2010-07-07

NPM 024-2010

Requesting Entity: Teddie Construction Development, Inc.

Issues Concern: Certification from the Insurance Commission

 

Details

Inquiry on the correct form of certification that should accompany the surety bond which is submitted as a bid or performance security.

The certification which must be submitted by the bidder together with the surety bond must (i) unequivocally state that the surety or insurance company is specifically authorized to issue surety bonds callable upon demand, and (ii) must be issued by the Insurance Commission. Consequently, a copy of the firm's license or certificate of authority to transact in insurance business will not suffice. It must be a separate certificate which cannot be issued by any other entity except the Insurance Commission.