January 29, 2004
SureTec General Counsel Addresses American Bar Association
Committee
on "Onerous Bond Forms"
HOUSTON, TEXAS (January 29, 2004) SureTec Insurance Company’s General Counsel
has today addressed the Mid-Winter Meeting of the American Bar Association’s
Fidelity & Surety Committee on the subject of "Onerous Bond Forms."
Steve Nelson, EVP and General Counsel of SureTec, surveyed forms from across
the country that exceeded statutory requirements or went beyond the scope of
coverage that bond principals and their sureties are prepared to offer.
According to Nelson, "These onerous forms unnecessarily increase the risk of
construction for our principles, often without providing benefits that the
obligee thought they were obtaining. Most are written without any appreciation
for the issues involved." He added, "The use of overreaching forms eliminates
many construction companies from the market, simply because they cannot meet the
extraordinary underwriting requirements necessary for some of these bonds. This
is especially problematic for small and disadvantaged contractors."
SureTec, through independent insurance agents and professional surety bond
producers, specializes in underwriting contract surety and related financial
products, primarily in the State of Texas.
A copy of the presentation is available at
http://www.suretec.com/links.htm
John Knox, Jr., CEO
SureTec Insurance Company
(713) 812-0800
jknox@suretec.com
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