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Questions a Surety Underwriter will Ask You
Buying a surety bond online has become incredibly easy. But before you buy a bond, you will have to go through an underwriter evaluation to determine the bond cost. During this evaluation, an underwriter may ask you the following questions:
What is your credit score?
Surety companies prefer applicants with good credit score. But don’t worry if your score is not that great. The underwriter will consider other factors like financial stability and professional ability as well. Though, you will likely have to pay a higher price for a bad score.
Have you ever fled bankruptcy? How many years ago?
Filing for bankruptcy can indicate financial mismanagement or poor decision making — these are not positive traits for a surety underwriter evaluation. However, if your recent history shows good recovery from such failures, it will mitigate the negative effect.
Have you or any company owned by you ever failed in business?
Failure in business is indicative of questionable decision making. The underwriter will ask for documents on previous and present businesses to gauge your financial position and ability to do business successfully.
Have you ever had your surety bond canceled, refused renewal or been denied?
Any negative action by a surety in the past could indicate some concern in your financial or professional history. The underwriter is looking for explanation on why your application was dismissed.
Have you ever had your license suspended or revoked, denied, or had any legal or administrative actions against you?
The underwriter will consider any negative actions and the reasons for revocation or cancellation. Reasons like inability to gather fund may work, but a criminal history is a far more serious concern.
Do you have any pending lawsuits, judgments, liens or unpaid child support?
An unfavorable judgement could be seen as a strike against you. Certain liens and debts like an unpaid alimony adds to your financial debts.
Have you ever been convicted of fraud or felony?
The underwriter will want to know of any past convictions when evaluating a quote for your surety bond online.
by manavpietro on 2019-06-21 07:05:12
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