Insurance

Bonds

1. Surety Bonds - A contract whereby one person engages to be answerable for a debt, default or miscarriage of another. It is an accessory promise by which a person binds himself for another already bound, and agrees with the creditor to satisfy the obligation, if the debtor does not. It is a written instrument requiring that two parties pay a third party a sum of money if an obligation is not fulfilled.

2. Heirs Bond - Broadly speaking, the term "heir" includes all persons, whether relatives or not, who succeed or inherit from a deceased person either by will or under the laws of intestate succession (when the decedent left not will). The "estate" of the deceased constitutes the mass or totality of properties, whether real or personal, including the transmissible rights and obligation of the deceased.

3. Judicial Bonds - the law manifests a great deal of concern for the proper and humane solution of human problems and the just rights of those whose interests are of primary importance. Therefore, one who is entrusted with funds or property belonging to others, legally referred to as "acting in a fiduciary capacity" - such as the executor, administrator, guardian, or trustee of a ward or an estate - is required to give a surety bond for the faithful performance of his duties.

Likewise, in the course of litigation before courts or quasi-judicial bodies, a party may avail of certain privileges or remedies which the laws allows. Such party is bound by law to indemnify his adversary for any loss or damage which the latter may incur or suffer, if the former is eventually found by the court not entitled thereto. The court, before granting the privilege or special remedy applied for, requires the party applying to file a bond to secure his obligation to indemnify the adverse party.

The judicial bond is so named because this type of bonds are required by courts of justice or administrative bodies clothed with quasi-judicial powers in connection with judicial proceedings conducted before them.

For more information, please call 688-1211 or 688-1212.