The state of Utah requires long-term care facilities that accept and manage patient trust funds to file a surety bond with the state. Residents of facilities such as these are vulnerable to improper use of trust fund finances, but this surety bond guarantees that the principal (care facility) protects and manages monies in the trust ethically and complies with all regulations in Section R432-150-12 of the Utah Administrative Code. 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 must be equal to or greater than all resident’s funds managed by the facility. The Utah Department of Health – Health Facility Licensing, Certification and Resident Assessment (HFLCRA) is the regulatory body that handles licensing for care facilities, and it is recommended you contact the HFLCRA for specific questions regarding licensing and 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.