A. Classification of risk
Prior to the issuance of the surety insurance, the Company must proceed with the risk classification of the Contractor that requests it.
The risk classification consists of setting a maximum amount of risk that the Company can assume with respect to a Contractor. To be able to study the risk limit to be set, the Company must have the precise information for this, for which the completion of the corresponding form is required, accompanying the documentation indicated therein, being particularly important the sending of the financial statements. of the Contractor, audited when required to do so, or failing that, the information provided to the Commercial Registry or the Treasury.
The main basis considered for the study of risk is financial information. For those applicants who do not have a solid financial structure, in the opinion of the Company, sufficient for it to assume the risk, it may contemplate the provision of counter-guarantees, usually from shareholders or related entities. The persons or entities signing these counterguarantees assume, together with the Policyholder and against the Company, the duty of reimbursement in the event that the latter has to proceed to indemnify the Insured.
If the classification is authorized, a global bond insurance policy will be issued, at no cost to the Contractor (Policyholder), stating in the particular conditions of the policy the amount of the classification, the type of authorized risk, the economic conditions and the form of payment of the premium, among other concepts.
The risk classifications must be renewed, at least, once a year, for which the Policyholder will provide the Company with the corresponding updated financial information.
B. Issuance and validity of the surety insurance
Once the classification has been authorized and the global policy has been signed, the Policyholder can begin to request the issuance of surety bonds, for which it will be sufficient to send, by fax or other means, to the Company, the information relative to each one of the guarantee insurance, that is to say: the requested amount, the Agency before which the surety insurance is presented, the title of the work or contract object of the insurance, indicating also if it is a guarantee of bidding or of compliance with the contract.
The risk of the surety insurance can not be canceled as long as the Company does not have the original deposit insurance document returned. The risk may also be canceled if the Company receives a letter from the beneficiary of the surety bond, releasing the Company from any liability in this regard.
For surety bonds corresponding to the Bidding Guarantees, a single premium will be generated, applying the rate of authorized premium and reflected in the particular conditions of the policy to the amount for which the surety bond was issued.
For surety bonds corresponding to the Guarantees of Contract Compliance, an annual premium will be generated, applying the rate of authorized premium and reflected in the particular conditions of the policy to the amount for which the surety bond was issued. While the risk is not canceled, a new premium receipt will be issued each year