surety-manual

SURETY
Section 1. Procedures, Common General Rules and Statistical Codes

TABLE OF CONTENTS
Subject Page
I. PURPOSE OF SECTION 1. ...................................................................................1
II. PROCEDURES ...................................................................................................1, 2
III. COMMON GENERAL RULES .......................................................................2, 3
IV. STATISTICAL CODES ....................................................................................3, 4
____________________________________________________________________________________________________________
©The Surety Association of America, 1991 I New Page July 1, 1991
SURETY
I. PURPOSE OF SECTION 1.
Section 1. of this Manual provides procedures, common general rules and statistical
codes for use by companies in developing their own end rates for all classes of Surety
Bonds.
II. PROCEDURES
A. Manual-Application of
This Manual may be used by companies to assist them in determining their surety
bond premiums. It may be used in conjunction with the Surety Association of
America’s Surety Loss Cost Addendum or it may also be used with individual
company end rates.
B. Premium Computation
If this Manual is used in conjunction with the Surety Association Loss Cost
Addendum, classify the risk in accordance with this Manual and determine
appropriate Loss Cost from the SAA Surety Loss Cost Addendum.
For Contract Surety bonds, the company premium is computed as follows:

(1) Multiply the Loss Cost, as determined above, by the exposure units appli-
cable to the particular risk; and
(2) Multiply the result obtained in (1) above by the company multiplier which
reflects the company’s selected provisions for profit and expense.
For Commercial Surety bonds, the company premium is computed as follows:
(1) Multiply the Loss Cost, as determined above, by the exposure units applicable
to the particular risk;
(2) Multiply the result from (1) above by the appropriate “Class Relativity
Factor” based on the class code for the bond obligation (Tables showing the
“Class Relativity Factors” are contained in the SAA Surety Loss Cost
Addendum.); and
(3) Multiply the result obtained in (2) above by the company multiplier which
reflects the company’s selected provisions for profit and expense.
If this Manual is used in conjunction with company end rates, classify the risk in
accordance with this Manual and apply the appropriate company end rate to such
risk.
©The Surety Association of America, 2004 PCS-1 Revised June 1, 2004

SURETY
C. Scope of Coverage-Application of
The Scope of Coverage sections set forth in this Manual are intended to serve as a
guide for users of this Manual and are not to be regarded as an interpretation of the
liability of the Surety under any Surety Bond.
D. Section General Rules-Application of
The Section General Rules set forth in each section of this Manual are rules which
are peculiar to certain classes of Surety Bonds classified in this Manual. The Section
General Rules are in addition to the Common General Rules set forth below.
E. Classification Code
Numbers following ● indicate Class Codes.
F. Surety’s Right of Subrogation
The guarantee covered by the bond is the primary obligation of the principal obligor
and if the principal obligor fails to fulfill its obligation and the surety makes good the
principal’s default, the surety is subrogated to the rights of the obligee against the
principal obligor.
III. COMMON GENERAL RULES

These are general rules common to most Surety Bonds classified in this part of the
Manual. They are printed in this one section rather than being repeated in each section
of the Manual:
A. First Year and Renewal Premiums-Adjustments
The first year and renewal premiums for all Surety Bonds, except when a term
premium is applicable, shall be adjusted pro rata upon termination. Term premiums
are fully earned.
B. Minimum Premium
Minimum Premiums for all Surety bonds may be established by the surety
company. The minimum premium shall be fully earned.
C. Maximum Amount of Coverage
The maximum amount of coverage for the Minimum Premium shall be given
whenever permitted.
D. Unlisted Bonds
Where a bond does not clearly fall within the scope of any listed manual
classification—contact Association for class code classification.
©The Surety Association of America, 1991 PCS-2 New Page July 1, 1991
SURETY
E. Advance Payment of Premiums

1. Where annual premiums for a Surety bond, other than a Contract Bond, written
or to be written for the same principal in the same amount, are paid in advance for
two years or more and the annual premium exceeds the surety company’s
Minimum Premium, a discount established by the surety company may be
allowed on premiums for second and subsequent years.
2. If a bond is cancelled after one year but before expiration of period for which
advance premium was paid, recompute premium for period bond remained in
force, allowing discount where length of term warrants it, and refund balance.
F. Collateral Rule
A rule governing the premium charged for collateralized Surety Bonds may be
established by the surety company.
G. Whole Dollar Premium Rule

The premium for each Surety Bond shall be rounded to the nearest whole dollar. A
premium involving $0.50 or over shall be rounded to the next higher whole dollar.
H. Renewal Premiums – Non-Cancellable Surety Bonds

Renewal premiums for all bonds which cannot be unilaterally cancelled by the
principal shall not be increased during the term of the bond.
IV. STATISTICAL CODES
A. Annual Statement Line of Business Code
All Surety Bonds ..................................................................................................240
B. SAA Subline Code
All Surety Bonds ..................................................................................................002
©The Surety Association of America, 1991 PCS-3 New Page July 1, 1991
SURETY
C. Exposure Amount
(Not applicable to the Minimum Level Statistical Plan)
Report the total exposure amount to date (to the nearest thousand dollars) to which a
rate is applied in order to determine the premium. Amounts under $1,500 shall be
reported as “0000001.”
In the case of a bulk premium report (i.e. several bonds with the same set of unique
codes being reported on a single record) report the cumulative exposure amount of
all bonds in the bulk report as well as the aggregate written premium of all bonds
in the bulk report.
Examples: Exposure Amount

Contract – Construction Contract Bond –
Amount of Contract Price - $1,500,000 ...................................................0001500
Exposure amounts for contract surety should reflect the contract amount.
Report the total contract price to date in each record for a bond.
Example: If the contract price on the initial record for a bond is $10,000 the
exposure amount field should be coded as 0000010; if the contract amount
increases to $12,000 ($2,000 increase), subsequent records for the bond
should be coded as 0000012.
Court Judicial – Fixed Penalty Appeal Bond –

Amount of Bond Penalty -- $5,000 ...........................................................0000005
Open Penalty Appeal Bond –
Amount of Judgment -- $125,750 .............................................................0000126
Court Fiduciary – Administrator’s Bond –
Amount of Bond Penalty – $1,500 .............................................................000002
License and Permit – Plumber’s Bond –
Amount of Bond Penalty – $7,500 ...........................................................0000008
Miscellaneous Indemnity Bond –
Amount of Bond Penalty -- $15,000 .........................................................0000015
Public Official – Tax Collector’s Bond –
Amount of Bond Penalty -- $10,000 .........................................................0000010
Bulk Report for Two Bonds –
One for $5,000 and
One for $10,000 ........................................................................................0000015
©The Surety & Fidelity Association of America, 2015 PCS-4 Revised January 1, 2015
SURETY
Exceptions Regarding Bonds Not Rated On A “Per $M” Basis:

Contract Bonds:
Bid Bonds and all others containing no Bond Penalty .............................0000000
All Others not rated on a “Per $M” Basis ........................................ Code to Bond
Penalty As
Above
©The Surety & Fidelity Association of America, 2015 PCS-5 New Page, January 1, 2015
SURETY
Section 2. Contract Bonds
TABLE OF CONTENTS
Subject Page
I. SCOPE OF COVERAGE ............................................................................................. 1,2
II. SECTION GENERAL RULES ..................................................................................... 3,4,5
III. STATISTICAL CODES .................................................................................... 6 through 12
IV. RISK CLASSIFICATION ............................................................................... 13 through 21
INDEX .................................................................................................................. i through xii
©The Surety Association of America, 1995 I Revised January 1, 1995

SURETY
SCOPE OF COVERAGE
I. SCOPE OF COVERAGE
A. BONDS CLASSIFIED IN THIS SECTION
1. Bid or Proposal Bonds
The coverage provided by a Bid or Proposal Bond is that the bidder, if awarded the
contract within the time stipulated, will enter into the contract and furnish the
prescribed Performance and Payment Bond(s). Default will ordinarily result in
liability of the surety not to exceed the dollar value set forth in the bond for the
difference between the amount of the principal’s bid and the next low bidder who
can qualify for the contract.
2. Performance Bonds
The coverage provided by a Performance Bond is that the principal will faithfully
perform the terms and conditions of a written contract. In many cases, Performance
Bonds incorporate Payment Bond and Maintenance Bond liability.
3. Payment or Labor and Material Bonds
The coverage provided by a Payment Bond or Labor and Material Bond is that the
contractor will pay for certain labor and material used in the prosecution of the
work which he is obliged to perform under the contract.
4. Maintenance Bonds
The normal coverage provided by a Maintenance Bond is a guarantee against
defective workmanship or materials. However Maintenance Bonds sometimes
incorporate an obligation guaranteeing “efficient or successful operation” or other
obligations of like intent and purpose.
5. Completion Bonds and Bonds Covering Contracts Involving Financing and /
or Design Hazards
Completion Bonds in favor of lenders or lessors guaranteeing completion of a
building or improvement, and Bonds given where contractor by reason of the terms
of the contract is responsible for the financing and / or the design of the contract
and the bond covers such hazards.
B. RIGHT OF THE SURETY TO TERMINATE
Contract Bonds are generally non-cancellable and liability continues until the
obligation of the principal is discharged or the applicable statute of limitations has run.
©The Surety Association of America, 1991 C-1 New Page July 1, 1991
SURETY
SCOPE OF COVERAGE
C. TYPES OF CONTRACTS
Contracts which require bonds are divided into the following groups:
1. Construction Contract Bonds
a. Class B Contracts
Contracts of this description include generally those involving architectural
building construction, related subtrades, most engineering, construction,
concrete and excavation work and work performed underground or in or under
water, except where specifically classified elsewhere in the manual.
b. Class A Contracts
Contracts of this description include both general contracts and sub-contracts of
generally less difficult nature than are included within Class B. Included in this
description is most earthmoving work of a non excavation nature, as well as
glazing contracts except where specifically classified elsewhere in the manual.
c. Class A-1 Contracts
Contracts of this description include those generally less difficult than “B” or
“A” of the construction classification and contracts for the furnishing and
installing, or installing only, or providing of various services and equipment.
Covered in this description are most scientific, technical, data processing
contracts and contracts that provide for the furnishing of personnel and/or
facilities, to perform some type of work or labor except where specifically
classified elsewhere in the manual.
2. Supply Contracts
Supply Contract Bonds are generally those for supplies, materials, etc., which do
not become part of the realty, or attached thereto, until after the contract in question
is completed.
3. Miscellaneous Contracts
Contracts of this description are generally those which do not fall within any of the
above categories.
D. COVERAGE IS PRESCRIBED BY OBLIGEE OR STATUTE
The coverage provided by Bid or Proposal Bonds, Performance Bonds, Payment or
Labor and Material Bonds, and Maintenance Bonds is usually prescribed by the
Obligee or by statute and not by the Contractor or Surety. Where the bond is given in
conformance with the terms of a statute, the bond carries the liability that the statute
imposes.
SURETY
SECTION GENERAL RULES
II. SECTION GENERAL RULES
A. APPLICABILITY OF CONTRACT BOND SECTION
Contract Bonds listed in this Section of the Manual may be issued in conjunction with
Federal, Public or Private Contracts.
B. CLASS CODES
Numbers following • indicate Class Codes. The Classification Code for Contract Bonds
is a three digit code. The first digit identifies the kind of entity (i.e. Federal=6, Other
Public=7, Private=8, Public Private Partnership Federal=A, Public Private Partnership
Other Public= B) for whom the overall project is being performed. In the case of a
subcontractor being bonded to a prime contractor or another subcontractor, the first
digit should be the one associated with the prime contract.
C. CONTRACT PRICE
The contract price on which a surety company premium is computed means the whole
sum of money or other reimbursement which has passed from the owner to the
contractor when final settlement between the two has been made (excluding any bonus
for “time” and not deducting any penalty for “time”), or the entire dollar value of work
for which the contractor is responsible, whichever is higher. If this sum is different
from the original estimate, premium must be adjusted accordingly; either by refund of
part of the original premium by the surety if the original estimate was larger than the
actual contract price; or by payment of additional premium by the contractor if the
original estimate was smaller than the actual contract price.
D. CONTRACTS SUSCEPTIBLE TO TWO CLASSIFICATIONS
If a contract is susceptible to two classifications which take different Loss Costs, the
Risk Classification with the higher Loss Cost would be applicable.
E. EXTRAS
1. Where the actual contract price as determined by final settlement exceeds the
original estimate, additional premium is computed on the excess from the following
dates respectively:
a. If the consent of the surety is not required and given for changes or extras, first
and renewal premiums for the additional cost thus caused are computed at
surety company rates from the date of the bond.
b. If the consent of the surety is required and given for changes or extras, premium
for the additional cost thus caused is computed at surety company rates in effect
at the time the original bond was executed from the date of such surety’s
consent.
c. If, at the date when renewal premium becomes due on extras for which surety’s
consent has been given under b., and the work originally contracted for has
been entirely completed, the amount of such renewal premium is computed
solely on the contract price of such extras.
2. When premium is computed on the contract price “Department Charges” and
“Fixed Charges” should be included.
©The Surety & Fidelity Association of America, 2015 C-3 Revised January 1, 2015
SURETY
F. MAXIMUM PREMIUM
The Maximum Premium for any Contract Bond shall not exceed four times a
company’s end rate applied to the aggregate penalty of the Performance and Payment
Bonds.
G. MULTI-YEAR PROCUREMENT CONTRACTS
Multi-year Procurement Contract awards under the Service Contract Act of 1965
(O’Hara-McNamara Act) or other similar laws, involving terms of more than one year
and not classified in the manual on an annual premium basis, are subject to additional
term premiums or premiums for the stated term of years for the second or subsequent
performance years on the same basis as would be a new contract for the same work.
H. ORIGINAL PREMIUM EARNED
Unless otherwise specifically stated, the original premium on all Contract Bonds is
fully earned, subject, however, to rule C. on the previous page, but renewal premiums
are adjusted pro rata for short term.
I. PAYMENT BONDS
When a Performance Bond is written, a Payment Bond may be obtained at no
additional charge unless the manual provides otherwise.
J. PREMIUM PAYABLE IN ADVANCE
Premiums for all Contract Bonds are payable in advance (from the date of bond)
whether work begins immediately or not.
SURETY
K. RENEWAL PREMIUMS
In all cases where a renewal premium is computed on the amount of unfinished
contract, take the Architect’s or Engineer’s estimates on which payment to the
contractor is made at the latest date next preceding the date of annual renewal. These
estimates will fix the amount of unfinished contract for the purpose of computing
renewal premiums.
L. SEPARATE CONTRACTS
If a general contractor undertakes the erection of a building or the construction of any
other Class B improvement, that classification and surety company rate applies to the
entire work and the classification and rate is not changed by dividing the work into
separate contracts, nor is the classification and rate changed by the fact that any part or
all of the materials are furnished to the contractor by the owner or others than the
contractor.
M. SIMULTANEOUS OR COMBINATION BIDS
Where bids are taken simultaneously and where the invitation to bid permits the
contractor to bid on any one section, schedule, item or part of a project or combination
of sections, schedules or items or parts thereof, or on all sections, etc., or where bids
are taken simultaneously and the sections, etc. are contiguous, the company rate
charged is based on the total amount of contracts awarded to any one contractor.
N. SUBCONTRACTS
Subcontractors Bonds for mechanical or other work are subject to Loss Costs
according to the class of work, contract price, and stipulated time to complete in the
subcontract.
O. UNLISTED CONTRACTS
Contracts not presently listed in the Manual may be submitted to the Association for
classification.
SURETY
STATISTICAL CODES
III. STATISTICAL CODES
The Classification Code for Contract Bonds is a three digit code. The first digit identifies the
kind of entity (i.e. Federal=6, Other Public=7, Private=8, Public Private Partnership
Federal=A, Public Private Partnership Other Public= B) for whom the overall project is being
performed. In the case of a subcontractor being bonded to a prime contractor or another
subcontractor, the first digit should be the one associated with the prime contract.
CLASSIFICATION CODE
1st 2nd & 3rd
DIGIT CLASS DESCRIPTION DIGIT
CODE CODE
6 Federal
7 Other Public, including State, County or Municipality and Subdivision Bonds
8 Private, including Completion Bonds
A Public Private Partnership Federal
B Public Private Partnership Other Public
BID OR PROPOSAL BONDS —

All, including Bid Bond Service Undertakings……………………………………. 00
CLASS B CONTRACTS —
Building Construction
Airport Buildings…………………………………………………………….. 10
Apartment Buildings and Multi-Family Housing……………………………. 11
Commercial Buildings, NOC………………………………………………… 12
Educational Buildings……………………………………………………….. 13
Hospital and Clinic Buildings……………………………………………….. 14
Industrial Buildings and Plants, NOC……………………………………….. 15
Office Buildings……………………………………………………………… 16
All Other Buildings………………………………………………………….. 19
Building Related Construction

Air Conditioning, Heating and Ventilation…………………………………... 20
Building Rehabilitation………………………………………………………. 21
Carpentry, Including Framing and Finish……………………………………. 22
Concrete, Gunite, Swimming Pools…………………………………………. 23
Drywall and Plastering………………………………………………………. 24
Electrical…………………………………………………………………….. 25
Landscaping, Including Golf Course Construction…………………………. 26
Masonry, Stone—Cut or Dressed; Tile and Terrazzo……………………….. 27
Painting — Sandblasting……………………………………………………. 28
Plumbing……………………………………………………………………. 29
SURETY
STATISTICAL CODES
CLASSIFICATION CODE
1st 2nd & 3rd
CODE CODE
6 Federal
CLASS B CONTRACTS (Continued) —

Underground — Water — Heavy Engineering
Ditching, Drainage, Irrigation, Canals, Levees, Dikes, Revetments, Dams and Locks, Dry
Docks, Docks and Wharves, Aqueducts, Breakwaters, Seawalls, Piers, Embankments, Jetties,
Spillways……………………………........................................................................................... 30
Foundations, Excavations, Pilings, Testboring, Drilling, Wells, Offshore

31
Platforms……………………………………………………………………...............................
Pipelines for Water, Gas, Filtering Plants, Waterworks, Fountains, Sewage and Water
32
Treatment Plants, Underwater Cables…………………………...................................................
Sewers (Sanitary or Storm), Septic Tanks…………………………………................................. 33
Tunnels and Subways, Railroad Road Beds, Rail Transit Systems…………............................... 34
Waste Disposal Systems or Facilities

Asbestos Remediation, Removal or Encapsulation…………………………................................ 35
Trash Disposal Plants, Incinerators, Precipitators, Scrubbers, and Other Systems or Facilities
for the Disposal of Trash or Waste, Hazardous or Non- 36
Hazardous……………………………………………………………………..............................
All Other Class B

Power Transmission Lines, Telephone Lines, Fiber Optics………………….............................. 37
All Other Class B Contracts, NOC……………………………………………............................. 39
SURETY
STATISTICAL CODES
CLASSIFICATION CODE
1st 2nd & 3rd
CODE CODE
6 Federal
CLASS A CONTRACTS —
Bridges, Complete Construction Of………………………………………….............................. 40
Curbing, Guttering, Parking Areas, Athletic Fields, Playgrounds and Parks, Planting and
Cultivation of Land, Road Medians, Tennis Courts, River Bank
Protection…………………………………………………………………….............................. 41
Highways, Airport Runways, New Construction or Reconstruction…………............................ 42
Machinery Made to Special Order……………………………………………............................ 43
Roofing………………………………………………………………………............................. 44
Siding (Aluminum or Vinyl), Glazing, Curtain Walls (Non-Structural)……............................. 45
All Other Class A Contracts, NOC………………………………………….............................. 49
SURETY
STATISTICAL CODES
CLASSIFICATION CODE
1st 2nd & 3rd
CODE CODE
6 Federal
CLASS A–1 CONTRACTS —

Arms, Ash Conveyors, Automatic Stokers, Boiler Retubing and Repair, Coal Handling
Machinery, Conveyors, Dynamos, Generators, Mail Handling Machinery, Organ Repairs,
Parking Meters, Radio Towers, Recapping Tires, Rolling Stock, Signal Systems on Rail roads,
Toll Gates, Traffic Control Systems on
Highways………………………………………………………..................................................... 50
Automotive Service, Cataloging, Exterminating Contracts, Furnishing Food Services,

Incinerator Operation, Mosquito Control Contracts, Office Personnel, Photogrammetric Work,
Processing Contracts, Temporary Personnel Services, Tree Trimming and Removal, Watchman
and Signal Service, Weed Mowing, Window Cleaning, Work and Labor……………….............. 51
Bridges—Furnishing or Erecting, Superstructure Only……………………….............................. 52
Computers and Data Processing Equipment, Data Processing and Computer Work, Software,
Telephone Exchange Equipment………………………….............................................................. 53
Fire Alarm Systems, Fire Escapes, Floors, Insulation Contracts, Iron and Steel Contracts,
Kitchen Equipment, Lightning Rods, Metal Windows and Shutters, Ornamental Iron
Work, Police Alarm Systems, Public Address and Music Systems, Scaffolding, Sidewalks,
Stand Pipes, Thermostat Equipment, Water Towers, Weather
Stripping………………………………........................................................................................... 54
Highways, Airport Runways (Surfacing, or Repairs ONLY, including Guard Rails and
Striping)……………………………………………………………................................................ 55
Street and Subway Lighting…………………………………………………................................. 56
All Other Class A–1 Contracts, NOC……………………………………….................................. 59
SURETY
STATISTICAL CODES
CLASSIFICATION CODE
1st 2nd & 3rd
CODE CODE
6 Federal
SUPPLY CONTRACTS—
Bridges — Furnishing Superstructure Without Erecting……………………................................ 60
Highways — Furnishing of Materials Only…………………………………............................... 61
All Other Supply Contracts, NOC…………………………………………….............................. 64
MAINTENANCE CONTRACTS —
Maintenance Contracts where NO Performance Bond is Required…………............................... 65
Road, Highway and Street Maintenance……………………………………................................ 66
Shoring up Contracts………………………………………………………….............................. 67
Supply Maintenance Contracts………………………………………………............................... 68
All Other Maintenance Contracts, NOC……………………………………................................. 69
SURETY
STATISTICAL CODES
CLASSIFICATION CODE
1st 2nd & 3rd
CODE CODE
6 Federal
MISCELLANEOUS CONTRACTS —
Advance Payment Bonds……………………………………………………............................... 70
Aircraft Construction
Cost-Plus-Fixed-Fee-Contracts……………………………………………............................ 71
Fixed Price Contracts………………………………………………………………………. . 72
Dredging
Rivers, Harbors and Great Lakes…………………………………………............................. 73
Inland where Dredge cannot be Floated to Job Site………………………............................. 74
Lien Bonds
Given at or near Commencement of Project………………………………............................. 75
Given when Project is Partially Completed……………………………….............................. 76
Given at or near Completion of Project…………………………………................................ 77
Military Traffic Management and Terminal Service Contracts………………............................... 78
Moving and Hauling Contracts………………………………………………................................ 79
Removal of Garbage, Snow and Ashes………………………………………................................ 80
Timber Cutting
Performance Bond for Sale and Cutting…………………………………................................ 81
Payment Bond for Sale and Cutting……………………………………….............................. 82
Cutting for Hire Contracts………………………………………………................................. 83
SURETY
STATISTICAL CODES
CLASSIFICATION CODE
1st 2nd & 3rd
CODE CODE
6 Federal
MISCELLANEOUS CONTRACTS (Continued) —

Towing Contracts……………………………………………………………................................ 84
Wrecking, Dismantling and Demolition Contracts…………………………................................. 85
All Other Cost-Plus-Fixed-Fee Contracts, NOC……………………………................................ 86
All Other Cost Plus Percentage Contracts, NOC……………………………................................ 87
All Other Miscellaneous Contracts, NOC……………………………………............................... 89
COMPLETION BONDS —
All……………………………………………………………………………............................... 95
SUBDIVISION BONDS —
All……………………………………………………………………………............................... 96
TYPE OF CONTRACT BOND CODE

TYPE OF CONTRACT BOND CODE
BID OR PROPOSAL BONDS

All, including Bid Bond Service Undertakings………………………………………………....................................... 1
ALL OTHER CONTRACT BONDS

Sub–Contracts – Where bond runs in favor of Prime Contractor or another Sub–
Contractor……………………………………………………………………………………........................................ 5
All Other, including Prime Contracts, Completion and Subdivision Bonds…………………....................................... 6
SURETY
RISK CLASSIFICATION
IV. RISK CLASSIFICATION
CLASS B CONTRACTS
1. For Performance or Performance Plus Payment Bond(s):
To determine Loss Costs see Surety Loss Cost Addendum for Class B Contracts.
2. For Payment Bonds only:
See Lien or Payment Bonds on page C-17.
3. Unless otherwise stated, Class B Contracts include contracts such as the following:
Airport Buildings (•X10) Gas Piping with or without fixtures (•X32) Sea Walls (•X30)
Air Conditioning Systems (•X20) Golf Courses (•X26) Sewage Disposal Plants (•X36)
Apartment Buildings (•X11) Grain Elevators (•X15) Sewers and Septic Tanks (•X33)
Aqueducts (•X30) Gunite Contracts (•X23) Shipbuilding — Construction, Conditioning or
Asbestos Removal (•X35) Heating Systems (•X20) Repair (•X39)
Atomic Energy Plants (Complete) (•X15) Hospital, Clinic and Rest Home Buildings Shipyards (•X15)
Buildings (unclassified) (•X19) (•X14) Spillways (•X30)
Breakwaters (•X30) Incinerators (•X36) Stone, cut or dressed—furnishing and setting
Building Rehabilitation (•X21) Industrial Buildings and Plants (•X15) (•X27)
Canals and Canal Lining (•X30) Irrigation Systems (•X30) Subways (•X34)
Carpentry (•X22) Jetties (•X30) Swimming Pools (•X23)
Coal Stripping (•X39) Landscaping (•X26) Terminals for Bus Companies or Others (•X12)
Commercial Buildings (•X12) Locks (•X30) Test Boring (•X31)
Concrete Work not otherwise classified Masonry (•X27) Tile and Terrazzo (•X27)
(•X23) Missile Installations (•X15) Transmission or Distribution Lines (Electrical
Dams (all) (•X30) Nuclear Reactors (•X15) or Telephone) (•X37)
Dikes, Levees and Revetments (•X30) Office Buildings (•X16) Tunnels (•X34)
Ditches, including drainage (•X30) Off-Shore Platforms and Towers (•X31) Underwater Cables (•X32)
Docks and Dry docks (•X30) Painting (•X28) Ventilating Systems (•X20)
Drilling Contracts (•X31) Piers (•X30) Waste Disposal Plants—Hazardous or Non-
Drywall (•X24) Piling (•X31) Hazardous Waste (•X36)
Educational Buildings (•X13) Pipelines for Water, Gas, Filtering Plants, Water Works (•X32)
Electrical Wiring, furnishing and Waterworks, Fountains, Sewage and Wells (•X31)
installing with or without fixtures or other Water Treatment Plants (•X32) Wharves (•X30)
devices (•X25) Plastering (•X24) Wrecking, Demolition or Dismantling
Embankments (•X30) Plumbing in new or old buildings (•X29) Contracts (Where the entire contract
Excavations(•X31) Power Plants with or without distribution consideration is cash passing from the owner to
Filling Stations (including Bulk Stations) systems (•X15) the contractor and the Performance Bond does
(•X19) Precipitators (•X36) not exceed the contract price) (•X39) (Other
Filtering Plants (•X32) Prefabricated Houses, Buildings or Structures see Misc. Contracts).
Foundations (•X31) (•X19) (Furnishing and Erecting or Erecting
Fountains (•X32) only — see Class A. Furnishing only — see
Framing and Finish (•X22) Supply)
Garbage Disposal Plants (•X36) Public Improvements (•X39)
Gasoline Cracking Plants (•X15) Rail Transit Systems (•X34)
Gas Compressor Stations (•X15) Roadbeds for Railroads (•X34)
Gas Mains and Laterals running through Sand Blasting (•X28)
city streets where contract includes Scrubbers (•X36)
trenching (•X32) (Excluding trenching- Sculptures (•X39)
Class A-1)
4. The first digit of the Classification Code (depicted above as X) should be either 6 for
Federal; 7 for Other Public; or 8 for Private.
©The Surety Association of America, 1995 C-13 Revised January 1, 1995

SURETY
RISK CLASSIFICATION
CLASS A CONTRACTS
To determine Loss Costs see Surety Loss Cost Addendum for Class A Contracts.
3. Unless otherwise stated, Class A Contracts include contracts for furnishing and
installing, or installing only, certain services or equipment such as the following:
Airports — grading, clearing, drainage, Elevators (passenger or freight) and Escalators Playgrounds and Parks (•X41)
preparation, leveling or surfacing of sites (•X49) Prefabricated Houses, Buildings or Structures,
(•X49) Fences — Furnishing and Erecting (•X49) Furnishing and Erecting or Erecting Only
Airport Runways—See Highways (Other see Supply) (•X49) (Other see
Aluminum and Vinyl Siding (•X45) Filling up abandoned coal mines (•X49) Class B or Supply)
Athletic Fields (•X41) Glazing (•X45) Research Contracts (•X49)
Beacon or Flood Lights (•X49) Granite — See Stone River Bank Protection (•X41)
Bridges — Complete Construction or Greenhouses (•X49) Road Medians (•X41)
Substructures, including Painting, High Pressure Power Piping (•X49) Roofing (•X44)
Reflooring or Repairing Bridge Highways, Roads, Street Paving, Airport Ski Lifts (•X49)
Superstructures (•X40) (Other see A-l or Runways — New Construction or Sprinkler Systems (•X49)
Supply) Reconstruction (•X42) (Other see A-1 or Stone, Marble or Granite (other than
Burial Contracts (•X49) Supply) crushed stone) furnishing and delivering only,
Ceilings — Metal or Acoustical Tile Janitor Service (•X49) cut or dressed stone (•X49) (Contracts for
(•X49) Laundry Contracts (•X49) furnishing and setting cut or dressed stone or
Clearing, Grading and Grubbing where no Machinery made to special order or design of setting only for building or other structures or
ultimate improvement is involved. (•X49) purchaser and not cataloged as part of seller's improvements are classified as Class B.)
(Where ultimate improvement is stock designs or products (•X43) Storage Tanks, Metal (Gasoline or Oil) (•X49)
involved, apply same classification and Mail Chute Contracts (Installation of Mail Tennis Courts (•X41)
loss costs that apply to the ultimate Chutes in building, including three years Water Carriage of Freight (•X49)
improvement for which clearing, grading maintenance) (•X49) Water Proofing (not including Gunite
or grubbing is being done.) Map Making (•X49) Contracts) (•X49)
Coal Storage (•X49) Marble — See Stone Wind Tunnels (•X49)
Construction Forms (•X49) Mill Work (•X49)
Curbing and Guttering (•X41) Murals (•X49)
Curtain Walls (not structural) (•X45) Parking Areas (•X41)
Ducts, underground — for power, light or Planting and Cultivation of Land (•X41)
telephone (•X49)

SURETY
RISK CLASSIFICATION
CLASS A-1 CONTRACTS
To determine Loss Costs see Surety Loss Cost Addendum for Class A-1 Contracts.
3. Unless otherwise stated, Class A-1 Contracts include contracts for furnishing and
installing, or installing only, certain services or equipment such as the following:
Arms (•X50) Highways, Roads, Street Paving and Airport Police Alarm Systems (•X54)
Ash Conveyors (•X50) Runways and Paving: Processing Contracts (•X51)
Automatic Stokers (•X50) (a) Surfacing, Resurfacing or Repairs to Projectiles (•X59)
Automotive Service Contracts (•X51) Surface on Existing Roads, Parking Lots or Public Address and Music Systems (•X54)
Band Concerts (•X59) Other Existing Hard Surfaces. (Contracts Radio Towers (•X50)
Bird Control (•X59) which do not include widening, bridges, or Radiological Equipment and Apparatus (•X59)
Boiler Retubing and Repair (•X50) base construction.) (•X55) Recapping Auto Tires (•X50)
Bonds for Superintendents of (b) Road Oiling Contracts. (•X55) Refrigerating Plants, on land (•X59)
Construction (•X59) (c) Bituminous Materials & Concrete Repair of Automobiles and Trucks (•X51)
Bookbinding (•X59) Plus Equipment Contracts. (Contracts for the Resmelting Old Metal (•X59)
Bridge Superstructure — Furnishing and furnishing or furnishing and delivering of Rip Rap Stone (furnishing only) (•X59)
Erecting Only (•X52) (Other see A or bituminous materials (tar, oil, asphalt), Rolling Stock (•X50)
Supply) concrete cement or similar materials and Scaffolding (•X54)
Cataloging (•X51) contractor rents his asphalt plant, roller or Sidewalks (•X54)
Coal Handling Machinery—Furnishing other mechanical equipment with or without Signal Systems on Railroads (•X50)
and Erecting (•X50) (Furnishing Only see operators, without obligation to spread or Signs (•X59)
Supply) manipulate materials.) (•X55) (Bituminous Stack Rooms (•X59)
Computers and Data Processing Materials & Concrete Contracts without Stand Pipes (•X54)
Equipment (•X53) Equipment Rental — see Supply.) Street and Subway Lighting Systems (•X56)
Computer Software (•X53) (d) Striping (•X55) Telephone Exchange Equipment (•X53)
Conveyors (•X50) Incinerator Operation (•X51) Temporary Personnel Services (•X51)
Data Processing and Computer Work Insulation Contracts (•X54) Thermostat Equipment (•X54)
(•X53) Iron or Steel Contracts — Furnishing, Toll Gates (•X50)
Doors — all types (•X59) Delivering and Erecting Only (•X54) (Other Track Laying (•X59)
Dynamos (•X50) see Supply) Traffic Control Systems on Highways (•X50)
Exterminating Contracts (•X51) Kitchen Equipment (•X54) Training Manuals (•X59)
Fire Alarm Systems (•X54) Laboratory Equipment and Apparatus (•X59) Tree Trimming and Removal (•X51)
Fire Escapes (•X54) Leasing of Motor Vehicles (•X59) Watchmen and Signal Services (•X51)
Flag Poles (•X59) Lightning Rods (•X54) Water Towers (•X54)
Floats (•X59) Lock Gates — Furnishing only, or furnishing Weather Stripping (•X54)
Floors—Asphalt Tile, Cork or Rubber and installing (•X59) Weed Mowing (•X51)
Tile, Parquet, Wood or Wood Block Mail Handling Machinery (•X50) Window Cleaning (•X51)
(•X54) Metal Windows and Shutters (•X54) Work and Labor (•X51)
Furnishing Food Services (•X51) Mosquito Control Contracts (•X51) X-Ray Inspection (•X59)
Gas Tanks (•X59) Movies (•X59)
Generators (•X50) Office Personnel (•X51)
Grain Doors, Salvage, care and disposal Organ Repairs (•X50)
of (•X59) Ornamental Iron Work (•X54)
Guard Rails (•X55) Parking Meters (•X50)
Heating — Temporary and/or Portable Photogrammetric Work (•X51)
(•X59) Pipelines for Oil or Gas (•X59) (For gas mains
running through city streets or pipelines under
water see Class B)

SURETY
RISK CLASSIFICATION
SUPPLY CONTRACTS
1. For Fixed Price Supply Contract Bonds of All Kinds, except as noted in a., b. or c. below:
To determine Loss Costs see Surety Loss Cost Addendum for Supply Contracts.
a) Unit Price Contracts and Continuous Production Contracts.
If contract is let on a unit basis or on a continuous basis, and contract price or total
compensation cannot be determined, compute advance premium at four times the
company’s end rate, on the bond penalty to be adjusted upon completion of contract or
annually on a continuous contract, using Loss Costs for Supply Contracts.
b) Cost Plus a Fixed Fee Contracts.
The Loss Costs for Fixed Price Supply Contracts apply. Substitute “cost to owner
excluding contractor’s fee” for “contract price” and discount final company premium
20%.
c) Annual Supply Bonds:
(1) Where bond covers all contracts awarded during fiscal or calendar year (whether
bond runs to its anniversary or close of fiscal year) compute company premium at
four times the company’s end rates for Supply Contracts applied to the penalty of the
bond.
(2) For Annual Supply Bonds in effect less than six months and under which no
contracts have been awarded — one-half the premium is earned. Bonds in effect six
months or more — annual premium is fully earned.
2. Unless otherwise stated Supply Contracts include contracts for the furnishing of supplies of
all kinds such as the following: (Other See A)
Aircraft Engines, Spare Parts and Filing Cases (•X64) Paving Blocks (•X64)
Equipment, not including construction, Fire Engines or Fire Hose (•X64) Pipe (furnishing only — not including laying
conditioning or repair of aircraft (•X64) Fuel (•X64) or setting) (•X64)
Ammunition (•X64) Furniture (•X64) Pipe Covering (•X64)
Apparatus in public or private offices, Headstones and Mortuary — Monuments of Pipe Organs (•X64)
stores and schools, colleges, churches, stock design (•X64) Placing Fire or Other Insurance (•X64)
hospitals, hotels, libraries, museums, Highways, Roads, Street Paving, Airport Prefabricated Houses, Buildings or Structures
theatres, exhibitions, clinics, etc. (•X64) Runways, Bituminous Materials & Concrete — Furnishing and Delivering Only By
Armament (•X64) Contracts — Furnishing or Furnishing and Manufacturer (•X64) (Other see B or A)
Armor Plate (•X64) Delivering, without obligation to spread or Printing Contracts (•X64)
Auditing Contracts (•X64) manipulate materials(•X61) (Other see A or A-1) Printing Cigarette, Liquor Tax Stamps or
Automobiles, trucks or parts (•X64) Iron or Steel Contracts — Furnishing or Railroad Tickets (•X64)
Awnings (•X64) Furnishing and Delivering, with or without Printing Presses (•X64)
Blackboards and Bulletin Boards (•X64) fabrication, but without erecting (•X64) (Other see Pumps (•X64)
Boilers (•X64) A-1) Safe Deposit Vaults or Safes (•X64)
Bridge Superstructures Only — Jail Cells (not including erection of jail buildings School Book Contracts — Sale and Delivery
Furnishing and Delivering without or walls) (•X64) (•X64)
Erecting (•X60) Laboratory Animals (•X64) Shipbuilding — Engines, Spare Parts and
Cabinets (•X64) Laundry Machinery (•X64) Equipment when awarded under separate
Clocks and Master Clocks (•X64) Lighting Contracts including “Maintenance of contract (•X64) (Other see B)
Clothing, Tents or Uniforms, without — Street Lighting System” (Contracts for supply of Showcases and Counters (•X64)
“Processing.” (•X64) lighting to Cities or Municipalities) (•X64) Steam, Sale of (•X64)
Coal (•X64) Linoleum, Carpets, Rugs — furnishing or laying Stone, crushed (•X64)
Concrete or Cement (mixed) furnishing (•X64) Timber — Furnishing and Delivering Cut
and delivering (•X61) Lockers (•X64) Timber or Forest Products (•X64) (Other see
Crushed stone, stone screenings, chats, Machinery, however massive, if built, completed, Miscellaneous Contracts)
sand or gravel for purchase and sale only and for sale at factory or premises of the seller Track Material, Railroad Ties, Plates, Pads
(•X64) (•X64) and Ballast (•X64)
Curtains, Draperies or Scenery (•X64) Munitions (•X64) Transcribing Records (•X64)
Electric Current — Sale of (•X64) Office Furniture (•X64) Uniforms (•X64)
Electric Fixtures (Where electrical Oil and Oil Burners (•X64) Venetian Blinds (•X64)
wiring or conduits is not included in Partitions (•X64) Water Softener (•X64)
contract) (•X64) Window Screens or Shades (•X64)
Engines, Spare Parts and Equipment
(•X64)
Fences — Furnishing Only (•X64)
3. The first digit of the Classification Code (depicted above as X) should be either 6 for Federal;
7 for Other Public; or 8 for Private.

SURETY
RISK CLASSIFICATION
MISCELLANEOUS CONTRACTS
To determine Loss Costs see Surety Loss Cost Addendum for Miscellaneous
Contracts.
2. For Advance Payment Bonds (•X70)
An advance payment is a payment made to the contractor by the owner prior to being
earned. Such advance payments may be made in a single lump sum prior to the
commencement of work or in a series of payments as work progresses:
a. Performance and Advance Payment.
Charge the applicable performance premium plus the advance payment premium
based on section 2.b. below.
b. Advance Payment Only.
See Loss Cost Exception A.1 in Surety Loss Cost Addendum.
3. For Cost Plus Contracts
The following applies either to general contracts or subcontracts, where no price limit
is fixed either as a maximum upset price or otherwise, and where either performance
or payment bonds or both are required, all Loss Costs being for the term. Where price
limit is fixed either as maximum upset price or otherwise, Loss Costs for fixed price
contracts of the type involved apply:
a. Cost-Plus-Fixed-Fee Contracts (•X86).
See Loss Cost Exception A.2. in Surety Loss Cost Addendum.
b. Cost-Plus-A-Percentage Contracts (•X87).
4. For Lien or Payment Bonds
Bonds not guaranteeing completion but guaranteeing owner, lender, mortgagee or
lessee against liens being filed on a building or improvement or bonds given by
contractor guaranteeing payment of labor and material used in the prosecution of the
work:
a. Where at the date of bond no liens have been filed and where bond is given
before, at, or near the commencement of construction or improvement (•X75);
b. Where at the date of bond no liens have been filed and where bond is given for
building or improvement that is partially completed (•X76);
c. At or after the completion of the work, or when work is so advanced that only
final payment remains to be paid (•X77):

SURETY
RISK CLASSIFICATION
MISCELLANEOUS CONTRACTS (Continued)
5. Unless otherwise stated, Miscellaneous Contracts include contracts such as the
following:
Aerial Surveys — Flight Instruction — c. Moving Contracts — Buildings(•X79) c. Furnishing and Delivering Cut Timber or
Crop Dusting (•X89) d. School Children — Transportation of (•X79) Forest Products — See Supply.
Aircraft Construction, Conditioning or e. Snow, Garbage, Ashes, etc. Removal of and Towing Contracts (Where contractor assumes
Repair: Sprinkling and Cleaning of Streets (•X80) liability for safety of the tow) (•X84):
a. Cost-Plus-Fixed-Fee Contracts (•X71), or f. U.S. Mail Contracts(•X79) See Loss Cost Exception A.7. in Surety Loss
b. Fixed Price Contracts (•X72): Rental of Equipment (Contracts to furnish, for Cost Addendum.
See Loss Cost Exception A.9. in Surety hire, mechanical equipment with or without Wrecking, Demolition or Dismantling
Loss Cost Addendum. operator) (•X89) (Premium not to exceed the Contracts (•X85):
Appraisers and Assessors (•X89) premium for bond covering a fixed price a. Where the penalty of either the Performance
Architects, Engineers and Surveyors contract for the type of work on which the or Payment Bond exceeds the cash contract
(•X89) rented equipment is being used.) consideration, or
Dredging: Replacement Contracts (Bonds guaranteeing to b. Where the consideration for the contract is
a. Inland dredging where dredge cannot be replace property in its original condition) partly cash and partly the materials wrecked or
floated to site of contract (•X74), or (•X89) removed, or
b. Dredging in Rivers, Harbors and Great Timber Cutting Bonds: c. Where the consideration for the contract
Lakes (•X73): a. Contracts for sale and cutting of timber on consists wholly of the materials wrecked or
See Loss Cost Exception A.10. in Surety all land: removed, or
Loss Cost Addendum. 1. Performance Bond (•X81) d. Where the contract provides that the
Express and Delivery Companies 2. Payment Bond (•X82) and Contractor shall pay the owner for the
(Delivery of freight, goods or packages b. Cutting Timber for Hire (•X83): See Loss materials removed:
and collecting charges) (•X89) Cost Exception A.6. in Surety Loss Cost See Loss Cost Exception A.8. in Surety Loss
Moving and Hauling Contracts including: Addendum. Cost Addendum.
a. Draying and Hauling Contracts (Not (On all timber cutting contracts: U.S. (Other see Class B.)
including collection of charges or money) Government, State Lands or Private Lands, the
(•X79) annual renewal premium during the entire term
b. Military Traffic Management and of the contract is the same as the first premium
Terminal Service Contracts (•X78): See irrespective of the number of years the contract
Loss Cost Exception A.5. in Surety Loss runs or the amount of timber cut annually.)
Cost Addendum
6. The first digit of the Classification Code (depicted above as X) should be either 6
for Federal; 7 for Other Public; or 8 for Private.
©The Surety Association of America, 1995 C-18 New Page January 1, 1995
SURETY
RISK CLASSIFICATION
F. MAINTENANCE GUARANTEES
1. General Provisions:
a. Premium for the entire maintenance period should be collected in advance
when the performance bond is given.
b. Maintenance guarantees for defective materials or workmanship not exceeding
over twelve months after completion of performance whether separate bond is
required or not do not incur any additional charge over the performance
premium.
c. Maintenance guarantees for defective materials or workmanship extending over
twelve months after completion of performance whether separate bond is
required or not incur additional charge over the performance premium except,
however, that no additional charge shall be made for the first twelve months
maintenance guarantee, i.e., if the maintenance guarantee period is five years,
give the first twelve months maintenance without charge and compute premium
at regular surety company rates for a maintenance period of four years
d. On construction or supply contracts where corporate surety has been furnished
for the performance bond, if the contract provides that ten percent or more of
the contract price shall be retained by the owner for the entire period of
maintenance, the premium rate for maintenance is reduced one-half.
e. The loss costs for maintenance bonds are predicated on the limitation of such
guarantees to “defective materials or workmanship” only.
f. Maintenance guarantees which cover “efficient or successful operation” (or any
other obligation of like intent or purpose beyond the normal guarantee against
defective materials or workmanship) increase surety company rates and
minimums for maintenance 100%, including the first twelve months thereof.
g. For Performance and Maintenance charge the applicable performance premium
plus the maintenance premium.
h. Apply same code as Performance Bond to Maintenance Guarantee.
2. Maintenance Where Corporate Surety Performance Bond is Required, except
as noted in a., b. and c. below (•X69):
To determine Loss Costs see Surety Loss Cost Addendum for Maintenance
Guarantees.
a. On Roads, Highways, Street Paving (•X66);
b. On Shoring Up Contracts (•X67);
c. On Supply Contracts (•X68):
See Loss Cost Exceptions B l., 2. and 3. in Surety Loss Cost Addendum.
3. Maintenance Where No Corporate Surety Performance Bond Is or Has Been
Required (•X65):
See Loss Cost Exception B.4. in Surety Loss Cost Addendum.
4. The first digit of the Classification Code (depicted above as X) should be either
6 for Federal; 7 for Other Public; or 8 for Private.
SURETY
RISK CLASSIFICATION
G. BID OR PROPOSAL BONDS

1. General Provisions:
a. Where at or before the receipt of opening of proposals sureties or their agents
consent by letter or otherwise, to become surety upon the contract if same is
awarded, such consent or letter constitutes a bid or proposal bond on which
surety company premium for bid bonds should be collected.
b. Letters or consents to become sureties are classified as bid bonds, even when
the proposal is accompanied by certified check. Surety company premium for
bid bonds should be collected.
c. Surety company premium should be charged for each successive bid bond
notwithstanding it may be for the same project on which bids have been
received and previously rejected.
d. If contract is awarded on such bid, premium shall be computed at the surety
company’s rate for such contract bond and the charge on bid bond shall be
applied thereto.
e. All bid or proposal bonds should be charged for at the surety company’s rates,
and premium thereon is fully earned by submission of the bid or proposal
whether successful or not.
f. Where owner requires a bid bond, and an award is made without requiring a
final bond, the successful bidder shall be charged a premium in accordance with
Loss Cost Exception C. 1. in the Surety Loss Cost Addendum.
g. Where owner requires only a consent letter as in sub-paragraph a. above and an
award is made without requiring a final bond, the successful bidder shall be
charged a premium in accordance with paragraph f. above on 10% of the
contract price.
2. Specific Bid or Proposal Bond (•X00):
See Loss Cost Exception C.2. in the Surety Loss Cost Addendum.
3. Annual Bid or Proposal Bond - Supply Contracts Only (•X00):
4. Annual Bid and Performance Bond—Supply Contracts Only (Where Annual
Bid Bond also acts as Performance Bond in event of award) (•X00):
See Loss Cost Exception C.4. in the Surety Loss Cost Addendum. For annual
bonds in effect less than six months and under which no contracts have been
awarded one-half the premium is earned. For bonds in effect six months or more,
annual premium is fully earned.
5. Bid Bond Service Undertaking (•X00):
SURETY
RISK CLASSIFICATION
H. COMPLETION BONDS AND BONDS COVERING CONTRACTS

INVOLVING FINANCING AND/OR DESIGN HAZARDS (•X95)
1. For Performance or Performance Plus Payment Bond(s), except as noted
below:
To determine Loss Costs see Surety Loss Cost Addendum for Completion,
Financing and/or Design Hazard Bonds.
2. Subdivision Bonds — Bonds given by Realty Operators or Others to a County
or Municipality guaranteeing to construct or finance improvements such as
streets, sidewalks, curbing, guttering, sewerage or drainage (•X96):
See Loss Cost Exception D. for Subdivision Bonds in the Surety Loss Cost
Addendum.
SURETY
INDEX
Page C
A
Abandoned Coal Mines, Filling Up……………………………………………….…. 14

Advance Payment Bonds, Generally………………………………………………… 17
Aerial Surveys……………………………………………………………………….. 18
Air-Conditioning…………………………………………………………………….. 13
Aircraft……………………………………………………………………………….. 18
Airport Buildings…………………………………………………………………….. 13
Airport Runways……………………………………………………………………... 14
Airports………………………………………………………………………………. 14
Aluminum and Vinyl Siding…………………………………………………………. 14
Ammunition………………………………………………………………………….. 16
Annual Bid or Proposal Bonds………………………………………………………. 20
Apartment Buildings…………………………………………………………………. 13
Applicability of Contract Bond Section……………………………………………... 3
Appraisers……………………………………………………………………………. 18
Aqueducts……………………………………………………………………………. 13
Architects and Engineers Contracts………………………………………………….. 18
Armament……………………………………………………………………………. 16
Armor Plate…………………………………………………………………………... 16
Arms…………………………………………………………………………………. 15
Asbestos Removal…………………………………………………………………… 13
Ash Conveyors………………………………………………………………………. 15
Ashes, Collection or Disposal of…………………………………………………….. 18
Assessors…………………………………………………………………………….. 18
Athletic Fields………………………………………………………………………... 14
Atomic Energy Plants (Complete)…………………………………………………… 13
Auditing Contracts…………………………………………………………………… 16
Automatic Sprinklers (Sprinkler Systems)…………………………………………... 14
Automatic Stokers…………………………………………………………………… 15
Automobiles and Automobile Parts………………………………………………….. 16
Automotive Service Contracts……………………………………………………….. 15
Awnings……………………………………………………………………………… 16
B
Band Concerts………………………………………………………………………... 15
Beacon or Flood Lights……………………………………………………………… 14
Bid or Proposal Bonds……………………………………………………………... 1, 20
Bird Control……………………………………………………………………….…. 15
Blackboards and Bulletin Boards……………………………………………………. 16
Boiler Retubing and Repair……………………………………………………….…. 15
Boilers, Furnishing…………………………………………………………………... 16
©The Surety Association of America, 1995 i Revised January 1, 1995

SURETY
INDEX
Page
Bonds Classified In This Section………………………………………...................... 1
Bookbinding…………………………………………………………………............. 15
Books, School…………………………………………………………....................... 16
Breakwaters……………………………………………………….............................. 13
Bridges……………………………………………………….......................... 14, 15, 16
Building Rehabilitation……………………………………………….….................... 13
Buildings, Erection or Repair –– Unclassified…………………………..................... 13
Burial Contracts………………………………………………………........................ 14
C
Cabinets……………………………………………………………............................ 16
Canal Lining……………………………………………………................................. 13
Canals……………………………………………………………............................... 13
Carpentry, including Framing and Finish……………………………......................... 13
Carpets (Linoleum)…………………………………………………........................... 16
Cataloging……………………………………………………..................................... 15
Ceilings, Metal or Acoustic Tile……………………………………........................... 14
Cement, Mixed…………………………………………………………..................... 16
Cigarette Stamps, Printing…………………………………………............................ 16
Class A Contracts……………………………………………………...................... 2, 14
Class A-1 Contracts……………………………………………............................... 2, 15
Class B Contracts…………………………………………....................................... 2, 13
Class Codes……………………………………………........................... 3, 6 through 12
Class Descriptions………………………………………............................ 6 through 12
Cleaning Streets……………………………………………………............................ 18
Clearing, Grading, and Grubbing…………………………......................................... 14
Clocks…………………………………………………………................................... 16
Clothing, Tents and Uniforms…………………………………….............................. 16
Coal…………………………………………………………....................................... 16
Coal Handling Machinery………………………………………................................ 15
Coal Stripping……………………………………………........................................... 13
Coal Storage…………………………………………………………......................... 14
Commercial Buildings……………………………………………….......................... 13
Completion Bonds……………………………………………................................. 1, 21
Computer Software…………………………………………....................................... 15
Computer Work……………………………………………………............................ 15
Computers and Data Processing Equipment……………………................................ 15
Concrete, Mixed……………………………………………....................................... 16
Concrete Work –– Not Otherwise Classified……………………............................... 13
Construction Contracts, Defined……………………………….................................. 2
Construction Forms……………………………………………….............................. 14
Continuous Production Contracts……………………………………......................... 16
©The Surety Association of America, 1995 ii Revised January 1, 1995

SURETY
INDEX
Page
Contract Price, –– Rule………………………………………………………………. 3
Contract Price, Extras –– Rule………………………………………………………. 3
Contracts Susceptible To Two Classifications — Rule……………………………… 3
Conveyors……………………………………………………………………………. 15
Cork Floors…………………………………………………………………………... 15
Cost Plus Contracts…………………………………………………………………... 17
Counters and Showcases…………………………………………………………….. 16
Coverage Is Prescribed By Obligee or Statute………………………………………. 2
Coverage, Scope of…………………………………………………………………. 1, 2
Crop Dusting…………………………………………………………………………. 18
Crushed Stone, etc…………………………………………………………………… 16
Cultivation of Land (Planting)……………………………………………………….. 14
Culverts (Bridges)……………………………………………………………………. 14
Curbing and Guttering……………………………………………………………….. 14
Curtain Walls — Not Structural……………………………………………………... 14
Curtains………………………………………………………………………………. 16
Cutting Timber………………………………………………………………………. 18
D
Dairy Products, Packaging or Processing (Processing)……………………………… 15

Dams…………………………………………………………………………………. 13
Data Processing……………………………………………………………………… 15
Delivery and Express Companies……………………………………………………. 18
Demolition Bonds (Wrecking)………………………………………………………. 13
Department Charges…………………………………………………………………. 3
Design Hazards…………………………………………………………………….. 1, 21
Dikes…………………………………………………………………………………. 13
Discharge of Lien……………………………………………………………………. 17
Distribution Lines, Electric (Transmission)…………………………………………. 13
Ditches……………………………………………………………………………….. 13
Docks………………………………………………………………………………… 13
Doors………………………………………………………………………………… 15
Drainage Ditches…………………………………………………………………….. 13
Draperies (Curtains)…………………………………………………………………. 16
Draying and Hauling………………………………………………………………… 18
Dredging……………………………………………………………………………... 18
Drilling Contracts……………………………………………………………………. 13
Drydocks……………………………………………………………………………... 13
Drywall………………………………………………………………………………. 13
Ducts, Underground………………………………………………………………….. 14
Dyeing (Processing)…………………………………………………………………. 15
Dynamos……………………………………………………………………………... 15
©The Surety Association of America, 1995 iii Revised January 1, 1995

SURETY
INDEX
Page
E
Educational Buildings………………………………………………………………… 13
Efficiency Guarantees………………………………………………………………… 19
Electric Current, Sale of………………………………………………………………. 16
Electric Fixtures………………………………………………………………………. 16
Electric Wiring………………………………………………………………………... 13
Elevators, Building……………………………………………………………………. 14
Embankments…………………………………………………………………………. 13
Encapsulation (Asbestos)……………………………………………………………... 13
Engineers……………………………………………………………………………… 18
Engines, Furnishing…………………………………………………………………... 16
Equipment, Rental of…………………………………………………………………. 18
Escalators (Elevators)………………………………………………………………… 14
Excavations…………………………………………………………………………… 13
Express and Delivery Companies…………………………………………………….. 18
Exterminating…………………………………………………………………………. 15
Extras, Contract Price — Rule………………………………………………………... 3
F
Fences……………………………………………………………………………... 14, 16
Filing Cases…………………………………………………………………………… 16
Filling Stations………………………………………………………………………... 13
Filtering Plants………………………………………………………………………... 13
Financing Hazards…………………………………………………………………. 1, 21
Finish Machining Contracts (Processing)…………………………………………….. 15
Fire Alarms…………………………………………………………………………… 15
Fire Engines…………………………………………………………………………... 16
Fire Escapes…………………………………………………………………………... 15
Fire Hose……………………………………………………………………………… 16
Fire Insurance, Placing………………………………………………………………... 16
Fixed Charges………………………………………………………………………… 3
Flagpoles……………………………………………………………………………… 15
Flight Instruction……………………………………………………………………… 18
Floats………………………………………………………………………………….. 15
Flood Lights (Beacon)………………………………………………………………... 14
Floor Coverings, (Linoleum)…………………………………………………………. 16
Floors, Asphalt Tile, Cork, etc………………………………………………………... 15
Food Service, Furnishing……………………………………………………………... 15
Forms, Construction…………………………………………………………………... 14
Foundations…………………………………………………………………………… 13
Fountains……………………………………………………………………………… 13
©The Surety Association of America, 1995 iv Revised January 1, 1995

SURETY
INDEX
Page
Framing and Finish (Carpentry)………………………………………………………. 13
Freight, Carriage by Water……………………………………………………………. 14
Fuel……………………………………………………………………………………. 16
Furniture………………………………………………………………………………. 16
G
Garbage, Disposal or Collection of…………………………………………………… 18
Garbage Disposal Plants……………………………………………………………… 13
Gas Compressor Stations……………………………………………………………... 13
Gas Mains or Piping…………………………………………………………………... 13
Gas Tanks……………………………………………………………………………... 15
Gasoline Cracking Plants……………………………………………………………... 13
General Rules Section…………………………………………………………….. 3, 4, 5
Generators…………………………………………………………………………….. 15
Glazing………………………………………………………………………………... 14
Golf Courses………………………………………………………………………….. 13
Grade Crossing Elimination (Bridges)………………………………………………... 14
Grading, Contracts (Clearing)………………………………………………………… 14
Grain Doors…………………………………………………………………………… 15
Grain Elevators……………………………………………………………………….. 13
Granite, Furnishing (Stone)…………………………………………………………… 14
Gravel (Stone)………………………………………………………………………… 16
Greenhouses…………………………………………………………………………... 14
Grey Goods, Processing………………………………………………………………. 15
Grubbing (Clearing)…………………………………………………………………... 14
Guard Rails…………………………………………………………………………… 15
Gunite Contract……………………………………………………………………….. 13
Guttering and Curbing………………………………………………………………... 14
H
Hauling and Draying………………………………………………………………….. 18
Headstones……………………………………………………………………………. 16
Heating Systems………………………………………………………………………. 13
Heating, Temporary or Portable………………………………………………………. 15
High Pressure Power Piping………………………………………………………….. 14
Highway Contracts……………………………………………………………. 14, 15, 16
Hospital — Clinic Buildings………………………………………………………….. 13
House Movers………………………………………………………………………… 18
Houses, Prefabricated…………………………………………………………. 13, 14, 16
©The Surety Association of America, 1995 v Revised January 1, 1995

SURETY
INDEX
Page
I
Incinerator Operation…………………………………………………………………. 15
Incinerators……………………………………………………………………………. 13
Industrial Buildings and Plants……………………………………………………….. 13
Inland Dredging………………………………………………………………………. 18
Insulation Contracts…………………………………………………………………... 15
Insurance, Placing Fire or Other……………………………………………………… 16
Iron or Steel……………………………………………………………………….. 15, 16
Iron Work, Ornamental……………………………………………………………….. 15
Irrigation Systems…………………………………………………………………….. 13
J
Jail Cells………………………………………………………………………………. 16
Janitor Service………………………………………………………………………… 14
Jetties………………………………………………………………………………….. 13
K
Kitchen Equipment…………………………………………………………………… 15
L
Labor and Work………………………………………………………………………. 15

Labor or Material — Payment Bond………………………………………………. 1, 17
Laboratory Animals…………………………………………………………………... 16
Laboratory Equipment and Apparatus………………………………………………... 15
Land, Planting and Cultivation of…………………………………………………….. 14
Landscaping…………………………………………………………………………... 13
Laundry Contracts…………………………………………………………………….. 14
Laundry Machinery…………………………………………………………………… 16
Leasing of Motor Vehicles……………………………………………………………. 15
Levees (Dikes)………………………………………………………………………... 13
Lien Bonds……………………………………………………………………………. 17
Lighting Contracts…………………………………………………………………….. 16
Lighting Fixtures (Electric)…………………………………………………………… 16
Lightning Rods………………………………………………………………………... 15
Linoleum……………………………………………………………………………… 16
Liquor Tax Stamps (Printing)………………………………………………………… 16
Livestock, Packaging or Processing (Processing)…………………………………….. 15
Lock Gates……………………………………………………………………………. 15
Locks………………………………………………………………………………….. 13
Lockers………………………………………………………………………………... 16
©The Surety Association of America, 1995 vi Revised January 1, 1995

SURETY
INDEX
Page
M
Machinery Made to Special Order…………………………………………………… 14

Mail Chute Contracts………………………………………………………………… 14
Mail Contracts……………………………………………………………………….. 18
Mail Handling Machinery…………………………………………………………… 15
Maintenance Guarantees…………………………………………………………… 1, 19
Map Making…………………………………………………………………………. 14
Marble (Stone)……………………………………………………………………….. 14
Marine Salvage (Wrecking, Demolition, etc.)…………………………………… 13, 18
Masonry……………………………………………………………………………… 13
Material or Labor Payment Bond………………………………………………….. 1, 17
Maximum Premium — Rule………………………………………………………… 4
Metal Windows and Shutters………………………………………………………… 15
Military Traffic Management and Terminal Service Contracts……………………... 18
Mill Work……………………………………………………………………………. 14
Miscellaneous Contracts……………………………………………………….. 2, 17, 18
Missile Installations………………………………………………………………….. 13
Mixed Concrete……………………………………………………………………… 16
Monuments, Mortuary……………………………………………………………….. 16
Mosquito Control…………………………………………………………………….. 15
Movies……………………………………………………………………………….. 15
Moving and Hauling Contracts………………………………………………………. 18
Multi-Year Procurement Contracts — Rule…………………………………………. 4
Munitions…………………………………………………………………………….. 16
Murals………………………………………………………………………………... 14
Music Systems (Public Address)…………………………………………………….. 15
O
Office Buildings……………………………………………………………………... 13
Office Furniture……………………………………………………………………… 16
Office Personnel……………………………………………………………………... 15
Off-Shore Platforms and Towers…………………………………………………….. 13
Oil……………………………………………………………………………………. 16
Oil Burners…………………………………………………………………………... 16
Oiling Roads (Highways, Roads, etc.)………………………………………………. 15
Organ Repair…………………………………………………………………………. 15
Organs (Pipe)………………………………………………………………………… 16
Original Premium Earned — Rule…………………………………………………... 4
Ornamental Iron Work……………………………………………………………….. 15
Overpasses (Bridges)………………………………………………………………… 14
©The Surety Association of America, 1995 vii Revised January 1, 1995

SURETY
INDEX
Page
P
Painting Contracts……………………………………………………………………. 13
Parking Areas………………………………………………………………………... 14
Parking Meters……………………………………………………………………….. 15
Parks…………………………………………………………………………………. 14
Parquet Floors………………………………………………………………………... 15
Partitions……………………………………………………………………………... 16
Paving, Street (Highways, Roads, etc.)……………………………………… 14, 15, 16
Paving Blocks………………………………………………………………………... 16
Payment Bond — Labor or Material………………………………………………. 1, 17
Payment Bonds — Rule……………………………………………………………... 4
Performance Bonds — Generally……………………………………………………. 1
Photogrammetric Work……………………………………………………………… 15
Piers………………………………………………………………………………….. 13
Piling…………………………………………………………………………………. 13
Pipe…………………………………………………………………………………... 16
Pipe Covering………………………………………………………………………... 16
Pipe Lines, Oil or Gas………………………………………………………………... 15
Pipe Lines, Water……………………………………………………………………. 13
Pipe Organs…………………………………………………………………………... 16
Planting………………………………………………………………………………. 14
Plastering…………………………………………………………………………….. 13
Playgrounds………………………………………………………………………….. 14
Plumbing……………………………………………………………………………... 13
Police Alarms………………………………………………………………………... 15
Power Plants…………………………………………………………………………. 13
Precipitators………………………………………………………………………….. 13
Prefabricated Houses, Building or Structures………………………………... 13, 14, 16
Premium Payable In Advance — Rule………………………………………………. 4
Printing Contracts……………………………………………………………………. 16
Printing Presses, Furnishing…………………………………………………………. 16
Processing Contracts…………………………………………………………………. 15
Processing or Packaging……………………………………………………………... 15
Projectiles……………………………………………………………………………. 15
Proposal Bonds, Generally………………………………………………………… 1, 20
Public Address Systems……………………………………………………………… 15
Public Improvements………………………………………………………………… 13
Pumps, Furnishing…………………………………………………………………… 16
©The Surety Association of America, 1995 viii Revised January 1, 1995

SURETY
INDEX
Page
R
Radiological Equipment and Apparatus……………………………………………... 15

Radio Towers………………………………………………………………………… 15
Railroad Tickets (Printing)…………………………………………………………... 16
Railroad Ties (Track Material)………………………………………………………. 16
Railroads (Roadbeds)………………………………………………………………... 13
Rail Transit Systems…………………………………………………………………. 13
Recapping Auto Tires………………………………………………………………... 15
Refrigerating Plants………………………………………………………………….. 15
Rehabilitation, Building……………………………………………………………… 13
Remediation, Removal or Encapsulation (Asbestos)………………………………... 13
Removal of Snow, Garbage, etc……………………………………………………... 18
Renewal Premiums — Rule…………………………………………………………. 5
Rental of Equipment…………………………………………………………………. 18
Repair of Automobiles or Trucks……………………………………………………. 15
Repairs for Vessels (Shipbuilding)…………………………………………………... 13
Replacement Contracts — Replace Property to Original Condition………………… 18
Research Contracts…………………………………………………………………... 14
Resmelting Old Metal………………………………………………………………... 15
Rest Home Building…………………………………………………………………. 13
Revetments (Dikes)………………………………………………………………….. 13
Revolving Doors (Doors)……………………………………………………………. 15
Right of Surety To Terminate………………………………………………………... 1
Rip Rap Stone………………………………………………………………………... 15
Risk Classification……………………………………………………….. 13 through 21
River Bank Protection……………………………………………………………….. 14
Roadbeds for Railroads……………………………………………………………… 13
Road Medians………………………………………………………………………... 14
Road Oiling (Highways, Roads, etc.)………………………………………………... 15
Roads………………………………………………………………………………… 15
Rolling Stock………………………………………………………………………… 15
Roofing………………………………………………………………………………. 14
Rubber Tile Floors (Floors)………………………………………………………….. 15
Rugs (Linoleum)……………………………………………………………………... 16
Runways at Airports…………………………………………………………………. 14
S
Safe Deposit Vaults or Safes………………………………………………………… 16

Salvage, Marine (Wrecking, Demolition, etc.)………………………………………. 13
Sand (Crushed Stone, etc.)…………………………………………………………... 16
Sand Blasting………………………………………………………………………… 13
©The Surety Association of America, 1995 ix Revised January 1, 1995

SURETY
INDEX
Page
Scaffolding……………………………………………………………………………. 15
Scenery (Curtains, Draperies)………………………………………………………… 16
School Book Contracts………………………………………………………………... 16
School Children, Transportation……………………………………………………… 18
Scope of Coverage………………………………………………………………….. 1, 2
Scrubbers……………………………………………………………………………… 13
Sculptures……………………………………………………………………………... 13
Sea Walls……………………………………………………………………………… 13
Section General Rules…………………………………………………………….. 3, 4, 5
Separate Contracts — Rule…………………………………………………………… 5
Septic Tanks (Sewers)………………………………………………………………… 13
Sewage Disposal Plants………………………………………………………………. 13
Sewers………………………………………………………………………………… 13
Shipbuilding………………………………………………………………………. 13, 16
Shipyards……………………………………………………………………………… 13
Shoring Up (Wrecking, Demolition, etc.)………………………………………… 13, 18
Showcases…………………………………………………………………………….. 16
Shutters (Metal)……………………………………………………………………….. 15
Sidewalks……………………………………………………………………………... 15
Signal Systems on Railroads………………………………………………………….. 15
Signs…………………………………………………………………………………... 15
Simultaneous or Combination Bids — Rule………………………………………….. 5
Ski-Lifts………………………………………………………………………………. 14
Snow Removal………………………………………………………………………... 18
Software (Computer)………………………………………………………………….. 15
Spillways……………………………………………………………………………… 13
Sprinkler Systems…………………………………………………………………….. 14
Sprinkling Streets (Snow, Garbage Removal)………………………………………... 18
Stack Rooms………………………………………………………………………….. 15
Stand Pipes……………………………………………………………………………. 15
Statistical Codes…………………………………………………………… 6 through 12
Steam, Sale of………………………………………………………………………… 16
Steel or Iron……………………………………………………………………….. 15, 16
Stokers, (Automatic)………………………………………………………………….. 15
Stone…………………………………………………………………………... 13, 14, 16
Storage Tanks, Gasoline or Oil……………………………………………………….. 14
Street Lighting Systems………………………………………………………………. 15
Street Paving (Highways)…………………………………………………….. 14, 15, 16
Streets, Cleaning and Sprinkling (Snow, Garbage Removal)………………………… 18
Striping (Highways, etc.)……………………………………………………………... 15
Subcontracts — Rule…………………………………….…………………………… 5
©The Surety Association of America, 1995 x Revised January 1, 1995

SURETY
INDEX
Page
Subdivision Bonds……………………………………………………………………. 21
Subrogation, Right of…………………………………………………………………. 2
Subway Lighting Systems…………………………………………………………….. 15
Subways………………………………………………………………………………. 13
Superintendents of Construction (Bonds for)………………………………………… 15
Supply Contracts…………………………………………………………………… 2, 16
Sureties, Consents or Agreements……………………………………………………. 20
Surety's Right of Subrogation (see Procedures, Common General Rules Section)…... 2
Surfacing Roads (Highways, etc.)…………………………………………………….. 15
Surveyors (Architects)………………………………………………………………... 18
Swimming Pools……………………………………………………………………… 13
T
Tanks, Gasoline or Oil………………………………………………………………... 15

Telephone Exchange Equipment……………………………………………………... 15
Temporary Personnel Services………………………………………………………... 15
Tennis Courts…………………………………………………………………………. 14
Tents (Clothing)………………………………………………………………………. 16
Terminals……………………………………………………………………………... 13
Termination, Right of…………………………………………………………………. 1
Terrazzo………………………………………………………………………………. 13
Test Boring……………………………………………………………………………. 13
Thermostat Equipment………………………………………………………………... 15
Tile……………………………………………………………………………………. 13
Timber Cutting Bonds…………………………………………………………….. 16, 18
Toll Gates……………………………………………………………………………... 15
Towing Contracts……………………………………………………………………... 18
Track Laying………………………………………………………………………….. 15
Track Material………………………………………………………………………… 16
Traffic Control Systems………………………………………………………………. 15
Training Manuals……………………………………………………………………... 15
Transcribing Records…………………………………………………………………. 16
Transmission Lines, Electric………………………………………………………….. 13
Transportation of School Children……………………………………………………. 18
Trash Disposal Plants (Garbage)……………………………………………………… 13
Tree Trimming and Removal…………………………………………………………. 15
Trucks or parts—Supply……………………………………………………………… 16
Tunnels (Wind)……………………………………………………………………….. 13
Types of Contract Bond Code………………………………………………………… 12
Types of Contracts……………………………………………………………………. 2
©The Surety Association of America, 1995 xi Revised January 1, 1995

SURETY
INDEX
Page
U
Underpasses (Bridges)………………………………………………………………... 14
Underwater Cables……………………………………………………………………. 13
Uniforms — Supply (Clothing)………………………………………………………. 16
United States Mail Contracts…………………………………………………………. 18
Unlisted Contracts — Rule…………………………………………………………… 5
V
Venetian Blinds……………………………………………………………………….. 16
Ventilating Systems…………………………………………………………………... 13
Vessels, Removal of Sunken (Wrecking, Demolition, etc.)……………………… 13, 18
Viaducts (Bridges)……………………………………………………………………. 14
W–X
Watchmen and Signal Services……………………………………………………….. 15

Water Carriage of Freight…………………………………………………………….. 14
Water Proofing………………………………………………………………………... 14
Water Softener………………………………………………………………………... 16
Water Towers…………………………………………………………………………. 15
Water Works………………………………………………………………………….. 13
Waste Disposal Plants — Hazardous or Non-Hazardous Waste……………………... 13
Weather Stripping…………………………………………………………………….. 15
Weed Mowing………………………………………………………………………… 15
Wells………………………………………………………………………………….. 13
Wharves………………………………………………………………………………. 13
Wind Tunnels…………………………………………………………………………. 14
Window Cleaning…………………………………………………………………….. 15
Window Screens……………………………………………………………………… 16
Window Shades………………………………………………………………………. 16
Windows (Metal)……………………………………………………………………... 15
Wiring (Electric)……………………………………………………………………… 13
Work and Labor………………………………………………………………………. 15
Wrecking………………………………………………………………………….. 13, 18
X-Ray Inspection……………………………………………………………………... 15
©The Surety Association of America, 1995 xii Revised January 1, 1995

SURETY
Section 3. Court and Fiduciary Bonds
TABLE OF CONTENTS
Subject Page
I. SCOPE OF COVERAGE............................................................................................................... 1 –14
II. SECTION GENERAL RULES................................................................................................... 15 – 18
III. STATISTICAL CODES ............................................................................................................. 19 – 24
IV. RISK CLASSIFICATION........................................................................................................... 25 – 34
INDEX........................................................................................................................................... i-v
©The Surety Association of America, 2004 I Revised January, 2004

SURETY
SCOPE OF COVERAGE
1. Court Bonds In Judicial Proceedings
Bonds in this classification are required when litigants seek to avail themselves of
privileges or remedies which are allowed by law only upon condition that a bond with
surety be furnished for the protection of the opposing litigant or other interested party.
The purpose of the bond is to preserve the rights of the opposing litigant in the granting
of the privilege or remedy. In all cases, the condition of the bond—the coverage—is
prescribed by law, and only a bond which complies with the statutory requirements will
be effective.
These bonds are non-cancelable and liability continues until the obligation of the
principal is discharged or the applicable statute of limitations has run.
2. Court Bonds In Admiralty Proceedings
The United States District Courts have exclusive jurisdiction in all admiralty and
maritime cases. In admiralty, an action may be brought against a ship — an action in
rem — and the ship may be seized by the United States Marshal and held as security
for the claim. The owner may have the ship released by giving other approved security
for the claim. The complaint in an action against a ship is known as a libel, and the one
who brings the action is known as the libellant.
3. Court Bonds — Fiduciaries
a. General Description
A court fiduciary is one who, under the jurisdiction and supervision of a court,
administers property held in trust. Court fiduciaries are generally required by law
to give bond with surety for the faithful performance of their duties and compliance
with the orders of the court having jurisdiction. Also in this classification are
conservators or liquidators (by whatever name called) appointed to conserve or
liquidate the assets of banks or other financial institutions, including insurance
companies, whether or not they are subject to the jurisdiction of a court.
b. Coverage—Prescribed By Law
The duties of a fiduciary are generally prescribed by law and in addition thereto the
fiduciary must comply with all lawful orders as may, from time to time, be issued
by the court having jurisdiction. The fiduciary’s bond covers loss resulting from
any failure faithfully to perform such duties or orders.
c. Coverage—Rights of Beneficiaries
Where bond is required by State law, the State is usually named as obligee in the
bond, and when bond is required by Federal law, the United States is named as the
obligee; but any one who has a beneficial interest in the estate may seek indemnity
under the bond for loss sustained through the failure of the principal to fulfill the
duties and obligations required by law.
©The Surety Association of America, 1991 CF-1 New Page July 1, 1991
SURETY
SCOPE OF COVERAGE
A. BONDS CLASSIFIED IN THIS SECTION (Continued)

3. Court Bonds — Fiduciaries (Continued)
d. Coverage — Embezzlement of Estate Funds
A fiduciary is prohibited from using trust moneys for personal use. In the event the
fiduciary diverts trust funds for this purpose, the bond is liable for any loss
sustained by the estate. Embezzlement losses often remain hidden for a period of
years, but the surety is liable on its bond until applicable statute of limitations has
run.
e. Coverage — Improper Disbursements
The duties of a fiduciary always include the obligation to account for the assets of
the trust estate, showing that only such disbursements as are authorized by law
have been made. At the termination of the trust the fiduciary must distribute the
balance to those who are legally entitled thereto; hence the bond provides
protection to the beneficiaries against loss through improper disbursements, even
though made by the fiduciary in good faith.
f. Coverage — Loss on Investments
Fiduciaries are obligated to conserve the estate which may include the duty to
invest estate assets to yield an income. The laws of each state outline duties and
liabilities of such fiduciaries with respect to conservation and investments, and the
bond covers the principal’s liability resulting from the failure to comply therewith.
g. Coverage — Right of Surety to Terminate
These bonds do not contain any provision by which the surety may, by notice,
terminate its liability, yet in many of the States there is a statutory provision under
which the surety may, by following a prescribed procedure, effect termination of
liability for the future acts and defaults of the principal, either as a matter of right
or in the court’s discretion.
h. Coverage — The Term of the Bond
The appointment of a court fiduciary is not for any definite term, and bond
continues in force until the fiduciary has completed administration of the trust,
filed a final account, and been discharged by an order of court, or duly released by
all interested parties.
SURETY
SCOPE OF COVERAGE
B. CLASSES OF BONDS
1. Judicial Proceedings Bonds
The bonds in this classification are divisible into two groups:
a. Bonds In Civil Proceedings, whether in State or Federal courts such as:
(1) Appeal Bond—Defendant’s

An appeal bond may be required whenever a judgment, order or decree has
been rendered against the defendant and the defendant desires to appeal to a
higher court and usually to stay execution of judgment, order or decree. The
bond is conditioned, in effect, that principal will prosecute the appeal and
perform the judgment, order, or decree appealed from, if it should be
affirmed by the appellate court.
(2) Appeal Bond—Plaintiff’s

If the judgment, order, or decree merely denies to the plaintiff the remedy
sought, it is necessary, as a rule, for the plaintiff to give bond only for the
payment of the costs on the appeal. If, however, the judgment, order, or
decree gives the defendant affirmative relief, a bond to stay execution may
be required.
(3) Attachment Bond—Plaintiff’s

Attachment on original process is the taking of the defendant’s property into
custody by a summary process from the court, in advance of the trial on the
merits of the case, as security for the payment of any judgment that may be
recovered by the plaintiff in the action. Attachment is allowed only where
the plaintiff alleges a statutory ground for it, such as the defendant is a non-
resident or is about to leave the jurisdiction or remove or conceal the
defendant’s property. The attachment bond, which the plaintiff is required
to furnish, provides indemnity to the defendant against loss or damage in
case it is finally decided that a statutory ground for attachment did not in
fact exist or plaintiff fails to recover a judgment against the defendant.
(4) Attachment—Defendant’s Bond to Discharge or Release

When an attachment has been issued, defendant may discharge the
attachment by giving bond conditioned for the payment of any judgment
that may be rendered against the defendant in the action with interest and
costs.
©The Surety Association of America, 2004 CF-3 Revised January, 2004

SURETY
SCOPE OF COVERAGE
B. CLASSES OF BONDS (Continued)

1. Judicial Proceedings Bonds (Continued)
a. Bonds In Civil Proceedings (Continued)
(5) Certiorari
The writ of certiorari is a common law writ, issued from a superior court to
one of inferior jurisdiction, commanding the latter to certify and return to
the former the record in a particular case, to enable the appellate court to
determine whether there has been an irregularity in the proceedings. If
bond is required in this connection, it is usually a bond for the payment of
the costs in the appellate court, as this writ is not the appropriate procedure
by which to take an appeal from a judgment.
Where, however, bond includes guarantee for payment of a judgment, it is
treated as an Appeal Bond.
(6) Civil Arrest—Bond on Order of

Bond may be required of the party at whose instance the arrest is made.
The bond is usually conditioned for the payment of the costs and any
damage which the defendant may sustain, in case it is finally decided that
the arrest ought not to have been made.
(7) Claimant’s Bond

In cases where, pending final decision on the merits, property is released to
one not a party to the litigation, who claims to be the owner thereof, the
claimant may be required to give bond conditioned for the return or
redelivery of the property if ordered to do so by the court.
(8) Costs
When bond is required as security for costs, the bond is conditioned for the
payment of the costs, such as fees of the clerk of court, sheriff and the like.
(9) Counter Replevin

See Replevin—Defendant’s Bond to Recover Property Replevied.
(10) Discharge Attachment

See Attachment—Defendant’s Bond to Discharge or Release.

SURETY
SCOPE OF COVERAGE

(11) Discharge Mechanic’s Lien

See Mechanic’s Lien—Bond to Discharge.
(12) Dissolve Injunction

See Injunction—Defendant’s Bond to Dissolve.
(13) Distraint for Rent—Plaintiff’s Bond

If a landlord, in an action for the collection of rent, seeks to have personal
property of the tenant seized before there has been a final decision on the
merits, the landlord may be required to give a bond, which is to the same
effect as a Plaintiff’s Attachment Bond.
(14) Distraint for Rent—Defendant’s Bond

If personal property of a tenant has been seized in an action to collect rent,
the defendant may have the property released upon giving bond to the
same effect as a bond to release attached property.
(15) Foreclosure Proceedings

Bonds given by pla intiffs in foreclosure guaranteeing rights of parties who
have not been personally cited or served.
(16) Forthcoming Bond
This term is applicable to any bond conditioned for the return or redelivery
of property in compliance with an order of the court. In some states, it may
guarantee payment of a judgment.
(17) Garnishment—Bond to Discharge or Release

When money or property belonging to the defendant has been attached in
the hands of a third party, the proceeding is sometimes called a
garnishment and the third party is called garnishee. Bond to release such
property is to the same effect as a bond to release property attached.

SURETY
SCOPE OF COVERAGE

(18) Indemnity to Sheriff or Marshal

A sheriff or marshal, in the execution of the process of the courts, may
incur liability for loss or damage to third parties through acts which turn
out to be wrongful; and it is the privilege of the sheriff or marshal, when
requested to take some particular action, to require of the party making the
request a bond to cover the liability of the sheriff or marshal in that
connection.
(19) Inheritance Tax Bonds

Bond guaranteeing payment of inheritance, estate or transfer taxes.
(20) Injunction—Plaintiff’s Bond to Secure

An injunction is a judicial process generally issuing out of a court of
equity, whereby the defendant is required to do or refrain from doing a
particular thing. An order granting an injunction may be conditioned upon
the furnishing by the plaintiff of a bond to indemnify the defendant against
loss in case it is finally decided that the injunction should not have been
granted.
(21) Injunction—Defendant’s Bond to Dissolve

When an injunction has been issued, the court may order the injunction
dissolved upon the giving of a bond conditioned, in effect, to pay such
damages as the plaintiff may sustain as a result of the performance of the
act or acts originally enjoined, it being then the privilege of the defendant
to proceed as if the injunction had never been issued.
(22) Interpleader—Claimant’s Bond

The only bond that would ordinarily be required in such an action is a bond
for the payment of costs. If, however, one of the claimants is allowed to
have possession of the property in controversy pending final decision on
the merits, claimant’s bond would be required.

SURETY
SCOPE OF COVERAGE

(23) Mandamus
This is a common law writ issuing from a superior court to some inferior
court, corporation, or public officer, requiring the defendant to do some
particular act therein specified, which appertains to the defendant’s office
or duty. If the writ is issued before there has been a final decision on the
merits, the plaintiff may be required to give bond to indemnify the
defendant against loss or damage in case it is finally decided that the
mandamus should not have been issued.
(24) Mechanic’s Lien—Bond to Discharge

A lien against real estate may be filed for the amount claimed to be due for
labor or materials furnished for the construction of a building or other
improvement upon the property. Pending final determination of the
owner’s liability, the owner may discharge the lien by giving bond
conditioned for the payment of any amount that may be found due to
claimant with interest and costs.
(25) Open Default

Where a judgment has been entered by default, the defendant may, under
certain circumstances, have the case reopened and tried on its merits, upon
giving bond conditioned for the payment of any judgment that may be
rendered in the action.
(26) Open Estate Bonds

Given by Heirs and Distributees to Title Companies who insure the title, or
Purchasers or Mortgagees who buy or take a mortgage on decedent’s real
estate prior to the expiration of the statutory period for filing claims
against the estate, or Bonds issued in behalf of Heirs or Distributees to
prevent the sale of decedent’s real estate for the payment of debts,
conditioned for the payment of all said debts and administration expenses
insofar as the decedent’s personalty proves insufficient.

SURETY
SCOPE OF COVERAGE

(27) Petitioning Creditor’s Bond

Whenever a petition is filed to have a person adjudged a bankrupt and
application is made to have a receiver or the marshal take charge of the
property of the alleged bankrupt prior to the adjudication, the petitioners
are required to give bond conditioned to indemnify the alleged bankrupt
for such costs, counsel fees, expenses, and damages as may be occasioned
by such seizure, in case the petition is dismissed or withdrawn by the
petitioners. Similar bond may be required on petition for the appointment
of a receiver in a court of equity.
(28) Redelivery Bond

Substantially the same as a Forthcoming Bond.
(29) Refunding Bonds:

a. Rate Litigation
This term is applicable to any bond conditioned for return, if ordered so
to do, of money which principal was allowed to charge and retain
pending final decision on the merits.
b. Heirs and Distributees
Bonds given by Heirs, Distributees or Creditors of an estate to
guarantee refund or return of advance distribution or payment made to
them by the Fiduciary.
(30) Release of Goods Se ized Under Pure Food, Drug and Cosmetic Act
Where goods are found to be misbranded or unfit for human
consumption the government seizes them. The owner may, however,
repossess his goods by posting bond guaranteeing to label them correctly
or process them so they will be fit for commercial use or consumption.
(31) Removal Bond

Where a case originally brought in a State court is removed to the
Federal court, the defendant is required to give bond for the payment of
costs in Federal court if case is found to have been improperly removed.
Similar bond may be required on removal of a case from one State court
to another.

SURETY
SCOPE OF COVERAGE

(32) Replevin—Plaintiff’s Bond to Secure

Replevin is an action to recover possession of specific articles of personal
property. The replevin bond, which the plaintiff is required to furnish, is
conditioned for the return of the property, if return is ordered, and for the
payment of all costs and damages adjudged to the defendant.
(33) Replevin—Defendant’s Bond to Recover Property Replevied

Where property has been replevied, the defendant may, by the furnishing
of a bond, regain possession of property, pending final decision on the
merits. The bond is conditioned for redelivery of property to plaintiff, if
ordered so to do, or otherwise comply with courts' order or judgment.
(34) Sequestration Bond

Substantially the same as Attachment Bond—Plaintiff’s.
(35) Stay of Execution

Bond to stay or suspend execution on a judgment. It is conditioned for the
payment of the judgment upon termination of the stay.
(36) Supersedeas Bond

This is a bond to supersede or take the place of a judgment, and the
coverage is substantially the same as under a Defendant’s Appeal Bond.
(37) Warrant of Seizure

Same as Attachment Bond—Plaintiff’s.
(38) Writ of Error

A writ to review a final judgment or decree of an inferior court, and on
such review, to affirm or reverse the same. Bond required is, in effect, an
Appeal Bond.

SURETY
SCOPE OF COVERAGE

b. Bonds For Release Of Defendant such as:
(1) Bail Bonds —Criminal

Bond to secure release of one who has been arrested on a criminal charge:
the bond is conditioned that accused will appear at proper time in court in
which the charge is pending and submit himself to trial and orders of the
court. In event of his failure to appear, the entire penalty of bond becomes
due and payable as a forfeiture.
(2) Bail Bonds —Civil
Where one is under arrest in a civil action, he may, in certain states, be
released upon giving bond conditioned that he will not depart from the
specified area fixed by court, and will appear when ordered to do so. In
event of a breach of bond, the entire penalty becomes due and payable as a
forfeiture.
(3) Powers of Attorney
Empowering owners of pr ivate passenger automobiles or airplanes to
furnish bail bonds covering themselves, their immediate family, and their
chauffeur or pilot.
2. Admiralty Proceedings Bonds

The bonds included in this classification are:
a. General Average Bond
When a ship and cargo have been in a common peril and a voluntary sacrifice of
a part of the cargo has been made, bond is required upon delivery to the
respective owners of property that was saved, conditioned for the payment of
their respective shares of the losses and expenses found to be due upon a
general average adjustment.
b. Libel—Bond To Discharge Or Release
When a warrant for the seizure of a ship has been issued, the marshal is required
to stay execution of the process, or discharge the ship if process has been levied,
on receiving from the owner of the ship a bond or stipulation conditioned to
comply with the decree of the court in the action.

SURETY
SCOPE OF COVERAGE

2. Admiralty Proceedings Bonds (Continued)
c. Stipulation For Costs
In an action against a ship, the libellant is or may be required to give a bond for
payment of costs.
d. Stipulation For Value Or Limitation Of Liability
The release of a libelled ship is sometimes effected by the owner by giving a
stipulation for value in an agreed amount or, if claims exceed value of ship by
giving stipulation for limitation of liability in an amount fixed by court based on
an appraisement of the ship, conditioned to pay any sum awarded by final decree
not exceeding amount of stipulation.
3. Fiduciary Bonds
The bonds in this classification are divisible into seven groups:
a. Bonds In Estates Of Deceased Persons Or Persons Presumed On Account
Of Long Absence To Be Dead, Including The Following Classes:
(1) Administrator—Appointed by the Court to administer the estate of one who

died without leaving a will.
(2) Administrator de bonis non—Appointed to succeed an administrator who
has died, resigned or been discharged before the administration is complete.
(3) Administrator cum testamento annexo or with will annexed—Appointed
to administer the estate of one who died leaving a will but failed to name an
executor or where the one named as executor fails to qualify.
(4) Administrator cum testamento annexo, de bonis non—Appointed to
succeed an executor who has died, resigned or been discharged before the
administration is complete.
(5) Administrator Pendente Lite—Appointed to preserve the assets of a
decedent’s estate, where there is a contest of the will or other circumstances
which delay qualification of executor, if there is a will or the appointment of
an administrator, if there is no will.
(6) Administrator to Sell Real Estate—A separate bond required by the court in
connection with the granting of authority to sell real estate belonging to
the estate.

SURETY
SCOPE OF COVERAGE

3. Fiduciary Bonds (Continued)
a. Bonds In Estates Of Deceased Persons Or Persons Presumed On Account Of
Long Absence To Be Dead, Including The Following Classes: (Continued)
(7) Executor—One named in a will to administer the estate of the testator.

(8) Special Administrator—Same as Administrator Pendente Lite.
(9) Temporary Administrator—Same as Administrator Pendente Lite
b. Bonds In Estates Of Incompetents, Including The Following Classes:
(1) Committee—Appointed by the court to administer the estate of one who has been
declared incompetent.
(2) Conservator—Same as Committee.
(3) Curator—Same as Committee.
(4) Custodian or Trustee—designated by Veterans Administration to disburse
benefits due an incompetent veteran or his minor children.
(5) Guardian—Same as Committee.
c. Bonds In Estates Of Minors, Including The Following Classes:
(1) Guardian or General Guardian—Appointed by the court to administer the

estate of a minor.
(2) Guardian Ad Litem—Appointed to preserve the assets of the estate of a minor
during a litigation which delays the appointment of a general guardian.
(3) Guardian on the Sale of Real Estate—A separate bond required by the court in in
connection with the granting of authority to sell real estate belonging to the ward .
(4) Special Guardian—Same as Guardian Ad Litem.
(5) Temporary Guardian—Same as Guardian Ad Litem.
d. Bonds In Trust Estates, Including The Following Classes:
(1) Trustee Under a Will, generally known as testamentary trustee.

(2) Trustee Under a Deed or other similar instrument.

SURETY
SCOPE OF COVERAGE

e. Bonds In Bankruptcy Proceedings Filed In U.S. District Courts, Including The
Following Classes:
(1) Agents, Appraisers, Creditors’ Committees, Custodians, Examiners,

Petitioning Creditors and Stockholders’ Committees or Their Agents.
(2) Disbursing Agents, Distributors, Receivers, Ancillary Receivers or
Trustees appointed solely to marshal the assets, liquidate and distribute to
creditors.
(3) Receivers, Ancillary Receivers, Marshals or Trustees appointed to take
temporary or permanent charge of the property of debtors or to operate,
reorganize and rehabilitate the debtors business for its continuance as a going
concern.
(4) Debtors Bonds —All bonds including Debtors Diminution Indemnity,
Debtors in Possession, Debtors Return of Property or Counter Bond.
f. Bonds Filed In Equity Courts Or Courts Exercising Equitable Jurisdiction,

Including The Following Classes:
(1) Masters, Referees, Trustees, Commissioners, or Others for the sale of real
estate, or other property, in partition, foreclosure, reorganization, or winding
up proceedings or other litigation; where the applicant’s duties do not require
investment of assets or any duties of administration other than the sale and
distribution of proceeds.
(2) Receivers, Trustees or Others appointed by the court to manage property or a
business, whether in State or Federal Court.
(3) Assignees, Liquidators, Trustees or Others appointed for benefit of creditors
by an insolvent debtor to liquidate the debtor’s assets and make distribution to
creditors.
(4) Bonds Given by Survivors of Partnerships in State Courts.

SURETY
SCOPE OF COVERAGE

g. Miscellaneous Fiduciary Bonds Not Within Any Of The Above
Descriptions, Including The Following Classes:
(1) Conservators, Custodians, Liquidators, Receivers, Trustees or Others,

appointed by Federal or State authority to conserve or liquidate the business
of a bank or other financial institution or an insurance company, whether
stock or mutual, or any company or institution writing any form of
insurance or granting sick or death benefits.
(2) Agents, Liquidators or Receivers of Closed Associations —whether
appointed by State Court, State Banking Department, Auditor of Public
Accounts or any other official.
(3) Life Tenant Bonds where on death of life tenant, remaindermen are
entitled to claim the value of the assets at time received by life tenant.
(4) All Other Fiduciary Bonds to collect and distribute.
(5) All Other Fiduciary Bonds to preserve, invest and pay over income.

SURETY

A. PERSONS ENTERING MILITARY SERVICE
1. Judicial Proceedings
When an action is stayed or placed on a special reserve calendar due to the induction
into the armed services of a party thereto, renewal premiums on a court bond filed
therein, which are due subsequent to the party's induction, are not to be charged nor
collected during the period the action is so stayed or held in reserve. However, the
right to charge renewal premiums shall be revived, and a renewal premium shall be
due and payable on the date when neither party to the litigation is in the armed
services.
2. Fiduciary Bonds
Where principal on a court fiduciary bond becomes a member of the armed forces of
the United States before termination of its fiduciary duties, whether that occurs in
first or subsequent years of the estate or trust, and court discharges the fiduciary for
that reason alone, or orders its fiduciary powers suspended while the fiduciary
remains in armed forces, a pro rata adjustment may be allowed on the fiduciary’s
bond as of date of discharge or suspension, and the unearned premium applied to the
premium on new bond filed by the temporary or permanent successor.
B. ADDITIONAL (ANCILLARY) BONDS — FIDUCIARIES
Where a court fiduciary is required to furnish a new bond as additional security to the
original bond—the original bond and the duties thereunder remaining in effect—or where
bond is filed in an Ancillary proceeding, the following rules apply:
1. Where the additional bond is in the same jurisdiction and of the same character as the
original bond, surety company premium is computed on the total amount of the
original bond and the additional bond at the rates in effect at the time the original
bond was executed. If the surety company rates in force at the time the additional
bond is filed differ from the rates in force at the time of filing the original bond,
compute the premium on the combined penalties at the surety company’s current rate
or the rates in effect at the time the original bond was executed, whichever is lower.
2. Where bond is required of domiciliary fiduciary in an Ancillary proceeding, compute
premium in manner set forth in paragraph 1. above.
3. Where bond is required of some one other than domiciliary fiduciary, charge regular
surety company premium at general rates.
SURETY
C. BOND TO COVER SALE OF REAL ESTATE—FIDUCIARIES

Where a fiduciary has furnished general administration bond with corporate sureties and
a bond is required for the sale of real estate, the following rules apply:
1. If the penalty of the fiduciary’s general bond is based on the total value of the estate
both real and personal; and a bond is required of the same fiduciary for the sale of
real estate in the jurisdiction in which the estate is being administered, the premium
for such bond shall be one-half the surety company’s regular premium for an
additional bond computed in the manner set forth in paragraph B.l. on page CF-15.
2. If the penalty of the fiduciary’s general bond is based only on the value of the
personal estate; or includes only rents and profits on the realty, and not the value of
the fee; a bond required of the same fiduciary for the sale of real estate in the
jurisdiction in which the estate is being administered shall be considered an
additional bond, premium for such bond shall be computed in the manner set forth in
paragraph B.l. on page CF-15.
3. Bonds for the sale of real estate in jurisdictions other than that in which the estate is
being administered should be treated as Ancillary bonds as set forth in paragraphs
B.2. and B.3. on page CF-15.
D. REDUCTION OF LIABILITY—FIDUCIARIES
1. Where Bond Penalty Is Not Reduced
Where an estate is diminished by partial distribution or payment of debts; or a
guardianship when settlement has been made with a ward who has attained majority;
or a trust when a condition of the trust has fallen and that part of the trust estate
accounted for; or a like situation of comparable scope, and satisfactory evidence
furnished the surety of such diminution, the premium for the second and subsequent
years of the risk shall then be computed on a bond sufficient to cover the diminished
value of the assets remaining in accordance with the surety company’s rate prevailing
at the time the original bond was issued, or at the time evidence of diminution of the
estate is furnished the surety, whichever premium is lower.
2. Where Bond Penalty Is Reduced
Where the penalty of the bond is reduced by order of Court, the premium for the
second and subsequent years shall be computed on the reduced bond penalty, in
accordance with the surety company rate prevailing at the time the original bond was
written or at the time the reduction is effected, whichever premium is lower.
SURETY
E. SUBSTITUTED SURETIES—FIDUCIARIES
1. Where a fiduciary bond is transferred from one surety company to another, and
where the first surety has not for any reason been disqualified, the premium to be
charged by the successory surety shall be at regular surety company rates for the first
and succeeding years in force at the time the bond is re-executed.
2. Where the surety has become disqualified, apply current surety company rates to all
classes of fiduciary bonds beginning with the date when new suretyship is furnished.
F. DEATH, RESIGNATION OR REMOVAL OF A FIDUCIARY
If a court fiduciary dies, resigns or is removed, and a successor appointed who is required
to give bond, premium on the successor’s bond shall be at the same surety company rate
in effect at the time the predecessor’s bond was executed, or the surety company rate
prevailing at the time the successor’s bond is executed, whichever is lower.
G. CO-FIDUCIARIES
1. Fiduciaries Classified In Groups: Estates Of Deceased Persons, Estates Of
Minors, Estates Of Incompetents And Trust Estates
Where there are two or more court fiduciaries and each is separately bonded, the
premium shall be computed on the total of all such bonds. If separate bonds are
written by different companies, each bond shall be entitled to its proportionate share.
2. Fiduciaries Classified In Groups: Bankruptcy Courts, Equity Proceedings And
Miscellaneous Fiduciary:
a. Where there are two or more fiduciaries and each is separately bonded, full
premium shall be charged on each bond.
b. Where a co-fiduciary dies, resigns or is removed and a successor appointed who
gives a new bond, apply same surety company rate in effect at the time the
original fiduciary bond was executed or at prevailing surety company rate on
remaining fiduciary’s bond, whichever is lower.
SURETY
H. GUARDIANS OR TRUSTEES—MORE THAN ONE BOND—FIDUCIARIES

1. Where a guardian is appointed for two or more minors in the same family, and
entitled to a share of the same estate, and a separate bond is required to be given by
the guardian for each minor, the premium for the first and subsequent years shall be
calculated upon the sum total of all the guardians’ bonds thus required for the whole
estate.
2. Where trustee gives separate bonds covering individual trusts created by one
instrument, the premium thereon is likewise computed on the sum total of such
bonds.
I. JOINT BONDS—FIDUCIARIES
1. If two or more court fiduciaries are appointed for the same estate and give a joint
bond, charge a single premium computed on the penalty of such joint bond.
2. Where one of the court fiduciaries dies, resigns or is removed and a successor is
appointed who gives a new and separate bond, the premium on such bond shall be
charged as for an additional bond to the existing bond at surety company rates in
effect at the time the original bond was executed, or those in effect when the existing
bond was executed, whichever is lower. If the existing bond is cancelled and a new
joint bond given by the surviving fiduciary and the new appointee, premium shall be
charged at current surety company rates or those in effect when prior bond was
executed, whichever is lower.
SURETY
STATISTICAL CODES

CLASS
CLASS DESCRIPTION
CODE
A. JUDICIAL PROCEEDINGS:
Civil Proceedings, Whether in State or Federal Courts:
Defendant’s bond to discharge or release property under attachment, distraint for
claim and delivery of rent, garnishment; other bonds to pay any judgment or
decree that may be rendered in the pending case (not including bond to release
libel in admiralty)
Fixed Penalty Bonds – where principal has not posted Performance and
240
Payment Bonds covering the contract against which liens are filed . . . . . . . . ..
Fixed Penalty Bonds – where principal has posted Performance and Payment
241
Bonds covering the contract against which liens are filed . . . . . . . . . . . . . . . . .
Open Penalty Bonds – where principal has not posted Performance and
270
Payment Bonds covering the contract against which liens are filed . . . . . . . . . .
Open Penalty Bonds – where principal has posted Performance and Payment
Bonds covering the contract against which liens are filed . . . . . . . . . . . . . . . . .
271
Defentant’s bond to recover property under replevin and other forthcoming and
redelivery bonds; indemnity to sheriff or marshal on releasing property; third
party claimants; ejection
Payment Bonds covering the contract against which liens are filed . . . . . . . . . 242
Fixed Penalty Bonds – where principal has posted Performance and Payment
Bonds covering the contract against which liens are filed . . . . . . . . . . . . . . . . 243
Payment Bonds covering the contract against which liens are filed . . . . . . . . . . 272
Open Penalty Bonds – where principal has posted Performance and Payment
Bonds covering the contract against which liens are filed . . . . . . . . .. . . . . . . . . 273

SURETY
STATISTICAL CODES
CLASS
CLASS DESCRIPTION
CODE
A. JUDICIAL PROCEEDINGS: (Continued)

Injunction – plaintiff’s bond to secure, defendant’s bond to dissolve
Payment Bonds covering the contract against which liens are filed . . . . . . . 244
Fixed Penalty Bonds – where principal has posted Performance and
Payment Bonds covering the contract against which leans are filed . . . . . . 245
Open Penalty Bonds – where principal has posted Performance and
Appeal – defendant’s or plaintiff’s bonds; supersedeas, stay of execution;
or other bond to pay a judgment or decree already rendered; open default . 257
Rate refunding bonds which guarantee only payment of sums paid in
excess of rates or charges eventually established as lawful . . . . . . . . . . . . .. 250
Refunding bonds and other bonds to pay debts and legacies in order to
avoid administration or on sale of real estate before expiration of time for
filing claims; open estate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280
Waiver of probate bonds; Administration of estates without judicial
proceedings
Fixed Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
Open Penalty Bonds – For payment of money or deposits . . . . . . . . . . . . . 281
Open Penalty Bonds – For transfer of stocks, common or preferred,
bonds, notes or other securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
Open Penalty Bonds – Where waiver of probate guarantee is part of a
blanket or master bond in favor of a transfer agent and its corporate
principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
Indemnity to sheriff or marshal on levying any kind of writ; levy
Fixed Penalty bonds – On execution after judgment . . . . . . . . . . . . . . . . . 284
Fixed Penalty Bonds – On all other writs of process . . . . . . . . . . . . . . . . . 285
Open Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286

SURETY
STATISTICAL CODES
CLASS
CLASS DESCRIPTION
CODE

Mechanic’s lien – bond to discharge
Payment Bonds covering the contract against which liens are filed . . . . 246
Fixed Penalty Bonds – where principal has posted Performance and
Open Penalty bonds – where principal has posted Performance and
Plaintiff’s bond to secure attachment, distraint for claim and delivery
of rent, garnishment; warrant of seizure, sequestration
Fixed Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
Open Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Plaintiff’s bond to secure replevin and other forthcoming and redelivery
bonds; lien claimants
Fixed Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
Open Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Plaintiff’s order of arrest in civil proceedings . . . . . . . . . . . . . . . . . . . . . . 287
Removal of cause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
Costs; Certiorari – covering costs only (not admiralty bonds)
Open Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
Petitioning creditors, whether in bankruptcy or in state court . . . . . . . . . 267
Inheritance, estate or transfer taxes – bonds guaranteeing payment of . . . 262
Condemnation bonds including bonds on appeal in condemnation
Open Penalty Bonds – All . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
Foreclosure proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
Claimants bonds; Interpleader; Mandamus; Release of goods seized
under Pure Food, Drug and Cosmetic Act . . . . . . . . . . . . . . . . . . . . . . . . 296
All other defendant’s court guarantees – Fixed Penalty Bonds . . . . . . . . 296
All other plaintiff’s court guarantees – Fixed Penalty Bonds . . . . . . . . . . 296
All other plaintiff’s court guarantees – Open Penalty Bonds . . . . . . . . . . 278

SURETY
STATISTICAL CODES
CLASS
CLASS DESCRIPTION
CODE
Bonds for Release of Defendant in Criminal or Civil Proceedings:
Bail in civil or criminal proceedings, jail liberties, automobile powers of
attorney; bond on order of arrest; ne exeat, and delivery of arrested aliens . . . 288
B. ADMIRALTY PROCEEDINGS IN THE U.S. COURTS:
To release libel (Stipulation for value or limitation of liability), general average
bond . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
Costs (including libellants in admiralty) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
C. FIDUCIARY BONDS:
Bonds in Probate and Other Courts:
Bonds in Estates of Deceased Persons or Persons Presumed on Account
of Long Absence To Be Dead.
Administrators, including temporary and special administrators pendente lite
and additional bond for sale of real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
Executors, administrators with will annexed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
Bonds In Estates of Incompetents.
Committees, conservators and guardians of incompetents, including bond for
sale of real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Bonds in Estates of Minors.
Guardians and tutors of minors, including bond for sale of real estate;
guardians ad litem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Bonds In Trust Estates.
Trustees under deed or will, also trustees under contract and miscellaneous
indentures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Bank as Fiduciary.
All Fiduciary bonds – bank or trust company as sole or joint principal . . . . . . . 217
All Fiduciary Bonds – individual serving as co-fiduciary with unbonded bank
or trust company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Trustees, Cus todians or other persons appointed for veterans or
incompetent members of the armed services.
Where bond is limited to disbursement of benefits payable to one veteran or
incompetent and/or his minor children 213
Where bond covers disbursement of benefits payable to more than one
veteran or incompetent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

SURETY
STATISTICAL CODES
CLASS
CLASS DESCRIPTION
CODE
C. FIDUCIARY BONDS: (Continued)
Bonds in Equity Courts:
Assignees, liquidators, trustees or others appointed for benefit of creditors by
an insolvent debtor to liquidate and make distribution . . . . . . . . . . . . . . . . . . 208
Receivers, trustees or others appointed by the court to manage property or a
business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Masters, referees, trustees, commissioners or others for the sale of real estate,
or other property, in partition, foreclosure, reorganization or winding up
proceedings or other litigation where duties do not require investment or
any duties of administration other than sale and distribution . . . . . . . . . . . . . 211
Survivors of partnerships in state courts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Bonds in Bankruptcy Courts:
Agents; Appraisers; Creditors’ Committees; Custodians; Examiners;
Stockholder’s Committees or their Agents . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
Chapter 11: Receivers; Ancillary Receivers; Marshals or Trustees
Appointed to take temporary or permanent charge of the property of
debtors or to operate, reorganize and rehabilitate the debtors’ business
for its continuance as a going concern . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
New bond of the receiver or trustee if no plan of reorganization is adopted
and debtor is adjudicated a bankrupt . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 228
Chapter 12: Individual trustee bond or blanket trustee bond covering a single
trustee for all Chapter 12 cases handled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Chapter 13:
Schedule bond providing coverage by Certificate for each wage earner
plan referred to trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Master bond covering an unlimited number of wage earner plans referred
to trustee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226
Other receivers and trustees in Bankruptcy and disbursing agents (Federal
Bankruptcy Courts) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Debtors bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230

SURETY
STATISTICAL CODES
CLASS
CLASS DESCRIPTION
CODE
C. FIDUCIARY BONDS: (Continued)
Miscellaneous Fiduciary Bonds:
Receivers, trustees and conservators of financial institutions or insurance
companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Life Tenants’ Bonds
Where on death of life tenant, remaindermen are entitled to claim the value
of the assets at time received by life tenant . . . . . . . . . . . . . . . . . . . . . . . . . . 221
In jurisdiction where life tenant is only a trustee . . . . . . . . . . . . . . . . . . . . . . 215
Savings, Building and Loan Associations:
Agents, liquidators or receivers of closed associations -
whether appointed by State Court, State Banking Department, Auditor
of Public Accounts or any other official . . . . . . . . . . . . . . . . . . . . . . . . . . . 210
Liquidators of Closed Building and Loan Associations --
bonded to the Association, are classified as “Trustees under Private
Agreement” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222

SURETY
RISK CLASSIFICATION
A. JUDICIAL PROCEEDINGS
1. Fixed Penalty Bonds:
a. Appeal, Including Appeals From Worker’s Compensation Awards (& 257),
Stay Administrator’s Order (& 257), Stay of Execution (& 257), Open De fault
(& 257), Supersedeas (& 257):
(1) If judgment is for sum of money:
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type A.
Apply Loss Costs on full amount of judgment including interest allowed
therein.
(2) If jusgment is for other than a sum of money:
Apply Loss Costs on penalty of bond.
b. Counter Replevin; Discharge Attachment; Discharge Mechanic’s Lien;

Dissolve Injunction; Forthcoming; Injunction; Lis Pendens: Release of
Garnishment
(1) Where principal has not posted Performance and Payment Bonds covering
the contract against which liens are filed.
Counter Replevin (& 242) Forthcoming (& 242)
Discharge Attachment (& 240) Injunction (& 244)
Discharge Mechanic’s Lien (& 246) Lis Pendens (& 240)
Dissolve Injunction (& 244) Release of Garnishment (& 240)
(2) Where principal has posted Performance and Payment Bonds covering the
contract against which liens are filed.
Discharge Mechanic’s Lien (& 247) Lis Pendens (& 241)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type E.
c. Condemnation Bonds Including Bonds on Appeal in Condemnation (& 294)

To determine Loss Costs see Surety Loss Cost Addendum for Risk Type B.
Apply Loss Costs on penalty of bond. Maximum premium for any bond not to
exceed premium computed at Risk Type E Loss Costs on penalty of bond.
d. Foreclosure Proceedings (& 294)

To determine Loss Costs see Surety Loss Cost Addendum for Risk Type B.
Apply Loss Cost for term of bond.

SURETY
RISK CLASSIFICATION
A. JUDICIAL PROCEEDINGS (Continued)

1. Fixed Penalty Bonds (Continued)
e. Indemnity to Sheriff Or Marshal:
(1) On execution after judgment (& 284): To determine Loss Costs see Surety Loss
Cost Addendum for Risk Type C. Apply Loss Cost for term of bond.
(2) On all other writs of process (& 285): To determine Loss Costs see Surety Loss
Cost Addendum for Risk Type B. Apply Loss Cost for term of bond.
f. Inheritance Taxes (& 262):

(1) Bonds guaranteeing payment of inheritance, estate or transfer ta xes:
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type K.
Apply Loss Cost on the penalty of the bond for any term of three years or less.
(2) If bond remains in force more than three years a renewal premium based upon
the Loss Cost in Table K is chargeable for each three years and is payable in
advance for each three-year term until tax is paid.
(3) If at the end of any three-year period the time for payment of tax is fixed at a
date less than three years thereafter, a premium for such shorter term may be
charged based upon the Risk Type B Loss Cost on the penalty of the bond per
Annum.
g. Open Estate Bonds (& 280)

(1) Bonds given by Heirs and Distributees to Title Companies who insure the title,
or Purchasers or Mortgagees who buy or take a mortgage on decedent’s real
estate prior to the expiration of the statutory period for filing claims against the
estate; and
(2) Bonds issued in behalf of Heirs or Distributees to prevent the sale of decedent’s
real estate for the payment of debts, conditioned for the payment of all said
debts and administration expenses insofar as the decedent’s personalty proves
insufficient:
Apply Loss Cost on penalty of bond for the term.
h. Refunding Bonds Including Injunction Or Appeal Bonds:

(1) Given in Rate Refunding cases which guarantee only payment of sums paid in
excess of rates or charges eventually established as lawful (& 250):
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type E.
(2) Given by Heirs, Distributees or Creditors of an estate to guarantee refund or
return of advance distribution or payment made to them by the Fiduciary;
(& 280) and

SURETY
RISK CLASSIFICATION

h. Refunding Bonds Including Injunction Or Appeal Bonds (Continued)
(3) Special bonds given by Executors or Administrators who are entitled to the
residue or balance of the estate after the payment of decedent’s debts and shares
of other legatees and distributees, which bonds guarantee absolutely the payment of
all said debts, legacies and distributive shares, and practically take the estate out of
the court (& 280):
Apply Loss Cost on penalty of bond for the term.
(4) Where a Refunding Bond guarantees the return of money or securities and is double
or more than double the sum or market value thereof, classify as Risk Type K and
apply Loss Cost for the term on the sum of money, or the market value of
securities so advanced (& 280).
i. Removal of Cause (& 291)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type C. Apply
Loss Costs for term of bond.
j. Waiver Of Probate Bonds; Administration Of Estates Without Judicial
Proceedings. Where the securities, bank books, etc. to be transferred or paid are
surrendered to the issuing corporation, or its duly authorized agent or representative
(& 281):
(1) For payment of money or deposits: To determine Loss Costs see Surety Loss Cost
Addendum for Risk Type D. Apply Loss Costs on the amount of money paid or
transferred for the term.
(2) For transfer of stocks, common or preferred, bonds, notes or other securities: To
determine Loss Costs see Surety Loss Cost Addendum for Risk Type D. Apply
Loss Costs on penalty of bond for the term, not to exceed the cost of an open
penalty bond for the same type.
k. Any Other Fixed Penalty Bond Given In A Court Proceeding Not Specifically
Classified Above, Including The Following:
Attachment, Plaintiff’s Bond (& 248) Release, Pure Food, Drug and
Certiorari, Covering Costs only (& 292) Cosmetic Act (& 296)
Claimant (& 296) Replevin (& 249)
Costs (& 292) Sequestration (& 248)
Interpleader (& 296) Warrant of Seizure (& 248)
Mandamus (& 296)
Plaintiff’s Order of Arrest in Civil
Proceedings (& 287)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type E. Apply
Loss Costs on penalty of bond.

SURETY
RISK CLASSIFICATION

l. Bail Bonds In Civil Or Criminal Proceedings, In All Courts and Under
Bankruptcy Proceedings Including Discharge From Arrest and Jail Liberties
And Powers Of Attorney (& 288)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type D. Apply
(1) The premium for Bail Bonds shall cover such subsequent Bail Bonds or
Recognizances as may be required of the same principal for the same offense and
during the same year, provided the penalty thereof is not increased. Should the
penalty of subsequent bonds be increased, additional premium shall be charged
on such increase.
(2) Any bond given to secure the release of the defendant after conviction, pending
an appeal, shall be considered a new bond and charged for at surety company
rates for Bail Bonds. In the event a conviction is reversed on appeal and
another bond given to secure defendant’s release pending retrial, such bond shall
also be considered a new bond and carry a new premium.
2. Open Penalty Bonds:
(a) Appeal, Including Appeals From Worker’s Compensation Awards (& 257)
Open Default (& 257) Stay Execution (& 257)
Stay Administrator’s Order (& 257) Supersedeas (& 257)
Loss Costs apply on full amount of judgment including interest allowed therein.
(b) Counter Replevin; Discharge Attachment; Discharge Mechanic’s Lien;
Dissolve Injunction; Forthcoming; Injunction; Redelivery; Release of
Garnishment
(1) Where principal has not posted Performance and Payment Bonds covering the
Discharge Mechanic’s Lien (& 276) Redelivery (& 272)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type F.
Apply Loss Costs to amount in controversy.

SURETY
RISK CLASSIFICATION

2. Open Penalty Bonds: (Continued)
b. Counter Replevin; Discharge Attachment; Discharge Mechanic’s Lien;
Dissolve Injunction; Forthcoming; Injunction; Redelivery; Release of
Garnishment (Continued)
(2) Where principal has posted Performance and Payment Bonds covering the
Counter Replevin (& 273) Forthcoming (&273)
Discharge Mechanic’s Lien (& 277) Redelivery (273)
Apply Loss Costs to amount in controversy.
c. Condemnation Bonds Including Bonds On Appeal In Condemnation (& 295)
To determine Loss costs see Surety Loss Cost Addendum for Risk Type C.
Apply Loss Cost on amount in controversy. Maximum premium for any bond
not to exceed premium computed using Risk Type A Loss costs on amount in
controversy.
d. Cost Bonds (& 297)
Apply surety company’s Minimum Premium to each bond per Annum.
e. Indemnity To Sheriff Or Marshal (& 286)
To determine Loss Costs see Surety Loss cost Addendum for Risk Type D.
Apply Loss Cost on amount of judgment including interest allowed therein.
f. Waiver Of Probate Bonds; Administration Of Estates Without Judicial
Proceedings. Where the securities, bank books, etc. to be transferred or paid
are surrendered to the issuing corporation, or its duly authorized agent or
representative:
(1) For payment of money or deposits (& 281): To determine Loss Costs see
Surety Loss Cost Addendum for Risk Type D. Apply Loss Costs on the
amount of money paid or transferred for the term.
(2) For transfer of stocks, common or preferred, bonds, notes or other
securities (& 282): To determine Loss Costs see Surety Loss Cost Addendum
Exception II A. Apply Loss Costs on last market quotation.
(3) Where waiver of probate guarantee is part of a blanket or master bond in
favor of a transfer agent and its corporate principal (& 283): To determine
Loss Costs see Surety Loss Cost Addendum Exception II B. Apply Loss
Costs on the last market quotation or the face value, whichever is applicable.

SURETY
RISK CLASSIFICATION
2. Open Penalty Bonds: (Continued)

g. Any Open Penalty Plaintiff’s Bond Not Specifically Classified Above, Including
The Following:
Plaintiff’s Attachment (& 278) Warrant of Seizure (& 278)
Plaintiff’s Replevin (& 279) Writ of Distraint (& 278)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type A. Apply
Loss Costs to amount in controversy.
B. ADMIRALTY BONDS
General Average (& 256) Stipulation For Value (& 256)
Limitation of Liability (& 256) Stipulation for Costs (& 293)
Release of Libel (& 256)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type C. Apply Loss
Costs on penalty of the bond.
C. FIDUCIARY BONDS
(1) Bonds in Probate and Other Courts:
a. Decedent’s Estate Bonds, Including:
Administrators (& 203), Administrators de bonis non (& 203), Administrator cum
testamento anexo or with will annexed (& 204), Administrator cum testamento
annexo, de bonis non (& 204), Administrator Pendente Lite (& 203), Administrator
to Sell Real Estate (& 203), Executor (& 204), Special Administrator (& 203),
Temporary Administrator (& 203):
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type G. Apply
Loss Costs on penalty of the bond.
b. Minor’s and Incompetent’s Estate Bonds, Including:
With respect to Bonds in Estates of Minors – Guardian or General Guardian,
Guardian Ad Litem, Guardian on Sale of Real Estate, Special or Temporary
Guardian (& 214); and with respect to Bonds in Estates of Incompetents –
Committee (Guardian) or Conservator, Curator, or Custodian (& 213):
To determine Loss Costs see Surety Loss cost Addendum for Risk Type G. Apply
(For Trustee designated by Veterans Administration to disburse benefits due an
incompetent veteran or his minor children (& 213 & 220) see C.1.h. below):
c. Trust Estate Bonds, Including:
Trustee Under A Will Or Testamentary Trustee Or Trustee Under A Deed (& 215)
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type G. Apply

SURETY
RISK CLASSIFICATION
C. FIDUCIARY BONDS (Continued)

1. Bonds in Probate and Other Courts (Continued)
d. On bonds subject to Class codes 203 and 204 the premium developed by
application of the Risk Type G Loss Costs for bonds of $25,000 or less shall
be for the term of the bond. No renewals shall be charged for the bonds.
e. The Risk Type G Loss Costs apply for initial and subsequent premiums on
bonds which are less than double the value of the assets of the estate, not to
exceed, however, what the premium would be on a bond double the value of
the assets.
f. Bonds double the value of the assets are subject to a discount of 20% on the
initial and subsequent final company premium. “Value of the assets” means –
value of the personal property of said estate.
g. Bank as Fiduciary: Bonds written on behalf of a bank as fiduc iary, or for an
individual serving as co-fiduciary with a bank whether or not bonded are
subject to a discount of 33 1/3% on final company premiums.
Bank or Trust Company, sole or joint principal (& 217)
Individual as co-fiduciary with unbonded bank (& 218)
h. Trustees, Custodians Or Other Persons Appointed For Veterans Or Incompetent
Members Of The Armed Services:
(1) Where bond is limited to disbursement of benefits payable to one veteran or
incompetent and/or his minor children: To determine Loss Costs see Surety
Loss Cost Addendum for Risk Type G. Apply Loss Costs on penalty of bond
(& 213).
(2) Where bond covers disbursement of benefits payable to more than one veteran or
incompetent: To determine Loss Costs see Surety Loss Cost Addendum for Risk
Type C. Apply Loss Costs on penalty of bond (& 220).
i. Public Administrators In All States.
Additional bonds given by Public Administrators for the administration of estates
which come into their hands take the same Loss Costs as Administrator’s Bonds. (The
bond given by Public Administrators to qualify for their official term is classified as
an official bond and the Loss Cost will be found in the Official Bond section of the
Surety Loss Cost Addendum.)

SURETY
Section 3. Court and Fiduciary bonds
RISK CLASSIFICATION

2. Bonds in Equity Courts:
a. Masters, Referees, Trustees, Commissioners, Or Others for the sale of real estate,
or other property, in partition, foreclosure, reorganization, or winding up proceedings
or other litigation; where the applicant’s duties do not require investment of assets or
any duties of administration other than the sale and distribution of proceeds (& 211):
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type J. Apply
b. Receivers, Trustees Or Others appointed by the court to manage property or a
business, whether in State or Federal Court (& 209):
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type B. Apply
c. Assignees, Liquidators, Trustees Or Others appointed for benefit of creditors by an
insolvent debtor to liquidate the debtor’s assets and make distribution to creditors (& 208):
(Where Assignor for the benefit of Creditors is petitioned into bankruptcy and the
assigned estate is turned over to the custody of the Federal Bankruptcy Courts; if the
Assignee’s account is approved and bond released by the court, the amount allowed by
the court for premium on his bond as Assignee may be accepted as the minimum earned
premium on such bond for the period of liability.)
d. Survivors of Partnerships in State Courts – Bonds Given by (& 229):
3. Bonds in Bankruptcy Courts:
a. Agents (& 223) Examiners (& 223)
Appraisers (& 223) Petitioning Creditors (& 267)
Creditors’ Committees (& 223) Stockholder’s Committees or
Custodians (& 223) their Agents (& 223)
To determne Loss costs see Surety Loss cost Addendum for Risk Type C. Apply Loss
Costs on penalty of bond.
©The Surety Association of America, 2004 CF-32 New Page January, 2004
SURETY
RISK CLASSIFICATION

3. Bonds In Bankruptcy Courts (Continued)
b. Chapter 7:
Disbursing Agents, Distributors, Receivers, Ancillary Receivers Or Trustees
appointed solely to marshal the assets, liquidate and distribute to creditors (& 207)
Individual Bonds or Blanket Bonds where Blanket Bond has a per case limitation
and aggregate limitation, a cancellation clause and only applies to Chapter 7
(liquidation) cases:
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type H. Apply
Loss Costs on penalty of bond. Final premium not to exceed that developed by using
Risk Type G Loss costs.
c. Chapter 11:
Receivers, Ancillary Receivers, Marshals Or Trustees appointed to take temporary
or permanent charge of the property of debtors or to operate, reorganize and
rehabilitate the debtors business for its continuance as a going concern (& 227)
Loss Cost on penalty of bond.
(1) If no plan of reorganization is adopted and debtor is adjudicated a bankrupt, the
new bond of the receiver or trustee is classified as a Risk Type H. (& 228).
(2) If in lieu of new bond “Consent” is issued covering same principal as liquidating
receiver or trustee, classify as Risk Type H. Subsequent annual premium for
amended bond is at Loss Cost for Risk Type H. (& 228)
d. Chapters 12 and 13 Trustees – U.S. Bankruptcy Laws
(1) Chapter 12:
For Individual Trustee Bond or Blanket Trustee Bond covering a Single Trustee for
all Chapter 12 cases handled (& 224):
To determine Loss Costs see Surety Loss Cost Addendum for Risk Type I.
(2) Chapter 13:
(a) For Schedule Bond providing coverage by Certificate for each wage earner
plan referred to the Trustee (& 225): To determine Loss Costs see Surety
Loss Cost Addendum for Risk Type B. Apply Loss Cost per plan.
(b) For a Master Bond covering an unlimited number of wage earner plans
referred to Trustee (& 226): To determine Loss Costs see Surety Loss Cost
Addendum for Risk Type I. Apply Loss Costs on penalty of bond.
SURETY
RISK CLASSIFICATION

3. Bonds in B ankruptcy Courts (Continued)
e. Debtor’s Bonds – All Bonds Including Debtors Dimunition Indemnity, Debtors In
Procession, Debtors Return Of Property Or Counter Bond (& 230):
f. Specific Rule.
Where a Receiver in Equity is subsequently appointed a Receiver or Trustee under the
Bankruptcy Act and both bonds are continued in effect, premium on each is computed
separately at its own Loss Costs and not upon sum total of both .
D. MISCELLANEOUS FIDUCIARY BONDS
1. Conservators Or Liquidators Of Financial Institutions Or Ins urance Companies.
Conservators, Custodians, Liquidators, Receivers, Trustees Or Others, appointed by
Federal or State authority to conserve or liquidate the business of a bank or other financial
institution or an insurance company, whether stock or mutual, or any company or
institution writing any form of insurance or granting sick or death benefits (& 210):
2. Life Tenants’ Bonds:
a. Where on death of life tenant, remaindermen are entitled to claim the value of the
assets at time received by life tenant (& 221):
b. In jurisdiction where life tenant is only a trustee (& 215):
To determine Loss Costs See Surety Loss Cost Addendum for Risk Type G. Apply
3. Savings, Building And Loan Associations:
a. Agents, Liquidators Or Receivers Of Closed Associations – whether appointed
by State Court, State Banking Department, Auditor of Public Accounts or any other
official (& 210):
b. Liquidators Of Closed Building And Loan Associations – bonded to the Association,
are classified as “Trustees under Private Agreement” (& 222):
SURETY
INDEX
Page
A
Additional (Ancillary) Bonds –– Rule…………………………………………………………………... 15
Administrators, de bonis non, cum testamento annexo, pendente lite, to sell
real estate, special, temporary, etc……………………………………………………………… 11, 12, 27
Administration of Estates Without Judicial Proceedings, Bond for…………………………………….. 27
Admiralty Proceedings………………………………………………………………………. 1, 10-11, 30
Advance Payment (See Common General Rules Section) Agents, Bankruptcy…………………..... 13, 32
Agents of Closed Savings and Loan Associations…………………………………………………... 14, 34
Ancillary Fiduciary –– Rule……………………………………………………………………………... 15
Appeal, Bond In Condemnation Proceedings……………………………………………….............. 25, 29
Appeal Bonds……………………………………………………………………………………... 3, 25, 29
Appeals — Workers Compensation Awards……………………………………………………...… 28
Appraisers, Bankruptcy…………………………………………………………………………..…. 13, 32-34
Assignees for Benefit of Creditors………………………………………………………………..… 13, 32
Attachment Bond, Defendants To Discharge…………………………………………………………… 3
Attachment Bond, Plaintiffs’…………………………………………………………………...…… 3, 27
Automobiles, Bail Bond Powers Of Attorney…………………………………………………...….. 10, 28
B
Bail Bonds, Criminal Or Civil………………………………………………………………..…….. 10, 28
Bank, Co-Fiduciary, Or Sole Fiduciary……………………………………………………….………… 31
Bankruptcy Bonds…………………………………………………………………………...…. 13, 32-34
Bonds Classified In This Section………………………………………………………………..…….. 1, 2
Bonds In Civil Proceedings…………………………………………………………………... 3- 6
Bonds For Release of Defendant………………………………………………………………………... 10
Bonds In Bankruptcy Proceedings…………………………………………………………..… 13, 32-34
Bonds In Estates of Deceased Persons or Persons Presumed
On Account of Long Absence To Be Dead………………….……………………………………… 11, 12
Bonds In Equity Courts…………………………………………………………………..…………. 13, 32
Bonds In Estates of Incompetents………………………………………………………………….……. 12
Bonds In Estates of Minors……………………………………………………………………...…......... 12
Bonds In Probate and Other Courts…………………………………………………………….. 25-30
Bonds In Trust Estates………………………………………………………………………..………….. 12
C
Certiorari………………………………………………………………………………….…………... 4, 27
Civil Arrest, Bond On Order Of…………………………………………………………….…………… 4
Claimants Bond………………………………………………………………………………………. 4, 27
Classes of Bonds……………………………………………………………………………... 3 - 14
Co-Fiduciaries –– Rule…………………………………………………………………….……………. 17
©The Surety Association of America, 2004 i Revised January, 2004

SURETY
INDEX
Page
Commissioners, Sale Of Property…………………………………………………………………… 13, 32
Committee……………………………………………………………………………………………..… 12
Condemnation Bonds………………………………………………………………………………... 25, 29
Conservators………………………………………………………………………………… 12, 14, 34
Costs Bond……………………………………………………………………………................... 4, 27 29
Costs, Stipulation For In Admiralty Proceedings……………………………………………………..… 11
Counter Replevin — Defendants Bond To Recover Property……………………………………. 4, 25, 28
Coverage, Scope Of…………………………………………………………………………………….…. 1
Creditors Committees, Bankruptcy………………………………………………………………….. 13, 32
Curator………………………………………………………………………………………………. 12, 30
Custodians……………………………………………………………………………… 12-13, 31-32, 34
D
Debtors Bonds……………………………………………………………………………………….. 13, 34
Decedent's Estate Bonds……………………………………………………………………………..….. 30
Disbursing Agents, Bankruptcy……………………………………………………………………... 13, 23
Discharge Attachment…………………………………………………………………………….. 4, 25, 28
Discharge Mechanics Lien………………………………………………………………………... 5, 25, 28
Dissolve Injunction……………………………………………………………………………….. 5, 25, 28
Distraint for Rent, Writ Of…………………………………………………………..………………... 5, 30
E
Examiners, Bankruptcy……………………………………………………………………………… 13, 32
Executor……………………………………………………………………………………………... 12, 30
Equity Proceedings, Bonds In General, Description…………………………………………………..… 32
F
Fiduciary, Ancillary Bonds…………………………………………………………………..………….. 15
Fiduciary, Death, Resignation or Removal of — Rule……………………………………………..…… 17
Fiduciary, Member of Armed Forces — Rule……………………………………………..……………. 15
Fiduciary, Additional or Substituted Bonds — Rule…………………………………..………………... 15
Fiduciary Bonds, Reduction of Liability — Rule…………………………………………..…………… 16
Fiduciary Bonds, Sale of Real Estate……………………………………………………………..……... 30
Fiduciary Bonds, Scope of Coverage………………………………………………..…………………... 1
Fixed Penalty Bonds, Judicial Proceedings…………………………………………………. 25-28
Forthcoming Bond……………………………………………………….………………………... 5,25,28
Foreclosure Proceedings……………………………………………………..……………………….. 5, 25
G
Garnishment, Bond to Discharge………………………………………………………..………………. 5
General Average Bond………………………………………………………………………………. 10, 30
Guardians……………………………………………………………………………………………. 12, 30
©The Surety Association of America, 2004 ii Revised January, 2004

SURETY
INDEX
Page
I
Incompetent’s Bond, General Description………………………………………………………………. 12
Indemnity to Sheriff or Marshal……………………………………………………………….…. 6, 26, 29
Inheritance Tax Bond……………………………………………………………………………...…. 6, 26
Injunction Bonds……………………………………………………………………………..…… 6, 25, 28
Injunction — Defendants Bond to Dissolve or Discharge………………………………………………. 6
Injunction, Plaintiff’s Bond to Secure…………………………………………………………………… 6
Interpleader Bond……………………………………………………………………………..……… 6, 27
J
Joint Bonds — Fiduciaries — Rule……………………………………………………………………… 18
Judicial Proceedings Bonds — Classes of Bonds…………………………………………….. 3 - 10
Judicial Proceedings Bonds — Scope of Coverage……………………………………………...……… 1
L
Libel, Bond to Discharge or Release……………………………………………………………….. 10, 30
Life Tenants Bonds……………………………………………………………...…………………. 14, 34
Limitation of Liability……………………………………………………………...………………. 11,30
Liquidators of Closed Associations……………………………………………………………………… 34
Liquidators, Equity Courts………………………………………………………………...……….. 13, 32
Liquidators of Financial Institutions or Insurance Companies…………………………...……………... 34
Lis Pendens………………………………………………………………………………………………. 25
M
Mandamus Bond…………………………………………………………………………………..…. 7, 27
Marshals, Bankruptcy……………………………………………………………………………………. 33
Masters, Sale of Property…………………………………………………………...……………… 13, 32
Mechanics Lien, Bond to Discharge………………………………………….…………………... 7, 25,28
Minimum Premium (See Common General Rules Section)
Minors Bonds…………...………….................................................................................................. 12, 30
Miscellaneous Fiduciary Bonds, General Description…………………………………...……………… 13
More Than One Bond — Rule……………………………………………………………...…………… 18
O
Open Default……………………………………………………………………..…………………... 7, 25
Open Estate……………………………………………………………..……………………………. 7, 24
Open Penalty Judicial Proceedings Bonds………………………………………………..………….. 28
Order of Arrest………………………………………………………………………..……………… 4, 28
P
Persons Entering Military Service — Rule…………………………………………...…………………. 15
Petitioning Creditors Bond, Bankruptcy……………………………………….…………………. 8, 13, 32
©The Surety Association of America, 2004 iii Revised January, 2004

SURETY
INDEX
Page
Plaintiff’s Attachment………………………………………………………………………….. 3, 27, 30
Plaintiff’s Order of Arrest in Civil
Proceedings…………………………………………………………....................................... 27
Plaintiff’s
Replevin…………………………………………………………………………...…................. 9,27,30
Powers of Attorney, Bail Bonds for Vehicle
Operators………………………………………………................................................................ 10,28
Premium Adjustments, Discounts (See Common General Rules Section)
Premiums —Bonds Less Than and Double the Value of Estate…………………………………. 31
Public Administrators……………………………………………………………………………… 31
Pure Food, Drug and Cosmetics Act……………………………………………………………… 8, 27
R
Rate RefundingBonds………………………………………………………………………………. 8, 26
Real Estate, Fiduciary Bond for Sale of — Rule…………………………………………...……… 16
Receivers………………………………………………………….…………………………........... 13, 33
Receiver, Equity Superseded By Receiver in Bankruptcy — Rule……………………...……………... 34
Redelivery Bond……………………………………………………………………………………… 8, 29
Reduction of Liability — Rule………………………………………………………………………….. 16
Referees, Sale of Property………………………………………………………………………………. 32
Refunding Bond, Given by Heirs, Distributees, etc………………………………………………….. 8, 26
Refunding Bond, Rate Litigation…………………………………………………………… 8, 27
Release Attachments, Defendant's Bond………………………………………...………………......... 3, 25, 28
Release of Garnishment……………………………………………………………………………..... 5,28
Release of Goods, Under Pure Food, Drug and Cosmetic Act………………………………...…. 8, 27
Release of Libel…………………………………………………………………………………………. 30
Removal of Cause…………………………………………………………………………………….. 8, 27
Removal of a Fiduciary — Rule………………………………………………………………………… 17
Replevin…………………………………………………………………………………..………. 9, 30
Right of Subrogation……………………………………………………………………………………. 1
Risk Classification — Admiralty Bonds…………………………………………………...…………… 30
Risk Classification — Fiduciary Bonds…………………………………………….………. 30-34
Risk Classification — Judicial Proceedings…………………………………………….. 25-30
S
Sale of Real Estate — Rule……………………………………………………………………...……… 16
Savings, Building and Loan Association — Agents, Liquidators, etc…………………..……………... 34
Scope of Coverage…………………………………………………………...………………. 1 - 14
Sequestration Bond…………………………………………………………………………………… 9, 27
Statistical Codes……………………………………………………………..…………………. 19-24
Stay Administrators Order……………………………………………………………..……………. 25, 28
Stay of Execution……………………………………………………………………..…………... 9, 25, 28
Stipulation for Costs……………………………………………………………..………………….. 11, 30
Stipulation for Value……………………………………………………………………………….... 11, 30
Stockholders Committees, Bankruptcy…………………………………………………………..….. 13, 32
©The Surety Association of America, 2004 iv Revised January, 2004

SURETY
INDEX
Page
Subrogation, Surety’s Right of — Rule (See Common General Rules Section)
Substituted Fiduciary Bonds — Rule……………………………………………………………............. 17
Substituted Sureties — Rule…………………………………………………………………...………… 17
Supersedeas Bond………………………………………………………………………………… 9, 25, 28
Survivors of Partnerships……………………………………………………………………………. 13, 32
T
Trust Estate Bonds……………………………………………………………………………………... 30
Trustees, Appointed by Veterans Administration…………………………………………………… 12, 31
Trustees in Bankruptcy……………………………………………………………...………………. 13, 33
Trustees in Equity Courts, Sale of Property…………………………………………………………. 13, 32
Trustees in Reorganization………………………………………………………………...………... 13, 32
Trustees under Will or Deed of Trust………………………………………………...……………... 12, 30
W
Waiver of Probate Bonds……………………………………………………………………………. 27, 29
Warrant of Seizure………………………………………………………………………………… 9, 27, 30
Workers’ Compensation Awards — Appeals From…………………………………………...……. 25, 28
Writ of Certiorari………………………………………………………………………...………….. 4, 27
Writ of Distraint…………………………………………………………………..……………………... 30
Writ of Error………………………………………………………………………..……………………. 9
©The Surety Association of America, 2004 v Revised January, 2004

SURETY
Section 4. Miscellaneous Bonds and U.S. Immigrant Bonds
TABLE OF CONTENTS
Subject Page
I. SCOPE OF COVERAGE...................................................................... 1-3
II. SECTION GENERAL RULES ................................................................4
III. STATISTICAL CODES ...................................................................... 5-10
IV. RISK CLASSIFICATION ................................................................ 11-24
INDEX...................................................................................................... i- v

SURETY
SCOPE OF COVERAGE
1. Miscellaneous Surety Bonds
Miscellaneous Surety Bonds are bonds which do not clearly fall within the scope of
other sections of the Manual. Some Miscellaneous Bonds are required by law and
must be conditioned as provided by statute, ordinance or regulation. Others are
required by law with conditions discretionary with approving authorities. Others may
be purely voluntary bonds or undertakings with conditions prescribed by or
acceptable to the obligee.
2. U.S. Immigrant Bonds
U.S. Immigrant Bonds are bonds given in behalf of Laborers, Migratory Workers,
Hospital Patients, Students, Professional Entertainers, Athletes, Tourists and others
lawfully entering the United States of America as well as bonds given by Hospitals
authorized to receive Alien Patients; by Employers importing Alien Workers for use
in this country; and Transportation Companies for payment of fines or sums imposed
on them under Immigration Laws and Regulations.
B. CLASSES OF BONDS
The bonds in this classification are divisible into three groups:
a. Certain bonds required by the Federal Government.
b. Certain bonds required by states, counties, municipalities, or other political sub-
divisions or political bodies other than the Federal Government.
c. Certain bonds required by persons, firms, corporations, associations or other
legal entities.
The bonds in this classification are divisible into five groups:
a. Bond for payment of sums and fines imposed under Immigration Act.
b. Bond for Maintenance of Status and Departure of Non-Immigrant Alien.
c. Bond Conditioned for the Delivery of an Alien.
d. Bond that Alien shall not become a public charge.
e. Bond for the release of an Alien under exclusion proceedings.
©The Surety Association of America, 1991 M-1 New Page July 1, 1991
SURETY
SCOPE OF COVERAGE
I. SCOPE OF COVERAGE (Continued)

C. FORMS OF BONDS
Flexibility is necessary to meet the requirements of diverse laws, ordinances or
regulations or the needs of various obligees. However, where bonds are given to
comply with the terms of a statute, ordinance or regulation, all such bonds must carry
whatever liability the law imposes on the principals and sureties, and to this extent
such bonds given to comply with any such law, ordinance, or regulation may be said
to be standardized.
These bonds are prepared by the Government and are written on Individual or
Blanket form. Individual Bond forms cover the Alien named in the bond, whereas
Blanket Bond forms cover an unlimited number of Aliens, or those named in a list
that forms part of the bond. Most of these bond forms are identified by a number or
letter designation.
D. RIGHT OF SURETY TO TERMINATE

A bond required by law does not usually contain a cancellation clause. There are,
however, in some states statutory provisions under which the surety may by
following a prescribed procedure effect termination of liability for the future acts or
defaults of the principal. However, a cancellation clause may be incorporated in
certain statutory as well as non-statutory bonds.
These bonds are not subject to cancellation and there is no law under which the
surety may terminate its liability prior to departure of the Alien or those covered by
the bond from the country. However, in some instances, the surety may surrender
Alien to Government Authorities and thereby obtain release of bond.
E. TERM OR PERIOD COVERED BY THE BOND

The term or period covered by the bond must correspond to the term or period
required by law in the case of statutory bonds, or as required or accepted by the
obligee in the case of non-statutory bonds. In either case the right to file claims under
the bond for losses sustained while the bond was in force continues for various
periods as set out in the bond or as required by law.
SURETY
SCOPE OF COVERAGE
I. SCOPE OF COVERAGE (Continued)

E. TERM OR PERIOD COVERED BY THE BOND (Continued)
Some of these bonds run for an indefinite term, others run for a definite term, usually
six or twelve months, but may be extended for additional periods if the Alien or
Aliens covered are granted permission to remain in the country for a longer period
than anticipated at time of execution of bond.
There is no statute which requires the Government to sue within a given period for
any breach of these bonds
F. FORFEITURE –– U.S. IMMIGRANT BONDS

As these bonds are penal in nature, generally failure of the Alien covered by the bond to
comply with all of its conditions and depart from the country at the end of the authorized
period subjects an individual bond to forfeiture. With respect to Blanket Bonds, a fixed
amount is forfeited for each Alien who disappears or remains in the country illegally.
SURETY
None –– Reserved For Future Use.
SURETY
STATISTICAL CODES
CLASS
CLASS DESCRIPTION CODE
Cable Bonds:
Cable – Performance ......................................................................................... 548
Cable – Pole Attachment ................................................................................... 549
Depository:
All...................................................................................................................... 525
Escrow Deposit Bonds:

All...................................................................................................................... 577
Federal Maritime Commission:

Independent Ocean Freight Forwarders ............................................................ 566
Financial Guarantee — Traditional Surety:

Closure/Post Closure Bonds ............................................................................. 573
Forward Sale Contract Bonds ........................................................................... 574
Games of Chance Bonds................................................................................... 571
Insurance Program Bonds – Conditional Obligation........................................ 572
Insurance Program Bonds – Demand ............................................................... 537
Newspapers – Bonds of Distributors, Carriers, Salespeople, etc...................... 576
Turnpike, Bridge Toll Bonds ............................................................................ 575
Utility Deposit Bonds ....................................................................................... 570
All Other Financial Guarantees (Traditional Surety) not otherwise
classified above ................................................................................................. 579
Financial Guaranty — Credit Enhancement:

Commercial (non- municipal) Investment and Loan Guaranties (Including
Guaranties of Principal and Interest or Contribution) .................................... 580
Municipal Bond Guaranties (Guaranty of Principal and Interest) .................... 597
All Other Commercial Investment and Loan Guaranties ................................. 581
Freight Charge:
Delivery of Freight – bonds in favor of railroads, steamship or other
common carriers:
Specific bond covering a specified consignment, carload, etc. without bill
of lading, whether lost or delayed .................................................................. 501
General or blanket bonds ............................................................................... 502
Open End Bond of Indemnity........................................................................... 524
©The Surety Association of America, 2005 M-5 Revised January 1, 2005

SURETY
STATISTICAL CODES
CLASS
Immigrant Bonds:
U.S. Bond Form Number I-310
Bond for payment of sums and fines imposed under immigration act .......... 522
U.S. Bond Form Number I-352
Bond for maintenance of status and departure of non- immigrant alien......... 523
Bond conditioned for the delivery of an alien ............................................... 288
Bond that alien shall not become a public charge
Bond covers one individual ........................................................................ 523
Bond covers more than one individual; or bond is given by a religious
or Charitable organization sponsoring admission of a group of
displaced persons ........................................................................................ 522
Bond for the release of an alien under exclusion proceedings....................... 523
Income Tax:
Deficiency Tax.................................................................................................. 535
Low Income Housing Credit Disposition Bonds (to I.R.S.) ............................. 536
All other federal and state income tax bonds .................................................... 534
Indemnity Bonds:
Contractor’s Indemnity Bonds:
Contractor’s Indemnity Against Damages to Persons or Property
Where there is a performance bond written in behalf of the contractor
and an additional indemnity bond is required of the contractor
relating to the same project ...................................................................... 505
All other contractor’s indemnity against damages to persons or property . 506
Contractor’s Indemnity Bonds For Withdrawal of Retained Percentages ..... 541
Trade Associations ............................................................................................ 515
Airline Reporting Corporation (ARC) .............................................................. 559
Concessionaires................................................................................................. 560
Indemnity to Transfer Agents
For concerns acting as transfer agent for issues other than their own ........... 517
For concerns acting as transfer agent for their own stock issues and for
rider for all insureds adding coverage for loss caused by or arising out
of errors made by employees in the issuance of certificates either in the
same or a different issue of stock................................................................ 518
Signature guarantee bonds (securities transfer) ............................................. 519

SURETY
STATISTICAL CODES
CLASS
Indemnity Bonds (Continued):
Withdrawal of Money or Securities – Indemnity to Financial Institutions,
or other interests, to procure payment or withdrawal of funds or
securities, transfer of funds to a different jurisdiction; or payment of
policies, claims or death benefits.
Where applicant establishes a prima facie title thereto, including proofs
of death, if necessary................................................................................ 526
Where applicant’s title is in any way defective; as where the account to
be withdrawn is marked “trustee”; or proofs of death are lacking; or
indemnity is required against unknown claimants, or the reappearance
of one supposed to be dead ...................................................................... 527
Purchase and Sale Contracts (Not Supply)
Bonds guaranteeing contracts between public bodies and bankers for
purchase of public bond issues ................................................................... 528
All Other ........................................................................................................ 529
Commodity Export – U.S. Department of Agriculture
Specific purchase, or sale, bond ..................................................................... 530
Revolving Type – where bond covers two of more purchases for export
by the principal during the program year.................................................... 531
Assigned Accounts Bonds
Bonds guaranteeing that all accounts assigned are valid or that all
collections on accounts assigned will be turned over by assignor to the
assignee ....................................................................................................... 543
Bonds guaranteeing that all accounts assigned are valid or that all
collections thereon by assignor will be turned over to the assignee ........... 545
Bonds guaranteeing the honesty of an independent trustee, not affiliated
in any way with assignor, with whom accounts are deposited for
collection..................................................................................................... 541
Auctioneer’s Bonds
Bonds covering sales of bankruptcy estates................................................... 540
Bonds guaranteeing faithful accounting of proceeds of all other sales ......... 541
Bonds guaranteeing net proceeds of any public or private sale will not be
less than a certain stipulated amount ........................................................... 543

SURETY
STATISTICAL CODES
CLASS
Bulk Sales Bonds .............................................................................................. 545
Dependent Children .......................................................................................... 541
Divorce Proceedings ......................................................................................... 541
Driver’s Bonds – Transportation of School Children....................................... 543
Feeding Stock in Transit ................................................................................... 540
Forest Patrol by Airplane .................................................................................. 544
Repayment of Refunded Real Estate Taxes ...................................................... 543
Repossession by Mortgagee of Car Seized for Illegal Parking – Open
Penalty Bond .................................................................................................. 543
Mail Chute Patent Infringement Bond to U.S.A. .............................................. 542
Mortgages.......................................................................................................... 541
Patent Infringement (other than for Mail Chutes)............................................. 541
Patient Fund Bonds – Nursing Homes .............................................................. 539
Private Patients.................................................................................................. 541
Public Buildings, Grounds, Armories, Schools ................................................ 541
Quiet Title Bonds.............................................................................................. 541
Return of Borrowed of Leased Property
Small arms and other military equipment issued, supplied or loaned by
the Department of Army for military instruction to educational
institutions ................................................................................................... 546
Small arms and appendages issued, supplied or loaned by the Department
of Army to Rifle Clubs................................................................................ 541
Bonds to Federal, State, City or other Government; or to libraries,
museums, historical associations, etc., covering material loaned for
exhibition or use (does not cover things for sale):
Bonds for return only, without money payment ...................................... 546
Bonds covering return and money payment, as rental, royalty, share
of receipts, or other payments............................................................... 541
Bonds to Department of Defense guaranteeing return of tools and
machinery leased to manufacturers, as essential to completion of
manufacturers contract with the government.............................................. 541
All bonds not running to Government nor Public Bodies, but
guaranteeing return of property borrowed or leased from others ............... 541
School Teachers ................................................................................................ 543
State Tax Stamp Agencies
Agents appointed and bonded for the sale of Federal or State Tax Stamps .. 541
Bonds guaranteeing checks for payment of duties, imposts, excises, or
other taxes and postage stamps ................................................................... 547

SURETY
STATISTICAL CODES
CLASS
Student’s Bonds ................................................................................................ 541
All Other Miscellaneous Indemnity Bonds....................................................... 558
Lease:
Railroad, Steamship, Express Companies, Airlines, Other Transportation
Companies and Public Service Corporations – Except Covenants to Build.. 550
All Other – Guaranteeing Payment of Rent – Except Covenants to Build ....... 551
All Other – Guaranteeing Covenants – Except Payment of Rent or
Covenants to Build......................................................................................... 552
Lost Securities:
Handled under Blanket or Master Bond Arrangement ..................................... 553
Lost Securities Bonds
Fixed Penalty Bonds
Category 1 ................................................................................................... 509
Category 2 ................................................................................................... 510
Category 3 ................................................................................................... 511
Category 4 ................................................................................................... 511
Category 5 ................................................................................................... 511
Category 6 ................................................................................................... 511
Category 7 ................................................................................................... 511
Category 8 ................................................................................................... 511
Open Penalty Bonds
Category 1 ................................................................................................... 512
Category 2 ................................................................................................... 510
Category 3 ................................................................................................... 513
Category 4 ................................................................................................... 511
Category 5 ................................................................................................... 511
Category 6 ................................................................................................... 507
Category 7 ................................................................................................... 513
Category 8 ................................................................................................... 513

SURETY
STATISTICAL CODES
CLASS
Maritime Administration:
Sale of Vessels
Bonds guaranteeing dismantling or scrapping of vessels .............................. 532
Bonds guaranteeing payment of sales price; or conversion of vessels into
other types or to maintain specific trade routes; or not to operate to or
from U.S. ports............................................................................................... 533
All Other ........................................................................................................... 567
Non-Construction Contract Performance Bonds:

Bonds securing the obligation to faithfully perform the terms and
conditions of a contract for non-construction services ..................................... 500
Pre-paid/Pre-need Funeral Bonds:

All...................................................................................................................... 578
Union Bonds — Wage and Welfare:

Bond Covering Payment of Wages or Wages and Fringe Benefits .................. 568
Bond Covering Payment of Fringe Benefits Only ............................................ 569
Workers’ Compensation Bonds:

Bonds of Contractors or Subcontractors ........................................................... 520
Self-Insurer — Guarantee Premium Assessed by State Board ......................... 585
Self-Insurer — Longshore and Harbor Workers Act Bonds ............................ 583
Self-Insurer — Short-Term Disability Bonds ................................................... 586
Self-Insurer — Unemployment Compensation Bonds ..................................... 582
Self-Insurer – Workers’ Compensation Bonds
Where bond is required of all Self-Insurers................................................... 521
Where bonds is required only of Self-Insurers whose financial status is
doubtful or unsatisfactory ........................................................................... 556

SURETY
RISK CLASSIFICATION

Type of
Description: Risk:
1. Airline Reporting Corporation (ARC) — Travel Agencies
(•559)........................................................................................................Risk Type B
2. Assigned Accounts Bonds
a. Bonds guaranteeing that all accounts assigned are valid or that
all collections on accounts assigned will be turned over by
assignor to the assignee (•543) ............................................................Risk Type D
b. Bonds guaranteeing that all accounts assigned are valid and
that all collections thereon by assignor will be turned over to
the assignee (•545)...............................................................................Risk Type G
c. Bonds guaranteeing the honesty of an independent trustee, not
affiliated in any way with assignor, with whom accounts are
deposited for collection (•541) ............................................................Risk Type B
3. Auctioneer’s Bond
a. Bonds covering sales of bankruptcy estates (•540) .............................Risk Type A
b. Bonds guaranteeing faithful accounting of proceeds of all other
sales (•541) ..........................................................................................Risk Type B
c. Bonds guaranteeing net proceeds of any public or private sale
will not be less than a certain stipulated amount (•543) ......................Risk Type D
4. Bulk Sales Bonds (•545) .........................................................................Risk Type G
Exposure is based
on penalty of bond
for its term.
5. Cable Bonds
a. Cable – Performance: Bonds securing the performance of a
franchise agreement to build and operate a cable television
system (•548) .......................................................................................Risk Type B
b. Cable – Pole Attachment: Bonds securing an agreement to run
cable television lines on property that bond principal does not
own. Conditions typically include payment of annual
attachment fees for the use of the obligee’s property and
removal of the lines when no longer in use (•549) ..............................Risk Type B
6. Concessionaire Bonds (•560)..................................................................Risk Type D
7. Contractor’s Indemnity Bond — See page M-16.
8. Dependent Children (•541)
Bonds of Charitable or Aid Associations gua ranteeing compliance
with the law as respects the placing of all children or Bonds
covering only the children named in bond ...............................................Risk Type B
9. Depository Bonds (Public or Private Funds) (•525) ................................Risk Type B

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
10. Divorce Proceedings (•541)
Return of minor children..........................................................................Risk Type B
11. Driver’s Bonds — Transportation of School Children (•543)
Bond guaranteeing to pay damages that may accrue to persons by
reason of negligence or carelessness........................................................Risk Type D
12. Escrow Deposit Bonds (•577)
Bonds required in lieu of escrow, securing the return of a deposit
upon the occurrence of certain conditions ...............................................Risk Type E
13. Feeding Stock in Transit (•540)
Bonds to railroads or other carriers guaranteeing feeding of stock
in transit, or reduction, dressing, stripping, treating or other
processing of raw material, or manufacturing of milling in transit,
and return to the carrier ............................................................................Risk Type A
14. Financial Guarantees — Traditional Surety
Closure / Post Closure Bonds (•573)
Bonds securing the fulfillment of closure plan obligations in
connection with hazardous or solid waste disposal. Bonds
guarantee performance or payment into a trust fund ...............................Risk Type E
Forward Sale Contract Bonds (•574)
Bonds securing the obligations of a forward sale contract for the
supply or delivery of a commodity or natural resource ...........................Risk Type E
Games of Chance Bonds (•571)
Bonds running to state securing the payment or award of prizes
featured in a game promotion held in connection with the
promotion or sale of consumer products or services ...............................Risk Type E
Insurance Program Bonds – Bonds securing the payment of a
premium, deductible or self- insured retention to an insurer
issuing a workers’ compensation or liability policy:
Conditional Obligation (•572) .............................................................Risk Type E
Demand – Payment under the bond is required upon the
demand of the insurer (•537) ...............................................................Risk Type E
Newspapers – Bonds of Distributors, Carriers and
Salespeople, etc. (•576)
Bonds guaranteeing payment of newspapers...........................................Risk Type E
Turnpike, Bridge Toll Bonds (•575) .....................................................Risk Type E
Utility Deposit Bonds (•570)
Bonds to utility companies securing the payment of charges for
utility service. Bonds generally are required in lieu of a cash
deposit ......................................................................................................Risk Type E

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
14. Financial Guarantees — Traditional Surety (Continued)
All Other Financial Guarantees (Traditional Surety) (•579)
All other financial guarantees (traditional surety) not otherwise
classified above ........................................................................................Risk Type E
15. Forest Patrol by Airplane (•544) ............................................................Risk Type E
16. Freight, Delivery of — bonds in favor of Railroads, Steamship
or other Common Carriers
a. Specific bond covering a specified consignment, carload, etc.
without bill of lading, whether lost or delayed (•501).........................Risk Type L
Exposure is based
on bond penalty for
its term.
(1) If a letter or guarantee is given without penalty, premium is
computed on double the value of the goods.
(2) Bonds expiring or cancelled within six months of their
date: Refund one- half of the premium.
b. General or Blanket Bonds covering any one or more of the
following (•502):
(1) Delivery of freight without bill of lading ......................................Risk Type J
(2) Payment of demurrage or freight charges .....................................Risk Type J
(3) Diversion or stoppage of freight ....................................................Risk Type J
(4) Running freight cars into warehouses, sidings, or premises
of consignee without bill of lading................................................Risk Type J
(5) Shippers’ load, weight and count ..................................................Risk Type J
17. Freight, Open End Bond of Indemnity to Railroads (•524)
Delivery of Freight Without Surrender of Bill of Lading (Form
of Bond Promulgated By Association of American Railroads)
a. As bond is “Open Penalty” premium is computed on number of
shipments on a monthly reporting basis ..............................................Risk Type K
Exposure is based
on number of
shipments.
b. Where Bill of Lading is not surrendered within 15 days after
shipment is charged against the bond, a separate company term
premium in addition to the above is charged.......................................Risk Type I
Exposure is based
on the value of the
shipment.

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
18. Immigrant Bonds
U.S. Bond Form Nos.
a. I-310 Bond For Payment Of Sums And Fines Imposed
Under Immigration Act (•522)
This is a term bond but may also be used for a single entry
given to guarantee payment of fines or sums imposed upon a
steamship line for transporting to this country Aliens not
eligible for admission due to quota limitations, health, etc.
Under the law no vessel against which fines or penalties have
been imposed may obtain clearance papers until liability for
such amounts is determined and the fines and penalties paid or
unless a bond with sufficient sureties approved by the Collector
of Customs is filed ...............................................................................Risk Type B
b. I-352 Immigration Bond
This bond is a composite form which replaces many of the old
Immigrant bond forms. The form contains four separate bonds
and space for the applicable one(s) to be chosen by reference.
Each bond is classified separately as follows:
(1) Bond For Maintenance Of Status And Departure Of
Non-Immigrant Alien (•523)
Applies to visitors and tourists; businessmen and their
families, other than press, radio, film or other foreign
information media, unless there is reciprocity or under a
Treaty of Commerce and Navigation; crewmen (vessel or
aircraft); students; persons of distinguished merit and
ability; laborers, skilled or unskilled, provided such labor is
unavailable in U.S.; industrial trainee; principal resident
representative of foreign government to an international
organization even though it is not a recognized de jure
government nor a member of such international
organization...................................................................................Risk Type E
(2) Bond Conditioned For The Delivery Of An Alien (•288)
Where an Alien is held for deportation, his release may be
obtained pending a hearing by filing of his bond which is
equivalent to a bail bond guaranteeing the principal will be
delivered for deportation to the Immigration and
Naturalization Service when called for or depart from the
country voluntarily ........................................................................Risk Type E

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
18. Immigrant Bonds (Continued)
b. I-352 Immigration Bond (Continued)
(3) Bond That Alien Shall Not Become A Public Charge
The Attorney General is vested with discretion to exact this
bond from Aliens entering country. Condition is Alien will
not become a public charge or inmate of any public
institution while in U.S. (•523)......................................................Risk Type E
When this form is used to cover more than one Alien or
where it is given by a Religious or Charitable Organization,
sponsoring admission of a group of displaced persons,
compute premium based on each covered Alien over 25
(•522) .............................................................................................Risk Type B
(4) Bond For The Release Of An Alien Under Exclusion
Proceedings (•523)
For temporary release from custody, where an Alien may or
is to be deported.............................................................................Risk Type E
19. Income Tax Bonds
a. All Except Deficiency Tax (•534)......................................................Risk Type D
b. Deficiency Tax: Apply Loss Cost per M per month on the
penalty of the bond in advance for original period of extension.
If deficiency is reduced by monthly payments, premium is
reduced proportionately. (•535)...........................................................Risk Type A
c. Other I.R.S. Bonds:
(1) Manufacturer’s Excise Tax — Bond for disputed tax
under Revenue Acts (•534)............................................................Risk Type D
(2) Social Security Taxes (•534)........................................................Risk Type D
(3) Deductions for Future Expenses (•534) .....................................Risk Type D
Exposure is based
on penalty of bond
for its term.
(4) Low Income Housing Credit Disposition Bonds —
Bonds securing the repayment of additional tax to the
Internal Revenue Service incurred as a result of the
recapture of tax credits rela ted to low- income housing
(•536) .............................................................................................Risk Type D

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
20. Indemnity Bonds
a. Contractor’s Indemnity Bonds
Against damages to persons or property:
(1) Where there is a Performance Bond written in behalf of the
contractor and an additional indemnity bond is required of
the contractor relating to the same project (•505) .........................Risk Type B
Exposure is based
on penalty of bond
for its term.
(2) All others (•506) ............................................................................Risk Type F
Exposure is based
on penalty of bond
for its term.
b. Contractor’s Indemnity Bonds For Withdrawal Of Retained
Percentages On Construction Work (Limited solely to bonds
not involving labor or material claims) (•541) ....................................Risk Type B
Exposure is based
on penalty of bond
for its term.
(If claims are for Labor or Material, classify bond to release
payment as a Mechanic’s Lien Bond and treat according to
page CF-25).
c. Miscellaneous Indemnity Bonds (•558)
Miscellaneous Indemnity Bonds not otherwise classified
including bonds guaranteeing performance of a specific
agreement or in default thereof to pay a sum of money......................Risk Type B
d. Patient Fund Bonds — Nursing Homes (•539)
Bonds securing the faithful handling of patient funds.........................Risk Type B
e. Repayment Of Refunded Real Estate Taxes (•543)
Where the principal receives refund in advance of audit ....................Risk Type D
Exposure is based
on penalty of bond
for its term.
f. Repossession By Mortgagee Of Car Seized For Illegal
Parking — Open Penalty Bond (•543) .............................................Risk Type D
Exposure is based
on value of car for
term of bond.
g. Transfer Agents — Indemnity To
Bonds to indemnify transfer agents for loss arising out of
cancellation of stock certificates and issuance of new ones, or
transfer of stock to someone other than the one named in the
assignment of certificate, or due to reliance upon a guarantor’s
signature guarantee:

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
20. Indemnity Bonds (Continued)
g. Transfer Agents — Indemnity To (Continued)
(1) For concerns acting as transfer agent for issues other than
their own (•517) .............................................................................Risk Type E
(2) For concerns acting as transfer agent for their own stock
issues and for Rider for all insureds adding coverage for
loss caused by or arising out of errors made by employees
in the issuance of certificates either in the same or a
different issue of stock (•518) .......................................................Risk Type B
(3) Signature Guarantee Bonds (Securities Transfer) (•519) ..............Risk Type O
h. Withdrawal Of Money Or Securities
(1) Indemnity Bonds to Financial Institutions, or other
interests, to procure payment or withdrawal of funds or
securities, transfer of funds to a different jurisdiction; or
payment of policies, claims or death benefits. Where
applicant establishes a prima facie title thereto, including
proofs of death, if necessary (•526) ...............................................Risk Type D
Exposure is based
on penalty of bond
for its term.
(2) Where applicant’s title is in any way defective; as where
the account to be withdrawn is marked “trustee”; or proofs
of death are lacking; or indemnity is required against
unknown claimants, or the reappearance of one supposed to
be dead (•527)................................................................................Risk Type G
Exposure is based
on penalty of bond
for its term.
21. Lease Bonds
a. For Railroad, Steamship, Express Companies, Airlines, and
Other Public Transportation Companies in actual operation,
and for Public Service Corporations having an established
plant in operation, and/or owning and operating a public
franchise (•550)
Bonds guaranteeing payment of rent and / or performance of
other covenants in lease except covenants to build .......................Risk Type B
b. For All Others:
(1) Bonds guaranteeing payment of rent, or payment of rent
and performance of other covenants in a lease except
covenants to build (•551)...............................................................Risk Type E

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
21. Lease Bonds (Continued)
b. For All Others (Continued):
(2) Bonds guaranteeing covenants in a lease except payment of
rent or covenant to build (•552).....................................................Risk Type C
(Leases for Coal, Oil, Gas or Metallic Mineral — Public or Private
Lands see License and Permit Section of Manual)
22. Lost Securities Bonds
a. For classification purposes lost securities bonds are divided
into two groups:
(1) Fixed Penalty Bonds — Where a penalty is stated in the
bond and where the penalty is not over two times the face
value of the lost securities, or if without face value, then
not over two times the last market quotation. No premium
for a fixed penalty bond shall exceed what an open penalty
bond would cost in the same case.
(2) Open Penalty Bonds — Where no penalty is stated in the
bond or where the penalty stated is over two times the face
value or, if without face value, then over two times the last
market quotation. Also bonds which give to the obligee in
its discretion the right to demand a new bond in a different
or greater amount, if the security of the first bond seems to
the obligee to be insufficient, should be classified as open
penalty and the premium computed accordingly.
b. All Loss Costs are for the term of the bond.
c. If Lost Securities are found, properly surrendered and bond
cancelled within twelve months of its date, one- half of the
premium will be refunded, subject to the surety company’s
Minimum Premium.
d. Certificates of deposit for securities left with reorganization
committees, trustees or others, and voting trust certificates,
take the same Loss Costs as the securities against which they
were issued. Where reorganization is completed and new
securities issued, premium is computed on the new securities.

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
22. Lost Securities Bonds (Continued)
e. Fixed Penalty Bonds:
Category 1. Lost life insurance policies, certificates of
membership in Fraternal and Beneficial Orders, or Mutual
Associations containing accident or death benefits, adjusted
service certificates, certificates of membership in Boards of
Trade, Stock Exchanges or kindred associations (•509) .....................Risk Type C
Exposure is based
on bond penalty for
its term.
Category 2. U.S. Government Checks and Postal Money
Orders including checks and warrants of a state, county or
other public body in the U.S.A., warehouse receipts, pawn
tickets, steamship tickets, or any similar record of title to or
lien against personal property (•510)...................................................Risk Type B
Exposure is based
on bond penalty for
its term.
Category 3. Lost common stocks or equivalent security such
as certificates of beneficial interest, trust certificates, stock in
cooperative apt., etc. (•511) .................................................................Risk Type E
Exposure is based
on bond penalty for
its term.
Category 4. Lost interest coupons, or non- interest-bearing
certificates, or securities on which the right to interest or
dividends has ceased such as drafts or certificates of
indebtedness which do not bear interest; certified checks;
cashiers checks; bank drafts after acceptance; certificates of
deposit on which interest has ceased or checks on which
payment has been stopped (•511) ........................................................Risk Type E
Exposure is based
on bond penalty for
its term.
Category 5. Lost interest-bearing government securities of
the U.S., any state or municipality, including foreign
governments (•511) .............................................................................Risk Type E
Exposure is based
on bond penalty for
its term.

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
e. Fixed Penalty Bonds (Continued):
Category 6. Lost interest-bearing securities other than
government obligations including mortgages, mortgage
certificates, mortgage notes and trust deeds, whether or not
current interest is in default (•511) ......................................................Risk Type E
Exposure is based
on bond penalty for
its term.
Category 7. Lost preferred stocks, lost Building and Loan
and Savings and Loan Ass’n. shares (•511) ........................................Risk Type E
Exposure is based
on bond penalty for
its term.
Category 8. Lost savings bank books (•511) .....................................Risk Type E
Exposure is based
on bond penalty for
its term.
f. Open Penalty Bonds
Compute surety company premium on the face value of the
lost securities, or if without face value, then on the last market
quotation as follows:
Category 1 (•512) ..............................................................................Risk Type D
Category 2 (•510) ..............................................................................Risk Type B
Category 3 (•513) ..............................................................................Risk Type H
Exposure is based
on last market
quotation.
Category 4 (•511) ..............................................................................Risk Type E
Category 5 (•511) ..............................................................................Risk Type E
Exposure is based on
face value of securities
and unpaid coupons or
interest to maturity.
Exposure is based
on face value of
securities plus,
Risk Type E
on exposure of
unpaid coupons or
interest to maturity.
Exposure is based
on par or callable
or redeemable
price of stock or
share, whichever is
larger.

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
f. Open Penalty Bonds (Continued):
Exposure is based
on amount of
deposit including
accrued interest to
date of lost
securities bond.
g. For Open Penalty Lost Securities Bonds covering
replacement of stocks and securities (Categories 3, 6 & 7)
which are part of a blanket or master bond in favor of a transfer
agent and its corporate principal (•553) ..............................................Risk Type G
Exposure is based
on the last market
quotation or face
value, whichever is
applicable.
23. Mail Chute Patent Infringement Bond to U.S.A. (•542) .......................Risk Type C
24. Maritime Administration
a. Registry of Vessels (•567)
Bonds required in connection with change of registry or flag ............Risk Type D
b. Sale of Vessels by the Maritime Administration:
(1) Bonds guaranteeing dismantling or scrapping of vessels
(•532) .............................................................................................Risk Type B
(2) Bonds guaranteeing payment of sales price; or conversion
of vessels into other types or to maintain specific trade
routes; or not to operate to or from U.S. Ports (•533) ...................Risk Type D
25. Mortgages (•541)
Bonds to indemnify trustees for bondholders for satisfaction,
cancellation or destruction of a matured or paid mortgage ......................Risk Type B
Exposure is based
on penalty of bond
for its term.
26. Non-Construction Contract Performance Bonds (•500)
Bonds securing the obligation to faithfully perform the terms and
conditions of a contract for non-construction services ............................Risk Type B
27. Ocean Freight Forwarders (Independent) (•566)..................................Risk Type C
28. Patent Infringement (other than for Mail Chutes) (•541)
Bonds guaranteeing against infringement of patent .................................Risk Type B
29. Pre-paid/Pre-need Funeral Bonds (•578)
Bonds securing the performance of funeral services that have
been pre-paid ............................................................................................Risk Type B

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
30. Private Patients (•541)
Bonds to support patients in asylums or hospitals ...................................Risk Type B
31. Public Buildings, Grounds, Armories, Schools (•541)
Bonds for use of foregoing.......................................................................Risk Type B
32. Purchase and Sale Contracts (Not Supply)
a. Bonds guaranteeing contracts between public bodies and
bankers for purchase of public bond issues (•528) ..............................Risk Type B
b. Bonds guaranteeing contracts for purchase of other public
property (•529) ....................................................................................Risk Type D
c. Bonds guaranteeing sale and delivery of raw materials (•529) ...........Risk Type D
d. On bonds guaranteeing buyer will take a stated quantity, or all
the product of the seller at a stated price, or at the market price
(•529) ...................................................................................................Risk Type D
e. Bonds given by the seller, guaranteeing sale and delivery of a
stated proportion, or all of its product to the buyer at a stated
price, or at the market price (•529) ......................................................Risk Type D
33. Quiet Title Bonds (•541)
Bonds to quiet title to real estate ..............................................................Risk Type B
Exposure is based
on penalty of bond
for its term.
34. Retained Percentages — Withdrawal of: see Indemnity Bonds
page M-16.
35. Return of Borrowed or Leased Property
a. Small arms and other military equipment issued, supplied or
loaned by the Department of Army for military instruction to
educational institutions (•546) .............................................................Risk Type L
b. Small arms and appendages issued, supplied or loaned by the
Department of Army to Rifle Clubs (•541) .........................................Risk Type B
c. Bonds to Federal, State, City or other Government; or to
libraries, museums, historical associations, etc., covering
material loaned for exhibition or use (does not cover things for
sale):
(1) Bonds for return only, without money payment (•546) ................Risk Type L
(2) Bonds covering return and money payment, as rental,
royalty, share of receipts, or other payments (•541)......................Risk Type B
d. Bonds to Department of Defense guaranteeing return of tools
and machinery leased to manufacturers, as essential to
completion of manufacturers contract with the government
(•541) ...................................................................................................Risk Type B

SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
35. Return of Borrowed or Leased Property (Continued)
e. All bonds not running to Government nor Public Bodies, but
guaranteeing return of property borrowed or leased from others
(•541) ...................................................................................................Risk Type B
36. School Teachers (•543)
Bonds for leave of absence and bonds guaranteeing completion
of school year contract upon receipt of vacation pay in advance ............Risk Type D
Exposure is based
on penalty of bond
for its term.
37. State Tax Stamp Agencies
(1) Agents appointed and bonded for the sale of Federal or State
Tax Stamps (•541)..............................................................................Risk Type B
(2) Bonds Guaranteeing Checks for Payment of Duties, Imposts,
Excises, or Other Taxes and Postage Stamps (•547) .........................Risk Type M
38. Student’s Bonds (•541)
Bonds to colleges or universities for payment of tuition, fees,
room rent, board and other bills, or to indemnify against damage
to rooms, grounds or property of obligee.................................................Risk Type B
39. Trade Association Bonds (•515)
Bonds given by members of Trade Associations, conditioned for
obedience to the Association rules...........................................................Risk Type B
40. Union Bonds — Wage and Welfare
a. Bonds guaranteeing payment of wages or wages and fringe
benefits (•568) .....................................................................................Risk Type E
b. Bonds guaranteeing payment of fringe benefits only (•569)...............Risk Type C
41. U.S. Department of Agriculture
Bonds for exportation of Cotton, Rice, etc.
a. Specific Purchase or Sale Bond (•530)................................................Risk Type A
b. Revolving Type
Where bond is used to cover two or more purchases for export
by the principal during the program year (•531) .................................Risk Type B
42. Workers’ Compensation Bonds — Bond of Contractors or
Subcontractors (•520)
To insure, indemnify, or guarantee employers, owners, or general
contractors; protecting them from claims for workers’ compensation,
disabilities or death under Workers’ Compensation, or Employers’
Liability Acts............................................................................................Risk Type N
©The Surety Association of America, 2005 M-23 New Page January 1, 2005
SURETY
RISK CLASSIFICATION
Type of
Description: Risk:
43. Workers’ Compensation; Short-Term Disability; and
Unemployment Compensation — Self-Insurers’ Guarantees
a. Workers’ Compensation Bonds: Bonds securing the
payment of Workers’ Compensation Benefits and required by
State Authorities:
(1) Where bond is required of all Self-Insurers (•521) .......................Risk Type D
(2) Where bond is required only of Self- Insurers whose
financial status is doubtful or unsatisfactory (•556) ......................Risk Type G
b. Longshore and Harbor Workers’ Compensation Act
Bonds: Bonds securing the payment of workers’
compensation benefits and required pursuant to the Lo ngshore
and Harbor Workers’ Compensation Act (•583) .................................Risk Type D
c. Short-Term Disability Bonds: Bonds securing the payment
of disability benefits and required by the U.S. Bureau of
Employees’ Compensation or State Authorities (•586) ......................Risk Type D
d. Unemployment Compensation Bonds: Bonds securing the
payment of unemployment compensation and required by the
U.S. Bureau of Employees’ Compensation or State Authorities
(•582) ...................................................................................................Risk Type D
e. Self-Insurer’s Bond guaranteeing the payment of premium
assessed by State Board (•585)............................................................Risk Type D
f. In States where all Self-Insurers are not required to file bond or
in those States requiring bond if the Surety on the Self-Insurer’s
Bond has become insolvent, State Boards may require the filing
of bond to guarantee payment of a specific award or claim in
weekly or monthly payments. For such bonds apply regular
surety company rates for Self-Insurers; at the end of each
premium year, if all payments due during preceding year have
been paid, such payments may be subtracted from bond penalty,
and each renewal premium computed on the reduced amount.
g. In the event the surety bond is cancelled by the surety or bond
principal, and such cancellation does not affect the surety’s
liability for compensation for injuries to the principal’s employees
and other compensable events occurring prior to the date of
cancellation, renewal premium is charged. Such renewal premium
shall be based on the penal sum of the bond. Annual renewal
premiums shall be charged until the surety is released from all
liability by the obligee.
©The Surety Association of America, 2005 M-24 New Page January 1, 2005
SURETY
INDEX
Page
A
Adjusted Service Certificates, Lost...........................................................................19
Aid-Associations, Children Placed With..................................................................11
Airline Reporting Corp., (ARC) Travel Agencies ....................................................11
American Legion, Return of Property.......................................................................22
Armories, Use of.......................................................................................................22
Assigned Accounts Bonds ........................................................................................11
Auctioneers Bonds ....................................................................................................11
Automobiles, Repossession by Mortgagee ...............................................................16
B
Bankrupt Estates, Auction of....................................................................................11
Bill of Lading, Delivery of Freight Without .............................................................13
Bill of Lading, Lost ...................................................................................................13
Bonds Classified In This Section................................................................................1
Borrowed or Leased Property, Return of..................................................................22
Bridge Toll Bond ......................................................................................................12
Buildings, Use of ......................................................................................................22
Bulk Sales Bonds ......................................................................................................11
C
Cable Bonds ..............................................................................................................11
Cancellation of Stock by Transfer Agent ............................................................16, 17
Charitable or Aid Associations, Children.................................................................11
Check Guarantees — See State Tax Stamp Agencies ..............................................23
Checks for Payment of Duties, Imposts, etc. ............................................................23
Children, Support of..................................................................................................11
Claims for Credit for Foreign Taxes — See Income Tax Bonds..............................15
Classes of Bonds .........................................................................................................1
College Students, Payment of Tuition, etc................................................................23
Concessionaires’ Bonds ............................................................................................11
Contractor’s Indemnity Bonds ..................................................................................16
Contractors or Subcontractors, Workers’ Compensation .........................................23
Contracts of Purchase and Sale .................................................................................22
D
Deficiency Tax Bonds...............................................................................................15
Deductions for Future Taxes.....................................................................................15
Delivery of Freight Without Bill of Lading ..............................................................13
Demurrage Bonds .....................................................................................................13
Dependent Children ..................................................................................................11

SURETY
INDEX
Page
Depository Bonds......................................................................................................11
Disability Benefits Law ............................................................................................24
Discontinua nce Corporate Surety, Workers Compensation — Rule ........................24
Diversion or Stoppage of Freight..............................................................................13
Divorce Proceedings .................................................................................................12
Driver’s Bonds, Transportation of School Children.................................................12
Duties, Checks for Payment of .................................................................................23
E
Escrow Deposit Bonds..............................................................................................12
Excise Tax.................................................................................................................15
Excises, Check for Payment of .................................................................................23
F
Feeding Stock in Transit ...........................................................................................12
Financial Guarantees.................................................................................................12
Financial Guaranty (Credit Enhancement) .................................................................5
Foreign Taxes, Claims for Credit of .........................................................................15
Forest Patrol by Airplane ..........................................................................................13
Forfeiture, Immigrant Bond ........................................................................................3
Forms of Bonds ...........................................................................................................2
Freight or Demurrage Charges..................................................................................13
Freight, Delivery of, Without Bill of Lading ............................................................13
Freight Diversion ......................................................................................................13
Freight Forwarders, Independent Ocean...................................................................21
Freight, Open End Bond of Indemnity to Railroads .................................................13
G
General Indemnity, Contractors ................................................................................16
I
Immigrant Bonds.................................................................................................14, 15
Imposts, Payment of by Check .................................................................................23
Income Tax Bonds ....................................................................................................15
Indemnity Bonds.................................................................................................16, 17
Indemnity to Financial Institutions ...........................................................................17
Indemnity to Mortgagee............................................................................................21
Indemnity to Transfer Agents .............................................................................16, 17
Indemnity to Trustees for Bondholders ....................................................................21
Independent Ocean Freight Forwarders ....................................................................21
Insurance Policies, Lost ............................................................................................19
Insurance Program Bonds .........................................................................................12

SURETY
INDEX
Page
J
Jeopardy Assessments...............................................................................................15
L
Lease Bonds ........................................................................................................17, 18
Leave of Absence for School Teachers.....................................................................23
Life Insurance Policies, Lost.....................................................................................19
Live Stock, Feeding in Transit ..................................................................................12
Longshore and Harbor Workers’ Compensation Act, Workers’ Compensation......24
Lost Securities Bonds ......................................................................................... 18-21
Low Income Housing Credit Disposition Bonds ......................................................15
M
Mail Chute Patent Infringement Bond to U.S.A.......................................................21
Maintenance of Private Patients in Asylum ..............................................................22
Manufacturers Excise Tax ........................................................................................15
Manufacturing or Milling in Transit .........................................................................12
Maritime Administration ..........................................................................................21
Milling in Transit ......................................................................................................12
Miscellaneous Indemnity..........................................................................................16
Mortgagees, Indemnity to .........................................................................................21
Mortgages, Bonds to Indemnify Trustees for Cancellation or Destruction of..........21
N
Newspapers, Bonds of Distributors, Carriers and Salespeople etc. ..........................12
O
Ocean Freight Forwarders, Independent ...................................................................21
Open End Bond of Indemnity to Railroads...............................................................13
P
Patent Infringement Bonds........................................................................................21
Patient Fund Bonds, Nursing Homes ........................................................................16
Patients, Private Support of.......................................................................................22
Pre-paid/Pre-need Funeral Bonds .............................................................................21
Private Auction, Guaranteeing Proceeds of..............................................................11
Private Patients..........................................................................................................22
Property, Return of....................................................................................................22
Public Auction, Guaranteeing Proceeds of...............................................................11
Public Buildings, Use of ...........................................................................................22
Purchase and Sale Contracts .....................................................................................22

SURETY
INDEX
Page
Q
Quiet Title .................................................................................................................22
R
Railroad Equipment, Lease of...................................................................................22
Railroads, General Indemnity for Freight or Demurrage ..........................................13
Raw Materials, Sale and Delivery of ........................................................................22
Registry of Vessels, Maritime Administration .........................................................21
Release of Federal Tax Lien .....................................................................................15
Repayment of Refunded Real Estate Taxes ..............................................................16
Repossession by Mortgagee......................................................................................16
Retained Percentages, Indemnity for ..................................................................16, 22
Return of Property.....................................................................................................22
Return of Tools and Machinery................................................................................22
Right of Surety to Terminate ......................................................................................2
Risk Classification .............................................................................................. 11-24
S
Sale of Vessels, Maritime Administration................................................................21
Satisfaction of Mortgages, Indemnity to Trustees for ..............................................21
School Teachers, Leave of Absence .........................................................................23
Schools, Use of .........................................................................................................22
Scope of Coverage .................................................................................................. 1-3
Section General Rules .................................................................................................4
Securities, Indemnity for Transfer of..................................................................16, 17
Securities, Lost.................................................................................................... 18-21
Self-Insurers, Workers’ Comp ..................................................................................24
Ship Sales, Maritime Administration........................................................................21
Shippers, Load, Weight and Count ...........................................................................13
Signature Guarantee Bonds (Securities Transfer).....................................................17
State Tax Stamp Agencies ........................................................................................23
Statistical Codes .................................................................................................... 5-10
Stay of Assessment, Income Tax..............................................................................15
Students Bonds..........................................................................................................23
T
Tax — Income, Deficiency, etc. ...............................................................................15
Tax Lien, Release of .................................................................................................15
Taxes, Checks for Payment of ..................................................................................23
Taxes, Real Estate, Repayment of Refund ................................................................16
Tax Stamp Agencies .................................................................................................23
Term or Period of Bond ..........................................................................................2, 3

SURETY
INDEX
Page
Tools and Machinery, Return of ...............................................................................22
Trade Association Bonds ..........................................................................................23
Transfer Agents, Indemnity to ............................................................................16, 17
Travel Agencies, Airline Reporting Corp. ................................................................11
Trustees for Bondholders, Satisfaction of Mortgage ................................................21
Tuition, Students Bond for........................................................................................23
Turnpike, Bridge Toll Bond ......................................................................................12
U
Union Bonds, Wage and Welfare .............................................................................23
U.S. Dept. of Agriculture, Exportation of Cotton, Rice, etc. ....................................23
V
Vessels, Sale or Registry of by Maritime Administration........................................21
W
Warehouse Receipts, Lost.........................................................................................13
Welfare Funds...........................................................................................................23
Withdrawal of Money or Securities..........................................................................17
Workers’ Compensation Bonds ..........................................................................23, 24

SURETY
Section 5. License and Permit Bonds Including U.S.
Government Excise Tax and Customs Bonds
TABLE OF CONTENTS
Subject Page
I. SCOPE OF COVERAGE...................................................................... 1-4
II. SECTION GENERAL RULES ................................................................5
III. STATISTICAL CODES ...................................................................... 6-10
IV. RISK CLASSIFICATION ................................................................ 11-16
INDEX.................................................................................................... i- vii

SURETY
SCOPE OF COVERAGE
1. License and Permit Bonds
License and Permit Bonds are those required by State law, municipal ordinance, or
by regulation and in some instances by the Federal Government or its agencies as a
condition precedent to the granting of a license to engage in a particular business or
the granting of a permit to exercise a particular privilege. In practice, the terms
“license” and “permit” are used interchangeably, and are so used in this manual.
2. U.S. Government Excise Tax Bonds
U.S. Government Excise Tax Bonds are those given by Manufacturers, Distillers,
Processors, Brewers, Winemakers or Dealers in or Carriers of Products for which a
Federal permit may be required and which are subject to taxation pursuant to the
Internal Revenue Code or Rules and Regulations promulgated thereunder.
3. U.S. Government Customs Bonds
U.S. Government Customs Bonds are those given by Importers and Exporters of
articles subject to import duties or other charges and taxes; Customs Brokers;
Proprietors of warehouses licensed by the Customs Service; Carriers and Cartmen of
articles in custody of Customs; and Masters or Owners of vessels and aircraft for the
entry in or clearance from port of ships and aircraft and for diversion of cargo from
port of destination to another port.
B. CLASSES OF BONDS
These bonds generally are divisible into two broad classifications:
a. Bonds which provide indemnification to the governmental body named as
obligee for loss or damage resulting from failure of the principal to comply with
the applicable law, ordinance or regulations including payment of any tax
covered by the bond.
b. Bonds which give third parties a right of action in their own name or in the name
of the obligee to recover loss or damage resulting from default by the principal of
his obligations under the law, ordinance or regulations under which the bond is
required.
©The Surety Association of America, 1991 LP-1 New Page July 1, 1991
SURETY
SCOPE OF COVERAGE
2. U.S. Government Excise Tax Bonds
These bonds generally guarantee:
a. That the principal will fully comply with the applicable Laws and Regulations
and pay all taxes, fines or other charges due the Government. In some instances,
the bond is subject to forfeiture in its entirety for failure of the principal to
comply with the applicable law.
b. Some bonds when filed allow the principal to defer payment of excise taxes for a
specified period after products have been withdrawn from bonded premises. If
bonds are not given, taxes must be paid in advance of removal.
3. U.S. Customs Bonds
These bonds generally guarantee:
a. That the principal will pay all duties, taxes, fees, charges, fines, penalties,
forfeitures assessed against the principal(s) under the bond.
b. That the principal will redeliver merchandise which Customs subsequently
determines was illegally imported or otherwise ineligible for importation.
c. That the principal will comply with applicable laws and regulations of the U.S.
Customs Service or other Federal Agency having jurisdiction over the
importation activity.
C. FORMS OF BONDS
These bonds are generally promulgated by the Federal, State or Municipal Agency
charged with administering the bond requirement. The bonds are required in
accordance with specific statutory or regulatory requirements but often where a
statutory bond form has not been promulgated, sureties may use their own company
forms for acceptance.
2. U.S. Excise Tax Bonds
As these bonds are taken primarily for the protection of public revenue, i.e., duties,
taxes, fees, etc., and the enforcement of penal statutes, they are drawn by the
interested Government Department with the approval of the Attorney General and
printed by the Government at its expense.
SURETY
SCOPE OF COVERAGE
C. FORMS OF BONDS (Continued)
The Customs Service has developed a single standardized bond: Customs Bond Form
301, which is used to cover most Customs’ transactions. Upon occasion manuscripted
forms may be used to cover unusual situations. The Tariff Act provides that no
Customs Bond shall be held invalid on the ground that the condition thereof is not
specified in the law, regulation or instruction authorizing or requiring the taking of
such bond.
D. TERM OR PERIOD COVERED BY THE BOND

The term or period covered by a license or permit bond corresponds to the term or
period covered by the license or permit, but the right to file claims under any bond
for losses sustained while the bond was in force, continues for varying periods
depending upon the law of the particular state.
Some bonds are used to cover a single shipment, or transaction while others apply to
the operation of a business, such as a license to operate a Distillery, Brewery, etc.
Customs Bond Form 301 has been drawn to cover either a single entry or shipment,
or a series of entries or shipments on a continuous basis.
When written as a Continuous Bond, Customs Bond Form 301 constitutes a separate
bond for each succeeding annual period.
E. RIGHT OF SURETY TO TERMINATE

Termination of a license or permit bond depends upon whether such right is
permitted by law, ordinance or regulations under which bond is required, or by the
terms of the bond itself.
Many of these bonds contain a cancellation clause under which the surety may
terminate its liability with respect to future acts of the principal by serving advance
notice on the Government from 10 to 90 days before the effective date of termination.
SURETY
SCOPE OF COVERAGE
E. RIGHT OF SURETY TO TERMINATE (Continued)
When written as a Single Transaction Bond, Customs Bond Form 301 is
noncancelable.
When written as a Continuous Bond, Customs Bond Form 301 may be canceled by
the surety upon 30 days advance written notice to Customs and the principal.
F. TIME LIMIT FOR SUIT — U.S. GOVERNMENT EXCISE TAX BONDS

Where there are statutes which limit the time within which the Government must sue the
principal for any tax due in accordance with a filed report, those statutes are suspended
where the principal fraudulently conceals information relating to the tax. Since fraud is
the basis of a majority of cases instituted by the Government, Federal Statutes of
limitations are rarely held to bar claim on these bonds.
G. RIDERS — U.S. GOVERNMENT CUSTOMS BONDS

1. Riders – General
The U.S. Customs Service utilizes riders to cover different and / or temporary
situations. Unless otherwise noted, no additional charge should be made for them
except when they are required to be attached to an underlying bond mid-term. In such
cases the surety company’s minimum premium should be charged for each rider
attached mid-term.
2. Reconciliation Rider
As a prerequisite to participating in the Automated Commercial System
“Reconciliation Process,” an importer is required to file a Reconciliation Rider. The
program permits an importer to identify entries that contain undeterminable
information and provide the outstanding information at a later date. The Rider
guarantees payment of any outstanding duties, taxes, fines or penalties due at the time
of final reconciliation. The final reconciliation can be filed as much as fifteen months
after the first entry.
©The Surety Association of America, 1998 LP-4 Revised October 1, 1998

SURETY
A. ADVERSE SELECTION AGAINST THE SURETY
Where a License and Permit Bond is required of only those principals whose financial
status is doubtful or unsatisfactory, or where a larger than normal bond amount is
required due to the principal’s past credit or payment history or unsatisfactory financial
status, double the company rate that would have applied absent the Adverse Selection
feature.
In cases where a higher than usual bond amount is required, the company rate, as
developed above, applies to the entire bond penalty, not just the additional amount.
B. BONDS SUSCEPTIBLE TO TWO CLASSIFICATIONS

Where a License and Permit Bond is subject to two or more classifications, the Risk
Classification with the higher Loss Cost is applicable.
C. MAINTENANCE GUARANTEES
Maintenance repairs or guarantees against defective materials or workmanship given in
conjunction with License and Permit Bonds are subject to the provisions for Maintenance
Guarantees as set forth in the Contract Bonds Section of this Manual.
©The Surety Association of America, 2004 LP-5 Revised January, 2004

SURETY
STATISTICAL CODES
CLASSIFICATION CODE
CLASS DESCRIPTION
AGRICULTURAL:
Bonds required by Packers and Stockyards Act:
Market Agencies or Dealers.................................................................................................................. 901
Packers ...................................................................................................................................................... 902
Commission Merchants and Produce Dealers — Other than Livestock........................................... 903
Grazing and Farming Permits and Leases .............................................................................................. 967
Livestock Dealers Excluding Bonds Required under Packers and Stockyards Act........................ 904
Milk Dealers ................................................................................................................................................ 905
CONTRACTING (BUILDING, CONSTRUCTING, ELECTRICAL,

MOVING, PLUMBING AND OTHER SUB -TRADES):
All Contractors License — Compliance ................................................................................................. 906
All Contractors License — Performance and/or Payment:

Where Bond Runs To Municipality..................................................................................................... 907
Where Bond Runs To State................................................................................................................... 908
All Contractors License — Third Party Liability.................................................................................. 909
Excess Weight and Other Highway and Street Permits ....................................................................... 910
CUSTOMS BONDS AND CARNET BONDS:

Carnet Bonds............................................................................................................................................... 973
Customs Bonds – Continuous:

Where a Reconciliation Rider is filed under the Automated Commercial System
“Reconciliation Process”....................................................................................................................... 971
All Other................................................................................................................................................... 972
Customs Bonds – Single Entry ................................................................................................................. 912
FINANCE:
Blue Sky ....................................................................................................................................................... 913
Check Sellers ............................................................................................................................................... 914
Collection Agencies ................................................................................................................................... 915
Debt Consolidators and Professional Fund Raisers .............................................................................. 916
©The Surety Association of America, 2005 LP-6 Revised January 1, 2005

SURETY
STATISTICAL CODES
CLASSIFICATION CODE
CLASS DESCRIPTION
FINANCE (Continued):
Insurance Adjusters, Agents, Brokers and Surplus Lines Agents and Brokers ............................... 917
Insurance Company Qualifying................................................................................................................ 918
Mortgage Brokers, Bankers and Lenders:

First and Second Mortgages.................................................................................................................. 919
Second Mortgages Only ........................................................................................................................ 920
Real Estate Agents and Brokers ............................................................................................................... 921
Small Loan Companies .............................................................................................................................. 922
Third Party Administrator Bonds............................................................................................................. 974
Title Insurance Company Agents and Escrow Officers ....................................................................... 923
FRANCHISE AND ORDINANCE:

All .................................................................................................................................................................. 924
MOTOR VEHICLE:
Defective Title Bond.................................................................................................................................. 925
Mobile Home Dealers — Warranty Coverage....................................................................................... 926
New or New and Used Car, Truck, Mobile Home Dealers and Salesmen ....................................... 927
Self-Insurers and Financial Responsibility............................................................................................. 928
Used Car, Truck, Mobile Home Dealers and Salesmen....................................................................... 929
All Other Motor Vehicle ............................................................................................................................ 930
RECLAMATION, MINING AND REMOVAL:

Drilling, Plugging or Operating Oil, Gas, Water, or Mineral Wells or Leases................................ 931
Removal of Sand and Gravel — Not Involving Restoration of Land................................................ 932
Strip Mining and Other Permits Involving Restoration of Land:

Hard Rock/Mineral................................................................................................................................. 980
Coal ........................................................................................................................................................... 981
Sand and Gravel...................................................................................................................................... 982

SURETY
STATISTICAL CODES
CLASSIFICATION CODE
CLASS DESCRIPTION
RETAIL SERVICES AND PROFESSIONAL LICENSES:
Amusement, Sport Permits and Health Spas.......................................................................................... 934
Auctioneers — Other Than Livestock.................................................................................................... 935
Blasting, Explosives and Fireworks ........................................................................................................ 968
Detectives..................................................................................................................................................... 936
Employment Agencies............................................................................................................................... 978
Itinerant Merchants, Photographers, Book and Magazine Solicitors, Retail Stores and
Service Shops.............................................................................................................................................. 938
Liquified Petroleum Gas — Compliance Bond..................................................................................... 969
Liquid Petroleum Gas — B.I. & P.D. Damage Bond........................................................................... 970
Medicare and Medicaid Providers:

Home Health Agencies (Federal)......................................................................................................... 957
Home Health Agencies (State)............................................................................................................. 958
Durable Medical Equipment (Federal)................................................................................................ 959
Durable Medical Equipment (State).................................................................................................... 960
All Other (Federal) ................................................................................................................................. 961
All Other (State)...................................................................................................................................... 962
Professional Licenses Including Funeral Directors, Cemetery Permits and Nursing Homes........ 939
Schools — All ............................................................................................................................................. 940
Transportation Brokers .............................................................................................................................. 964
Travel Agencies .......................................................................................................................................... 979
Weighmasters and Other Quality Control Inspectors ........................................................................... 941
TAX AND FEES (INCLUDING EXCISE TAX):

Alcohol, Alcoholic Beverages and Liquor Tax:
Manufacturers, Brewers, Distillers, Winemakers, Warehouses, Rectifiers and Wholesalers ... 942
Retailers .................................................................................................................................................... 943
All Others ................................................................................................................................................. 944
Cigar, Cigarette and Tobacco Tax........................................................................................................... 945

SURETY
STATISTICAL CODES
CLASSIFICATION CODE
CLASS DESCRIPTION
TAX AND FEES (INCLUDING EXCISE TAX) (Continued):
Contractors Tax:
Single Contract........................................................................................................................................ 946
Blanket Contracts.................................................................................................................................... 947
Gasoline, Diesel Fuel and Kerosene Tax:

Refiners, Pipelines, Railroads and Airlines........................................................................................ 948
All Others — Sellers and Users ........................................................................................................... 949
Inspection Fee Tax Bond........................................................................................................................... 965
Mileage Tax................................................................................................................................................. 950
Miscellaneous Taxes .................................................................................................................................. 966
Sales, Use and Consumer Tax.................................................................................................................. 952
WAREHOUSING:
Grain and Commodities:
U.S. Warehouse Act Licensed and Commodity Credit Corporation Warehouses ...................... 953
State Licensed Grain and Commodities Warehouses ....................................................................... 954
Other Private Warehouses — All............................................................................................................. 955
Other Public Warehouses — All .............................................................................................................. 956
ALL OTHER LICENSE AND PERMIT BONDS NOT OTHERWISE

CLASSIFIED ABOVE:
Compliance Bond Only
Where the bond runs to a state or municipality only, and guarantees that the principal will
comply with the state statute, regulation or municipal ordinance governing the business or
activity being conducted........................................................................................................................ 993
Compliance Bond With Third Party Liability

Where the bond is conditioned as immediately above and third parties may maintain suit
upon the bond in their own name or the name of the oblige for recovery of actual damages ... 994
Forfeiture Bonds
Any bond classified as a “Compliance Bond Only” or a “Compliance Bond With Third
Party Liability” which provides that the bond shall be forfeited in total in event of a
violation; rather than the payment of actual damages sustained as a result of the violation ..... 995
Tax or Fee Bonds, Payment of

Where bond provides for the payment of taxes or fees, other than specifically classified ........ 996

SURETY
STATISTICAL CODES
CLASSIFICATION CODE
CLASS DESCRIPTION
ALL OTHER LICENSE AND PERMIT BONDS NOT OTHERWISE
CLASSIFIED ABOVE (Continued):
Merchandising And Dealer Bonds
Where bond guarantees the merchandising activities of the principal or the sale price or
title of merchandise................................................................................................................................ 997
Reclamation And Environmental Protection Bonds

Where bond provides that principal will restore or reclaim land to acceptable levels after
operations have ceased, or where bond becomes liable for cleaning-up of spills or other
environmental restoration obligations................................................................................................. 998

SURETY
RISK CLASSIFICATION
IV. RISK CLASSIFICATION Type of
Risk:
A. AGRICULTURAL:
1. Commission Merchants and Produce Dealers — Other than
Livestock (• 903) .............................................................................Risk Type B
2. Grazing and Farming Permits and Leases (• 967) ..........................Risk Type B
3. Livestock Dealers Excluding Bonds Required under Packers
and Stockyards Act (• 904) .............................................................Risk Type G
4. Milk Dealers (• 905)........................................................................Risk Type D
5. Packers and Stockyards Act:
a. Market Agencies or Dealers (• 901).................................Risk Type G
b. Packers (• 902) .................................................................Risk Type H
B. CONTRACTING (BUILDING, CONSTRUCTING,

ELECTRICAL, MOVING, PLUMBING AND OTHER
SUB-TRADES):
1. All Contractors License — Compliance (• 906) .............................Risk Type A
2. All Contractors License — Performance and/or Payment:
a. Where Bond Runs To Municipality (• 907) .....................Risk Type E
b. Where Bond Runs To State (• 908)..................................Risk Type F
3. All Contractors License — Third Party Liability (• 909) ...............Risk Type B
4. Excess Weight and Other Highway and Street Permits
(• 910)..............................................................................................Risk Type B
C. CUSTOMS BONDS — U.S. GOVERNMENT; AND

CARNET BONDS:
1. Continuous Bonds:
a. All (except as described in b. below) (• 972) ...................Risk Type R
b. When a Reconciliation Rider is filed under the
Automated Commercial System “Reconciliation
Process” as described on page LP-4, surcharge the
loss cost amount by 50% (i.e., multiply by 1.5).
(• 971)...............................................................................Risk Type R
2. Single Entry Bonds (• 912) (Loss Costs are for term of bond) .......Risk Type Q
3. Carnet Bonds (• 973)
Bonds securing the issuance of an ATA Carnet and
indemnifying the administrator for the nonpayment of
duties, taxes and penalties in connection with the import or
export of goods and merchandise....................................................Risk Type R

SURETY
RISK CLASSIFICATION
Type of
Risk:
D. FINANCE:
1. Blue Sky Bonds (Issuers, Dealers, Salesmen and Advisors)
Bonds given in connection with the Securities Act of 1933
and/or the Securities Exchange Act of 1934 and All Others
(• 913)..............................................................................................Risk Type D
2. Check and Money Order Sellers, Money Transmitters and
Private Bankers (• 914) ...................................................................Risk Type I
3. Collection Agencies (• 915) ............................................................Risk Type B
4. Debt Consolidators and Professional Fund Raisers and
Solicitors (• 916) .............................................................................Risk Type D
5. Insurance Adjusters, Agents, Brokers and Surplus Lines
Agents and Brokers (• 917) .............................................................Risk Type B
6. Insurance Qualifying (• 918):
a. Insurance Company Qualifying Bonds except as noted in
b. below.....................................................................................Risk Type A
b. Workers’ Compensation Insurance Carriers’ Qualifying
Bond ..........................................................................................Risk Type A
(Apply Loss Cost on Workers’ Compensation premiums
written by applicant for the preceding calendar year in
the state where the bond is required.)
c. Stock or Mutuals, Mutual Aid Assessment Companies or
Associations and Fraternal or Beneficial Orders —
Officers and Agents — Statutory Bonds ..................................Risk Type A
7. Mortgage Bankers, Brokers and Lenders:
a. First and Second Mortgage Loans (• 919) ................................Risk Type D
b. Secondary Mortgage Loans Only (• 920) .................................Risk Type E
8. Real Estate Agents and Brokers (• 921)..........................................Risk Type B
9. Small Loan and Money Lending Companies (• 922)......................Risk Type B
10. Third Party Administrator Bonds (• 974)........................................Risk Type B
11. Title Insurance Agents and Escrow Officers (• 923) ......................Risk Type B

SURETY
RISK CLASSIFICATION
Type of
Risk:
E. FRANCHISE AND ORDINANCE BONDS (• 924):
Bonds guaranteeing principal will comply with terms upon
which a public or quasi public privilege has been granted.....................Risk Type A
F. MOTOR VEHICLE:
1. Defective Title Bond (• 925) ...........................................................Risk Type D
Exposure is based
on bond penalty for
the term.
2. Mobile Home Dealers — Warranty Coverage (• 926)....................Risk Type E
3. New or New and Used Car, Truck, Mobile Home Dealers
and Salesmen (• 927) ......................................................................Risk Type B
4. Self-Insurers and Financial Responsibility (• 928) .........................Risk Type B
5. Used Car, Truck, Mobile Home Dealers and Salesmen
(• 929)..............................................................................................Risk Type B
6. All Other Motor Vehicle (• 930) .....................................................Risk Type B
G. RECLAMATION, MINING AND REMOVAL:

1. Drilling, Plugging or Operating Oil, Gas, or Mineral Wells
or Leases (• 931) .............................................................................Risk Type B
2. Removal of Sand and Gravel and Excavation (not involving
Reclamation and Environmental Restoration) (• 932) ....................Risk Type A
3. Surface or Strip Mining and Other Permits Involving
Reclamation or Restoration of Land to Acceptable Levels:
a. Hard Rock/Mineral (• 980) .......................................................Risk Type C
b. Coal (• 981) ...............................................................................Risk Type C
c. Sand and Gravel (• 982) ............................................................Risk Type C
H. RETAIL SERVICES AND PROFESSIONAL LICENSES:

1. Amusement Enterprises (• 934):
a. Athletic Contests, Bingo Licenses, Charity
Entertainment, Circus Permits, Carnival Operators..................Risk Type B
b. Bathing Establishments, Billiard or Pool Halls, Dance
Halls, Bo wling Alleys, Card Rooms, Boxing and Sports
Clubs .........................................................................................Risk Type B
c. Game Guides and Hunting Licenses .........................................Risk Type B
d. Horse, Dog Racing (premium is fully earned) ..........................Risk Type B

SURETY
RISK CLASSIFICATION
Type of
Risk:
H. RETAIL SERVICES AND PROFESSIONAL LICENSES
(Continued):
2. Auctioneers (Other Than Livestock) (• 935) ..................................Risk Type B
3. Cemetery Permits and Funeral Directors (• 939) ............................Risk Type B
4. Detectives and Private Watch, Guard Services (• 936)...................Risk Type B
5. Employment Agencies (• 978) ........................................................Risk Type B
6. Health Spas (• 934) .........................................................................Risk Type B
7. Itinerant Merchants, Photographers, Book and Magazine
Solicitors (• 938) .............................................................................Risk Type B
8. Liquified Petroleum Gas:
a. Compliance Bond (• 969).......................................................Risk Type A
b. B.I. & P.D. Damage Bond (• 970) .........................................Risk Type B
9. Medicare and Medicaid Providers
a. Home Health Agencies ..........................................................Risk Type E
Federal (• 957)
State (• 958)
b. Durable Medical Equipment ..................................................Risk Type E
Federal (• 959)
State (• 960)
c. All Others ...............................................................................Risk Type E
Federal (• 961)
State (• 962)
10. Professional Licenses, including Dentists, Druggists,
Hospital Associations, Nursing or Convalescent Homes,
Taxpreparers, Veterinarians (• 939) ................................................Risk Type B
11. Retail Stores and Service Shops (• 938) .........................................Risk Type B
12. Schools — All (• 940) .....................................................................Risk Type B
13. Transportation Brokers (including ICC Brokers Surety Bond
BMC-84) (• 964) .............................................................................Risk Type C
14. Travel Agencies (• 979) ..................................................................Risk Type B
15. Weighmasters and Other Quality Control Inspectors (• 941) .........Risk Type A
16. Blasting, Explosives and Fireworks (• 968)....................................Risk Type B

SURETY
RISK CLASSIFICATION
Type of
Risk:
I. TAX AND FEE BONDS (Including U.S. Excise Tax):
1. Alcohol (Industrial), Alcoholic Beverages and Liquor Tax:
a. Manufacturers, Brewers, Distillers, Winemakers,
Warehouses, Rectifiers and Wholesalers (• 942) ......................Risk Type J
b. Retailers (• 943) ........................................................................Risk Type J
c. All Others (• 944) ......................................................................Risk Type J
2. Cigar, Cigarette and Tobacco Taxes (• 945) ...................................Risk Type J
3. Contractor’s Tax Bonds:
a. Individual Bonds — Single Contract (• 946) ............................Risk Type K
Exposure is based
on the term of the
bond.
b. Blanket Bonds — All Contracts (• 947) ...................................Risk Type L
4. Gasoline, Diesel Fuel, Kerosene and Special Fuel Users:
a. Bonds filed by Gasoline Refiners, Pipelines, Railroads
and Airline Co’s. (• 948) ...........................................................Risk Type M
b. All Other Permittees, including Wholesale Distributors
and Users of Motor Vehicle Fuel, including User —
Dealers and Special Fuel Tax (• 949) .......................................Risk Type N
5. Inspection Fee Tax Bond (including U.S.D.A. Form FV
358) (• 965) .....................................................................................Risk Type B
6. Mileage Tax (• 950) ........................................................................Risk Type E
7. Miscellaneous Taxes (• 966) ...........................................................Risk Type J
8. Sales, Use and Consumers Taxes (• 952)........................................Risk Type E
J. WAREHOUSING (AND GRAIN ELEVATOR) BONDS:

1. Grain and Commodities:
a. U.S. Warehouse Act Licensed and Commodity Credit
Corporation Warehouses (• 953)...............................................Risk Type O
b. State Licensed Grain and Commodities Warehouses
(• 954)........................................................................................Risk Type O
2. Other Private Warehouses — All (• 955) .......................................Risk Type B
3. Other Public Warehouses — All (• 956).........................................Risk Type P

SURETY
RISK CLASSIFICATION
Type of
Risk:
K. ALL OTHER LICENSE AND PERMIT BONDS (NOT
OTHERWISE CLASSIFIED IN SECTIONS A THROUGH J):
1. Compliance Bond Only (• 993)
Where the bond runs to a state or municipality only, and
guarantees that the principal will comply with the state
statute, regulation or municipal ordinance governing the
business or activity being conducted ..............................................Risk Type A
2. Compliance Bond With Third Party Liability (• 994)

Where bond is conditioned as immediately above and third
parties may maintain suit upon the bond in their own name or
the name of the oblige for recovery of actual damages ..................Risk Type B
3. Forfeiture Bonds (• 995)

Any bond classified as a “Compliance Bond Only” or a
“Compliance Bond With Third Party Liability” which
provides that the bond shall be forfeited in total in event of a
violation; rather than the payment of actual damages
sustained as a result of the violation ...............................................Risk Type E
4. Tax or Fee Bonds, Payment of (• 996)

Where bond provides for the payment of taxes or fees, other
than specifically classified ..............................................................Risk Type E
5. Merchandising And Dealer Bonds (• 997)

Where bond guarantees the merchandising activities of the
principal or the sale price or title of merchandise ...........................Risk Type E
6. Reclamation And Environmental Protection Bonds (• 998)

Where bond provides that principal will restore or reclaim
land to acceptable levels after operations have ceased, or
where bond becomes liable for cleaning- up of spills or other
environmental restoration obligations .............................................Risk Type E
©The Surety Association of America, 2005 LP-16 New Page January 1, 2005
SURETY
INDEX
Page
A
Adjusters, Insurance..................................................................................................12
Administrators, Third Party ......................................................................................12
Adverse Selection Against The Surety .......................................................................5
Advisors, Investment (Blue Sky Bonds)...................................................................12
Agencies, Collection.................................................................................................12
Agencies, Market (Packers and Stockyards Act)......................................................11
Agencies, Travel and Employment ...........................................................................14
Agents and Brokers, Insurance .................................................................................12
Agents and Brokers, Real Estate...............................................................................12
Agriculture ................................................................................................................11
Air Conditioning and Refrigeration Contractors ......................................................11
Alcohol, Industrial ....................................................................................................15
Alcohol and Liquor ...................................................................................................15
Alcoholic Beverages .................................................................................................15
Amusement Enterprises ............................................................................................13
Associations, Hospital...............................................................................................14
Associations, Officers and Agents............................................................................12
Athletic Contests.......................................................................................................13
Auctioneers, Other Than Livestock ..........................................................................14
Automobile Dealers ..................................................................................................13
Automobile Defective Title Bond .............................................................................13
Automobile Self-Insurer and Financial Responsibility.............................................13
B
Bankers, Private ........................................................................................................12
Bankers/ Brokers, Mortgage .....................................................................................12
Bathing Establishments.............................................................................................13
Beneficial Orders, Officers and Agents ....................................................................12
Billiard Halls .............................................................................................................13
Bingo Licenses ..........................................................................................................13
Blasting .....................................................................................................................14
Blue Sky Bonds.........................................................................................................12
Bonds Classified In This Section................................................................................1
Bonds Susceptible To Two Classifications .................................................................5
Book Solicitors..........................................................................................................14
Bowling Alleys .........................................................................................................13

SURETY
INDEX
Page
Boxing or Sport Clubs ..............................................................................................13
Brewers, Tax.............................................................................................................15
Brokers, Insurance and Surplus Lines ......................................................................12
Brokers, Mortgage ....................................................................................................12
Brokers, Real Estate ..................................................................................................12
Brokers, Transportation ............................................................................................14
C
Car Dealers, Salesmen ..............................................................................................13
Card Rooms ...............................................................................................................13
Carnet Bonds...............................................................................................................6
Carnival Operators ....................................................................................................13
Cement Contractor ....................................................................................................11
Cemetery Permits ......................................................................................................14
Charity Entertainment ...............................................................................................13
Check Sellers.............................................................................................................12
Cigar Tax...................................................................................................................15
Cigarette Tax.............................................................................................................15
Circus Permits...........................................................................................................13
Class Codes ........................................................................................................... 6-10
Class Descriptions................................................................................................. 6-10
Classes of Bonds .....................................................................................................1, 2
Collection Agencies ..................................................................................................12
Commission Merchants ............................................................................................11
Commodity Credit Corporation Grain and Other Commodities...............................15
Consolidators, Debt...................................................................................................12
Construction Contracts Coverage, Contracting ........................................................11
Consumer Tax...........................................................................................................15
Continuous Bond — Customs ..................................................................................11
Contracting............................................................................................................6, 11
Contractors............................................................................................................6, 11
Convalescent Homes.................................................................................................14
Curb Contractor.........................................................................................................11
Customs Bonds ............................................................................................. 1-4, 6, 11
D
Dance Halls ...............................................................................................................13
Dealers and Packers and Stockyards Act ..................................................................11
Dealers, Auto, Mobile Home, Truck.........................................................................13
Dealers, Livestock (Excluding Packers and Livestock Act).....................................11
Dealers, Milk.............................................................................................................11
Dealers, Produce .......................................................................................................11

SURETY
INDEX
Page
Debt Consolidators....................................................................................................12
Defective Title Bonds — Motor Vehicle ..................................................................13
Dentists......................................................................................................................14
Detective Agencies ...................................................................................................14
Diesel Fuel, Tax........................................................................................................15
Dog Racing ...............................................................................................................13
Drilling — Oil, Gas, Water, Mineral Wells ..............................................................13
Driveway Contractors ...............................................................................................11
Druggists ...................................................................................................................14
E
Employment Agencies ..............................................................................................14
Environmental Restoration Bonds — Listed Bonds .................................................13
Escrow Officers.........................................................................................................12
Excavation (Not Involving Reclamation) .................................................................13
Excess Size, Weight ..................................................................................................11
Excise Tax Bonds.............................................................................................. 1-4, 15
Explosives .................................................................................................................14
Exterminating Contractors ........................................................................................11
F
Farming Permits ........................................................................................................11
Fee Inspection...........................................................................................................15
Finance ..............................................................................................................6, 7, 12
Financial Responsibility — Motor Vehicle ..............................................................13
Fireworks ..................................................................................................................14
Forms of Bonds .......................................................................................................2, 3
Fuel Tax ....................................................................................................................15
Fumigating Contractors ............................................................................................11
Fund Raisers, Solicitors ............................................................................................12
Funeral Directors.......................................................................................................14

SURETY
INDEX
Page
G
Game Guides.............................................................................................................13
Gas Fitters, Contractors.............................................................................................11
Gas Well — Drilling, Plugging or Operating Bonds ................................................13
Gasoline Tax.............................................................................................................15
Grain — All ..............................................................................................................15
Gravel, Removal of...................................................................................................13
Grazing......................................................................................................................11
Guard Service............................................................................................................14
Gutter Contractors.....................................................................................................11
H
Health Spas ...............................................................................................................14
Heating, Air Conditioning Contractors .....................................................................11
Highway and Street Permits......................................................................................11
Horse Racing.............................................................................................................13
House Mover’s Bond ................................................................................................11
Hunting Licenses (Not Agents For Sale of)..............................................................13
I
ICC Broker’s Surety Bond BMC–84 (Transportation Brokers) ...............................14
Inspection Fee Tax Bond ..........................................................................................15
Insurance Adjusters, Agents, Brokers and Third Party Administrators....................12
Insurance Qualifying — All......................................................................................12
Issuers, Blue Sky Bonds ...........................................................................................12
Itinerant Merchants ...................................................................................................14
K
Kerosene, Tax ...........................................................................................................15
L
Leases — Oil, Gas, Water, Mineral Wells................................................................13
Lenders, Mortgage Bankers, Brokers .......................................................................12
Lending Companies — Small Loan..........................................................................12
Liquified Petroleum Gas ...........................................................................................14
Liquor Tax.................................................................................................................15
Livestock Dealers (Other Than Packers and Stockyards Act) ..................................11

SURETY
INDEX
Page
M
Magazine Solicitors...................................................................................................14
Maintenance Guarantees — License and Permit Bonds — Rule ...............................5
Market Agencies — Packers and Stockyards Act ....................................................11
Medicare and Medicaid Providers ............................................................................14
Mileage Tax ..............................................................................................................15
Milk Dealers..............................................................................................................11
Mineral Wells — Drilling, Plugging ........................................................................13
Mining, Strip, Surface ...............................................................................................13
Mobile Home Manufacturers, Dealers......................................................................13
Money Lenders .........................................................................................................12
Money Orders Sellers................................................................................................12
Money Transmitters ..................................................................................................12
Mortgage Bankers, Brokers, Lenders .......................................................................12
Motor Vehicle — Car, Truck and Mobile Home Dealers,
Salesmen — New or Used....................................................................................13
Motor Vehicle — Defective Title Bond ...................................................................13
Motor Vehicle — Other ............................................................................................13
Motor Vehicle — Self-Insurer and Financial Responsibility ...................................13
N
New or New and Used Car, Mobile Home and Truck Dealers ................................13
Nursing Homes .........................................................................................................14
O
Officers and Agents — Statutory Bonds (Insurance Qualifying) .............................12
Oil, Gas, Water, Mineral Well Drilling, Plugging or Operating Bonds ...................13
Operating, Oil, Gas, Water, Drilling, Plugging Bonds .............................................13
Operators of Vehicles — Use Fuel Tax Bond ..........................................................15
Oversize, Weight Hauling Bonds .............................................................................11
P
Packers and Stockyards Act Bonds...........................................................................11
Packers, Packers and Stockyards Act .......................................................................11
Performance and / or Payment Obligation-Const. Contractors Lic. Bond ...............11
Pest Control Contractors ...........................................................................................11
Petroleum Gas, Liquified ..........................................................................................14
Photographers............................................................................................................14
Plugging — Oil, Gas, Water, Mineral Wells ............................................................13

SURETY
INDEX
Page
Plumbers....................................................................................................................11
Pool Halls ..................................................................................................................13
Private Guard, Watch, Detective Services................................................................14
Produce Dealers ........................................................................................................11
Professional Fund Raisers and Solicitors..................................................................12
Professional Licenses ..........................................................................................13, 14
Q
Qualifying Bonds — All ...........................................................................................12
Quality Control Inspection........................................................................................14
R
Racing — Horse, Dog...............................................................................................13
Real Estate Agents, Brokers......................................................................................12
Reclamation ..............................................................................................................13
Rectifiers — Alcoholic Beverages............................................................................15
Refrigeration — Contractor ......................................................................................11
Removal of Sand, Gravel..........................................................................................13
Restoration of Land To Acceptable Levels ...............................................................13
Retail Services.....................................................................................................13, 14
Retail Stores and Services Shops ..............................................................................14
Retailers — Alcoholic Beverages.............................................................................15
Riders — Customs Bonds ...........................................................................................4
Right of Surety To Terminate .................................................................................3, 4
Risk Classification .............................................................................................. 11-16
S
Sales Tax...................................................................................................................15
Sand, Re moval of......................................................................................................13
Schools — All ...........................................................................................................14
Scope of Coverage .................................................................................................. 1-4
Section General Rules .................................................................................................5
Securities and Securities Exchange Acts of 1933 and 1934 .....................................12
Sidewalk Contractors ................................................................................................11
Sign and Sign Hanging Contractors..........................................................................11
Single Entry Bonds — Customs Bonds ....................................................................11
Small Loan Companies .............................................................................................12
Solicitors ...................................................................................................................12
Special Fuel Tax........................................................................................................15
©The Surety Association of America, 2005 vi Revised January 1, 2005

SURETY
INDEX
Page
Statistical Codes .................................................................................................... 6-10
Suit, Time Limit For ...................................................................................................4
Surface Mining..........................................................................................................13
Surplus Lines, Insurance Agents or Brokers.............................................................12
T
Tax Bonds .................................................................................................................15
Tax Preparers ............................................................................................................14
Term or Period Covered By Bond ..............................................................................3
Terminate, Right of Surety To ................................................................................3, 4
Third Party Administrators .......................................................................................12
Time Limit For Suit — Excise Tax Bond ...................................................................4
Title Insurance Agents ..............................................................................................12
Tobacco Tax..............................................................................................................15
Transportation Brokers .............................................................................................14
Travel Agencies ........................................................................................................14
Truck Dealers ............................................................................................................13
U
Use Tax.....................................................................................................................15
U.S. Government Customs Bonds .................................................................... 1-4, 11
U.S. Government Excise Tax Bonds ................................................................ 1-4, 15
U.S. Warehouse Act Bonds ......................................................................................15
V
Veterinarian...............................................................................................................14
W
Warehouses — Alcohol ............................................................................................15
Warehousing — Grain ..............................................................................................15
Warehousing — Other Commodities........................................................................15
Warehousing — Private and Other Public Obligees.................................................15
Warehousing .........................................................................................................9, 15
Warranty Coverage — Mobile Home Dealers..........................................................13
Water Wells — Drilling, Plugging or Operating Bonds ...........................................13
Weighmasters............................................................................................................14
Wholesalers — Alcoholic Beverages .......................................................................15
Winemakers — Alcoholic Beverages.......................................................................15
Workers’ Compensation — Insurance Carriers Qualifying Bond ............................12
Wreckers, Contractors...............................................................................................11
©The Surety Association of America, 2005 vii Revised January 1, 2005

SURETY
Section 6. Official Bonds: Federal Official
and Public Official (Individual and Schedule) Bonds
TABLE OF CONTENTS
Subject Page
I. SCOPE OF COVERAGE ........................................................................................ 1-4
II. SECTION GENERAL RULES ................................................................................ 5-6
III. STATISTICAL CODES .......................................................................................... 7-8
IV. RISK CLASSIFICATION .......................................................................................9-11

INDEX ...................................................................................................................... i-iv
©The Surety Association of America, 2004 I Revised January, 2004

SURETY
SCOPE OF COVERAGE
1. Federal Official Bonds
Federal Official Bonds are those given by:
a. Officers and Employees of a public or private organization, agency or facility
sponsored and supervised by a Federal Department or Bureau including State
or Local Officials or Employees entrusted with Federal property and funds.
b. Individuals who are performing services for the Federal Government and who
are entrusted with Federal property and funds.
(Public Law 92-310, enacted June 6, 1972, repeals the statutory requirements for
bonding Federal civilian employees and military personnel in connection with
the faithful performance of their official duties.)
2. Public Official Bonds
Public Official Bonds are those given by officials and deputy officials, employees
and agents of States, Counties, Municipalities or other political sub-divisions or
political bodies other than the Federal Government.
A Public Official shall mean officers, including subordinates of said officers, agents
or employees of a State or of any political subdivision therein, including districts and
other bodies politic, or of any institution, including asylums, hospitals, charitable,
reform and penal institutions, libraries and departments of education, public utilities
or any other body or unit owned, operated or controlled by a State or by any political
subdivision or body politic therein, either directly or through a board of managers,
trustees or other similar boards which officers, agents and employees are to be
bonded in favor of said State or any of the above enumerated bodies or units or any
officer thereof, whether or not such bonds are required by law, rule or regulation
AND REGARDLESS OF THE FORM OF BOND REQUIRED OR GIVEN.
B. CLASSES OF BONDS — PUBLIC OFFICIAL
The bonds in this classification are divisible into four groups:
a. Bonds required by law and required to be conditioned as prescribed by statute,
ordinance or regulation.
b. Others required by law with conditions discretionary with approving authorities.
c. Others given voluntarily but, nonetheless, conditioned as specified by law.
d. Others given as purely voluntary bonds subject only to rules of law governing
contracts and customarily called Common Law Bonds.
The Surety Association of America, 1991 OB-1 New Page July 1, 1991
SURETY
SCOPE OF COVERAGE
C. FORMS OF BONDS
1. Federal Official
a. Government Bond Forms:
These bonds are individual bonds drawn by the interested Department with the approval of
the Attorney General and printed at Government expense for the use of Government
Officials and Employees.
b. Name or Position Schedule Bonds:
These bonds are generally drawn by surety companies and contain the same conditions as
the Individual Bond prepared by the Government except to the extent necessary to make
them schedule in form and to cover each Official or Employee or position listed in the
Schedule for a specified amount.
2. Public Official
a. Individual bonds each of which covers a single official or employee for a specific amount.
b. Name Schedule bonds covering officials or employees listed in a schedule attached to the
bond, each for a specified amount.
c. Position Schedule bonds covering officials or employees who may while the bond is in
force, occupy and perform the duties of the positions listed in the schedule attached to the
bond, each position being covered for a specified amount.
d. Individual and Schedule bonds are not standardized, flexibility being necessary to meet the
requirements of diverse laws and to meet particular needs of various approving authorities.
Whenever an officer or employee of a State, County, City or other political sub-division is
required by law to give bond, the law usually requires that the bond be conditioned for the
faithful performance by the officer or employee of his official duties. When bonding
officials or employees who are not required by law to give bond, it is, nevertheless, desirable
that such bonds be similarly conditioned for faithful performance.
D. RIGHT OF SURETY TO TERMINATE

1. Federal Official
Generally bonds covering Federal Officials and Employees do not contain a cancellation
clause. The surety remains liable for acts of the principal as long as he continues in the service
of the Government, or until he files a new bond covering his future conduct. In some cases,
cancellation of a bond may be arranged by the Surety with the approval of the Government or
named Obligee.
©
SURETY
SCOPE OF COVERAGE
D. RIGHT OF SURETY TO TERMINATE (Continued)
2. Public Official
Bonds required by law do not usually contain any cancellation clause. There are, however, in
some of the States statutory provisions under which the surety may, by following a prescribed
procedure, effect termination of liability for the future acts or defaults of the princ ipal. On
certain non-statutory bonds a cancellation clause, usually 30 days, may be incorporated.
E. TERM OR PERIOD COVERED BY THE BOND

1. Federal Official
The term of any Federal Official Bond is for the period the Official or Employee remains in
office and, in some cases, until his successor is appointed and has filed bond. Many of these
Officials and Employees hold office for an indefinite period and periodically are requested
to execute strengthening bonds.
2. Public Official
The term of an official bond, unless otherwise provided by law, is coextensive with the
official's term of office, and the bond remains in force throughout the term and until his
successor is elected or appointed and qualifies. If the same official is re-elected or
reappointed a bond for the new term should be used. Some classes of non-statutory officials
and employees hold office for an indefinite period and in those cases an indefinite bond may
be used.
The manual contemplates that bonds of officials, deputies and employees will cover their
respective terms of office whether the terms be definite or indefinite, unless otherwise
specifically stated.
F. TIME LIMIT FOR DISCOVERY OF LOSS

1. Federal Official
The statute of limitations with respect to recovery of public monies or property wrongfully
disbursed or withheld by a Federal Official or Employee does not begin to run against the
Government's right to sue the surety until the Official or Employee has rendered a final
statement or settlement of his account. Where such a statement or settlement has been
rendered, the Government must institute suit within five years against the sureties of all
Officials and Employees, except Postmasters, in which case the period is three years. If an
Official or an Employee leaves without rendering a final statement or settlement of his
accounts, there is no limitation on the time within which the Government may sue the surety
for losses under its bond.
©
SURETY
SCOPE OF COVERAGE
F. TIME LIMIT FOR DISCOVERY OF LOSS (Continued)
2. Public Official
Whenever the statutes permit a reasonable time limit within which losses must be
discovered, such time limit should be included in the bond. When bonding offic ials
and employees who are not required by law to give bond and where the laws of the
state having jurisdiction do not prohibit the insertion of a time limit in such bond
within which time losses must be discovered, it may be desirable to insert in the
bond a reasonable time limit for such discovery.
G. LOSS THROUGH DEFAULTS BY EMPLOYEES OR SUBORDINATES
There are many situations where the bond of a Federal or Public Official covers or is
expressly endorsed to cover any loss resulting from a default on the part of an
Employee or subordinate arising out of the latter's failure faithfully to perform his
official duties.
H. LOSS THROUGH DEPOSITORY FAILURE
The official bond of a Federal or Public Official having custody of public funds may be
liable for the loss of such funds in consequence of the failure of a bank in which such
funds were deposited unless the official shall have strictly complied with the law
governing the depositing of funds in banks. In many states there are statutes which
provide for the designation of depositories for public funds and for the furnishing by
such depositories of collateral security. These laws usually exempt the officer and his
surety from liability for loss through failure of any of the designated and qualified
depositories.
I. LOSS THROUGH BURGLARY, ROBBERY OR FORGERY
A Federal or Public Official having custody of public funds may be legally liable for
funds or property in his official custody lost through burglary, forgery, robbery or
other similar cause.
J. WITH RESPECT TO PUBLIC FUNDS — PUBLIC OFFICIALS
It is usually the duty of a public officer having custody of public funds to account for
and turn over to his successor all public funds and property for which the public officer
is accountable.
K. WITH RESPECT TO THE PUBLIC — PUBLIC OFFICIALS
Some public officers, including sheriffs, deputy sheriffs and other peace officers, clerks
of court and recorders are by law charged with the performance of certain duties, which,
if improperly performed, may cause loss or damage to third persons. In such cases the
official bond may cover not only loss to the obligee but also loss or damage to third
persons, resulting from the failure of the officer to faithfully perform his duties.
SURETY
A. FEDERAL OFFICIAL — None

B. PUBLIC OFFICIAL
1. Two or More Bonds for Same Principal
The penalties of all corporate surety bonds given by a public official by virtue of his
office are to be added together in computing the premium to be applied to the
aggregate of his bonds, or to any part thereof, UNLESS a specific and different loss
cost exists for one or more of them. In that event apply the specific loss cost to the
bond so rated.
2. Two or More Offices Covered by One Bond
Where offices are consolidated or dual offices are held under a single bond, apply
the highest loss cost applicable to either office.
3. Bonds Containing More than One Principal
Where a Public Official Bond covers two or more co-principals, charge regular
surety company rate applicable to the positions covered. The rate applies to each
principal named in the bond just as though separate bonds were given for each
principal.
4. Premiums Computed on Bond Penalty
All premiums are computed on the bond penalty except where a different method is
expressly prescribed.
5. Additions to and Deductions from Schedules
a. On all additions made within ninety days prior to the anniversary date of any
schedule, the surety company's annual earned minimum premium charge for
such addition may be handled in either one of the two following methods:
(1) Charge for the short term addition the surety company's annual earned
minimum and if the item is continued at renewal, pro rata adjustment may
then be made on the charge for the short term addition, or
(2) Charge at the time of addition a pro rata premium from its effective date to
the anniversary date of the bond, plus a full annual premium to cover the
renewal.
b. On all deductions the minimum earned premium for any short term is the surety
company's annual earned minimum premium.
©
SURETY
B. PUBLIC OFFICIAL (Continued)

6. Banks Acting as Treasurers or Tax Collectors
Banks acting as Treasurers or Tax Collector are the same as Treasurers or Tax
Collector for premium computation purposes.
7. Annual Bonds
Whenever any public official or employee is elected or appointed for an indefinite
period or for a term of more than one year and is required to file (1) a new bond
annually or (2) a bond covering a period longer than one year and containing a
provision that the surety's liability shall be the penal amount for each year during
which it remains in effect, then current surety company premiums and minimums
shall be increased 50%. This applies to the initial premiums for such bonds and to all
subsequent premiums.
©
The Surety Association of America, 2004 OB-6 Revised January, 2004
SURETY
STATISTICAL CODES
CLASS
A. Federal Official:
Post Office Department .................................................................................. 152
Department of Agriculture
Farmers Home Administration
Loan Closing Attorneys ......................................................................... 156
Private and Public Borrowers – All Officers and Employees ..................... 155
Rural Electrification Administration
Private Borrowing Corporations (R.E.A.) – All Officers and Employees 155
including the Treasurer ..............................................................................
Department of Commerce
Economic Development Administration
Private and Public Grantees – All Officers and Employees ....................... 155
Department of Labor
Manpower Development Training Act – 1962 and Area Redevelopment Act
Individual and Schedule Bonds covering Officers and Employees of single
sponsoring organizations receiving grants of Federal
moneys ............................................................................................ 155
All Other Federal Departments ....................................................................... 159
B. Public Official—(Non-Federal):
Treasurers & Tax Collectors (of State, County, City, Village, Town, School
Districts, Boards, etc.):
All Treasurers ........................................................................................... 108
All Tax Collectors ..................................................................................... 109
All Tax Collectors & Treasurers (Dual Position) ......................................... 110
All Subordinate Employees Handling Money .............................................. 102
Peace Officers:
Sheriffs and All Subordinates ..................................................................... 115
Deputies Handling Money ......................................................................... 116
Constables, City Marshals, Policemen & All Others .................................... 112
Judges & Court Clerks:
Judges ...................................................................................................... 113
Court Clerks ............................................................................................. 114

SURETY
STATISTICAL CODES
CLASS
CLASS DESCRIPTION
CODE
B. Public Official – (Non-Federal) (Continued):
Other:
Special Bond Issue — Bond Covering Proceeds of ............................... 101
Hunting, Fishing & Trapping Licenses, Auto Tags, etc.—Agents
for Sale of .......................................................................................... 104
Notaries Public & Commissioners of Deeds .......................................... 105
Housing Authorities ............................................................................... 117
Coverage on Securities ........................................................................... 117
Public Administrator or Guardian beyond the expiration of the
statutory term ..................................................................................... 118
All Other – All Officers & Employees ......................................................... 119
©
SURETY
RISK CLASSIFICATION

Type of
A. FEDERAL OFFICIAL Risk:
1. Department of Agriculture
a. Farmers Home Administration:
(1) Loan Closing Attorneys (• 156) ..........................................Risk Type C
(2) Private and Public Borrowers –
All Officers and Employees (• 155) ....................................Risk Type A
b. Rural Electrification Administration:
Private Borrowing Corporations (R.E.A.) –
All Officers and Employees including
Treasurer (• 155) ...................................................................Risk Type A
2. Department of Commerce (• 155)
Economic Development Administration:
Private and Public Grantees –
All Officers and Employees .....................................................Risk Type A
3. Department of Labor (• 155)
Manpower Development Training Act – 1962 and Area
Redevelopment Act:
Individual and Schedule Bonds covering Officers and
Employees of single sponsoring organizations receiving grants
of Federal moneys. Premium computed on total aggregate of
individual and schedule bond of organization ..............................Risk Type A
4. U.S. Postal Service (• 152)
Contract Postal Unit ......................................................................Risk Type E
5. All Other Federal Official Bonds (• 159) ....................................Risk Type B
B. PUBLIC OFFICIAL:
1. Housing Authorities (• 117)
Local Public Housing and Urban Renewal Projects –
All Officers and Employees .....................................................Risk Type A
©
SURETY
RISK CLASSIFICATION
Type of
B. PUBLIC OFFICIAL: (Continued) Risk
2. Notaries Public (• 105):
a. Bonds under $10,000 or 6 yr. Terms:
Apply surety company Minimum Premium for Term.
b. Bonds $10,000 and over or 6yr. Terms ............................................ Risk Type E
Term of Bond
3. Peace Officers Employed as Guards or Watchmen (• 112)

For all such employees of railroads and industrial or commercial
organizations deputized as Peace Officers and bonded to State,
City or County authorities ...................................................................... Risk Type B
4. Agents (• 104)
For sale of hunting, fishing and trapping licenses, auto tags,
drivers licenses, documentary or revenue stamps and other
similar activities where the Agent must account to a public body
for licenses or stamps received or revenues derived therefrom .............. Risk Type E
5. Securities, Coverage on (• 117)
Bond given by public official in addition to his official bond,

covering him as Custodian of Securities, where such bond by its
terms is limited to securities only and is excess over the penalty
of the official's bond(s) (provision to be inserted in the
bond) ....................................................................................................... Risk Type A
6. Special Bond Issues (• 101)
Bonds given by any public officer, including Treasurers,

covering only the proceeds of a Special Bond Issue ................................ Risk Type F
amount of Bond Issue
7. Treasurers (• 108), Tax Collectors (• 109) or Treasury-Collectors
(Dual Position) (• 110)
Any official under whatever title, who is charged with the duties of
Treasurer or Tax Collector, unless hereinafter specifically
classified ................................................................................................. Risk Type G
8. Deputies (• 116) and All Subordinates of Treasurers, Tax

Collectors or Treasurer-Collectors Handling Money (• 102) ............. Risk Type C
©
SURETY
RISK CLASSIFICATION
Type of
B. PUBLIC OFFICIAL: (Continued) Risk:
9. Sheriffs and All Subordinates (• 115) ..............................................Risk Type D
10. Judges (• 113) and Court Clerks (• 114) ...........................................Risk Type B
11. Constables, City Marshals, Police Officers and All Others (• 112) Risk Type B
12. Public Administrator or Guardian (• 118) ............................... Risk Type D
When a Public Administrator continues to administer the assets of estates
beyond the expiration of his Statutory term of office, there should be
charged an annual renewal premium on the amount of personal property
in the outstanding estates, subject to a maximum premium equal to the
annual premium charged during his term of office.
13. All Other Public Official Bonds (• 119) ...............................................Risk Type B
©
The Surety Association of America, 2004 OB-11 New Page January, 2004
SURETY
INDEX
Page
A
Additions To And Deductions From Schedules — Rule ........................................................ 5
Administrator or Guardian, Public ..........................................................................................11
Agents ......................................................................................................................................10
Agriculture, Department of ..................................................................................................... 9
Annual Bonds — Rule ............................................................................................................. 6
Area Redevelopment Act ........................................................................................................ 9
Auto Tags, Agents For Sale of ................................................................................................10
B
Banks Acting As Treasurers or Tax Collectors ....................................................................... 6
Bonds Classified In This Section ............................................................................................ 1
Bonds Containing More Than One Principal .......................................................................... 5
Borrowing Corporations, Private (REA) ................................................................................. 9
Burglary, Loss Through ........................................................................................................... 4
C
City Marshals ...........................................................................................................................11
Class Codes ......................................................................................................................... 7-8
Classes of Bonds ...................................................................................................................... 1
Classification, Risk ..............................................................................................................9-11
Collectors, Tax or Treasury ................................................................................................. 10
Commerce, Department of ...................................................................................................... 9
Constables ................................................................................................................................11
Contract Postal Unit, U.S. Postal Service ................................................................................ 9
Court Clerks .............................................................................................................................11
D
Defaults By Employees or Subordinates, Loss Through ......................................................... 4
Department of Agriculture ...................................................................................................... 9
Department of Commerce ....................................................................................................... 9
Department of Labor ............................................................................................................... 9
Depository Failure, Loss Through ........................................................................................... 4
Deputies And All Subordinates ............................................................................................. 10
Discovery of Loss, Time Limit for ........................................................................................3-4
E
Economic Development Administration, Dept. of Commerce ............................................... 9
Employees or Subordinates, Loss Through ............................................................................. 4
@
The Surety Association of America, 2004 i Revised January, 2004
SURETY
INDEX
Page
F
Farmers Home Administration, Dept. of Agriculture ............................................................. 9
Fishing License, Agents For Sale of ..................................................................................... 10
Forgery, Loss Through ........................................................................................................... 4
Forms of Bonds ....................................................................................................................... 2
G
Guardian or Pub lic Administrator ........................................................................................ 11
Guards or Watchmen, Peace Officers ................................................................................... 10
H
Housing Authorities ................................................................................................................ 9
Hunting License, Agents For Sale of .................................................................................... 10
J
Judges ................................................................................................................................... 11
L
Loan Closing Attorneys, FmHA ............................................................................................. 9
Loss Through Burglary, Robbery or Forgery ......................................................................... 4
Loss Through Defaults By Employees or Subordinates ......................................................... 4
Loss Through Depository Failure ........................................................................................... 4
Loss, Time Limit For Discovery of .....................................................................................3-4
M
Manpower Development Training Act, 1962 ......................................................................... 9
N
Notaries Public ...................................................................................................................... 10
©
The Surety Association of America, 2004 ii Revised January, 2004
SURETY
INDEX
Page
P
Peace Officers ....................................................................................................................... 10
Police Officers ....................................................................................................................... 11
Postal Service .......................................................................................................................... 9
Premium Computed on Bond Penalty, Public Official — Rule .............................................. 5
Principal, Two or More Bonds For ......................................................................................... 5
Private and Public Guarantees, Dept. of Commerce ............................................................... 9
Private Borrowing Corp's., R.E. A............................................................................................ 9
Private or Public Borrowers, FmHA ....................................................................................... 9
Public Administrators ............................................................................................................ 11
Public Funds, With Respect To ............................................................................................... 4
Public Housing ........................................................................................................................ 9
Public, With Respect To The .................................................................................................. 4
R
Right of Surety To Terminate ..............................................................................................2-3
Risk Classification ..............................................................................................................9-11
Rural Electrification Administration, Dept. of Agriculture .................................................... 9
S
Scope of Coverage ...............................................................................................................1-4
Securities, Coverage on ......................................................................................................... 10
Sheriffs .................................................................................................................................. 11
Special Bond Issues ............................................................................................................... 10
Statistical Codes ...................................................................................................................7-8
Subordinates of Treasurers, Tax Collectors, Sheriffs, Deputies ......................................10-11
Subordinates, Loss Through .................................................................................................... 4
T
Tax Collectors ....................................................................................................................... 10
Term or Period Covered By The Bond ................................................................................... 3
Time Limit For Discovery of Loss .......................................................................................3-4
Trapping Licenses, Agents For Sale of ................................................................................. 10
Treasurers .............................................................................................................................. 10
Treasurers — Collectors (Dual Position) .............................................................................. 10
Two or More Offices Covered By One Bond — Rule ............................................................ 5
Two or More Bonds For Same Principal — Rule ................................................................... 5
©
The Surety Association of America, 2004 iii Revised January, 2004
SURETY
INDEX
Page
U
Urban Renewal Projects .......................................................................................................... 9

U.S. Postal Service ................................................................................................................. 9
W
Watchmen, Peace Officers Employed As ............................................................................. 10
With Respect To Public Funds ................................................................................................ 4
With Respect To The Public ................................................................................................... 4
©
The Surety Association of America, 2004 iv Revised January, 2004
SURETY
State Exception Page
ARKANSAS

Section 17-19-301, paragraphs (a) and (b) of Arkansas Code Annotated provide:
“(a) The premium or compensation for giving bond or depositing money or property as bail
on any bond shall be ten percent (10%) except that the amount may be rounded up to the
nearest five dollar ($5.00) amount.
(b) The minimum compensation for giving bond or depositing money or property as bail on
any bond shall be not less than fifty dollars ($50.00).”
©The Surety & Fidelity Association of America AR-1 Revised September 1, 2014
SURETY
CALIFORNIA
Section 1, Procedures, Common General Rules and Statistical Codes
Rule H. Renewal Premiums – Non-Cancellable Surety Bonds is deleted in its entirety.
B. ADDITIONAL (ANCILLARY) BONDS – FIDUCIARIES
Delete Paragraph 1 and replace with the following:
1. Where the additional bond is in the same jurisdiction and of the same character as the
original bond, surety company premium is computed on the total amount of the original
bond and the additional bond at the surety company’s currently approved rate.
3. Where bond is required of someone other than domiciliary fiduciary, charge premium at
the surety company’s currently approved rate.
D. REDUCTION OF LIABILITY – FIDUCIARIES
Delete Paragraphs 1 and 2 in their entirety and replace with the following:
1. Where Bond Penalty Is Not Reduced

Where an estate is diminished by partial distribution or payment of debts; or a
guardianship when settlement has been made with a ward who has attained majority; or
a trust when a condition of the trust has fallen and that part of the trust estate accounted
for; or a like situation of comparable scope, and satisfactory evidence furnished the
surety of such diminution, the premium for the second and subsequent years of the risk
shall then be computed on a bond sufficient to cover the diminished value of the assets
remaining in accordance with the surety company’s currently approved rate.
2. Where Bond Penalty Is Reduced
Where the penalty of the bond is reduced by order of Court, the premium for the second
and subsequent years shall be computed on the reduced bond penalty, in accordance
with the surety company’s currently approved rate.
©The Surety & Fidelity Association of America, 2015 CA-1 New Page January 1, 2015
SURETY
CALIFORNIA
E. SUBSTITUTED SURETIES - FIDUCIARIES
1. Where a fiduciary bond is transferred from one surety company to another, and where the
first surety has not for any reason been disqualified, the premiums to be charged by the
successor surety shall be at the currently approved rate for the first and succeeding years
in force at the time the bond is re-executed.
F. DEATH, RESIGNATION OR REMOVAL OF A FIDUCIARY
Delete the paragraph in this section and replace with the following:
If a court fiduciary dies, resigns or is removed, and a successor appointed who is

required to give bond, premium on the successor’s bond shall be at the surety company’s
currently approved rate.
G. CO-FIDUCIARIES
1. Fiduciaries Classified In Groups: Bankruptcy Courts, Equity Proceedings And

Miscellaneous Fiduciary:
a. Where there are two or more fiduciaries and each is separately bonded, full
premium shall be charged on each bond.
b. Where a co-fiduciary dies, resigns or is removed and a successor appointed who
gives a new bond, apply the surety company’s currently approved rate on remaining
fiduciary’s bond.
I. JOINT BONDS - FIDUCIARIES
2. Where one of the court fiduciaries dies, resigns or is removed and a successor is
appointed who gives a new and separate bond, the premium on such bond shall be
charged as for an additional bond to the existing bond at the surety company’s currently
approved rate. If the existing bond is cancelled and a new joint bond given by the
surviving fiduciary and the new appointee, premium shall be charged at the surety
company’s currently approved rate.
SURETY
CALIFORNIA
Section 5, License and Permit Bonds Including U.S. Government Excise Tax and Customs
Bonds
Rule A. Adverse Selection Against the Surety is deleted in its entirety.
SURETY
FLORIDA

Bail Bonds in Civil or Criminal Proceedings, in all Courts and under Bankruptcy Proceedings
including Discharge from Arrest and Jail Liberties (•261):
The loss cost for bail bonds is for the term of the bond.
©The Surety Association of America, 1994 FL-1 New Page November 1, 1994
SURETY
GEORGIA
Section 5. License and Permit Bonds Including U.S. Government Excise Tax and
Customs Bonds.
Delete Section II. A. pertaining to “Adverse Selection Against The Surety” on page LP-5.
©The Surety & Fidelity Association of America, 2006 GA-1 New Page November 15, 2006
SURETY
INDIANA
No Lien Contracts—Private Work Only.

a. On private work, Chapter 56, Indiana Acts 1921 as amended by Chapter 376, Indiana Acts
1963 gives Labor and Materialmen the right to file liens; no provis ion or stipulation in the
contract to the contrary being valid—
“unless the contract containing such provision or stipulation shall be in writing, and shall
contain specific reference, by legal description of the real estate to be improved and shall
be acknowledged as provided in case of deeds and filed and recorded in the recorder’s
office of the county in which such real estate, building, structure or other improvement is
situated not more than five (5) days after the date of execution of such contract. The
contract herein provided for shall be without effect upon labor, material or machinery
supplied prior to the time of the filing with the recorder of the said contract. The recorder
shall record such contract at length in the order of time of its reception in books provided
by him for that purpose, and the recorder shall index the same in the name of the
contractor and in the name of the owner, in books kept for that purpose and said recorder
shall receive therefor, a fee such as is provided for the recording of deeds and mortgages
in his office.”
The effect of the above provision is that the contractor’s surety is not liable for the
contractor’s debts for labor and material on private work where the contract has been
filed as required by this section.
b. On such “No Lien” Class B Contracts for private work in the State of Indiana:
To determine Loss Costs see Surety Loss Cost Addendum for Class A Contracts.
c. All Construction Contracts for Private work which guarantee direct to third parties, the
payment of Labor or Material Bills either in the Performance Bond or Performance plus
Payment Bond see regular Loss Costs for Class B Contracts.
©The Surety Association of America, 1993 IN-1 New Page February 1, 1993
SURETY
IOWA
Risk Classification, Workers’ Compensation Bonds – Self-Insurers’ Guarantees, Section 43,

Subsection (g) is deleted and replaced with the following:
g. Upon discontinuance of corporate suretyship by Self-Insurer renewal premium is charged

in accordance with the following rule:
If such liability thereon is presumptively established by any acknowledgement, agreement,
arbitration, award, compromise, decision, decree, finding, order, report, or judgment in a
court of first instance, renewal premiums shall be paid annually at regular surety company
rates on such amounts until liability is finally extinguished by payment, reversal or otherwise.
Renewal premiums continue to run during any suspension or stay pending appeal. Such
renewal premium to be paid at each anniversary of the original bond on the gross amount of
liability presumptively outstanding at such anniversary; regardless of the installments or
terms in which such liability is payable. Thus, if $10.00 per week is payable for two hundred
weeks, the gross liability for the renewal premium shall be computed as $2,000.00.
The Surety Association of America, 2004 IA-1 New Page, January 1, 2005
SURETY
KANSAS
Section 5. License and Permit Bonds Including U.S. Government Excise Tax and Customs
Bonds
Scope of Coverage E. (1), (2) and (3) Right of Surety To Terminate is deleted and
replaced with the following:
E. Right of Surety To Terminate
License and Permit, U.S. Excise Tax and U.S. Customs Bonds
Termination of a license or permit bond, U.S. Excise Tax Bond or U.S. Customs Bond
depends upon whether such right is permitted by la w, ordinance or regulation under which
bond is required, or by the terms of the bond itself.
©The Surety Association of America, 1993 KS-1 New Page December 1, 1993
SURETY
MICHIGAN

BAIL BONDS (•261):
Section 750.167b(3) of Michigan Compiled Law Annotated provides in pertinent part:
“It shall be lawful to charge for executing any bond in a criminal case, but no person engaged in
the bonding business, either as principal or clerk, agent or representative of another, either direct
or indirectly, shall charge, accept or receive any sum of money or property, other than the regular
prevailing fee for bonding, which shall not exceed 10% of the face value of the bond for a 12
month period or any part thereof…”
The Michigan Insurance Department advises that this law prohibits the charging of a minimum
premium for bail bonds in excess of 10% of the bond penalty.
©The Surety Association of America, 1993 MI-1 New Page September 1, 1993
SURETY
New Hampshire
Risk Classification, Workers’ Compensation Bonds – Self-Insurers’ Guarantees, Section 43,

Subsection (g) is deleted and replaced with the following:
g. Upon discontinuance of corporate suretyship by Self-Insurer renewal premium is

charged in accordance with the following rule:
If such liability thereon is presumptively established by any acknowledgement,
agreement, arbitration, award, compromise, decision, decree, finding, order, report, or
judgment in a court of first instance, renewal premiums shall be paid annually at regular
surety company rates on such amounts until liability is finally extinguished by payment,
reversal, or otherwise. Renewal premiums continue to run during any suspension or stay
pending appeal. Such renewal premium to be paid at each anniversary of the original
bond on the gross amount of liability presumptively outstanding at such anniversary;
regardless of the installments or terms in which such liability is payable. Thus if $10.00
per week is payable for two hundred weeks, the gross liability for the renewal premium
shall be computed at $2,000.00.
©The Surety Association of America, 2004 NH-1 Revised, January 1, 2005

SURETY
OHIO

Assignee (•208), Receiver (•209), Trustee (•213 and 215), Guardian (•213 and 214), Executors
(•204) or Administrators (•203) to sell real estate or other Fiduciary including Administrators
appointed to prosecute cause of action; premium shall not exceed 1/2 of 1% per annum on
amount of bond, unless such bond shall be double the amount of personalty, when such premium
shall not exceed 1 /4 of 1% per annum on amount of such bond. (Ohio Code R. C. 3929.15.)
“Value of the Personalty” means the appraised value of all personal property of the estate.
©The Surety Association of America, 2018 OH-1 Revised, October 1, 2018

SURETY
PUERTO RICO
Delete Rule B. on page PCS-2 in its entirety and substitute the following:
B. Minimum Premium
Minimum premiums for all Surety Bonds may be established by the surety company. The surety
company is obligated to file the minimum premium with the Office of the Commissioner of
Insurance. The minimum premium shall be fully earned.
© The Surety & Fidelity Association of America PR-1 New Page January 1, 2015
SURETY LOSS COST ADDENDUM
PREFACE
This Surety Loss Cost Addendum is intended for use with the Surety Manual of
Rules, Procedures and Classifications.
The Surety Loss Costs contained in this Addendum contain provision for loss and
Loss Adjustment Expense only. They do not contain provision for any other type of
expense or profit.
TABLE OF CONTENTS
Subject Page
CONTRACT BONDS
I. LOSS COST TABLES ....................................................................................................... SUR-LC-1
II. SUPPLEMENTAL LOSS COST TABLE FOR PERFORMANCE

OR PERFORMANCE PLUS PAYMENT BOND(S) WHERE TIME
FOR COMPLETION AS STIPULATED IN THE CONTRACT IS
OVER 12 MONTHS OR 366 CALENDAR DAYS ................................................ SUR-LC-1
III. LOSS COST EXCEPTIONS ........................................................................................... SUR-LC-1
A. MISCELLANEOUS CONTRACTS ...................................................................... SUR-LC-1-

1. Advance Payment Bond ................................................................................. SUR-LC-1
2. Cost-Plus-Fixed Fee Contracts ..................................................................... SUR-LC-1
3. Cost-Plus-A-Percentage Contracts ...................................................................... SUR-LC- 1
4. Lien or Payment Bonds .................................................................................. SUR-LC-1
5. Military Traffic Management and Terminal Service
Contracts ............................................................................................................ SUR-LC-2
6. Timber Cutting Bonds .................................................................................... SUR-LC-2
7. Towing Contracts ............................................................................................ SUR-LC-2
8. Wrecking, Demolition or Dismantling Contracts ..................................... SUR-LC-2
9. Aircraft Construction, Conditioning or Repair .......................................... SUR-LC-3
10. Dredging in Rivers, Harbors and Great Lakes ........................................... SUR-LC-3
B. MAINTENANCE GUARANTEES ......................................................................... SUR-LC-3

1. On Roads, Highways, Street Paving ............................................................ SUR-LC-3
2. On Shoring Up Contracts ............................................................................... SUR-LC-3
3. On Supply Contracts ....................................................................................... SUR-LC-3
4. Where No Corporate Performance Bond Is Or Has
Been Required ................................................................................................. SUR-LC-3
©The Surety & Fidelity Association of America, 2018 I Reissued July 1, 2018
TABLE OF CONTENTS (Continued)
Subject Page
III. LOSS COST EXCEPTIONS (Continued)
C. BID OR PROPOSAL BONDS ............................................................................. SUR-LC-3
D. SUBDIVISION BONDS ...................................................................................... SUR-LC-4
COURT AND FIDUCIARY BONDS

I. LOSS COST TABLES ........................................................................................................ SUR-LC-5
II. LOSS COST EXCEPTIONS .............................................................................................. SUR-LC-6
III. CLASS RELATIVITY FACTORS ..................................................................................... SUR-LC-7
MISCELLANEOUS AND IMMIGRANT BONDS

I. LOSS COST TABLES ........................................................................................................ SUR-LC-8
II. CLASS RELATIVITY FACTORS .................................................................................... SUR-LC-9
LICENSE AND PERMIT BONDS INCLUDING U.S. GOVERNMENT

EXCISE TAX AND CUSTOMS BONDS
OFFICIAL BONDS: FEDERAL OFFICIAL AND PUBLIC OFFICIAL

(INDIVIDUAL AND SCHEDULE) BONDS
©The Surety & Fidelity Association of America, 2018 II Reissued July 1, 2018
Contract Bonds
LOSS COSTS
I. LOSS COST TABLES

For Performance or Performance Plus Payment Bond(s) where time for completion as
stipulated in the contract is not over 12 months or 366 calendar days:
(Where contract is over 12 months or 366 calendar days, refer to Supplemental Loss Cost
Table below.)
Loss Costs Per Unit of Exposure
Completion,
Financing
Class B Class A and/or Design
Class A-1 Supply Maintenance Miscellaneous
Contracts Contracts Hazard Bonds
Exposure Units Contracts Contracts Guarantees Contracts Subdivision
* * * ** *** **** * ****
Each of First 100 units $8.22 $6.71 $2.24 $2.13 $1.10 $5.20 $11.71 $6.95
" " Next 400 " 4.94 4.48 1.71 1.53 .99 4.16 9.01 5.54
" " Next 2,000 " 3.29 3.14 1.42 1.05 .87 3.12 7.21 4.15
" " Next 2,500 " 2.46 2.47 1.19 .90 .76 2.50 6.01 3.34
" " Next 2,500 " 2.30 2.23 1.07 .74 .66 2.30 5.41 3.06
" " Over 7,500 " 2.14 2.00 .96 .60 .60 2.08 4.81 2.78
* The Exposure Unit for these Contract Bonds is $1,000 of Contract Price.
** The Exposure Unit for these Contract Bonds is $1,000 of Contract Price or Bond Penalty, whichever is higher.
*** The Exposure Unit for these Contract Bonds is $1,000 of the Value of Guaranteed Work.
**** The Exposure Unit for these Contract Bonds is $1,000 of Contract Price or Cost of Improve ment.
II. SUPPLEMENTAL LOSS COST TABLE FOR PERFORMANCE OR

PERFORMANCE PLUS PAYMENT BOND(S) WHERE TIME FOR
COMPLETION AS STIPULATED IN THE CONTRACT IS OVER 12 MONTHS
OR 366 CALENDAR DAYS
Compute the Loss Cost using the appropriate section of the above Loss Cost Table. Surcharge the
result by 1% per month for each month over 12 months (disregarding a fraction of a month).
III. LOSS COST EXCEPTIONS

A. M IS C E L LA N EO U S CO N T RA C TS:
1. Advance Payment bond (Covering Advance Payment only):
Apply 75% of the above Loss Costs for Miscellaneous contracts on amount of
monies advanced
2. Cost-Plus-Fixed-Fee contracts:
Apply 30% of the above Loss Costs for Miscellaneous Contracts on the cost
to the owner, excluding contractor's fee.
3. Cost-Plus-A-Percentage Contracts:
Apply 60% of the above Loss Costs for Miscellaneous contracts on the cost to
the owner, excluding contractor's fee.
4. Lien or payment bonds:
a. Where at the date of bond no liens have been filed and where bond is given
before, at, or near the commencement of construction or improvement:
Apply 50% of the above Loss Costs for Miscellaneous Contracts.
©The Surety& Fidelity Association of America, 2018 SUR-LC-1 Revised July 1, 2018
Contract Bonds
LOSS COSTS

A. MISCELLANEOUS CONTRACTS (Continued)
4. Lien or Payment Bonds: (Continued)
b. Where at the date of bond no liens have been filed and where bond is given
for building or improvement that is partially completed: Apply 50% of the
above Loss Costs for Miscellaneous Contracts on sum total of entire
indebtedness for labor and material outstanding at date of bond and amount
necessary to complete building or improvement.
c. At or after the completion of the work, or when work is so advanced that
only final payment remains to be paid:
5. Military Traffic Management and Terminal Service Contracts:
Exposure Units Loss
(per $1,000 of Bond Penalty) Cost
First Exposure Unit — $25.68
Next 1 1/2 " Units — 20.54
Over 2 1/2 " Units — 10.28 Each unit
6. Timber Cutting Bonds:

a. Contracts for the sale and cutting of timber on all lands:
(1) Performance Bond—Apply 90% of the first level of the above Loss
Costs for Miscellaneous Contracts on the bond penalty.
(2) Payment Bond—Apply 108% of the first level of the above Loss
Costs for Miscellaneous Contracts on the bond penalty.
b. Cutting Timber for Hire:
Apply 54% of the first level of the above Loss Costs for Miscellaneous
contracts.
7. Towing Contracts:
Contracts on the bond penalty.
8. Wrecking, Demolition or Dismantling Contracts:
Contracts on the penalty of the Performance or Payment Bond whichever is
higher.
©The Surety & Fidelity Association of America, 2018 SUR-LC-2 Revised July 1, 2018
Contract Bonds
LOSS COSTS

A. MISCELLANEOUS CONTRACTS (Continued)
9. Aircraft Construction, Conditioning or Repair:
a. Fixed Price Contracts:
b. Cost-Plus-A-Fixed Fee:
Apply 20% of the above Loss Costs for Miscellaneous Contracts on the
cost to the owner excluding contractor's fee.
10. Dredging in Rivers Harbors and Great Lakes:
B. MAINTENANCE GUARANTEES
1. On Roads, Highways, Street Paving:
Apply 20% of the Miscellaneous Contracts Loss Costs.
2. On Shoring Up Contracts:
Apply 18% of the Miscellaneous Contracts Loss Costs.
3. On Supply Contracts:
Apply 50% of the Maintenance Guarantees Loss Costs.
4. Maintenance Where No Corporate Surety Performance Bond Is or Has Been
Required:
Apply 75% of the Miscellaneous Contracts Loss Costs on the bond penalty
per annum. Supplemental Table does not apply. Not to exceed the premium
for performance and maintenance for the same term.
C. BID OR PROPOSAL BONDS
1. Where owner requires a bid bond and an award is made without requiring a
final bond, the successful bidder shall be charged a premium based on 36% of
the first level of Miscellaneous Contracts Loss Costs on the penalty of the bid
bond. Credit this premium with the Bid Bond premium.
2. Specific Bid or Proposal Bond:
$20.29 per Bond.
3. Annual Bid or Proposal Bond — Supply Contracts only:
$20.29 per Bond.
4. Annual Bid and Performance Bond — Supply Contracts only (Where Annual
Bid Bond also acts as Performance Bond in event of award):
$5.68 per Exposure Unit on the penalty of the Bond.
(Exposure Unit is $1,000 of bond penalty.)
5. Bid Bond Service Undertaking:
$24.35 per Annual Bond. $48.70 per Continuous Bond.
©The Surety & Fidelity Association of America, 2018 SUR-LC-3 Reissued July 1, 2018
Contract Bonds
LOSS COSTS

D. SUBDIVISION BONDS
Bonds given by Realty Operators or Others to a County or Municipality
guaranteeing to construct or finance improvements such as streets, sidewalks,
curbing, guttering, sewerage or drainage.
Apply Subdivision Bonds Loss Costs on the cost of improvements or the bond
penalty, whichever is higher for a term of two years or less.
Thereafter, charge annual renewal premium based upon 50% of the Subdivision
Bonds Loss Costs on remaining cost to complete or bond penalty, whichever is
higher.
NOTE: The Company Premium is computed by applying the company multiplier to

reflect profit and expense to the Loss Cost developed in any Table or
Exception above.
Court and Fiduciary Bonds
LOSS COSTS
I. LOSS COST TABLES

Annual Loss Costs Per Unit of Exposure
Risk Type A* Risk Type B** Risk Type C** Risk Type D**
Exposure Units Loss Cost Exposure Loss Exposure Loss Exposure Loss
Each of first 250 units .................. $7.41 Units Cost Units Cost Units Cost
" " next 500 " .................... 5.56 Each ................. $1.86 Each .................... $3.71 Each ......................$7.41
" " " 750 " .................... 3.71
" " " 1000 " .................... 1.86
" " over 2500 " .................... .74
Risk Type E** Risk Type G**

Risk Type F* Exposure Units Loss Cost
Exposure Units Loss Cost Exposure Units Loss Cost
Each of first 250 units ................. $3.71 Each of first 2 units .............. $3.71
Each of first 250 units $14.81 " " next 48 " ................ 1.86
" next 500 " ................. 2.78 " " next 500 " ......... 11.10
" next 750 " .................... 1.86 " " " 150 " ................... 1.48
" " " 750 " ........... 7.41 " " " 300 " ................. .92
" " 1000 " ................... .92 " 1000 " ........... 3.71
" over 2500 " .................... .38 " " " 500 " ................. .38
" "over 2500 " ............ 1.48 " " over 1000" ................ .18
Risk Type H** Risk Type I** Risk Type J** Risk Type K**
Exposure Units Loss Cost Exposure Units Loss Cost Exposure Loss Exposure Loss
Each of first 100 units ...............$1.11 Each of first 100 units $2.22 Unit Cost Unit Cost
" " next 150 " ............... .74 " " next 150 " .......... 1.38 Each .............. $1.48 Each .......... $5.56
" " " 250 " ............... .56 " " " 250 " .......... 1.11
" " over 500 " ............... .38 " " over 500 " .......... .83
* The Exposure Unit For This Type of Risk is $1,000 of Amount of Judgment including interest allowed
therein, Penalty of Bond or Amount In Controversy whichever the case may be.
** Unless otherwise specifically stated in the Rules, Procedures and Classifications Manual, the Exposure
Unit For This Type of Risk is $1,000 of Bond Penalty per Annum.
LOSS COSTS
II. LOSS COST EXCEPTIONS
WAIVER OF PROBATE BONDS; ADMINISTRATION OF ESTATES

WITHOUT JUDICIAL PROCEEDINGS — OPEN PENALTY BONDS
A. For Transfer of stocks, common or preferred bonds, notes or other
securities:
Apply 200% of the Risk Type D Loss Costs on the last market quotation.
B. Where waiver of probate guarantee is part of a blanket or master bond in
favor of a transfer agent and its corporate principal:
Apply 150% of the Risk Type D Loss Costs on the last market quotation or the
face value, whichever is applicable.
LOSS COSTS
III. CLASS RELATIVITY FACTORS
Class Relativity Class Relativity Class Relativity

Code Factor Code Factor Code Factor
203 0.965 242 0.529 282 0.582
204 0.976 243 0.529 283 0.582
207 0.559 244 0.528 284 0.981
208 0.529 245 0.528 285 0.981
209 0.579 246 0.969 286 0.981
210 0.530 247 0.969 287 0.697
211 1.606 248 0.529 288 0.697
213 0.970 249 0.528 291 0.661
214 1.164 250 0.528 292 0.661
215 0.977 256 0.995 293 0.661
217 0.530 257 0.962 294 0.529
218 1.012 262 0.529 295 0.529
220 0.977 267 0.530 296 0.529
221 0.977 270 0.842
222 0.977 271 0.842
223 0.529 272 0.529
224 0.529 273 0.529
225 0.529 274 0.528
226 0.529 275 0.528
227 0.529 276 0.969
228 0.529 277 0.969
229 0.530 278 0.529
230 0.530 279 0.528
240 0.842 280 0.582
241 0.842 281 0.582

reflect profit and expense to the Loss Costs and Class Relativity Factors developed in any
Table or Exception above. Instructions regarding the company premium computation are
contained on Manual Page PCS-1.
Miscellaneous Bonds and Immigrant Bonds
LOSS COSTS
I. LOSS COST TABLES:

Annual Loss Costs Per Unit of Exposure*
Risk Type A Risk Type B Risk Type C

Exposure Units Loss Cost Exposure Units Loss Cost Exposure Units Loss Cost
Each ........................................... $1.19 Each ........................................... $2.38 Each ...........................................$2.96
Risk Type D Risk Type E Risk Type F

Each ......................................... $3.56 Each ........................................... $4.74 Each .............................................. $5.93
Risk Type G Risk Type H Risk Type I

Each ........................................... $7.10 Each ........................................... $9.48 Each ............................................ $.47
Risk Type J Risk Type K Risk Type L

Each of first 10 units ................$1.78 Each ……………………..$.06 Each ............................................ $.94
" " next 15 " .................... 1.19
" " next 75 " ................... .94
" " over 100 ".................... .47
Risk Type M Risk Type N Risk Type 0

Each ..............................................$.59 Each ............................................ $1.78 Each of first 200 units ............... $.48
" " over 200 " ................ .24
* Unless otherwise specifically stated in the Rules, Procedures and Classifications Manual, the
Exposure Unit is $1,000 of Bond Penalty.
©The Surety & Fidelity Association of America, 2018 SUR —LC-8 Revised July 1, 2018
Miscellaneous Bonds and Immigrant Bonds
LOSS COSTS
II. CLASS RELATIVITY FACTORS

500 1.470 530 0.910 559 1.690
501 0.910 531 0.910 560 0.910
502 0.910 532 0.910 566 1.479
505 1.165 533 0.910 567 0.910
506 1.165 534 0.910 568 1.144
507 0.910 535 0.910 569 0.957
509 0.910 536 0.910 570 1.219
510 0.910 537 1.219 571 1.219
511 0.910 539 1.690 572 1.219
512 0.910 540 1.690 573 1.219
513 0.910 541 1.690 574 1.219
515 0.910 542 1.690 575 1.219
517 0.910 543 1.690 576 1.219
518 0.910 544 1.690 577 1.219
519 0.910 545 1.690 578 1.690
520 0.910 546 1.690 579 1.219
521 0.910 547 1.690 582 0.910
522 1.690 548 1.690 583 0.910
523 1.690 549 1.690 585 0.910
524 1.690 550 1.690 586 0.910
525 0.910 551 1.690
526 0.910 552 0.910
527 0.910 553 1.526
528 0.910 556 0.910
529 0.910 558 1.690

reflect profit and expense to the Loss Costs and Class Relativity Factors developed in
any Table or Exception above. Instructions, regarding the company premium computation
are contained on Manual Page PCS-1.
License and Permit Bonds Including U.S.
Government Excise Tax and Custom Bonds
LOSS COSTS
I. LOSS COST TABLES:
Risk Type A Risk Type B Risk Type C Risk Type D Risk Type E Risk Type F
Exposure Loss Exposure Loss Exposure Loss Exposure Loss Exposure Loss Exposure Loss
Units Cost Units Cost Units Cost Units Cost Units Cost Units Cost
Each $2.23 Each $4.39 Each $5.49 Each $6.60 Each $8.79 Each $21.98
Risk Type G Risk Type H Risk Type I

Each of first 10 units ..... $4.39 Each of first 50 units ........... $8.79 Each of first 50 units ........ $8.79
" " over 10 " 2.23 " " next 100 " .............. 4.39 " " next 50 " 4.39
" " " 4850 " ............ 2.23 " " over 100 " 2.23
"over 5000 " .............. 1.10
Risk Type J Risk Type K Risk Type L
Each of first 25 units ........ $5.26 Each of first 25 units .......... $8.79 Each of first 25 units ........... $8.79
" " next 25 " ........ 3.51 " " next 25 " ........... 4.39 " " over 25 ".............. 4.39
" " over 50 " ........ 1.66 " " " 50 " .......... 2.23
" " " over 100 " ......... 1.10
Risk Type M Risk Type N Risk Type O

Each of first 10 units ......... $2.23 Each of first 10 units ......... $4.39 Each of first 100 units ......... $4.39
" " next 40 " ........ 1.10 " " next 40 " ......... 2.23 Each of next 400 " ......... 3.30
" " " 50 " ........ .68 " " " 50 " ......... 1.31 " " over 500 " ......... . 2.23
" " " 100 " ........ .44 " " " 100 " ......... .88
" " over 200 " ........ .22 " " " over 200 " .......... .44
Risk Type P Risk Type Q Risk Type R

Each .................................. $3.30 Each of first 100 units ....... $2.23 Each of first 100 units ......... $4.39
" " next 400 " ............ 1.66 " " next 400 " ......... 3.30
" " " 500 " ............ .76 " " " 500 " ......... 1.55
" " over 1000 " ........... .22 " "over 1000 " ......... .44
* Unless otherwise specifically stated in the Rules, Procedures and Classifications

Manual, the Exposure Unit For All License and Permit Bonds Including U.S.
Government Excise Tax and Customs Bonds is $1,000 of Bond Penalty.
License and Permit Bonds Including U.S.
Government Excise Tax and Custom Bonds
LOSS COSTS

901 0.534 932 1.036 966 0.533
902 0.594 934 0.533 967 0.528
903 0.680 935 0.533 968 0.528
904 0.986 936 0.533 969 0.528
905 0.530 938 0.533 970 0.528
906 0.536 939 1.063 971 1.228
907 0.535 940 0.654 972 1.228
908 0.523 941 0.534 973 1.023
909 0.826 942 0.533 974 0.663
910 0.531 943 0.993 978 0.999
912 1.008 944 0.533 979 0.999
913 0.533 945 1.001 980 0.749
914 0.533 946 0.988 981 0.749
915 0.533 947 0.533 982 0.749
916 0.533 948 0.724 993 0.528
917 0.663 949 1.023 994 0.528
918 0.534 950 0.533 995 0.528
919 0.529 952 0.525 996 0.528
920 0.987 953 0.533 997 0.528
921 0.533 954 0.533 998 0.528
922 0.536 955 0.991
923 0.532 956 0.534
924 0.533 957 0.762
925 0.533 958 0.762
926 0.991 959 0.762
927 1.052 960 0.762
928 0.533 961 0.762
929 0.902 962 0.762
930 0.549 964 0.999
931 0.936 965 0.533

any Table or Exception above. Instructions regarding the company premium
computation are contained on Manual Page PCS-1.
Official Bonds: Federal Official
and Public .Official (Individual and Schedule) Bonds
LOSS COSTS
LOSS COST TABLES:

Risk Type A Risk Type B Risk Type C
Each ............................. $.66 Each .................................... $.94 Each ............................ $1.08
Risk Type D Risk Type E Risk Type F
Each .......................... $1.33 Each ................................... $2.64 Each of first 100 units $.45
" " next 150 " .41
" " next 250 " .32
" " next 500 " .27
" " over 1000 " .20
Risk Type G
Exposure Units Loss Cost
Each of First 25 units $1.33
" " Next 25 " 1.08
" " Over 50 " .79
*Unless otherwise specifically stated in the Rules, Procedures and Classifications

Manual, the Exposure Unit For All Official Bonds is $1,000 of Bond Penalty.
Official Bonds: Federal Official
LOSS COSTS
Class Relativity
Code Factor
101 0.606
102 0.490
104 0.910
105 0.490
108 0.490
109 0.490
110 0.557
112 0.490
113 0.490
114 0.910
115 0.832
116 0.832
117 0.490
118 0.490
119 1.000
152 0.647
155 0.490
156 0.490
159 1.000

any Table or Exception above. Instructions regarding the company premium computation
are contained on Manual Page PCS-1.
©The Surety& Fidelity Association of America, 2018 SUR-LC-13 Reissued July 1, 2018
HAWAII
Contract Bonds
I. LOSS COST TABLES

For contract bonds written in Hawaii, the loss costs are derived by multiplying the
loss costs on page SUR-LC-1 by the following factors to adjust for previous
countrywide changes not approved in this state:
Multiply the Class B loss costs by a factor of 1.11.

Multiply the Maintenance loss costs by a factor of .80.
Multiply the Miscellaneous loss costs by a factor of 1.25.
Multiply the Subdivision loss costs by a factor of .93.
III. LOSS COST EXCEPTIONS

A. MISCELLANEOUS CONTRACTS
5. Military Traffic Management and Terminal Service Contracts:
For Military Traffic Management and Terminal Service contract bonds written in
Hawaii, the loss costs are derived by multiplying the loss costs on page SUR-LC-2
by a factor of 1.25 to adjust for previous countrywide changes not approved in this
state.
Miscellaneous Bonds
I. LOSS COST TABLES

For Miscellaneous bonds written in Hawaii, the loss costs are derived by
multiplying the loss costs on page SUR-LC-8 by a factor of 1.25 to adjust for
previous countrywide changes not approved in this state.
Official Bonds
I. LOSS COST TABLES

For Official bonds written in Hawaii, the loss costs are derived by multiplying the
loss costs on page SUR-LC-12 by a factor of .80 to adjust for previous
countrywide changes not approved in this state.
All other Loss Costs are unchanged.
©The Surety & Fidelity Association of America, 2018 HI-SUR-LC-1 NEW PAGE Effective July 1, 2018
PENNSYLVANIA
Contract Bonds
I. LOSS COST TABLES

For specific contract bonds written in Pennsylvania, the loss costs are derived by
multiplying the loss costs on page SUR-LC-1 by the following factors:
Multiply the Supply loss costs by a factor of .96

Multiply the Maintenance loss costs by a factor of .96
Multiply the Subdivision loss costs by a factor of .96
Official Bonds
I. LOSS COST TABLES

For Official bonds written in Pennsylvania the loss costs are derived by multiplying
the loss costs on page SUR-LC-12 by a factor of .96.
All other Loss Costs are unchanged.
©The Surety & Fidelity Association of America, 2018 PA-SUR-LC-1 NEW PAGE Effective July 1, 2018

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SURETY

Section 1. Procedures, Common General Rules and Statistical Codes

I. PURPOSE OF SECTION 1. ...................................................................................1

II. PROCEDURES ...................................................................................................1, 2

III. COMMON GENERAL RULES .......................................................................2, 3

IV. STATISTICAL CODES ....................................................................................3, 4

For Contract Surety bonds, the company premium is computed as follows:

©The Surety Association of America, 2004 PCS-1 Revised June 1, 2004

III. COMMON GENERAL RULES

E. Advance Payment of Premiums

G. Whole Dollar Premium Rule

H. Renewal Premiums – Non-Cancellable Surety Bonds

Examples: Exposure Amount

Court Judicial – Fixed Penalty Appeal Bond –

Exceptions Regarding Bonds Not Rated On A “Per $M” Basis:

I. SCOPE OF COVERAGE ............................................................................................. 1,2

II. SECTION GENERAL RULES ..................................................................................... 3,4,5

III. STATISTICAL CODES .................................................................................... 6 through 12

IV. RISK CLASSIFICATION ............................................................................... 13 through 21

INDEX .................................................................................................................. i through xii

©The Surety Association of America, 1995 I Revised January 1, 1995

BID OR PROPOSAL BONDS —

Building Related Construction

Carpentry, Including Framing and Finish……………………………………. 22

Concrete, Gunite, Swimming Pools…………………………………………. 23

Drywall and Plastering………………………………………………………. 24

Landscaping, Including Golf Course Construction…………………………. 26

Masonry, Stone—Cut or Dressed; Tile and Terrazzo……………………….. 27

CLASS B CONTRACTS (Continued) —

Foundations, Excavations, Pilings, Testboring, Drilling, Wells, Offshore

Sewers (Sanitary or Storm), Septic Tanks…………………………………................................. 33

Tunnels and Subways, Railroad Road Beds, Rail Transit Systems…………............................... 34

Waste Disposal Systems or Facilities

All Other Class B

All Other Class B Contracts, NOC……………………………………………............................. 39

Highways, Airport Runways, New Construction or Reconstruction…………............................ 42

Machinery Made to Special Order……………………………………………............................ 43

Siding (Aluminum or Vinyl), Glazing, Curtain Walls (Non-Structural)……............................. 45

All Other Class A Contracts, NOC………………………………………….............................. 49

CLASS A–1 CONTRACTS —

Automotive Service, Cataloging, Exterminating Contracts, Furnishing Food Services,

Bridges—Furnishing or Erecting, Superstructure Only……………………….............................. 52

Street and Subway Lighting…………………………………………………................................. 56

All Other Class A–1 Contracts, NOC……………………………………….................................. 59

Bridges — Furnishing Superstructure Without Erecting……………………................................ 60

Highways — Furnishing of Materials Only…………………………………............................... 61

All Other Supply Contracts, NOC…………………………………………….............................. 64

Maintenance Contracts where NO Performance Bond is Required…………............................... 65

Road, Highway and Street Maintenance……………………………………................................ 66

Supply Maintenance Contracts………………………………………………............................... 68

All Other Maintenance Contracts, NOC……………………………………................................. 69

Advance Payment Bonds……………………………………………………............................... 70

Given at or near Commencement of Project………………………………............................. 75

Given when Project is Partially Completed……………………………….............................. 76

Given at or near Completion of Project…………………………………................................ 77

Military Traffic Management and Terminal Service Contracts………………............................... 78

Moving and Hauling Contracts………………………………………………................................ 79

Removal of Garbage, Snow and Ashes………………………………………................................ 80

Performance Bond for Sale and Cutting…………………………………................................ 81

Payment Bond for Sale and Cutting……………………………………….............................. 82

Cutting for Hire Contracts………………………………………………................................. 83

MISCELLANEOUS CONTRACTS (Continued) —

Wrecking, Dismantling and Demolition Contracts…………………………................................. 85

All Other Cost-Plus-Fixed-Fee Contracts, NOC……………………………................................ 86