This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ... 275. Notes Accompanying Tabular Index 1. These bonds are deemed financial guarantees (section 231) and are commonly issued only in connection with collateral security (sec- tion 6). 2. These bonds are deemed financial guarantees (section 231) and are commonly written only in connection with collateral ...
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This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1922 edition. Excerpt: ... 275. Notes Accompanying Tabular Index 1. These bonds are deemed financial guarantees (section 231) and are commonly issued only in connection with collateral security (sec- tion 6). 2. These bonds are deemed financial guarantees (section 231) and are commonly written only in connection with collateral security (sec- tion 6) or otherwise only in behalf of exceptionally responsible princi- pals. 3. These bonds are deemed desirable business when issued in behalf of principals of good character. Joint control (sections 189-192) is frequently necessary or desirable. 4. These bonds are written freely, and upon an insurance basis (section 3) for the most part. 5. Most surety companies prefer not to write under any conditions certain classes of bonds, and they make up accordingly what they call their "Prohibited List"--a statement of these undesired and black- listed risks. Surety classifications are sometimes embodied in the lists, but the prohibition applies particularly to fidelity bonds, since almost any surety bond, however monstrous its condition, would be issuable for a responsible principal or with adequate collateral. There are some classes of fidelity bonds, however, with which it is hardly worth while to bother, because no premium that the traffic will bear would cover acquisition costs, losses, and claim expenses; that is, it is clear at the outset that the bonds cannot be prudently written without a thorough investigation, that a large proportion of rejections are in- evitable from the nature of the case, and that the paltry premium ob- tainable will by no means justify the necessary expenditure. Sewing- machine agents, book-canvassers, and commission salesmen in general are examples of these impracticable fidelity risks. The only...
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