| | Current Listings: Surety Bonds: Programs and Systems: Financial Management Service (Site not responding. Last check: 2007-10-14) |
 | | Companies are allowed to write bonds with a penal sum over their underwriting limitation as long as they protect the excess amount with reinsurance, coinsurance or other methods as specified at 31 CFR 223.10-11. |
 | | Such approval by the State Insurance Department may indicate that the Company is authorized to write surety in a particular state, even though the Company is not licensed in the state. |
 | | (c) For a Federal bond to be acceptable, a surety company must be licensed in the State or other area in which it executes (signs and/or otherwise validates) a bond, but need not be licensed in the State or other area in which the principal resides or where the contract is to the performed. |
| www.fms.treas.gov /c570/c570.html (7853 words) |