42. Importer has a contract with Kitchen Sink Surety Co. (Kitchen Sink) for a continuous bond. Importer is terminating its relationship with its current broker and is hiring a new broker effective April 15, 2024, and before its next shipment due June 1, 2024. The new broker does not have an existing relationship with Kitchen Sink but has its bond with Best Surety Co. (Best). What changes will need to be made to Importer’s continuous bond contract with Kitchen Sink when Importer terminates its relationship wi th its current broker and hires the new broke r?(2024 April No.42 Entry / Entry Summary)
A) The existing bond contract between Importer and Kitchen Sink must be
B) The existing bond contract will need to be converted from a continuous bond to a
C) The new broker will notify CBP to substitute Best for Kitchen Sink. on Importer’s
D) No changes to the existing bond contract are required and Importer as the
[bg_collapse view=”button-green” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer and Citation” collapse_text=”Hide Answer and Citation” ]
The Answer is: D
Citation: ACE BRPD Chapter 3
[/bg_collapse]