In the State of Michigan, long-term care facilities are licensed and regulated by the Department of Licensing and Regulatory Affairs (LARA). Pursuant to Section 333.21321 of the Michigan Compiled Laws, long-term care facilities are required to file a surety bond with the LARA if they accept and manage the personal funds of their residents. Residents of facilities are vulnerable to improper use of trust fund finances, but this surety bond guarantees that the principal (care facility) will protect and manage monies in the trust ethically and in compliance with all applicable regulations of state and federal law. If a harmed party files a valid claim against the bond, the surety will pay out up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred.
The amount for this bond varies and is based on an amount equal to one and one fourth (1.25) the average balance of resident funds held during the prior year, or, for a new licensee, the estimated average amount of funds for the next year. It is recommended you contact the LARA for the bond amount you will need prior to bonding.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.
Surety Bond Name
Patient Trust Surety Bonds – Michigan
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