Jet Insurance added to Treasury’s Circular 570 list of surety providers
Jet Insurance added to Treasury’s Circular 570 list of surety providers | Insurance Business America
Insurance News
Jet Insurance added to Treasury’s Circular 570 list of surety providers
Certification to allow for bond issuance for federal contracts, expanding capacity
Insurance News
By
Kenneth Araullo
The US Treasury Department has added Jet Insurance Co. to its Circular 570 list of certified surety bond providers, allowing the company to issue bonds for contracts tied to federal jobs.
Being listed on Circular 570, also referred to as the Treasury list or T-list, is a requirement for any company issuing bonds mandated by federal agencies.
According to AM Best, Jet Insurance noted that inclusion on the Treasury list is essential for firms that provide bonds required by federal agencies such as the Federal Motor Carrier Safety Administration, the Centers for Medicare & Medicaid Services, the Employee Benefit Security Administration, and US Customs and Border Protection.
Jet Insurance stated that its entry into the market will offer additional capacity to the surety sector, which has seen increased strain in specific areas, including the federal freight broker bond market. This segment has experienced several carriers leaving the market.
Spencer Siino (pictured above), CEO of Jet Insurance, commented that obtaining this certification has become more challenging in recent years. He remarked that no other independent surety companies like Jet have been added to the Treasury list in recent memory.
The Treasury Department has revised its certification criteria over time, according to a spokesperson from Jet Insurance. On Aug. 9, the department enacted a final rule updating its financial analysis method, rules for reinsurance credit, and documentation requirements for companies seeking certification.
To achieve certification, companies must meet several criteria, including providing recent state insurance department examinations, confirmation from the insurance commissioner where the company is domiciled that it holds at least $100,000, and copies of all active reinsurance treaties.
Jet Insurance Co. currently holds a Best’s Financial Strength Rating of B++ (Good).
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