2012-02-02

NPM 017-2012

Requesting Entity: Innove Communications, Inc.

Issues Concern: Certification issued by the Insurance Commission

 

Details

Clarification as regards the prescribed format and the required information of the certification that should accompany a surety bond submitted as a bid or performance security provided in Sections 27 and 39.

With respect to the format of the certification, please be informed that since the authority to issue such certification belongs with the Insurance Commission, it has the prerogative to determine the format therefor.

As regards the content of the certification, please note that as discussed in a previous opinion and in compliance with Sections 27.2 (c) and 39.2 (c), 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 on demand, and (ii) must be issued by the Insurance Commission. Further, we wish to note that since the surety bond required under Sections 27.2 (c) and 39.2 (c) is required to be project specific, the certification from the Insurance Commission must also be project specific.