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It’s that fast. Surety & Fidelity Product Portfolio

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It’s that fast.

Surety & Fidelity Product Portfolio

Table of Contents

Commercial Surety &

Fidelity & Crime

Contract Surety

Online Tools

Who to Contact

Surety & Fidelity Product Portfolio

… that’s Penn National Insurance Surety & Fidelity

Penn National Insurance Surety & Fidelity is dedicated

to providing the fastest way for agents to get bonds

approved. We have very experienced people who have

the authority and ability to make decisions on the local

level. Our underwriting structure is designed to

minimize the time it takes to get a bond approved.

No other surety can respond as quickly as we can.

Surety premium can increase

your agency profit sharing check.

Quick response. Fast turnaround.

Product Suite

Surety & Fidelity Product Portfolio

Commercial Surety &

Co

mm

ercial Surety &

edin

Commercial Surety &

Single bond/account Aggregate limits to $1.5 millionn Quick turnaround — within 24 hours once

all underwriting information is provided

n Underwriting authority granted on pre-approved program business

n EDIN — electronic decisions in no-time for specific bond classes

n Higher Commission percentages and guaranteed territories, given enough volume

n Schedule (Bordereau) transaction processing available

n Direct bill processing and online payment availability

Commercial Surety (also known as Miscellaneous Surety Bonds) is broken down into four

main categories: License & Permit, Miscellaneous, Official Bonds, and Court & Fiduciary Bonds.

How to Submit

Single Bond and Aggregate Program per account up to $200,000, submit through EDIN if bond class is eligible. The link is found on PennConnect on the Surety Home Page. (An EDIN user manual is also available on PennConnect.)

All other bonds, the Application (78-0240) is found on PennConnect.

4 Complete the first page.

4 Submit supporting documentation, if noted on the application.

4 Complete the section on page 2, if the bond is a License/Permit, Lost Instrument, Public Official, or Probate & Fiduciary.

4 Complete page four. Signatures by Company, Owner, and Spouses

4 Notary acknowledgements are required for bonds of $300,000 and up.

®

Commercial Surety

Miscellaneous (M) bonds are those which do not clearly fall within the scope of other categories. These bonds may/may not have cancellation clauses. 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.*

Target Bonds

4 Auctioneer’s Bonds Covering Sales Of Bankruptcy Estates

4 Fixed Penalty, Lost Instrument/Securities (Schedule/Bordereau Bond Reporting is available.)

• Certified Checks

• Cashier’s Checks

• Lost Common Stocks

• Lost Preferred Stocks

4 Patient Trust Fund/Social Security

4 Quiet Title Bonds

Court & Fiduciary (CF) bonds are broken down further into classes: bonds in judicial proceedings in State or Federal Courts and bonds required by court to administer property held in trust (Probate, Equity, or Bankruptcy Courts).

n The purpose of the court bond is to preserve the rights of the opposing litigant in the granting of the privilege or remedy.*

Target Bonds

Fixed Penalty Bonds

4 Attachment, Plaintiff’s

4 Replevin, Plaintiff’s

4 Injunction, Plaintiff’s

4 Foreclosure

4 Indemnity to Sheriff or Marshal

4 Open Estate

4 Cost & Damage

n 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.*

Target Bonds

4 Trustees Or Other Persons Appointed For Veterans Or Incompetent Members Of The Armed Forces.

4 Commissioners For The Sale Of Real Estate And Distribution Of Proceeds.

4 Liquidators Or Trustees Appointed For Benefit Of Creditors By An Insolvent Debtor’s Assets And Make Distribution To Creditors.

4 Chapter 7 Bankruptcy Court – Disbursing Agent, Distributor, Receiver – appointed to marshal the assets, liquidate and distribute to creditors.

4 Estate Administrators, Executors, Guardian of Incompetent – see Fiduciary (Probate).

Official (OB) 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.*

Bonds may be:

n required by law and conditioned upon statute, ordinance, or regulation. (Municipality dictates the Bond Form.)

n required by law, but the authority has discretion. (Municipality may/may not have a Bond Form.)

n voluntary, but conditioned as specified by law. (Municipality may/may not have a Bond Form.)

n purely voluntary written under Common Law. (The Surety Bond Form is usually acceptable to the Municipality.)

Target Bonds

Elected or Appointed Individuals of State, County, City, Village, Town, School Districts, Boards, Townships, Boroughs who are/are not money-handlers.

4 Notary Publics

4 Court Clerks

4 Treasurers

4 Tax Collectors

4 Judges

4 Sheriffs, Policemen, Deputies

4 Constables (a peace official of a municipality who also assists local law enforcement and courts)

4 City Marshals (administrative head of a city police or fire department)

4 Subordinate Employees of Treasurers, Tax Collectors, or Sheriffs

*As defined by the Surety & Fidelity Association of America

License and Permit (LP) 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.*

Target Bonds

4 Auctioneers (not livestock)

4 Contractor License Bonds

• Code Compliance Only

• Highway/Street Cutting

4 Detectives

4 Durable Medical Equipment (DMEPOS)

4 Excess Weight Highway Permit

4 Insurance Agents or Brokers

4 Real Estate Agents or Brokers

4 Motor Vehicle

• Defective/Lost Title

• Used Car, Truck, or Trailer Dealer

• Towing, Inspection Station, or Full Agent

4 Public Adjusters

4 Vocational/Technical Schools

n If the bond guarantees payment of taxes or fees, financial statements may be required as part of the underwriting submission.

Fiduciary Bonds (Probate)

When probating an estate, the primary duties of a fiduciary include:

n Gathering and protecting of all the assets in the estate. Preparation of a detailed schedule of assets or inventory to include values.

• Specific court approval of expenditures is required prior to disbursing funds for Class Codes 213, 214, or 215.

n Locate all of the heirs of the deceased, if applicable.

n Determine all of the debts of the estate, including taxes.

n Keep a transactional record of all estate income received and payments disbursed.

n Preparation of annual court documents that must be submitted and approved by the court, if the estate is not closed within one year.

n To close an estate, trust, guardianship or conservatorship, a detailed final accounting must be filed with the court.

n Petition the court for discharge of the surety bond.

Do not let collection issues stop you from writing this class of bond. Contact your assigned Commercial Surety underwriter for solutions. 1.800.388.4764

The Fiduciary Surety bond, if required by the court*, is a third party guarantee that the appointed fiduciary will perform the required duties. Fiduciary bonds are a good source of surety commission growth because they are:

Highly profitable

Easy to issue with minimal up-front work

Submit through EDIN® with response and answer within 10 seconds

Guaranteed 24-hour underwriting response, usually same day

* Each court has different probate requirements and procedures.

Any legal questions should be directed to an Estate Attorney or the Probate Court Clerk.

fi • du • ci • ary

designating or of a person who holds something in trust for another;

of a trustee or trusteeship. Administrators and executors may also be

termed personal representative or nominal.

Commercial Surety

Who should you target? n Attorneys

n Estate law firms in your area

n Probate courts

How to Submit

Class Codes 203, 204, 213

Bond amounts < $200,000 – Submit in EDIN. – 30% commission rate.

Bond amounts > $200,000 – Submit a completed Surety application. – 25% commission rate.

Class Codes 214 and 215

All bond amounts: Submit a completed Surety/Fidelity application. – 25% commission rate applies.

Application

n Application (78-0240) is found on PennConnect.

n Complete the probate & fiduciary section, and applicable signatures.

n Submit to [email protected].

After application and credit history report are reviewed,

additional underwriting may be requested.

Fiduciary bonds we want to write Administrator (203 Class Code) probate without a will

Executor (204 Class Code) probate with a will

Conservator (213 Class Code) guardian of incompetent (over the age of 18)

Guardian (214 Class Code) guardian of minors

Trustee (215 Class Code) guardian of a trust

Electronic Decisions In No-time

Availability

4 Available in 27 states and District of Columbia*: AL, AZ, AR, CO, DE, DC, GA, ID, IL, IN, IA, KS, KY, MD, MI, MS, MO, NJ, NM, NC, PA, OH, OK, SC, TN, TX, VA, WV

4 59 bond types

* The availability of a state in EDIN is dependent on the

agency appointment with Penn National Insurance.

To be appointed in additional states, please forward

a copy of your non-resident agency license and

individual license, if applicable, for any states listed.

Welcome to EDINn 30% new business commission

n This is not a quoting or bond issuance system.

n New business only. Please submit requests to your assigned Commercial Surety underwriter.

n EDIN Worksheet & Credit Report Authorization available on PennConnect.

n If the bond is approved, the application/approval sheet will be completed except for the date and signatures at the end of this process.

n Billing for bonds submitted in EDIN will be Agency Bill — first year and then revert to the agency’s normal billing type for the first renewal.

Prohibited Bonds For any requests on the following bonds, please contact your underwriter.

Any bond requirement that contains:

Adverse Selection Stormwater Management

Environmental Subdivision/Completion

Erosion Control Union Wage Bond or Wage & Welfare

Forestation Union Welfare Bond

Home Improvement Bond (MD) Utility

Land Use Permit Wage Bond

Court and Fiduciary Bonds (CF)(CF-203) Administrator of an Estate

(Personal Representative & Nominal Bond)

(CF-248) Attachment, Plaintiffs Bond

(CF-292) Costs (Court)

(CF-204) Executor of an Estate

(CF-211) Foreclosure (Sale & Distribution Only)

(CF-213) Guardian of Incompetent

(CF-249) Replevin (Claim & Delivery)

Miscellaneous Bonds (M) (M-540) Auctioneer, Bankruptcy Estates

(M-511) Lost Instrument Bonds (Fixed Penalty only)

(M-539) Patient Fund Bonds/Resident Trust Fund – Nursing Homes

(M-578) Pre-paid/Pre-need Funeral Bonds – All

(M-541) Quiet Title

Official Bonds (OB)(PO-102) All Subordinate Employees of Treasurers,

Tax Collectors or Treasurers-Collectors Handling Money

(PO-112) City Marshalls

(PO-112) Constables

(PO-114) Court Clerks

(PO-116) Deputies Handling Money

(PO-117) Housing Authorities (All Officers & Employees)

(PO-104) Hunting, Fishing & Trapping Licenses, Auto Tags, etc. – Agents for Sale of

(PO-113) Judges

(PO-105) Notary Public (4 Year Term)

(PO-112) Policemen

(PO-115) Sheriffs and All Subordinates

(PO-109) Tax Collectors

(PO-112) Town Supervisor

(PO-108) Treasurer

*Submit Guardian of Minor Bonds to your underwriter.

License and Permit Bonds (LP)(LP-943) Alcohol (Industrial), Alcoholic Beverages &

Liquor Tax – Retailers

(LP-935) Auctioneer – Other than livestock

(LP-997) Boat Dealers (Bond Penalty < $50,000)

(LP-915) Collection Agencies

(LP-903) Commission Merchants & Produce Dealers – other than livestock

(LP-906) Contractor License/Permit – Compliance only

(LP-908) Contractor License/Permit – Performance & Payment (Bond Runs to State)

(LP-907) Contractor License/Permit – Performance & Payment (Municipality)

(LP-909) Contractor License/Permit – Performance & Payment (Third Party Liability)

(LP-946) Contractors Tax Bond – Single Contract

(LP-916) Professional Fund Raisers

(LP-936) Detective

(LP-978) Employment Agency

(LP-949) Gasoline, Diesel Fuel, Kerosene Sellers & Users (UP TO $50,000)

(LP-954) Grain & Commodities, State Licensed Grain & Commodities Warehouses

(LP-910) Highway & Street Permit – Compliance only

(LP-910) Highway Encroachment & Oversize/Overweight

(LP-922) Industrial Loan & Thrift (No Mortgage)

(LP-917) Insurance Agents

(LP-917) Insurance Brokers

(LP-938) Itinerant Merchants, Photographers, Book and Magazine Solicitors, Retail Stores & Service Shops

(LP-904) Livestock Dealers excluding Bonds required under Packers and Stockyards Act

(LP-919) Mortgage Brokers only (No Lenders or Bankers)

(LP-925) Motor Vehicle – Defective Title Bond

(LP-930) Motor Vehicle – Towing, Inspection Station, or Full Agent

(LP-906) New Castle County Land Use Statutory Bond

(LP-929) Used Car or Truck Dealer (No Mobile Home Dealers or Salesman)

(LP-940) Private Schools (Trade only)

(LP-917) Public Adjuster

(LP-921) Real Estate Agent or Brokers

(LP-917) Surplus Lines Agents

(LP-923) Title Insurance Company Agents

(LP-941) Weighmasters & Other Quality Control Inspectors

Surety and Fidelity Association of America Manual – Classifications

EDIN User Manual can be found on PennConnect, Surety/Fidelity, under Forms & Apps.

• Contains all information regarding the application process with step-by-step and screen-by-screen instructions.

Online applications & easy-to-use forms make submittal fast

Electronic Decisions In No-time

Surety & Fidelity Product Portfolio

Fidelity & Crime

Fidelity &

Crim

e

Fidelity & Crime

Fidelity is a type of insurance bought by an employer to protect against losses

(such as embezzlement or theft by employees) that are not generally covered

under normal theft or burglary policies. It may either be a blanket bond

(applying to all employees) or for each employee on an individual basis.

Penn National Insurance – Surety & Fidelity Department – offers Commercial Crime Insurance. The rules and rating procedures for premium calculations falls under the jurisdiction of the Surety and Fidelity Association of America.

Additional rating plans have been filed specifically for the ERISA Endorsement (EPPE), Client Crime Coverage (C3), Small Government, and Small Business.

Fidelity & Crime

*As defined by the Surety & Fidelity Association of America.

n Policies up to $1,000,000

n Primary Coverage or Excess over primary insurance

Mercantile Entities (Anything other than Governmental)

EMPLOYEE DISHONESTY

n Coverage Form A – Blanket Coverage indemnifies the insured against loss of money, securities and other property caused by the dishonesty of one or more covered employees, up to the limit of insurance.*

n Coverage Form B – Schedule Coverage indemnifies the insured against loss of money, securities and other property caused by the dishonesty of any person named or engaged to perform the duties of a position shown in the schedule. The limit of insurance applies separately to each person named or each position shown in the schedule.*

How to Submit

n Application (78 1010 0511) is found on PennConnect. In order to bind coverage, this application needs to be signed by the insured.

n Complete all sections that apply.

n If the insured selects Name or Position Schedule Coverage, each individual person that is scheduled or holds the position scheduled needs to complete Application 78 1014 0511.

Submit to [email protected] or fax to 866-784-9256.

Target Business Classes

4 Abstract Companies

4 Business & Professional Organizations

4 Cemetery Associations (Non-Profit)

4 Civic and Political Membership Associations

4 Clubs; Athletic, Bands, Orchestras, Entertainers

4 Collegiate Societies

4 Condominium Owners’ Associations

4 Educational Services, For Profit/Non-Profit (Colleges/Art Galleries/Libraries Privately Operated)

4 Firemen’s Pension and Relief Associations

4 Fraternal Orders and Social Clubs not providing Food or Drink

4 Health Maintenance Organizations, Member

4 Membership Organizations (Non-Profit)

4 Insurance Agents or Brokers

4 Patriotic Organizations, Veterans Associations

4 Public Utilities, Privately Operated

Commercial Crime Policy

Governmental Entities PUBLIC EMPLOYEE DISHONESTY

n Coverage Form O – Per Loss indemnifies the insured against loss of money, securities and other property caused by the dishonesty of one or more covered employees up to the limit of insurance.

n Coverage Form P – Per Employee indemnifies the insured against loss of money, securities and other property caused by the dishonesty of one or more covered employees. The limit of insurance applies separately to each covered employee.*

How to Submit

n Application (78 1011 0511) is found on PennConnect. In order to bind coverage, this application needs to be signed by the insured.

n Complete all sections that apply.

n If the insured opts to cover specific positions, individuals who hold the positions need to complete Application 78 1014 0511.

Submit to [email protected] or fax to 866-784-9256.

Target Governmental Classes

State and Local Government

4 School Districts or Authorities below College Grade Level

4 State Universities, State Colleges, Community Colleges, or County Colleges

4 Public Utilities, Districts, or Authorities

4 State, County, City, Town, Township, Village or Borough excluding Police Department

4 Local Public Housing Authorities

4 Urban Renewal Projects under the supervision of the Department of Housing and Urban Development

4 A Department, Division, Office or Institution of any State, County, City, Town, Village, Borough, or Other Political Subdivision, Not Otherwise Listed Above

The solution for small professional service companies

n Policies are available up to $1,000,000.*

n New LOWER rates

n New easy-to-use application

The perfect solution for small businesses that provide professional services to their clients — at the client’s home or business location.

*Not available in Georgia.

How to Submit

n Application (78 1013 0511) is found on PennConnect. In order to bind coverage, this application needs to be signed by the insured.

n Insured must complete page 1 and sign on page 2.

n If the insured selects Name or Position Schedule Coverage, each individual person that is scheduled or holds the position scheduled needs to complete Application 78 1014 0511.

Submit to [email protected] or fax to 866-784-9256.

Target Business Classes

4 Audio/Video Installers

4 Bookkeepers

4 Computer Doctors / Technicians

4 Dog Walking / Pet Sitting

4 Janitorial Service

4 House / Carpet Cleaning

4 Home Healthcare / Visiting Nurses

4 Interior Decorators

4 Locksmiths

4 Residential Remodeling

4 Trade Contractors

4 Window Cleaners

This policy contains a conviction clause whereby the conviction is required as the proof of loss.

*As defined by the Surety & Fidelity Association of America.

Client Crime Coverage

Fidelity & Crime

ERISA Plan Protection Endorsement (EPPE)

Stand-alone policies are provided up to the following limits:

n Qualifying assets with or without employer securities — up to legal requirement of $1,000,000.

n Plans that contain non-qualifying assets — up to $1,500,000 underwritten on a case-by-case basis.

The ERISA Plan Protection Endorsement (EPPE) automatically increases the amount of the policy limit to the amount required as outlined in Title 29 C.F.R. § 2580.412 (Code of Federal Regulations) by the Employee Retirement Income Security Act of 1974 at the time of a claim or inquiry from the Department of Labor or any official participant in the named ERISA Plan.

n No mid-term endorsements needed. A premium surcharge will be added to the expiring premium at each successive renewal to account for the increased amount of assets in the ERISA Plan and subsequently the 10% required bond amount.

n Automatic renewals without the need for Continuation Certificates or Endorsements to extend the policy expiration date, means less work for our agents and bond holders.

n LOWER Rates

n New application with easy-to-understand submission Instructions and an ERISA Information Page.

How to Submit

n Application (78 1012 0511) is found on PennConnect. In order to bind coverage, this application needs to be signed by the insured.

n Complete pages 1 and 2.

Submit to [email protected] or fax to 866-784-9256.

Employee Retirement Income Security Act of 1974 (ERISA)

Federal regulations state that any person who handles funds of the employee benefit plan, also called “Plan Officials,” must be bonded for at least 10% of the amount of funds that they handle in the plan. The maximum bond amount required is $500,000. However, for any new plan beginning January 1, 2008, the maximum bond amount is $1,000,000, if the Plan includes employer securities.

Forgery or AlterationOptional with Coverage Form A, O, P, or stand-alone policies up to $250,000.

n Coverage Form B – Forgery or Alteration indemnifies the insured against loss caused by forgery or alteration of instruments such as checks, drafts and promissory notes that purportedly are made or drawn by the insured or its agents.

How to Submit

Mercantile Entities (Application 78 1010 0511)

n Form A Blanket — When Coverage Form B is selected, complete sections 1 through 7, and the Insured must sign on page 4.

n Form A Schedule – When Coverage Form B is selected, complete sections 1 through 4, 7, 8, and the Insured must sign on page 4.

Governmental Entities (Application 78 1011 0511)

n Form O or P — When Coverage Form B is selected, complete sections 1 through 8, and the insured must sign on page 4.

For stand-alone Forgery or Alteration policies, please contact your assigned Underwriter.

Optional General Use & Business Class Coverages

Fidelity & Crime

Optional General Use/Business Class Endorsements(Additional premium may apply) Mercantile Governmental

Agents, Covered for “Employee Dishonesty” Only, Including Designated as Employees 4 4

Chair & Members of Specified Committees, Include as Employees (School Systems) 4 4

Collection Agents, Limited Amount of Insurance (Borrowing Corporations of Rural Utilities Service) 4

Deductible, Limit to Specified Persons 4

Directors or Trustees on Committees, Include Specified as Employees 4 4

Employees, excluding designated Persons or Classes of Persons 4

Faithful Performance of Duty, Include as Covered Cause of Loss 4 4

Non-Compensated Officers, Including Specified as Employees 4 4

Partners, Include as Employees 4

Students Handling Property or Funds in Connection with Sanctioned Student Activities, Include as Employees 4

Volunteer Workers, Include as Employees (Non-Profit Organizations) 4

Volunteer Workers, Include as Employees (School Systems) 4

Volunteer Workers other than Fund Solicitors, Include as Employees (Non-Profit Organizations) 4

Volunteer Workers other than Fund Solicitors, Include as Employees (School Systems) 4

Welfare and Pension Plans, ERISA Compliance (Loss Sustained) 4

Optional General Use Endorsements(Additional premium applies) Forgery or Alteration*

Credit, Debit or Charge Card; include as Covered Instrument 4

Credit, Debit or Charge Card; limit covered Instruments to 4 (Forgery Coverage Only)

Personal Accounts of Specified Persons – Include 4

*These are specific to Coverage Form B.

n Find all the forms and applications on PennConnect, under Surety & Fidelity tab, Forms & Applications

n Contact your Commercial Surety & Fidelity underwriter for more information or call 800.388.4764

Surety & Fidelity Product Portfolio

Contract Surety

Co

ntract Su

rety

Contract Surety

Contract Surety provides bonds up to $5 million single, $10 million aggregaten We prefer accounts in the $3 million single/$6 million

aggregate range to allow room to grow.

n Our underwriting is relationship-based. We key in on the management of the company, their systems and their business plan.

n We don’t underwrite in a box, but we do underwrite. We can be flexible as long as we have information to make a decision.

n We provide most agents with a line of credit that they can use to serve the normal day-to-day needs of their contractor customers.

• We consider larger projects on a case-by-case basis, with particular attention to the contractor’s experience, financial condition and management expertise.

Penn National Insurance offers you a regional surety market that focuses on long-term contractor relationships.

If we know enough about the contractor, we’ll try to find a way to write the business.

We work with our agents to truly understand the contractor’s business, their financial condition

and their plans and goals to reach a mutually beneficial line of credit.

Contract Surety

Bid or Proposal BondsThe 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).*

Performance BondsThe coverage provided by a Performance Bond is that the principal will faithfully perform the terms and conditions of a written contract.*

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 contract.*

Maintenance BondsThe normal coverage provided by a Maintenance Bond is a guarantee against defective workmanship or materials.*

*As defined by the Surety & Fidelity Association of America

Contract Surety Submission RequirementsFor new contract submission, we require the following documentation:

4 Completed contractor questionnaire (ours or NASBP quality)*

4 CPA prepared statements – three or more years of fiscal year-end prepared statements ($3 million or more in revenue requires a Review or better statement)

4 Work in Progress & Completed Contract Schedules – Three or more years of work in progress and completed contract schedules*

4 Interim Financial Statement and Work in Progress Report (if more than six months past the last fiscal year.)

4 Personal financial statement on owners/spouses of the company*

4 Most recent Personal Tax Returns & 1120s, if company is Subchapter S or Limited Liability Company

4 Resumes for senior management

4 Organizational charts/brochures (if any)

4 Copy of most recent bank line of credit

4 Insurance Certificate

4 Business plan

4 Provide Information regarding the internal cost accounting system and software

*Forms available on PennConnect.

For your convenience, we also have a Submission Checklist on PennConnect.

n For accounts with small contract bond needs (less than $450,000 single bond or aggregate program), please turn to our RapidResponse tab.

Target Contract Companies

n Building and/or Building Related General Contractors

n Paving and/or Road Contractors

n Subcontractors

4 Mechanical 4 Fencing

4 Roofing 4 Fire Protection

4 Electrical 4 Industrial Maintenance

4 Utility 4 Landscaping

4 Masonry 4 Security

4 Concrete 4 Grading

4 Flooring/Tile 4 Case Work/Cabinets

4 Drywall 4 Communications

4 Glass & Glazing 4 Marine Works

(No Curtain Walls)

4 Painting

Prohibited Contractors/Contracts:n All contracts that have environmental

exposure within the scope

n Subdivision / Developer Bonds

n Timber Cutting

n Completion Bonds / Design Hazards

Contract Surety

How to Submit

Contractor New Submission Checklist can be found on PennConnect / Surety/Fidelity / Contract Underwriting.

Submit to [email protected] or fax to 866-784-9256.

If you are mailing a hard copy in lieu of emailing or faxing, please send to the following address:

Overnight Address Mailing AddressPenn National Insurance Penn National InsuranceAttn: Contract Submission Attn: Contract Submission Two North Second Street P O Box 2243Harrisburg, PA 17101 Harrisburg, PA 17105-2243

Surety & Fidelity Product Portfolio

Pro

duct Su

ite

Product Suite

RetroRapid Program Criterian Company in business at least 12 months

n At least 5 years prior construction experience (foreman level or higher) PRIOR to current company if the company is less than 5 years old

n No more than 3 late pays of 30 days or less within the last year

n No late payments of more than 60 days

n No liens, past dues, suits, judgments, or bankruptcy filings

n No more than 5 credit checks in previous 12 months

n Credit scores of at least 600

n Business Indemnity must be provided

n Individual Indemnity of all owners and spouses must be provided

is the contract bond product for contractors who do not need surety credit up to the $500,000 single and/or aggregate amount provided under Rapid Response.

RetroRapid may also be a short-term solution for contractors who do not qualify for the Rapid Response program due to the Analyzed Debt to Annual Income Ratio, but who may need bonds for small filler projects. This will enable the owners/spouses to rehab their personal debt management and possibly qualify for larger limits in the future.

The criteria listed are the main underwriting items that are reviewed in the Rapid Response Program; however, the list is not all encompassing. We review the entire Rapid Response Program and Bond Applications and reserve the right to request additional underwriting information to support the requested bonding.

We’re going

… lower bond limit, credit history only!

Single and/or Aggregate up to $200,000

In doesn’t take a large, national surety to meet the quick turnaround needs of your contractor clients. In fact, Penn National Insurance can focus on your clients better by responding quickly with a contract bond program for a single job and/or aggregate amount up to $500,000.

A highly effective and proven way for agents to help develop emerging public works contractor clients, or to provide hassle-free bonding for the occasional user of surety credit!

Rapid Response is just that … rapid.

At Penn National Insurance, we rely on information provided by our agents and by major credit bureaus, and promise quick turnaround of less than 24 hours. But we also go further, quicker, than others. Our dedicated underwriting team will look beyond the credit reports to find a way to issue bonds to your debt responsible clients.

So bring us your emerging contractors, your supply accounts, your subcontractors and referrals from your large General Contractors.

We will respond … rapidly.

Rapid Response Program Criterian Company in business at least 12 months

n At least 5 years prior construction experience (foreman level or higher) PRIOR to current company if the company is less than 5 years old

n Analyzed debt divided by total annual income cannot exceed 30%

n No more than 3 late pays of 30 days or less within the last year

n No late payments of more than 60 days

n No liens, past dues, suits, judgments, or bankruptcy filings

n No more than 5 credit checks in previous 12 months

n Credit scores of at least 600

n Business Indemnity must be provided

n Individual Indemnity of all owners and spouses must be provided

n Prior to approving any bond, the General Indemnity Agreement (Form 78-0238) would need to be executed and faxed/emailed for our file.

Future Underwriting Requirements

n Personal Credit History on all the owners/spouses will be re-ordered — at a minimum of every 6 months — depending on bond activity.

n Program Applications are valid for two years unless there are changes to any of the underwriting information. If there are changes, it is expected that the agency will notify us immediately.

The criteria listed are the main underwriting items that are reviewed in the Rapid Response Program; however, the list is not all encompassing. We review the entire Rapid Response Program and Bond Applications and reserve the right to request additional underwriting information to support the requested bonding.

Bond Application Criteria

Once qualified to participate in the Rapid Response program, the following criteria applies to bond applications for a specific project:

n All bonds (bid or final) have to be submitted for approval, including final bonds that we previously approved as bid bonds. No agent has a line of authority under the Rapid Response Program.

n Single or Aggregate Bond Amount cannot exceed $500,000

n Bid Bonds are counted at 100% of the contract amount until bid results are received

n Final Bonds are counted at 100% of the contract amount until the job is complete (percentage of completion or run-off is not allowed in the program)

n Project location must be less than 150 miles from company office

n Cannot subcontract more than 50 percent of the contract price

n Bid results must be within 10 percent

n Completion time must be 12 months or less

n Maintenance/Warranty term should not exceed two years.

• The first year of the term is included in the cost of the Performance and/or Payment Bond premium. The second year of the term will have an additional premium cost.

n Liquidated damages cannot exceed $1,000 per day.

n Special Final Bond numbers are assigned in the Rapid Response Program. Please do not use the bond numbers assigned to your agency.

The criteria listed are the main underwriting items that are reviewed in the Rapid Response Program; however, the list is not all encompassing. We review the entire Rapid Response Program and Bond Applications and reserve the right to request additional underwriting information to support the requested bonding.

Excluded Classes (including subcontracted portion):

n asbestos

n underground storage tank

n lead remediation

n environmental of any type

n curtain wall

n subdivision/development

n completion guarantees

n abatement

n EIFS (synthetic stucco)

n mine & land reclamation

n computer software

How to Submit

The following forms must be completed in full. If there are items that are left blank, we will need to obtain this information prior to underwriting and will delay our response.

Submit to [email protected] or fax to 866-784-9256.

For Pre-Qualification (no bond request needed):

n Rapid Response Program Application Form 78-0236

New Submission with a Bond Request:

n Rapid Response Program Application Form 78-0236

n General Indemnity Agreement Form 78-0238

n Rapid Bond Application Form 78-0237

Bond Request Only (Account already approved for the Program):

n Rapid Bond Application Form 78-0237

Submitting Accounts/Bonds in Rapid Response

A Bridge from Rapid to Standard Contract Surety

R2C Program provides bonds up to $750,000 single project, $1 million aggregate

Our typical Rapid Response contractors are either small businesses with infrequent bond needs, or emerging contractors seeking an entry into bonded work. Many of these emerging contractors are hoping to grow into Standard Contract Surety accounts with increased capacity and larger projects. We believe that a gap exists between small contractor surety programs and the larger world of standard surety.

Penn National Insurance has created the R2C (Rapid to Contract) Program to “bridge” the gap between Rapid Response and our Standard Contract Surety program. The program offers larger single and aggregate limits, for a prescribed time, allowing the successful small contractors the opportunity to upgrade their financial reporting and to accrue assets in this company. Within this timeframe, we will work with the agents and their accounts to further develop their internal and CPA financial reporting.

We have developed significant agency and contractor relationships through our Rapid Response program over the past several years. With this pragmatic program, we intend to be part of the continuing growth and success for each in the coming years.

Program

R2C Program Criterian Company must have successfully completed

a bonded project within the Rapid Response program.

n Account must be in compliance with all Rapid Response program criteria, not superseded below.

n Company must agree to CPA-prepared statement going forward.

n Company and affiliates must provide financial statements on accrual or percentage of completion basis.

n All indemnitors must provide a Personal Financial Statement on Penn National Insurance or similar form that includes the same data.

n Company and all indemnitors should provide the following:

4 Bank/brokerage statements to document liquid assets (statements for IRAs, 401Ks, 529s do not need to be provided).

4 Most recently completed tax returns.

n Company must provide Work in Progress report on Penn National Insurance or similar form that includes the same data.

n Company should have $100,000 working capital and $100,000 net worth on analyzed basis.

n Institutional debt ratio must be less than 75%.

n Company’s D&B report must meet Penn National Insurance requirements.

n We will utilize the General Indemnity Agreement that was completed for the Rapid Response Program UNLESS there have been changes in the business or ownership.

n Personal credit history on all owners/spouses will be re-ordered – at a minimum of every six months – depending on bond activity.

PennConnect Forms

n Personal Financial Statement . . . . . Form 78-0275

n Work in Progress . . . . . . . . . . . . . . Form 78-0194 (1.2013)

The criteria listed are the main underwriting items that are reviewed in the R2C Program; however, the list is not all encompassing. We review all information on the applications and reserve the right to request additional underwriting information to support the requested bonding.

Program

Bond Application Criteria

Once approved for the R2C program, the following criteria applies to bond applications for a specific project:

n Single Bond Amount cannot exceed $750,000, or Aggregate Open Bond Amount cannot exceed $1 million.

n Bid Bonds are counted at 100% of the contract amount until bid results are received.

n Final Bonds are counted at 100% of the contract amount until the job is complete (percentage of completion or run-off is not allowed in the program).

n Commercial Surety Bonds issued to support the program will be counted in full against the program limit, subject to specific approval.

n Project location must be less than 150 miles from company office.

n Completion time should be 12 months or less.

n Maintenance/Warranty term must not exceed two years.

The first year of the Maintenance/Warranty term is included in the Performance and/or Payment Bond premium. The second year of the Maintenance/Warranty term will have an additional premium cost.

n Liquidated damages cannot exceed $1,000 per day.

n All bonds (bid or final) must be submitted for approval, including final bonds that we previously approved as bid bonds. No agent has a line of authority under the R2C Program.

n Special bond numbers are assigned in the R2C Program. Please do not use the bond numbers assigned to your agency.

n Bid Bonds, to include bondability and “good guy” letters, used for prequalification to general contractors (final bonds waived after the bid) will result in a premium charge for the Bid Bond.

n The premium for approved final bond is FULLY EARNED upon the assignment of a bond number as requested by the agent.

The criteria listed are the main underwriting items that are reviewed in the R2C Program; however, the list is not all encompassing. We review all information on the applications and reserve the right to request additional underwriting information to support the requested bonding.

Excluded Classes (including subcontracted portion):

n asbestos

n underground storage tank

n lead remediation

n environmental of any type

n subdivision/development

n completion guarantees

n abatement

n EIFS (Synthetic Stucco)

n mine & land reclamation

n computer software

For pre-qualification:

n Rapid Response Program Application (If the last one we have on file is more than two years old or if there have been any changes in the business or personally by the owners.)

Form 78-0236

n R2C Program Supplemental Application(additional underwriting is listed on the application)

Form 78-0292

Bond request ONLY (account already approved for the program):

n R2C Program Bond Application Form 78-0293

How to Submit

The following forms must be completed in full. If there are items that are left blank, we will need to obtain this information prior to underwriting and will delay our response.

Submit to [email protected] or fax to 866-784-9256.

The account must have been in the Rapid Response Program

and have successfully completed a bonded project in order to be submitted in the R2C Program.

Submitting Accounts/Bonds in R2C

Program

How to Submit Accounts/Bonds in Rapid ResponseThe following forms must be completed in full. If there are items that are left blank, we will need to obtain this information prior to underwriting and will delay our response.

Submit to [email protected] or fax to 866-784-9256.

Future Underwriting Requirementsn Personal Credit History on all the owners/spouses will be re-ordered —

at a minimum of every 6 months — depending on bond activity.

n Program Applications are valid for two years unless there are changes to any of the underwriting information. If there are changes, it is expected that the agency will notify us immediately.

Bond Application CriteriaOnce qualified to participate in the RetroRapid program, the following criteria applies to bond applications for a specific project:

n Single or Aggregate Bond Amount cannot exceed $200,000

n Bid Bonds are counted at 100% of the contract amount until bid results are received

n Final Bonds are counted at 100% of the contract amount until the job is complete (percentage of completion or run-off is not allowed in the program)

n Project location must be less than 150 miles from company office

n Cannot subcontract more than 50 percent of the contract price

n Bid results must be within 10 percent

n Completion time must be 12 months or less

n Maintenance/Warranty term should not exceed two years.

• The first year of the term is included in the cost of the Performance and/or Payment Bond premium. The second year of the term will have an additional premium cost.

n Liquidated damages cannot exceed $1,000 per day.

The criteria listed are the main underwriting items that are reviewed in the Rapid Response Program; however, the list is not all encompassing. We review the entire Rapid Response Program and Bond Applications and reserve the right to request additional underwriting information to support the requested bonding.

Excluded Classes (including subcontracted portion):

n asbestos

n underground storage tank

n lead remediation

n environmental of any type

n curtain wall

n subdivision/development

n completion guarantees

n abatement

n EIFS (synthetic stucco)

n mine & land reclamation

n computer software

For Pre-Qualification (no bond request needed):

RetroRapid/Rapid Response Program Application Form 78-0236

New Submission with a Bond Request:

RetroRapid/Rapid Response Program Application Form 78-0236

General Indemnity Agreement Form 78-0238

Rapid Bond Application Form 78-0237

Bond Request Only (Account already approved for the Program):

Rapid Bond Application Form 78-0237

Surety & Fidelity Product Portfolio

Online Tools

On

line To

ols

Online Tools

All the tools you need to write bonds at your fingertips

Online Commercial Surety Submissions

Policies & Accounts

Opt-in for Surety & Fidelity eNews

ePower

EDIN – our quick, online commercial surety application process that gives you:

n An answer on bonds up to $200,000 in less than 2 minutes

n 28 available states

n 59 bond types

n Easy to calculate premium

n Quick application entry with easy dropdown menus, auto fill and other tools

Have you “Opted-in” for our Surety & Fidelity eNews?

n In the upper right-hand corner of the PennConnect home page, select User Information and scroll to the bottom. Select Surety and you will now receive e-mails regarding important changes or updates to our bond programs and staff.

Our new electronic Powers of Attorney process

Request new Powers of Attorney or change current powers through PennConnect. Easy-to-use online form can be completed in a matter of minutes and e-mailed to [email protected].

n Easy-to-use online form can be completed in a matter of minutes and e-mailed to [email protected].

n Can’t scan documents? Print and fax to 866-784-9256.

n Powers of Attorney are e-mailed to you in a PDF format. That way, you’ll be able to print or e-mail copies as needed.

n Find the Powers of Attorney Request form on PennConnect, under Surety, Forms and Applications.

n View bonds by name, policy number or account number

n View renewal billing 60 to 90 days prior to the renewal date and new bonds 30 days after submission and approval

Easy access to your accounts

You’ll have access to everything you need to process and track your bond accounts anywhere, any time, through PennConnect – our secure, online agents-only portal. Use the “Search” feature on the right, and simply type in the account name or bond number. For help, click on “Search Hints” for help on inputting bond number and account names. Information/Forms accessible through PennConnect include the following:

n Copies of Bonds/Riders/Endorsements (Contract Bonds, Commercial Bonds, Fidelity Bonds)

n Direct Bill – BCMS Cancellation

n Direct Bill – BCMS Reinstatement

n Bond Change Request

n Bond Processing Worksheets

n Cancellation Requests/LPR

n Cancellation Notices

n Non-Renewal Notices

n Reinstatement

n Renewal Transaction Report

QuestionsIf you have any questions about PennConnect and our electronic access, please contact your customer service specialist.

User name & password

Do you have your own user name and password?

If not, please contact your system administrator. If your agency doesn’t have a system administrator, call our Customer Contact Center at 800.766.2245, 8 am to 4:30 pm EST, Monday through Friday.

Online Tools

Surety & Fidelity Product Portfolio

Who to Contact

Wh

o to

Co

ntact

Mark Fitzgerald vice president

[email protected]

x 6870

My Territory Manager/Contract Surety Underwriter

Name ext.

Cell

My Rapid Product Suite Underwriter

Name ext.

Name ext.

My Commercial Surety/Fidelity Underwriter

Name ext.

My Surety/Fidelity Product Specialist

Name ext.

My Customer Service Specialist

Name ext.

Call your CSS for: Non-Underwriting Questions & Inquiries

n Direct/Agency Bill

n Renewal Stacks

n Processing Transactions

n Issuance Cancellations

Create A Customized Contact List

You can choose which Penn National Insurance contacts are important to you and then print them for your convenience. Click on Employee Directory at the bottom of the PennConnect page and then select Additional Contacts.

Submissions & Change Requests/Endorsements

n Fax to 866-784-9256

n Email to [email protected]

n Mail to P.O. Box 2243, Harrisburg, PA 17105-2243

n Ship to 2 N. Second Street, Harrisburg, PA 17101

Power of Attorney

Need a Power of Attorney or changes to your current version?

n Complete the Power of Attorney Request form found on PennConnect and email [email protected]

View and print POA

n To view and print POAs, go to the Surety/Fidelity page on PennConnect.

Need a supply of bond numbers?

n Send your completed register to [email protected] or fax 866-784-9256.

n We will send you a new supply within 24 hours.

Phone: 717-234-4941 • Toll- Free: 800-388-4764

Who to Contact

www.PennNationalInsurance.com

Committed to independent agents. period.

Since 1919, we’ve offered our unwavering commitment

to the independent agency system, our sole means of

distributing our products. A system where relationships

are key. Relationships between you and your insureds.

And relationships between you and your carriers.

As a regional mutual, we know we can’t be the

market for all your customers. But because we’re a

regional mutual, we’ll respond to your needs. Fast.

With a consistent underwriting approach. With

an ongoing commitment to independent agents.

With a dedication to building relationships.

And with more ways to make business easier for you.

An Equal Employment Opportunity/Affirmative Action Employer©2011 Penn National Insurance Form 92-151 (7/2011)