The surety underwriting process serves the purpose of defending surety providers. To attorneys and their clients, it is a complex obstacle that is in the way of obtaining a much-needed bond.
There are a lot of pitfalls that people fall into when going through the surety bond application and underwriting process, each of which can delay the approval of a bond or increase the cost of obtaining one.
A simple understanding of this underwriting process, and how to speed it up, will save attorneys time and money.
The Basic Surety Underwriting Process
Once underwriters have all the necessary information, they will review the bond application, credit history of the applicant and the surety bond principal. The red flags that they are generally looking for have to do with bad credit history, out of place financial dealings and anything else that could pose a risk to the surety.
In order to get through the underwriting process quickly, attorneys should make sure that everything is in order before applying. The most important information that should be compiled is the financial standing of their client. Surety underwriters will want to compare this to the amount being requested for the bond.
Specific Bond Requirements
Depending on the type of bond that is being requested, surety underwriters will look for different types of information.
For something like a replevin bond, underwriters need to see proof of the value of the property that is in question. Replevin bonds generally need to be worth double what the possession is worth.
When it comes to guardianship or conservatorship, underwriters will do a background check on the parties involved. They are looking for conflicts of interest or anything that will disqualify a person from being a guardian or conservator.
Make sure that you fully understand and possess all the necessary underwriting information based on the type of bond you need. This will increase your chances of having the bond approved quickly.
Save Time on the Preliminary Process
Attorneys can save themselves a lot of time by reaching out to a surety bond agency before the underwriting process even begins. The good thing about working with a surety agency is that they can speed up the approval process and find you a surety quickly.
If you are looking for a smaller bond, you don’t even have to take the time to fill out an online application. Just contact the Patrick J Thomas agency and we will get the process started right away.
Give us a call at (612) 339-5522 or email us today.
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.