Major Forms of Guaranty Insurance
Guaranty Insurance have some form, and grouped according to products or services of the Insurance Company.
What is the form of products or services offered by the insurance company ?
There are some major forms of guaranty insurance :
Agrees to indemnify one party for nonperformance by another. This insurance may provide protection against losses from dishonesty, failure to pay debts, or failure to fulfill a contract.
In most juridictions, suretyship differs from the other types of guaranty insurance in that the principal obligor the party whose performance is being guaranteed is also a party to the bond, thus making three parties to the instrument. In other forms of guaranty insurance a guarantor enters into a two party contact with his insured.
What is the form of products or services offered by the insurance company ?
There are some major forms of guaranty insurance :
- Mortgage guaranty insurance
Guarantees the payment of principal and interest to holders of real estate bonds and mortgages if the borrower defaults. Lease or rental guarantee insurance is a variant of this arrangement. - Credit insurance
Indemnifies manufacturers, wholesalers, and jobbers against loss arising from insolvent debtors. - Suretyship
Includes fidelity bonds, which protect an employer agains dishonest performance by an employee, and surety bonds, which guarantee the performance of an obligation other than under a fidelity bond. - Title insurance
Indemnifies a real estate owner, leaseholder, or mortgage for loss arising from defects in titles undisclosed by a title search, and from liens not specifically exempted in the title insurance policy.
Agrees to indemnify one party for nonperformance by another. This insurance may provide protection against losses from dishonesty, failure to pay debts, or failure to fulfill a contract.
In most juridictions, suretyship differs from the other types of guaranty insurance in that the principal obligor the party whose performance is being guaranteed is also a party to the bond, thus making three parties to the instrument. In other forms of guaranty insurance a guarantor enters into a two party contact with his insured.
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