What is a Virginia Competitive Local Exchange Service Bond?
Know why this surety bond matters to your business!
What is a Competitive Local Exchange Service Bond?
Before the Virginia State Corporation Commission can grant a certificate to any competitive local exchange service applicants (telephone companies), they must first furnish a sufficient surety bond.
By obtaining the certificate and the surety bond, the competitive local exchange service company that operates an electric distribution system can then provide a local exchange telephone service in the Commonwealth of Virginia.
The surety bond’s purpose is to guarantee the compliance of the competitive local exchange service company to the Utility Facilities Act as well as other applicable rules.
Any failure committed by the competitive local exchange service company in fulfilling its obligations – in accordance with the Act – will result in a bond claim.
This means that the person who has suffered damages will be able to recover his or her financial losses by filing a claim against the bond.
What is the Competitive Local Exchange Service Bond amount?
The bond amount is $50,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium, or just 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Competitive Local Exchange Service Bond?
In order to secure this type of bond, the applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a Surety who is authorized to conduct business in the Commonwealth of Virginia
- The surety bond should be made payable to the Virginia State Corporation Commission
- The competitive local exchange service company (telephone company) must obey the provisions of the Utility Facilities Act as well as the rules and regulations of the Virginia State Corporation Commission
- If the competitive local exchange service company (telephone company) commits a violation, the aggrieved party will be eligible to file a claim against the bond