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FAQ

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 a three party agreement between the Principal (the promotion sponsor), the Oblige (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.

  • What is Bonding & Registration (B&R) Service?

    • Bonding & Registration Service is a service provided by SCA through its online website bonding service, RegisterSweeps.com. B&R Service includes bond execution and registration filing to expedite the filing process of the promotion/sweepstake with the appropriate state. This service may also include 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 will issue the required bond through its online bonding service, RegisterSweeps.com, 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 executing, filing or registering the promotion on behalf of the promotion sponsor.

  • What is a Limited Power of Attorney (LPOA)?

    • A Limited Power of Attorney (or LPOA) is a document, when executed by the Sponsor, that grants SCA authority to execute the issued Game of Chance surety bonds on behalf of the client. The LPOA form is needed to expedite the handling of said filings with each state’s regulatory office.

  • What is a General Indemnity Agreement (GIA)?

    • The General Indemnity Agreement (or GIA) is a guarantee by the Sponsor to reimburse the surety company for financial loss that the surety may suffer as a result of the failure of the Sponsor to provide prize fulfillment as stated within the rules of their promotion/sweepstake.

  • Why is a Game of Chance surety bond needed?

    • FL and NY require 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.

  • What amount has to be bonded?

    • In FL and NY, a bond should 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.

  • Is a surety bond needed in Florida or New York if a chance to win type promotion is offered from one business to another business?

    • A surety bond for a business to business promotion is not needed if the promotion is not offered to the general public in connection with advertisement or sale of consumer products or services. Only when the promotion is advertised to the general public of each state would a sponsor need to submit a surety bond and a promotion registration to the appropriate state AND if the total amount of all prizes available exceeds $5,000.

  • 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.
      • NY – requires 30 days prior to start date of promotion/sweepstake.
      • RI – requires filing prior to start date of promotion/sweepstake.
      • AZ -requires filing prior to start date of promotion/sweepstake.

  • Are there any further submissions needed once the promotion/sweepstake ends? (applies to Bond Only Service clients)

    • • FL – requires Winners List form#DACS-10951 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 Secretary 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 and filed within 10 days after all prizes are awarded.

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