Many Thousands of Types of Surety Bonds

 

Surety bonds are contracts entered between three parties:

The principal, the business or individual purchasing the bond in order to guarantee future work performance.

The obligee, the entity requiring the bond.  This is often a government agency regulating industries in an effort to reduce the chance of financial loss. 

The surety, the insurance company backing the bond.  The surety provides a line of credit to be used in case the principal fails to perform in accordance with the terms of the bond and the obligee makes a claim against the bond.

Although it's not insurance as such, a surety bond is a promise and guarantee by one party to underwrite the debt, default or failure of another party.  Surety bonds ensure that services being performed by one entity for another are fully and properly completed.  If not, the party suffering damages due to the service not being completed or being done improperly, may take a claim as the obligee for full compensation within the financial limits of the bond.

How Does It Work?

Regardless of the bond specifics, it is a legal agreement among the three parties as explained above.  The principal is the individual or the business who has promised to provide professional services and is the one who pays for the bond.  The obligee is the individual for whom the service is being provided and the one who suffers if the service is performed improperly or is incomplete.  The surety is the entity who provides compensation to the obligee in the event the principal fails to perform according to the specifics of the bond.

Types of Surety Bonds

Surety bonds can fall into one of three general categories:

Commercial Bonds - used to keep working professionals from either committing fraud or using harmful business practices.  These types of bonds are typically license and permit bonds and are commonly required by the government before issuing licenses and permits.  Some common examples include sales tax bonds, auto dealer bonds and business service bonds.

Contract Bonds - used to ensure contracts are completed according to the terms of the contract.  Commonly used in the construction industry, the three most common types are Bid bonds, Performance bonds and Payment bonds.

Court Bonds - put in place to reduce risks of financial loss to persons pursuing a court action.  

It's estimated that there are more than 50,000 bonds in the U.S.

Preventing Theft While on Vacation

 

Preventing theft while you're on vacation calls for proactive deterrence measures along two avenues:

1. Prevention needed to ensure that your home, property and personal belongings are safe from would-be vandals or thieves wanting to break in, believing your property is unoccupied
2. Preventive steps needed to ensure the safety of your person, your family and your personal belongings during your travels

Home Burglary Protection While on Vacation

According to statistics gathered by the FBI, a home is burglarized in the US every 15 seconds, with an average loss of approximately $2,188 per burglary.  This means there are about 4,800 burglaries every day or 2.5 million per year.

While nearly 50% of all homes in the US are without a security system, statistics show that a home without a security system is three times as likely to suffer a break-in or burglary.  Burglars are known to look for signs of a security system in a property they're considering robbing.  They'd much rather prey on a home without a system and, if a system is apparent, will often move on to a different victim.

This makes an active home security system the number one item for preventing home theft, especially if the alarm is monitored by off-site authorities.  Systems are also available that can notify you personally on your cell phone if your home security system is triggered.  Other theft-deterrence items include:

• Solid wood or steel exterior doors with deadbolt locks.
• Motion-activated sensors on exterior flood lights and cameras.
• Locks on pet doors.
• Hardware installed on garage doors to prevent easy access.
• Windows should be locked and blocked and basement windows have well covers.

Make sure you have comprehensive homeowners insurance protecting your home and personal belongings.  Complete an inventory of your personal belongings.  Include photos and serial numbers.  Some other safety tips for protecting your home while on vacation include:

• Don't publicize your upcoming travel in public or on social media
• Put a halt on your newspaper and mail deliveries or arrange for a trusted friend or neighbor to collect them regularly
• Put an inside light on a timer
• Park your car in the garage and ask a neighbor to park in your drive once in a while
• Make sure your lawn gets trimmed

Preventing Theft on Your Travels

Tips to avoid theft while on your travels are too numerous to list individually here but many can be found here and here.

Do I Need Insurance for My Moped or Scooter?

 

In North Carolina, low-powered vehicles like mopeds, scooters and e-bikes have become more popular lately, especially since the cost of gas has been rising so significantly.  If you're thinking of becoming a convert to this form of two-wheeled transport, you may have questions about the insurance requirements you'll face in order to operate your moped or scooter on North Carolina roads.  You can find answers to those questions here.

Mopeds or Scooter?

In the State of North Carolina, a motorized two-wheeled vehicle with an engine less than 50cc and a top speed of less than 30 mph is legally considered a moped.  A moped usually has pedals, like a bicycle, but not always.  Traditionally, mopeds had pedals, thus the name, which is a combination of motor and pedal.

A scooter, defined as having an engine size of 50cc or greater, is considered a motorcycle but, to be considered a scooter, will have a platform to put your feet.

Moped Requirements

State laws in North Carolina require that all mopeds operated on public, state-maintained roads be registered with the state division of motor vehicles.  They are not required to be titled.

The law also requires these vehicles be covered by at least a minimum amount of liability insurance in amounts as follows:

• $30,000 bodily injury liability coverage per person per accident
• $60,000 bodily injury liability coverage for all persons per accident
• $25,000 damaged property liability coverage per incident

This liability protection is for losses suffered by a third party or parties in an accident deemed to be your fault.  The minimum required amounts are the same as those set for larger scooters or motorcycles and, in the event of an actual accident, especially a seriously damaging one, may be significantly lower than the costs an at-fault rider will face.  You will be personally responsible for any costs above these minimum amounts that your insurance is obligated to cover.  Financial experts generally agree that your liability protection should be considerably more than what's required by law.

Approved motorcycle helmets are required to be worn at all times when riding either a moped or scooter on public roads.  You're required to have a valid driver license on your person when operating your scooter, but a license is not required to operate a moped.  You need only be sixteen years of age, have it registered with NC DMV and display a state-issued license plate.