Common Myths about Repossession Insurance
A Bond is A Bond is A Bond
Again, completely false. A bond is not a promise written on a frilly piece of certificate style paper. It is a legal insurance contract between the insurance carrier and the insured. Like any other insurance policy, the bond should be evidenced on a certificate of insurance, and the financial stability of the carrier providing coverage should be able to be verified through a source like AM Best. If a self insured bond has been accepted by your institution in the past, at minimum, you should be requesting financial statements of the company to be certain they have the funds set aside sufficient to meet the promised limits.
When reviewing a bond designed to cover more than one entity, like an association bond generally does, you'll also want to be certain that the insurance policy defines the insured as a repossession company or companies with a schedule of insured. Otherwise what you may be accepting is a properly written bond to cover the employees of the association or group ... but it may not be covering the repossession agencies that are a part of that group.