March 2019

Study predicts high costs for pre-trial release

The report said the bail system costs taxpayers far less. As Florida lawmakers consider expanding pre-trial release programs, a new University of Tampa study suggests that the cost could be prohibitive. David Krahl, assistant professor of criminology and criminal justice, said sticking with bail will save the justice system considerable dollars. His study shows surety bonds cost the state almost nothing. Other forms of unsecured pretrial release, meanwhile, cost more than $95 million over a three-year period. “The notion that large numbers of defendants are languishing away in jail simply because they cannot afford the cost of a surety bond to secure their pretrial release is sheer fiction,” Krahl said. The professor presented his findings last month to the Professional Bail Agents of the United States. Now, bail bondsmen in Florida are pointing to the data as one more sign that reform remains unnecessary. But state Sen. Jeffrey Brandes, a St. Petersburg Republican, disagrees. He continues to make the case for pre-trial release. His legislation (SB 534) already passed through the Senate Criminal Justice Committee unanimously. It now heads to Appropriations Subcommittee on Criminal and Civil Justice. Brandes has maintained establishment of a supervised bond program will allow law enforcement to manage jail populations. It will also allow incarcerated individuals to return to families and jobs faster. “It will be a great tool for everybody,” Brandes said. “It will help sheriffs manage jail populations, and it will help individuals get back to life quicker.” That also means less will be spent on bail bonds, which brings obvious financial consequence for the industry. But bail bondsmen say it’s not just self-interest driving their opposition. In fact, they say bail continues to be the best option for many low-level offenders. https://floridapolitics.com/archives/291696-university-tampa-pre-trial-release291696

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legislation

North Dakota Modifies Surety Bond Requirements

North Dakota has modified the surety bond requirements under the Money Brokers Act. Presently, the law requires a surety bond in an amount not less than $25,000. N.D. Cent. Code Section 13-04.1-04.01(1). Effective August 1, 2019, the new minimum amount of the bond will be $50,000. https://www.natlawreview.com/article/north-dakota-modifies-surety-bond-requirements

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Contractor defaults on Truro Township fire station [Westfield]

The opening of a new Truro Township fire station on East Main Street in Reynoldsburg has been delayed again, this time until August, because the general contractor, Palmetto Construction Services LLC, abandoned the project last month. The opening of a new Truro Township fire station on East Main Street in Reynoldsburg has been delayed again, this time until August, because the general contractor, Palmetto Construction Services LLC, abandoned the project last month. The station has already faced weather delays. Its original December 2018 completion date was moved to January 2019 because heavy rain the previous spring delayed foundation work. The opening date was moved again to April this year before Palmetto backed out of the project. Palmetto “voluntarily defaulted” on its contract to build the $3.9 million Fire Station 161 in February, Truro Township fire Chief Jeff Sharps said. A Feb. 6 letter sent by email and certified mail to Sharps said the Columbus-based company “is unable to complete the … contract and does voluntarily default said contract.” The letter was signed by Casey Cusack and Jerry Diodore, both principals in the company. An email to the company seeking comment was not answered; a recording on the company’s telephone line said the voicemail box was full and could no longer accept messages. Administrator Jason Nicodemus said Truro Township had paid Palmetto $1,611,744. Fire Station 161 is about 50 percent complete, Sharps said, but construction has continued because the project’s surety bonding company, Ohio Farmers Insurance Company-Westfield Group, took over for Palmetto in mid-February and has retained most of the subcontractors Palmetto originally hired. Since the Westfield Group took over, there has been a “lot of movement at the station,” Truro Township trustee Pat Mahaffey said. “They didn’t really miss a beat. Three days later, there were people on the job and there’s been a steady stream of workers in there ever since. “Construction isn’t a perfect science and it’s unfortunate that Palmetto had this problem … but we made sure we had a good bonding agent in place. Because of the surety bond, the delay is not expected to increase construction costs, officials said. “When we were vetting the prospective bidders, the township did everything it could in terms of our due diligence,” Sharps said. “Nothing that we saw gave us any indication that this was going to happen or we wouldn’t have picked (Palmetto). “We are doing anything and everything in our power to make that opening date,” Sharps said. “This project has gone slowly but if we can get it done by August, we’re looking at about 18 months since we demolished the old station. We’re making sure we’re spending the taxpayers’ money properly. That station has to be built right and it’s got to last.” https://www.thisweeknews.com/news/20190306/contractor-defaults-on-truro-township-fire-station

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With 7.5% Growth Rate Surety Market to Reach US $28.77 Billion by 2027

Surety Market to 2027 – Global Analysis and Forecast by Bond Type. In terms of revenue, the global Surety market accounted for US$ 15.33 Billion in 2018 and is expected to grow at a CAGR of 7.5% over the forecast period 2019–2027, to account for US$ 28.77 Billion in 2027. Pune, India — (SBWIRE) — 03/06/2019 — The report highlights the trends prevalent in the global surety market and the factors driving the market along with those that act as deterrents to its growth. Currently, the surety market penetration rates in the North America region is higher than any other markets across the globe. This is attributed to most of U.S. State governments’ laws that mandate surety bonds. Both the U.S. and Canada Surety markets are majorly ruled by insurers, while banks also play a significant role. However, SAM and APAC region is anticipated to grow at the highest CAGR. The global surety market by geography is segmented into five regions including North America, Europe, Asia Pacific, Middle East & Africa and South America. Market is currently dominated by North America followed by Europe however, the market in South America is growing at a highest CAGR. Some of the major companies operating in the market include AmTrust Financial Services, Inc.; Crum & Forster; CNA Financial Corporation; American Financial Group, Inc.; The Travelers Indemnity Company; Liberty Mutual Insurance Company; Hartford Financial Services Group, Inc.; HCC Insurance Holdings; IFIC Surety Group; and Chubb Limited among others. Merger and acquisition is expected to be the key growth strategy to be adopted by players for next two-three years. However, this strategy could impact competition, it is also expected to generate new market as well as product opportunities as recently combined companies will thrive to maintain position and profitability. The major companies operating in the market include AmTrust Financial Services, Inc.; Crum & Forster; CNA Financial Corporation; American Financial Group, Inc.; The Travelers Indemnity Company; Liberty Mutual Insurance Company; Hartford Financial Services Group, Inc.; HCC Insurance Holdings; IFIC Surety Group; and Chubb Limited among others. The report focuses on an in-depth segmentation of the Surety market based on bond type. The geographic segmentation of the report covers five major regions including; North Americas, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA) and South America (SA). The regional market has been further bifurcated by respective countries. By bond type, contract surety bond accounted for the largest share of the surety market in 2018. Read more… http://www.digitaljournal.com/pr/4194681

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