What Does Surety Association Of America Mean?
The Surety Association of America a trade association comprised of companies that collectively write a significant proportion of surety and fidelity bonds in the US. The name changed to the Surety & Fidelity Association of America (SFAA) on May 18, 2006. The bonds it issues help in promoting economic development and facilitating commerce. In addition, they also protect taxpayers, business establishments and consumers by:
- Assuring the payment of contractors;
- Ensuring compliance with the relevant state laws;
- Protecting against breach of any fiduciary responsibilities; and
- Vouching for (or guaranteeing) the completion of various construction projects, such as schools, roads, hospitals, etc.
Insuranceopedia Explains Surety Association Of America
The Surety & Fidelity Association of America functions as a rating or advisory organization in all the states. In addition, many state insurance departments designate the association as a statistical agent that reports fidelity and surety experiences.
One of the foremost responsibilities of the SFAA lies in representing its member companies in matters of common interest before various federal, state and local governmental agencies. Its departments usually deal with:
- Underwriting of surety and fidelity bonds,
- Statistical information,
- Publications,
- Regulatory filings,
- Government affairs, and
- Membership.