Payment of premium

[Numbers]

Why do some bond premiums need to be paid 30 days before renewal? and some are 60 or even 90 days before renewal?

[Mr. Bond]

The cancellation clause in the bond language(which is determined by the obligee) will clearly state whether it has a 15, 30, 45, 60 or 90 day cancellation clause. Depending on the clause - this will tell you when your bond renewal payment will be due. For example, if you have a 60 day cancellation clause and your bond renews 03/01/08 - your premium will be due 01/01/08. I hope this helps.