90 day cancellation

[bad2thebond]

I just noticed my bond has a 90 day cancellation clause which requires me to pay 90 days ahead of time. Why 90 days and not 30 or 45 days?

[Bond Magician]

Originally Posted by bad2thebond

I just noticed my bond has a 90 day cancellation clause which requires me to pay 90 days ahead of time. Why 90 days and not 30 or 45 days?

This is based on what the state requires. Some states require 90 days, some require 30 or 45 days.

[Surety Wizard]

I have a bond in Pennsylvania. Do you know what the cancellation policy is for that bond? It seems like you are only getting a partial year and paying an annual premium. Why do they have a cancellation clause like that?

[h2o]

Originally Posted by Surety Wizard

I have a bond in Pennsylvania. Do you know what the cancellation policy is for that bond? It seems like you are only getting a partial year and paying an annual premium. Why do they have a cancellation clause like that?

In Pennsylvania, the Manufacturer/Dealer Bond has a 60-Day cancellation clause. What this means, is that if the Surety for any reason decides to cancel the bond, they must notify the State and the principal of the cancellation, and that the cancellation would not go into effect until 60 days from the date of the notification. This gives both the State and the principal the benefit of time before the cancellation goes into effect. Hopefully during that period you will be able to resolve your loss in coverage, either by having your bond reinstated or replaced.