Configuring a Bond Term Penalty

Penalty Configurations

When building a bond, users must set the basic configuration properties that will establish premium calculation, expiration, billing, and bond-specific settings.

• Select Build a Bond/Configure/Term tab.

• Scroll down to the Penalty section.

•  Use the radio button to make your selection. The selections are defined below.

Penalty Amount Options

Within Tinubu Surety Solution for Carriers (TSC) there are three ways to establish the penalty amount for a bond: Variable, Fixed, and Predefined.

Variable

• A variable penalty type allows a user purchasing the bond to enter the exact penalty amount desired, although this is limited to a range.   Enter the minimum and maximum penalty amounts to be allowed for this bond configuration into the corresponding fields, as shown below.

Fixed

• A fixed penalty type establishes an exact penalty amount for this bond configuration.  The user purchasing the bond does not have the ability to make any changes to this.  However, this could be altered at a later action with a Premium Bearing Rider if needed.  Enter the fixed amount into the corresponding field as shown below:

Predefined

• A predefined penalty type allows for a selection of different penalty amounts from a dropdown list.  The user purchasing the bond would select the penalty amount from the options given in the dropdown list.  The dropdown list needs to be set up before applying it to the bond configuration. Please refer to the Dropdown Lists - Creating and Editing guide for more information.