After the reintroduction of the guarantee insurance, by Act 8666/93 (Public Tenders), Status Nacional set out to specialize in the sector of Contractual Commitment Guarantees (Guarantee Insurance), and started to operate with the undermentioned kinds of insurances.

The Guarantee Insurance has proven to be one of the most important kinds of guarantee, which helps to simplify the preparation of contracts, especially the large ones.

It is aimed at contracts that result in commitments related to the execution of construction work or the delivery of goods or services, and guarantee the correct execution of these contracts. A Guarantee Insurance is a technically efficient tool and less expensive than other kinds of guarantee.

The following kinds of Guarantee Insurance exist:

SERVICE GUARANTEES

GUARANTEES FOR AIRLINE TICKET SALE CONTRACTS



SERVICE GUARANTEES

BID BOND

A bid bond guarantees an indemnity payment, up to the limit set in the insurance policy, in the event that the winner of the public tender does not sign the contract that was the subject of the tender..


PERFORMANCE GUARANTEE

A performance guarantee guarantees an indemnity payment, up to the limit set in the insurance policy, in the event that the contracted party does not meet the contractual obligations.

A performance guarantee only refers to the execution of the contracts, not to the payment of penalties such as fines for delays (without breach of contract), which usually are offset against receivables.

ADVANCED PAYMENT GUARANTEE

An advanced payment guarantee guarantees an indemnity payment to the contracting party, up to the limit set in the insurance policy, for losses that occur when the contracted party, after receiving an advanced payment, fails to carry out the contracted services.

PAYMENT RETENTION GUARANTEE

A payment retention guarantee is issued when the contracting party agrees that the contractual payment retention is substituted by a bank (or other kind of) guarantee, and guarantees an indemnity payment up to the limit set in the insurance policy, for losses that occur when the contracted party, after the substitution, fails to carry out the contractual obligations.


DELIVERY GUARANTEES

BID BOND

A bid bond guarantees an indemnity payment, up to the limit set in the insurance policy, in the event that the winner of the public tender does not sign the contract that was the subject of the tender.A bid bond guarantees an indemnity payment, up to the limit set in the insurance policy, in the event that the winner of the public tender does not sign the contract that was the subject of the tender.

PERFORMANCE GUARANTEE

A performance guarantee guarantees an indemnity payment, up to the limit set in the insurance policy, in the event that the contracted party does not meet the contractual obligations.

A performance guarantee only refers to the execution of the contracts, not to the payment of penalties such as fines for delays (without breach of contract), which usually are offset against receivables.

ADVANCED PAYMENT GUARANTEE

An advanced payment guarantee guarantees an indemnity payment to the contracting party, up to the limit set in the insurance policy, for losses that occur when the contracted party, after receiving an advanced payment, fails to buy the necessary materials or to carry out any other contractual commitment.

PAYMENT RETENTION GUARANTEE

A payment retention guarantee is issued when the contracting party agrees that the contractual payment retention is substituted by a bank (or other kind of) guarantee, and guarantees an indemnity payment up to the limit set in the insurance policy, for losses that occur when the contracted party, after the substitution, fails to carry out the contractual obligations.

MAINTENANCE GUARANTEE

A maintenance guarantee guarantees an indemnity payment to the contracting party, up to the limit set in the insurance policy, for losses that occur if the contracted party delivers products that do not meet the contractual quality stipulations.

EXPORT GUARANTEES

An export guarantee guarantees an indemnity payment to the financial institution, up to the limit of the Advance on Exchange Contract, (Adiantamento sobre Contrato de Câmbio- ACC) for losses that occur if the respective merchandise is not exported.


CONSTRUCTION GUARANTEES

BID BOND

A bid bond guarantees an indemnity payment, up to the limit set in the insurance policy, in the event that the winner of the public tender does not sign the contract that was the subject of the tender.

PERFORMANCE GUARANTEE

A performance guarantee guarantees an indemnity payment, up to the limit set in the insurance policy, in the event that the contracted party does not meet the contractual obligations.

A performance bond only refers to the execution of the contracts, not to the payment of penalties such as fines for delays (without breach of contract), which usually are offset against receivables.

ADVANCED PAYMENT GUARANTEE

An advanced payment guarantee guarantees an indemnity payment to the contracting party, up to the limit set in the insurance policy, for losses that occur when the contracted party, after receiving an advanced payment, fails to buy the necessary materials or to prepare the necessary installations in the building site, or to carry out any other contractual commitment.

PAYMENT RETENTION GUARANTEE

A payment retention guarantee is issued when the contracting party agrees that the contractual payment retention is substituted by a bank (or other kind of) guarantee, and guarantees an indemnity payment up to the limit set in the insurance policy, for losses that occur when the contracted party, after the substitution, fails to carry out the contractual obligations.

MAINTENANCE GUARANTEE

A maintenance guarantee guarantees an indemnity payment to the contracting party, up to the limit set in the insurance policy, for losses that occur if the contracted party delivers products that do not meet the contractual quality stipulations


REAL ESTATE GUARANTEES

The real estate guarantees are elaborated in modules, each of which attends to necessities of a party involved in a real estate contract. The following kinds of coverage exist:


Module A - Delivery and Quality Guarantee

A delivery and quality guarantee guarantees to the purchaser the delivery of real estate in accordance with stipulations concerning quality and time of delivery, agreed upon with the building or real estate company. It is a guarantee against additional expenses that may occur if the building or real estate company fails to comply with the obligations stated in the respective purchase, sale or barter contract.

Module B - Constructor's Civil Responsibility Guarantee

A constructor's civil responsibility guarantee guarantees an indemnity payment for material and/or personal damage caused to third parties by actions for which the constructor, or any person or corporation working at the construction site under the constructor's responsibility, is held responsible.

Module C - Engineering Risk Guarantee

An engineering risk guarantee guarantees an indemnity payment to the constructor for losses that are suffered during the execution of the construction, caused by accidents that happen to machines e building equipment or by the accidental and sudden breakdown of production equipment.

Module D - Building Damage Guarantee

A building damage guarantee guarantees an indemnity payment in the case of damage caused to the building by fire, explosion, collapse, inundation or storm, during the construction and financing period.

Module E - Death and Permanent Disability Guarantee

A death and permanent disability guarantee guarantees an indemnity payment of an amount equal to the debt balance of the real estate loan, in the case of the purchaser's death or permanent disability.

Module F - Temporary Disability Guarantee

A temporary disability guarantee guarantees the payment of maximally 12 monthly instalments of the real estate loan, in the case of the purchaser's temporary disability preventing him from exercising the professional activity that was stated in the purchase contract.

Module G -Purchaser's Default Guarantee

A purchaser's default guarantee guarantees to the building or real estate company an advance payment amounting to the total of the instalments of the real estate loan that the purchaser failed to pay. This advance payment must be refunded when the purchaser of the real estate is substituted.


JUDICIAL GUARANTEES

Judicial guarantees replace judicial cash deposits that have to be made when any tax payment is judicially contested.

The insurance companies operate the following judicial guarantees:

  • A judicial counter surety bond : offers to the insured person guarantees to issue - with the agreement of the court - writs of prevention against the principal suitor It is aimed at covering damage that may occur if writs of prevention, such as injunctions and appeals, are not successful.
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  • Judicial surety bond : substitutes the real guarantees or pledges that are given in lawsuits, and guarantees, in the event that the suit is lost, an indemnity payment, in conformity with determinations by the court.


CUSTOMS GUARANTEES

Customs Guarantees aim to guarantee to the customs authorities the payment of duties on merchandises that are subject to special taxation rules.

Terrestrial Transit Guarantee.
A terrestrial transit guarantee covers any taxes that must be paid on goods that enter the country in transit to other customs offices, or in transit to other countries. It guarantees to the customs authorities the payment of the import duties that will be due in the event that the final destination changes and the goods are definitely imported.

Temporary Import Guarantee
A temporary import guarantee is issued in the case of the temporary import of goods such as oil equipment, airplanes rented by operational leasing, vessels, works of art for expositions, race cars, testing equipment, equipment for fairs and industrial or commercial exhibitions, animals for exposition or reproduction, as well as raw materials and production elements that enter the country to be exported after being processed. It covers any taxes that may have to be paid for the import of goods that enter the country with a specific purpose and for a fixed period, and that must be re-exported.

Incomplete Documentation Guarantee
 An incomplete documentation guarantee allows to withdraw goods from the customs office even in the event that some documents, such as bill of lading, import license etc, are incomplete.

Fiscal Deposit Guarantee
A fiscal deposit guarantee covers obligations taken by insured person in the exercise of the management of fiscal deposits and of penalties for not obeying the rules on this activity.

Tax Difference Guarantee
A tax difference guarantee is used when the import duties claimed by the customs are different from the duties estimated by the importer. This happens when there is any divergence on the customs classification or on the value of the goods. In these cases the goods are released against the guarantee insurance and the divergences solved afterwards.


GUARANTEE FOR AIRLINE TICKET SALE CONTRACTS

A guarantee for airline ticket sale contracts guarantees to the aviation companies and operators the fulfilment of the airline ticket sale contracts and the payment of the respective invoices by the travel agencies.

It is a mixture of the terms of the traditional Guarantee Insurance and the terms of the Credit Insurance.

From the Guarantee Insurance it takes its operational form and the fact it covers the fulfilment of a sale contract; from the Credit Insurance it takes the fact it guarantees the payment of the invoices.