Does the premium charge for the bond need to be listed on the bond?

Does the premium charge for the bond need to be listed on the bond?

• A. No
• B. Yes
• C. Only if over a threshold
• D. Only for out-of-state

Answer: (B)

In a surety bond, the premium is the fee paid for obtaining the bond, and the bond is a contract among three parties—the principal, the obligee, and the surety. Because the bond represents the consideration for that contract, the document should clearly show the premium amount (and often the rate and payment terms). Listing the premium provides transparency about the cost of the bond and keeps all parties’ records aligned for enforcement, renewal, and accounting. Since this is standard practice, the premium is normally included on the bond itself, not omitted or required only in special cases.

In a surety bond, the premium is the fee paid for obtaining the bond, and the bond is a contract among three parties—the principal, the obligee, and the surety. Because the bond represents the consideration for that contract, the document should clearly show the premium amount (and often the rate and payment terms). Listing the premium provides transparency about the cost of the bond and keeps all parties’ records aligned for enforcement, renewal, and accounting. Since this is standard practice, the premium is normally included on the bond itself, not omitted or required only in special cases.