Insurance Articles


Recent Jurisprudence – Surety Bonds. The Indivisibility of Guaranteed Obligations

Recently, the Third Collegiate Court on Administrative Law from the Sixth Circuit published decision number VI.3o.A. J/80 under the title, “Surety Bond. When such is issued to guarantee performance of each and all of the contractual obligations, and in an amount equivalent to 10% of the amount of the principal obligation, it is understood that the principal obligation is of an indivisible nature pursuant to agreement by the parties.” In such decision, the Third Collegiate Court determined that in those cases where the surety bond is issued to guarantee each and all of the obligations deriving from a contract, and in an amount equivalent to 10% of the principal obligation, it is understood that the parties agreed that the obligation … read more