NASBP Strongly Opposes HB 585/SB 599 “The Subcontractor Equal Access to Bonding Act of 2013”

The National Association of Surety Bond Producers (NASBP) is a national trade organization of professional surety bond producers, whose membership includes businesses employing licensed surety bond producers placing bid, performance, and payment bonds in Maryland and elsewhere in the United States. NASBP strongly opposes House Bill 585/Senate Bill 599, which permits individual sureties (i.e., natural persons, not authorized surety companies) to write surety bonds on service, supply, and construction-related subcontracts in Maryland without a certificate of authority. HB 585/SB 599 is an expansion of the scope of the 2006 law, which permitted individual sureties to write surety bonds for prime contractors performing public works contracts without obtaining a certificate of authority from the Maryland Insurance Administration (MIA) as an authorized insurer.

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