GAO Invites NASBP to Roundtable on Product Recalls and Destruction of Rejected Imported Goods
GAO Invites NASBP to Roundtable on Product Recalls and Destruction of Rejected Imported Goods
Charged to conduct a study, the U.S. General Accounting Office (GAO) held a meeting January 30th in Washington, DC with NASBP and other surety and insurance industry representatives to discuss, among other things, the efficacy of a surety obligation relating to product recalls and destruction of rejected imported goods.George R. James of International Fidelity Insurance Company of Newark, New Jersey and a member of the NASBP Commercial Surety Committee represented NASBP during the roundtable discussion of the feasibility of requiring companies to post an escrow, proof of insurance, or security to cover the cost of product recalls or the destruction of domestic and imported consumer products regulated by the Consumer Product Safety Commission (“CPSC”). GAO indicated that conclusions from the January 30 meeting would be considered in the GAO study on the topic.
GAO Outreach to NASBP
GAO had contacted NASBP in November 2008, and at NASBP’s urging, scheduled a conference call with GAO, NASBP members and staff, and other surety industry representatives from the American Insurance Association and The Surety & Fidelity Association of America to discuss the topic. After the conference call, GAO concluded that further discussion was necessary and invited the groups to participate in a meeting in person with other GAO invitees on January 30.
NASBP also drafted and distributed to GAO a working paper to help GAO understand bonding parameters. Click here to access the paper.
NASBP has encouraged the GAO staff to contact NASBP and other surety industry representatives to continue a dialogue on this or any surety related matter as GAO’s study research progresses.
