S.B. 2440 Summary

• Requires surety companies to provide written disclosure of all potential personal losses that may arise from actions on surety bonds to principals acting in their individual capacity.

• Mandates that surety companies provide counseling (as prescribed by the Department of Commerce and Consumer Affairs) to principals over age 62 regarding their capacity to sustain personal losses from surety bond defaults.

• Exempts principals acting as employees or corporate officers from these disclosure and counseling requirements.

• Takes effect upon approval.