a construction project. No matter what goes wrong, there are two things that they have in common. They will delay the project and they will cost money. Project managers work hard to avoid any problems because of this. One of the problems that they will face is the delay in the delivery of supplies.

It is one thing if the delay is because the supplier cannot get the supplies that are needed. That may be out of the project manager’s control. The best solution to this issue is often to find another supplier who can deliver what is needed. If the delay is because the supplier has not been paid for what they are owed, or if the supplier thinks they won’t be paid, that is a different issue. That is something that the project manager can control. One of the best ways to do this is through a supply bond.

What is it?

A supply bond is a surety bond. It guarantees the payment to the supplier if the money for a construction project runs out. The bond is posted before the supplies are ordered. The suppliers are willing to send the supplies because they know that one way or another, they will get paid. A supply bond is often required for many projects in order for them to even begin.

Supply bonds are often thought to be a type of insurance. In a way they are. They do provide payment in the case that something happens that makes it impossible for the project manager to make payments for supplies that have been used. The supply bonds do not require premiums that come with typical insurance policies. Instead the fees for the bonds are a percentage of the value of the supplies. If the supplier makes a claim on the bond, it is the responsibility of the project manager to make good on the bond at some point.

Why use it?

There will be some people that wonder why a supply bond is necessary. The supplies needed for a project can be paid for as they are used or the project can use a line of credit to pay for the supplies when they are delivered to the project. If a project manager chooses to use these methods to pay for supplies that are using one of the most important assets of any construction project. They are using up the available cash to pay for the supplies. If the project is a lengthy project, this could be very costly and could cause problems for the project at some point.

The supply bond allows the project to get the supplies they need without tying up the needed cash. They can pay for the supplies over the life of the project. IT is the safer way to do business. The more available cash that a construction project has, the easier it is to keep the project moving along and on time.

The cost of any construction project is something that needs to be watched. Every construction project should have a budget. It should also have a timeline and a date when the project is expected to be finished. In order to reach these goals, bonds that guarantee payment to everyone involved in the project are a useful tool. They help keep everyone on the project working because they know that they will be paid. It does cost money to get these bonds. The project manager should make sure they have enough of the bonds without spending too much for them. The project managers that can do this are the ones that finish projects on time and on budget. They are the people that are doing the job the right way.

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Investors are Turning to Down Payment Bonds

In many businesses, the ability to save cash is very important to the success of the business. Investing in real estate is one of those businesses. The less cash that you tie up in a real estate investment, the easier it is to make money later on. The question for real estate investors is how they get the properties they want without tying up their cash.

One way to do this is through the use of a down payment bond. These bonds can replace the cash that an investor typically has to put up when they work to buy, build or renovate a property. It is an efficient and safe way for investors to work with real estate.

What is it?

Payment bonds have been used in the past by contractors to guarantee the payments to subcontractors and the suppliers of material on a construction project. The money from this bond will pay these groups if the investor is unable to make good on the project. A down payment bond is used to secure funds that are needed for the deposit that is required to buy a  property.

Instead of putting up 20% in cash as a down payment for a property or instead of using the cash on hand to pay subcontractors and suppliers of material, the payment bond can be substituted. The cost of the payment bond is much lower which means that less cash for the investor is tied up in the property. These bonds are typically repaid within between 3 and 36 months. The investor that uses these bonds will pay an upfront fee. This fee is usually much lower than traditional short term financing options that carry a higher interest rate.

Why use it?

Some people might question the effectiveness of these down payment bonds. The bonds are good for both the buyer and the seller. The seller of a property will know that the investor has the down payment they need before they actually close the sale of the property. One of the reasons that many sales fall through is due to the lack of financing. This bond is a good sign that the buyer will be able to get the financing.

Investors benefit from these in several ways. They do not have to tie up any of their cash in a property that they will not get a quick return on. They will be able to get the cash they need for the property at a much lower cost than other short term financing options. The fact that a buyer can put up 20% as a down payment makes them more attractive to sellers. The4y can get properties at a lower price because of the payment bond.

Where can you get them?

Down payment bonds have been used in New Zealand and Australia for over 10 years. The United States is now seeing more investors turn to these bonds. The bonds are offered by companies that specialize in these types of products. They require the individual to fill out an application form in order to get the bond. The down payment bonds are typically insured.

In the United States the idea of using a payment bond is not new. Contractors have used this tool for many years to make sure that everyone that works on a project is paid for what they did. It can help when trying to find subcontractors or when searching for a supplier of materials to have these bonds. They benefit both the buyer and the seller of things.

The fact that people are using the idea of payment bonds for down payments on properties is new. It is also something that could grow quickly in the United States. If investors can get the property they want without having to tie up their cash, they will take advantage of it. This is what will drive the increase in the use of down payme

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Hunting/Fishing Bond

A hunting and fishing bond is a special and unique type of surety bond. In direct contrast with many other license-related surety bonds, a hunting and fishing bond is not issued to a company or individual that provides a service, but to an entity that provides hunting and fishing licenses. This is very similar –for example– to a lottery bond, which is issued on those entities who wish to sell lottery tickets. The main purpose of the bond remains very similar to other surety bonds: to protect the customer and the government agencies against any failure from the licensing company to act in accordance to the law or any implicated regulations. A hunting and fishing bond is required by every state government entity in order for a company to be legally able to issue hunting and fishing licenses. The exact expectations that this type of bonds will entail are varied, and depend mostly on the specific legal language in which is underwritten, but they all have the same objective: to protect the customer against unlawful transaction or financial loss.

As with every other surety bond, a hunting and fishing bond involves three parties in its contract. The first party is known as the Principal. The principal is the company or individual that wishes to be legally able to issue hunting and fishing licenses. The bond will oblige the company or individual to act within the frames of the laws that regulate the hunting and fishing licensing industry. It is a financial guarantee that every licensing issuer must have prior to starting any related business.

The second party involved is the Obligee. This party is the one that will require the bond to be purchased before entitling an individual or a company with the legal ability to issue hunting and fishing licenses. It is usually represented by a state government agency. The obligee is the party in charge of regulating the bonded industry. The hunting and fishing bond will also protect the obligee from any financial loss that could come from a claim made against the bond.

The third and final party is the surety. This is the party that will sell, underwrite and issue the bond. The surety is also the financial grantor within the bond, thus it is recommended that a financially strong company play this part. An insurance company usually plays the role of surety. As the issuer of the bond, the surety has certain obligations to both the obligee and the particular. Whenever the principal violates one or some of the laws regulating the hunting and fishing license industry, the obligee can make a claim against the bond. The surety then has the obligation to study the situation in order to determine if the claim is valid. In an event of a valid claim, the surety will pay the obligee for any harm or damage done by the incapacity of the principal to act in full accordance to the law. The surety will ask the particular for reimbursement of the paid amount plus any legal fees incurred while studying the claim.

The coverage prices for hunting and fishing bonds will depend on the state they are issued. They mostly depend on the popularity of the sport in that region. For example, in states where hunting and fishing are popular, a company that issues licenses is likely to succeed, thus bonding coverage prices should be lower. It also depends on the duration of the bond –the time the bond will last effective. Most bonds are paid every six months or annually. Average coverage prices for hunting and fishing bonds range from $7,000 to $12,000, but there are states, such as Florida or Arkansas, where the price is as low as $1,000. In Alabama, the coverage price for a bond of this type is $20,000.

A hunting and fishing bond will assure, both to the costumer and to any government entity involved, that the participant will provide good-quality service. It is a financial tool required prior to licensing that helps achieve successful transactions, keep a clean and honest business between customer and licensing company. 

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Health Care Professional bond

As its name might suggest, a health care professional bond is a specialized bond required to any health care professional that wishes to initiate a business related to the health care industry. It is a type of surety bond that is required before licensing any health care service provider. The main objective of a health care professional bond is to assure that the health care professional will deliver its services in full adherence to the law and regulations that are required by the industry. It is a way to protect any client or customer from a financial loss due to unlawful behavior. The exact conditions and expectations included in this type of bond are dependent on the state laws that regulate the industry and the specific legal language in which the health care bond is underwritten.

As with any other surety bond, a health care professional bond is a legally enforceable contract where three parties come together. The first party is known as the Principal. The principal is the health care professional that requires the bond in order to operate a health care service provider business. When purchasing a bond of this type, the principal agrees that it will act in full accordance to the laws and regulations required by the industry. It is a financial guarantee that the principal will act in honest, clean manners.

The second party is known as the Obligee. This is the party that requires the bond before issuing any license or permit. State government entities are usually the ones to play this part of the contract. The obligee will also determine most of the conditions and expectations that should be included in the bond. A bond is required by the obligee in order to achieve better regulation of the industry and the services it provides. The bond also protects the obligee from any financial loss that could come out of unlawful or ethically dubious behavior from the health care professional.

The third and final party is known as the Surety. This is the party that will sell, underwrite and issue the bond. Since the surety must have a strong financial support, insurance companies are the usual player for this party. As the issuer of the bond, the surety has specific obligations towards the principal and the obligee. If the health care professional ever incurs in unlawful treatment or ethically dubious services that contradict the conditions stated in the bond, the obligee has the legal right to make a claim against the bond. It is the obligation of the surety to start and conduct an investigation to determine if the claim is valid. In the event of a valid claim, the surety will pay a fee to the obligee for any harm or damage that might have come from the unlawful acting of the principal. The surety will then charge the principal for the reimbursement of the paid fee plus any other legal fees incurred during the investigation of the claim.

A healthcare provider that wishes to purchase a bond must first comply with every prerequisite needed by the surety in order to start the purchase process. An initial credit check is necessary in order to assure that the healthcare professional is financially stable enough to fulfill the financial obligations the healthcare bond includes.

Most state governmental agencies use healthcare bonds to have a strong regulation over the healthcare industry. It is a contract made by three parties to protect the obligee and the customer from any possible fraudulent action. The existence of healthcare professional bonds promotes a good relationship between service provider and client and helps the industry to achieve better credibility and provide stronger good-quality service.

 

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Explaining a Site Improvement Bond

The risks involved in construction are great. Investors will buy a property and hope that the work they do will help them make money. If they make the right decisions, it is possible to earn a lot of money. Mistakes in the decisions can quickly send an investor into bankruptcy. The risks that are associated with trying to improve properties are one of the reasons that many people shy away from it. They do not want to see a simple mistake ruin them.

One way that investors protect themselves is through the purchase of bonds that can be used during the construction process. There are many different types of bonds that can be used on construction projects. Most of the different types of bonds can be called surety bonds. The surety bonds protect the investor and anyone else on the project in the event that the money runs out. The bonds will pay for the work that has been done and the materials that have been used. One type of bond that is used in this way is called a site improvement bond.

What is a site improvement bond?

A site improvement bond is a type of surety bond. It is used to ensure that a project will be completed in the way that was agreed upon. It is used when contractors are doing improvement on a site instead of working on new construction. The bond can be used to pay the people that are the victim of fraud or illegal activity on a project. This type of bond is used by contractors who have bid on a project.

What is needed to get a site improvement bond?

A site improvement bond must be applied for. It is similar to a loan and is not an insurance policy. It does provide the people involved in a site improvement project with the knowledge that the work will be done properly and the people will be paid what they have earned.

Because it is similar to a loan, the application must be filled out by the contractor. The company that is issuing the site improvement bond will perform a credit check on the individual or business that is applying for it. They will base the fees that they charge for the bond on the credit history that is discovered. There is no guarantee that an individual or business will qualify for the site improvement bond. They will have to know where to get it and what information will be required to get it.

How do you apply for a site improvement bond?

In order to apply for a site improvement bond, the first step is to find a business that offers this product. Most of the businesses that offer surety bonds will have a site improvement bond. It is a good idea to check with a few companies to get the best rates on the bond. It will be necessary for anyone applying for this bond to gather certain documents and information that will be needed.

  • Financial statements of the business for at least 3 years
  • Personal financial statements of the principals of the business
  • Bank statements
  • Corporate and personal tax returns
  • Partnership agreement of articles of incorporation
  • Project information.

These are some of the basic things that the bond companies will require. There are some bond companies that will require other paperwork and there may be some companies that will require less.

Speed is of the essence when it comes to construction projects. In order to avoid any delays it is best to have the site improvement bond in place as soon as possible. The contractors and businesses that can accomplish this are the ones that will be able to get the most business.

 

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Do You Need a Performance Bond

Working in any type of construction can be a risky proposition. Real estate and construction projects can cost a lot of money and require time to complete. The contractors that are working on a project expect to be paid for their work. If the investor in a project runs out of money, the contractors can be left high and dry.

In order to protect themselves, contractors will rely on something known as a performance bond. A performance bond is issued by an insurer or a bank to guarantee the payment for work that has been completed. There are reasons that people would want to have a performance bond in place.

Why contractors want a performance bond

Contractors will invest their time and money when they are working on a project. If a subcontractor takes on a project they will usually have workers that will be paid. These workers expect their money even if the subcontractor has not been paid. If the subcontractor does not get payment, they will have lost the money they paid in wages and other employee expenses and the money for any materials that they supplied. If a performance bond is in place, they know they will see the money they are supposed to get.

The performance bond does not always protect the subcontractor if they do not complete the work that they were supposed to do. It is still important that the work is done to the satisfaction of the individual or group that hires the subcontractor.

Why investors need a performance bond

Subcontractors are not going to start on a project that they are not sure whether they will be paid or not. They will require good faith money from the investor before they begin. The performance bond is a way of guaranteeing the payment for the contractors of the project without tying up a great deal of cash. The bond can guarantee the entire payment for the project at a lower cost for the investor than if they had to put down payments in cash for any work or materials that are needed.

It is not easy to get bids from contractors if there is not a performance bond in place. Government contracts and other contracts require the performance bond from the investor. Performance bonds can be used for big and small construction projects. In many ways the performance bond or lack of it can lead to the success or failure of the business.

If the performance bond is required to get the subcontractors that are needed, it makes sense to have one in place. The more bidders that you can attract for a project, the lower the final bid will probably be. Contractors that do not require a security bond are likely to charge higher prices for their work because of the risk they are taking.

Who provides performance bonds?

Performance bonds are a form of credit and not insurance. That means the individual or group that is trying to get the performance bond needs to apply for it just like they would a loan. The businesses that provide performance bonds will use the credit history to help determine the fees that they will charge for the bond. In order to get a performance bond, it is necessary to go through companies that offer bonds to contractors and investors.

Real estate investing and working in construction can be very profitable. It can also be very expensive and there are plenty of people who have failed when they tried to get into this field. The problem in this field is the amount of time it takes to get your money from an investment. That often requires cash. A performance bond can cost a little bit up front, but it can save a lot of money later on. It can also help get a project finished on time because it is easier to get the contractors that are needed. It makes sense to invest a little money in this pro

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Do You Ned a Custodian Bond

When someone becomes disabled and requires another individual to take care of their financial needs, that individual is often referred to as the custodian for the disabled person. A custodian is also an individual that is responsible for the assets of the estate after someone dies. The hope is that the custodian is honest. They should use the money that they are responsible for in the right way to benefit the right people.

The problem with setting up a custodian, is that not all of them are honest. They will use the money they have access to for their own benefit. This is called fraud. Some custodians mismanage the money they are responsible for without gaining any benefit. It really does not matter if the money in the custodian’s care is lost through fraud or mismanagement. Thee4 bottom line is that it is gone and that can cause many different problems. The solution to this potential problem is to obtain a custodian bond that guarantees the money will be there when it is needed.

What is it?

Custodian bonds are purchased by the custodian of the assets. They guarantee the assets will be protected in the event of fraud ort misuse on the part of the custodian. In many ways it is an insurance policy for the people that are supposed to receive the assets. It may seem like an insurance policy but it is actually something different.

The difference stems from the way the custodian bond is paid for and the way that it is paid in the event of a claim. A custodian bond does not require regular premiums. The cost of the custodian bond is based on a percentage of the total amount of the bond. This fee may only have to be paid one time. If a claim is made against the bond, the individual making the claim will be paid from the bond. The amount that is paid for the claim will have to be repaid by the individual that purchased the bond. An insurance policy does not require the claims that are paid out to be repaid.

Who needs them?

There will be different people that need to get a custodian bond. In general anyone that is responsible for a custodian account for someone else should consider getting this product. If the person that is acting as the custodian has been approved for this role by the court, they will usually be required to purchase a custodian bond. Companies that act as custodians for estates and for individuals with disabilities will also often be required to purchase these bonds. The bond will need to be in place as long as the custodian is managing the funds.

How to get them?

There are many companies that offer these bonds. Custodian bonds are just one type of surety bond that people get. Surety bonds guarantee payment in many situations. In order to get a custodian bond or any type of surety bond, the individual or the company will have to fill out an application and will have to undergo a credit check. It is possible that they will be denied the bond if they do not have good credit.

When searching for a company to get the custodian bond from, you should look for a few different things.

  • The cost of the bond – There will be different costs depending on the company
  • The reputation of the company – You want a company that will pay the bond if needed
  • The state you live in – There may be a need to find a bond company that is able to sell the bonds in  your state

The internet makes it fairly easy to shop around for the right company to buy a custodian bond from. Make sure that you look at them carefully as you make the decision about who to buy it from. The individual buying the bond and the person that is protected by the bond deserve that effort.

 

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