Conference 35.181::insurance

45.0. "BOND RATING AND ISSUE SYSTEM" by OZZAIB::RITCHIE (insurers are risk aversive) Mon Jul 25 1988 12:45

Dear Associates:

We have the oppotunity to bid on a PSS/Solution for a Bond/Surety line
of business at a major insurer.  I would like to find a third party
vendor with either specific knowledge/product for the line of business or
a product with same functionality for a similar product.  I believe that
we can win only if we demonstrate outstanding knowledge of the business
situation.  P.S  The customer is already committed to a Digital hardware
platform.

I AM LOOKING FOR A SOLUTION!!!!!!!!

The business:

A surety Bond is a three-party agreeement in  which a Principal (adminstrator,
licensee, Public Official, Contractor) and a Surety (insurer) are bound to an 
Obligee (beneficiary, owner).  The bond must be in writing and connot be
"bound".  The Principal may be required to execute an indemnity agreement.  
Underwriting is based on "prequalification".  Losses are not expected.  Somne
Surety Bonds cannot be cancelled.  Non-payment of premiums in no way affects 
the liability of the surety on the Bond.  Even if the bond was obtained
through frad, the Surety is still liable.

The functionality:

1.  Qualify Accounts, Set limits and Rates.

2.  Evaluate Bond Application.

3.  Secure Reinsurance.

4.  Issue Bond.

5.  Monitor Bonded Contract Job.

6.  Collect/Monitor Collateral

7.  Grant and manage Power of Attorney.

8.  Record and Recover Losses.

9.  Manage book of business