On behalf of the National Association of Surety Bond Producers (NASBP), a national trade association of surety bond producers, whose membership includes licensed resident bond agents and licensed non-resident bond agents in Arizona, I am writing you to respectfully request your prompt review of your practices regarding the acceptance of surety bonds. It has come to my attention that your office is rejecting the submission of surety bonds, in whole or in part, based on the fact that they are not countersigned by an “Arizona Resident Agent.” I have attached as an exhibit to this letter a photocopy of such a rejection that also included the applicable Arizona statute, §20-229, “Countersignature of insurance producer; exceptions.” Attached also is an annotated version of that statute which indicates the history of amendments to its language.
Project Owners Beware – Don’t Eliminate Prime Bonds in Favor of Dual Obligee Status on Subcontract Bonds