Licensing & rating.

Federal licensing requirement

ERISA bonds are mandated by federal law, and the regulatory regime is administered by the U.S. Department of Labor. The federal code is unambiguous about which surety companies are acceptable to the United States government for the issuance of bonds. The relevant authority is the Act of Congress of July 30, 1947, as amended, and codified at 31 U.S.C. § 9304-9308.

The practical effect of the statute is straightforward: any surety bond required by federal law — including the ERISA fidelity bond required by Section 412 of the Employee Retirement Income Security Act — must be issued by a surety corporation that meets the federal qualifications. The list of qualified corporations is maintained and published by the Treasury's Bureau of the Fiscal Service in what is commonly called the "T-List" or "Circular 570."

For a plan trustee, the implication is also straightforward: your bond must be written by a T-Listed carrier. A bond issued by an unlisted carrier may not satisfy the ERISA requirement and may expose the responsible fiduciary to personal liability under Section 409.

T-List (Circular 570)

The U.S. Treasury Department's published list of surety companies authorized under federal law to issue surety bonds for federal obligations. Maintained by the Bureau of the Fiscal Service and updated periodically.

Surety Corporation

An insurance company in the business of guaranteeing the performance, fidelity, or compliance of other persons under specified obligations. Surety companies must be incorporated under U.S. or state law and meet capital, regulatory, and operational requirements set by the Treasury.

Underwriting Limit

The maximum bond amount each T-Listed surety can issue on a single risk. Limits are set by the Treasury based on the carrier's capital and surplus and are listed on Circular 570 alongside the carrier name.

General Agent

A licensed underwriter authorized to execute bonds on behalf of insurance carriers. Surety One, Inc. operates as a general agent for the carriers it represents — meaning we underwrite, issue, and service bonds, with the carrier providing the insurance capacity.

The statute, verbatim

Below is the operative language of 31 U.S.C. § 9304, the section establishing the federal authorization for surety corporations on bonds given to the United States. We reproduce it directly so plan sponsors and counsel can rely on the actual statutory text rather than a paraphrase.

31 U.S.C. § 9304. Surety corporations

(a) When a law of the United States Government requires or permits a person to give a surety bond through a surety, the person satisfies the law if the surety bond is provided for the person by a corporation —

(1) incorporated under the laws of —
    (A) the United States; or
    (B) a State, the District of Columbia, or a territory or possession of the United States;

(2) that may under those laws guarantee —
    (A) the fidelity of persons holding positions of trust; and
    (B) bonds and undertakings in judicial proceedings; and

(3) complying with sections 9305 and 9306 of this title.

(b) Each surety bond shall be approved by the official of the Government required to approve or accept the bond. The official may not require that the surety bond be given through a guaranty corporation or through any particular guaranty corporation. — Act of Congress of July 30, 1947, as amended (31 U.S.C. § 9304)

Sections 9305 and 9306, referenced in subsection (a)(3), set out the application requirements for surety corporations seeking Treasury approval and the ongoing capital and surplus requirements that listed carriers must continue to satisfy. The Treasury enforces those requirements continuously; carriers that fall out of compliance are removed from the list, and bonds in force on a delisted carrier may need to be replaced.

How to verify Treasury T-Listing

Anyone — plan sponsor, trustee, attorney, auditor, or curious participant — can verify that a surety company is currently T-Listed in two minutes using the publicly accessible Treasury website. This is the right thing to do before signing any bond placement.

1. Visit the Treasury Bureau of the Fiscal Service.Go to fiscal.treasury.gov and navigate to "Surety Bonds" → "Circular 570." The list is also accessible directly via search engines.
2. Search by carrier name.The list is alphabetical. Search for the carrier on your bond — its full corporate name, not the marketing brand. Most carriers operate under multiple trade names; the listing uses legal names.
3. Confirm the underwriting limit.Each listed carrier has a per-risk underwriting limit set by the Treasury. Confirm the limit is at least equal to the face amount of your bond. If the limit is lower, the carrier may participate via co-surety or excess arrangements; ask your underwriter.
4. Check the state of domicile.Each carrier shows its state of incorporation. This is informational — there is no requirement that a carrier be domiciled in the same state as the plan, but counsel may want to know for conflicts-of-laws purposes.
5. Note the date of the listing.The Treasury updates the list periodically. The version posted at the time of your bond issuance is the version that controls compliance.

The A.M. Best rating system

Treasury T-Listing is a regulatory threshold — it tells you a carrier is legally authorized to issue federal-obligation bonds. It does not tell you the carrier is financially strong relative to its peers. For that, the surety industry relies on the independent rating issued by A.M. Best Company, the preeminent rating agency for insurance and surety carriers.

A.M. Best assesses a surety company on its market conduct, financial performance, capital adequacy, operational practices, and other factors that bear on long-term stability. Stability matters to the bond purchaser because the bond applicant expects the insurer to faithfully guarantee what it has promised to guarantee — for the entire bond term and beyond, through claims that may take years to resolve.

All ERISA bonds we write are placed on carriers carrying an A.M. Best rating of A- (Excellent) or better. We do not place ERISA bonds on B-rated carriers, regardless of price advantage. The plan's expectation that the surety can pay a covered loss two, three, or five years after bond issuance is not negotiable.

How to verify an A.M. Best rating

A.M. Best maintains a free public lookup of carrier ratings at ambest.com. The verification process is similar to T-List verification:

1. Visit ambest.com.The home page includes a search field for "Find a Best's Credit Rating." Enter the carrier's full legal corporate name.
2. Confirm the current rating.The lookup displays the current Financial Strength Rating and the date it was last reviewed. Most ratings are reviewed annually.
3. Check the rating outlook.A.M. Best assigns each rating an outlook — Stable, Positive, Negative, or Under Review. A "negative" outlook on an A- rating may signal upcoming downgrade; ask your underwriter about replacement options if you see one.
4. Note the rating date.The rating is a point-in-time assessment. Long-tail bond claims may resolve under a rating different from the rating at issuance. The carrier remains obligated regardless.

Our corporate structure

ERISA-Bonds.com is the dedicated portal of Surety One, Inc. — a member of the Poindexter Surety group of companies and wholly-owned by Janus Assurance Re. The structure exists to give Surety One operational flexibility to underwrite on behalf of multiple T-Listed carriers, while concentrating expertise in fidelity and surety bonds within a single licensed organization.

Office locations

Surety One, Inc. maintains offices in two locations supporting U.S. and territorial operations:

• 5 W Hargett Street, 4th Floor, Raleigh, NC 27601 — primary U.S. office
• 404 Av De La Constitución, #708, San Juan, PR 00901 — territorial office serving Puerto Rico and the U.S. Virgin Islands

All ERISA bond underwriting is handled by the Raleigh office. The San Juan office handles bonds for plans in Puerto Rico and the U.S. Virgin Islands, where local statutory requirements occasionally diverge from federal ERISA requirements.

Frequently asked questions

Do I have to use a Treasury-listed carrier specifically for an ERISA bond?

The Treasury T-List requirement is the federal regulatory baseline for any surety bond required by federal law. ERISA bonds, required by 29 U.S.C. § 1112, fall within this requirement. While not every Department of Labor enforcement action has turned on T-List status alone, using an unlisted carrier creates avoidable risk and may complicate Form 5500 compliance. Our position is straightforward: T-Listed only.

What happens if the surety carrier goes out of business mid-term?

The Treasury removes carriers from the T-List if they fail to meet ongoing capital and surplus requirements. A carrier removed from the list does not automatically lose its existing bond obligations — bonds in force generally continue to bind the carrier even after delisting. However, plan sponsors may wish to replace bonds on delisted carriers proactively. We monitor our carriers' standing and proactively notify clients if a replacement is advisable.

Can I see a copy of my carrier's A.M. Best rating report?

Full A.M. Best rating reports are subscription products, but the rating itself is public and free. The rating-only lookup at ambest.com gives you the current letter rating and outlook. If you need a formal certificate of insurance or a written confirmation of carrier rating for audit purposes, we can provide that on request.

Are co-surety and excess arrangements allowed?

Yes. For bond amounts that exceed a single carrier's underwriting limit, two or more T-Listed carriers may participate as co-sureties on a single bond, or one carrier may write the primary bond while another writes excess coverage. All participating carriers must be T-Listed and meet our A.M. Best minimum rating; the structure does not relax either requirement.

Does state insurance regulation also apply?

Yes. T-List status is the federal regulatory baseline, but each carrier must also be licensed in the state where the bonded plan operates. Most large T-Listed sureties are licensed in all 50 states. We confirm state licensing as part of carrier selection on each placement.