Commissioner’s Bulletin # B-0007-00

The Texas Department of Insurance has assigned the following TDI Reference Numbers to surety bond forms submitted by the following state agencies:

Reference Number TDI-99-BB-155-TEA-PF, Texas Education Agency (Revisions).

This bond contains a substantive change requiring that the seal of the surety must be affixed to each of the Texas Education Agency (TEA) bonds. The revised forms are: $25,000 Course Provider Bond, $25,000 Course Provider Continuation Agreement, $10,000 Driver Education School Bond, $10,000 Driver Education School Continuation Agreement, $5,000 Driver Education Branch School Bond and $5,000 Driver Education Branch School Continuation Agreement.

You may obtain copies of the bonds from the following:

Eileen Johnson, Program Specialist II
Texas Education Agency, Driver Training Division
1701 North Congress Avenue
Austin, TX 78701-1494
Telephone 512-997-6500

Reference Number TDI-99-BB-150-TXDOT-PF, Texas Department of Transportation Bid Bond (New).

The Construction Division of the Texas Department of Transportation (TXDOT) has revised its rules to allow contractors to post a bid bond as a proposed guaranty on projects which are estimated to involve less than $300,000. The penalty of the bond is not less than five percent (5%) of the greatest total amount of the bidder´s proposal. This will permit construction and/or maintenance contractors to submit bid bonds in lieu of guarantee checks in bid lettings.

You may obtain copies of the bond from the following:

Reference Number TDI-00-BB-150-TXDOT-PF, Texas Department of Transportation Warranty Bond (New) and Performance Bond and Payment Bond (Revisions).

The Warranty Bond is a new form that is intended to guarantee against defects in material or workmanship, for recently completed work or materials supplied, which may become apparent in the warranty period specified in a contract. There were no substantive changes to either the Performance Bond or Payment Bond forms.

Please refer to the previously named contact source for the TXDOT Bid Bond, to obtain copies of the above bonds.

TDI-00-BB-150-HHSC-PF, Texas Health and Human Services Commission CHIP Program Performance Bond (New).

This bond will be required when the Health and Human Services Commission contracts with an HMO to provide service for the Children´s Health Insurance Program (CHIP). The total aggregate liability of the bond is $100,000.

You may obtain copies of the bond from the following state agency:

The Texas Health and Human Services Commission
Associate Commissioner For Children´s Health
4900 North Lamar, Fourth Floor
Austin, Texas 78751
www.hhsc.state.tx.us

Insurers that wish to write the bonds described in this bulletin are required to make a filing with the Texas Department of Insurance as outlined in the reference filing procedures contained in Property and Casualty Filings Made Easy currently accessible on our website at www.tdi.state.tx.us.

Assignment of reference numbers does not preclude the independent filing of surety bond forms by insurance companies for approval by the Commissioner. The filing company must confirm that the form(s) meet the statutory requirements of the appropriate state agency, and that the state agency finds the forms acceptable.

Questions regarding this bulletin may be addressed to:

Texas Department of Insurance
Irwin Thomas
Commercial Property/Casualty Division MC 104-PC
P O Box 149104
Austin, TX 78714-9104
512-322-3475
Irwin.Thomas@tdi.state.tx.us

Sincerely,

Marilyn Hamilton, Deputy Commissioner
Commercial Property/Casualty Division MC 104-PC