After obtaining a basic understanding of the company’s operation and analyzing the current financial condition of the company, the underwriter will consider several questions that go more to the character or management capacity of the key personnel. For many small companies, these issues seem quite unrelated to their ability to perform a contract and are somewhat of a nuisance to address with the underwriter. However, many underwrites consider these issues important to establishing a … [Read more...]
Understanding the Underwriter – Financial Statements
A company’s financial statements are the underwriters next consideration. Like loan officers at a bank, a surety company underwriter weighs your financial statements very heavily when determining whether you represent a risk of loss. Again, surety bonds are a credit facility, and the surety company wants to make sure that your company is good on any losses that might be sustained. On the assumption of zero risk, the underwriter is charged by the surety company with making sure that a company … [Read more...]
Understanding the Underwriter – Contractor Questionnaire
The first thing that the surety underwriter considers from the bond application materials is the Contractor Questionnaire. This form provides the underwriter with a first, detailed look at the company. Understanding what the surety underwriter is looking for within the Contractor Questionnaire can be key to a successful application process. Some very basic elements from a review of the Contractor Questionnaire will be interpreted very carefully by the underwriter: It is important to note … [Read more...]
Autumn Shows Us How Beautiful it is to Let Things Go
I have to say that my favorite season of the year has always been autumn. While it does herald in shorter days and cooler weather, I find it the most beautiful of all seasons. I love pulling out my fall home decor and seeing all the beautiful reds, oranges, and yellows both inside and outside my home. (I also love it when my young granddaughter comes and rearranges by decor because I just don't have her eye for these things!) I love trips to the apple orchard, bonfires, hot chocolate with … [Read more...]
Surety Bond or Letter of Credit – What’s the Difference
Both surety bonds and letters of credit are used as a risk management tool on construction and development projects. For this reason, Goldleaf Surety is often asked surety bond or letter of credit – what’s the difference. In September and October of 2015, Goldleaf Surety did a series of blog post comparing surety bonds and letters of credit in detail. (Surety Bonds and Bank Letters of Credit Comparisons, Part 1; Surety Bonds and Bank Letters of Credit Comparisons, Part 2; Surety Bonds and … [Read more...]
Happy Labor Day!
Labor Day is considered the unofficial end of summer. The last long weekend to spend time with friends and family. Like other holidays, the real reason we celebrate the holiday can be overlooked. So, why do we celebrate Labor Day? It is a day set aside to celebrate the contributions and dedication of the 122 million men and women who are in the United States workforce. The first Labor Day in the U.S. was celebrated on Tuesday, September 5, 1882. It was held in New York City and planned … [Read more...]
Legislation Affects MVD Bond Requirements
Several states have enacted new legislation affecting Motor Vehicle Dealer (MVD) Bond Requirements. Alabama HB 393, which becomes effective October 1, 2020, makes several changes to the regulations governing the issuance of a motor vehicle dealer license. One of these changes increases the license bond amount for new motor vehicle dealers, used motor vehicle dealers, motor vehicle re-builders, or motor vehicles wholesalers to be for not less than $50,000 or another amount that the Department … [Read more...]
Meet Goldleaf Surety’s Newest Team Member
Goldleaf Surety would like to welcome the newest member to our team, Cal Anderson. Cal grew up in Montevideo and worked at Goldleaf during the summer throughout high school and college. He attended North Dakota State University in Fargo, ND, majoring in finance. Once he graduated, he moved to the twin cities for a few years to expand his knowledge of the insurance industry. He has now returned to work at Goldleaf full-time as an Account Specialist. He enjoys spending time at the lake … [Read more...]
Happy 4th of July
Goldleaf Suety Services Wishes You a Happy 4th of July! Freedom is never given; it is won. - A. Philip Randolf Let each one of us make a promise to ourselves that as long as we live, we will help America grow into a better nation with each passing day. Our offices will be closed Friday, July 3, so that our staff can spend the holiday with family. We will be back on Monday, July 6 ready to assist you with all of your surety bond needs. Have a fun and safe … [Read more...]
Goldleaf Surety Is Here for You
Goldleaf Surety is here for you when you have questions about or need help navigating the world of surety bonds. For over 20 years, our experienced and knowledgeable staff has been here for you. And, as we move forward in ever-changing and uncertain times, Goldleaf Surety will continue to be here for you when you have questions or need help navigating the world of surety bonds. In these times of a “new normal,” construction projects continue to move forward and certain things remain the … [Read more...]