Non-Participating Manufacturer Surety Bonds

What is a Non-Participating Manufacturer Surety Bond?

Non-Participating Manufacturer Surety Bonds are required for producers of tobacco and tobacco-related products that do not comply with the 1998 Tobacco Master Settlement Agreement (MSA).

The MSA is legislation intended to facilitate the settlement of extensive healthcare costs and damages resulting from cigarette smoking, as well as reduce overall tobacco use in the United States through various prohibitions on manufacturers. These surety bonds are designed to compensate for the mandatory funding which the MSA requires states to contribute to healthcare costs directly influenced by tobacco use, through required quarterly payments. These funds may also be used to cover court actions or settlements brought against the manufacturer. Non-Participating Manufacturer Surety Bonds ensure tobacco producers compliance with all applicable laws and regulations.

Which states require Non-Participating Manufacturer Surety Bonds?

Pacific Surety proudly offers Non-Participating Manufacturer Surety Bonds in the following states:

If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.

What is the bond amount for Non-Participating Manufacturer Surety Bonds?

Bond amounts for Non-Participating Manufacturer Surety Bonds vary and are based on the obligee’s requirements for licensure. Bond amounts and requirements will fluctuate from state to state. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.

How much does a Non-Participating Manufacturer Surety Bond cost?

Pricing for A Non-Participating Manufacturer Surety Bonds will vary, and your premium will be based on the following factors:

  • State the bond is required in
  • Amount of the bond
  • Term length of the bond
  • Personal credit for anyone with at least a 10% ownership stake in the business

Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Non-Participating Manufacturer Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.

Can I get a Non-Participating Manufacturer Surety Bond with bad credit?

Pacific Surety offers a wide range of approvals, regardless of credit, for Non-Participating Manufacturer Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.

How do I purchase a Non-Participating Manufacturer Surety Bond?

The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.

After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.

Who does a Non-Participating Manufacturer Surety Bond protect?

Non-Participating Manufacturer Surety Bonds were introduced as part of the 1998 Tobacco Master Settlement Agreement (MSA). The MSA intended to facilitate the settlement of extensive healthcare costs and damages resulting from cigarette smoking, as well as reduce overall tobacco use in the United States through various prohibitions on manufacturers. These surety bonds are designed to compensate for the mandatory funding which the MSA requires states to contribute to healthcare costs directly tied to tobacco use through required quarterly payments. These funds may also be used to cover court actions or settlements brought against the manufacturer.

Non-Participating Manufacturer Surety Bonds ensure tobacco producers’ compliance with all applicable laws and regulations. Should the manufacturer violate any rules and regulations, a claim can be filed on the bond. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. You are then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.

Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.

Pacific Surety proudly offers Non-Participating Manufacturer Surety Bonds in the following states:

Please select a state

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