GENERAL BONDING QUESTIONS
What is a surety bond?
A bond is a financial guarantee. It is a third party guarantee that an entity (i.e. - the promotion sponsor) will fulfill their obligations. The bond is
also a three party agreement between the Principal (the promotion sponsor), the
Obligee (the beneficiary on the bond - i.e. the state of FL or NY) and the
Surety Company (the third party guarantor issuing the bond ). A bond is to
protect the consumers from promotion sponsors who fail to fulfill the prizes of
a sweepstakes as indicated in the sponsor's official rules. The Surety Company
pledges to pay the value of the bond if the principal does not. When the surety
company is required to pay on behalf of the principal, they will, based on an
executed indemnity agreement, request restitution from the principal (promotion
sponsor).
What is Full Bond & Registration Service?
Full Bond & Registration Service is a service provided by SCA thru
it's online bonding service, RegisterSweeps.com, that includes bond execution
and registration filing to expedite the filing process of the promotion/sweepstake with the appropriate state. This service also includes
filing the Winners List for each state at the conclusion of the promotion.
What is Bond Only Service?
If the client only requires a Game of Chance surety bond to be issued, SCA
thru it's online bonding service, RegisterSweeps.com, will issue the required bond and send it back to the client for proper execution and direct submission to the state with the appropriate state registration form and fee. This service does not include SCA registering the promotion on behalf of the promotion sponsor.
What is a Limited Power of Attorney?
A Limited Power of Attorney (or LPOA) is a document, when executed by the Sponsor, which grants SCA authority to execute the issued Game of Chance surety bonds on behalf of the client. This LPOA form is needed to expedite the handling of said filings with each state’s regulatory office.
What is a General Indemnity Agreement?
The General Indemnity Agreement (or GIA) is a guarantee by the Sponsor to reimburse the surety company for financial loss the surety may suffer as a result of the failure of the
Sponsor to perform as required under the underlying agreement of their promotion/sweepstake.
Why is a Game of Chance surety bond needed?
FL and NY requires any entity offering a game promotion/sweepstake with prizes valued greater than $5,000 to register the game along with a surety bond in the amount of the total value of all prizes offered in the game promotion/sweepstake.
RI only requires game promotion/sweepstake with prizes valued greater than $500 to be registered, no surety bond is needed.
AZ requirement only applies when the game mandates the consumer to either have a particular skill or purchase an item in order to participate. This type of game must be registered in Arizona as this particular type of promotion/sweepstake is considered a Game of Skill.
What amount has to be bonded?
FL and NY require a bond to be issued for the total value of all prizes offered in the promotion/sweepstake, even if multiple prizes are being given away. If the prize is an annuity prize, you can bond the present value amount of the annuity. Please provide the state a copy of your annuity quote.
How many days in advance does the state require the Game of Chance surety bond and registration form to be filed?
FL - requires 7 days prior to start date of promotion/sweepstake.
(include weekend and holiday dates when trying to determine exactly when the bond should be filed with the state)
NY - requires 30 days prior to start date of promotion/sweepstake.
RI - requires the registration of the promotion/sweepstake to be filed before the start of the event.
AZ - requires the registration of the promotion/sweepstake to be filed before the start of the event.
Are there any further submissions needed once the promotion/sweepstake ends?
(applies to Bond Only Service clients)
FL - requires Winners List form#DACS-10951 (page 5
of registration package) to be completed within 60 days after the date of final
determination of winners.
NY – requires Certification of Winners form#DOS-262 to be completed within 90 days after the termination date of the promotion/sweepstake.
RI - upon the request and notification from the
RI Sec. of State Office, the Sponsor will need to supply a listing of all names, addresses and disclose the amount of all prizes awarded valued at more than $25 to SCA for submission to RI; the sponsor is required to keep their records of all winners 6 months after the completion of the promotion/sweepstake.
AZ - requires the Winners List Form to be completed within 10 days after all prizes are awarded.
What happens if a need arises to extend the promotion after the surety bond has been issued and filed with the state?
FL - once the documents have been filed with the state, the promotion cannot be extended.
NY - once the documents have been filed with the state, a change rider can be issued.
SITE QUESTIONS
How do I get started?
To get started, simply click on the "Get Started!" link and complete the registration
form. Your newly created account will be reviewed, and you will be notified within one business day of your approval status.
What are the fees?
We offer very competitive rates on bonds and extremely low registration
fees. Please feel free to contact our office directly at 888-860-3767 with specific pricing questions.
What if I forget my username?
If you forget your username, simply contact RegisterSweeps.com at
888-860-3767 and we will get you that information.
What if I forget my password?
If you forget your password, simply click on the "forgot your password"
link on the Registersweeps.com Home page and enter your username. An automated
email will be sent to you with your password.
What if my company information changes?
If your company information changes, simply log in and click on "Edit Company Information" to change your information as needed.
What if I close my browser or the site times out and I am not finished ordering bonds/registrations?
If you close your browser or your session times out before you save or submit the information, you will lose all the information you have entered.
Do I need to enter all of my contact information or the sponsor information each time I order bonds/registrations?
You do not need to enter all of your contact information or the information for approved sponsors each time you order bonds/registrations. You need only enter the promotion specific information.
What if I need to change something on a bond/registration that has been submitted?
If you need to change information on bonds/registrations that are in
SAVE mode, simply click on the specific
promotion to modify. If the bonds/registrations are in
SUBMITTED mode, then the order CANNOT be changed.
How does a Promotion Sponsor get approved?
RegisterSweeps.com will review the sponsor information and obtain the most recent financials to approve a sponsor for bonds. Additionally,
RegisterSweeps.com will require a General Indemnity Agreement signed by the
sponsor to be submitted one time only.