Bank and Insurance Surety, What to Do for Foreigners?
A surety bond represents a contract by which a guarantor, called a surety, obligates himself to a creditor to fulfill the obligation of a debtor if the debtor defaults against him.
In Italy, it may be issued by a banking institution or an insurance company.
Index
Insurance Surety
This contract is issued by an insurance company. It is an insurance transaction in that the guarantor, i.e., the insurance company, agrees to reimburse the creditor if the debtor fails to fulfill the obligation. It has several advantages, including:
– Cost. It is generally less expensive than the bank surety bond;
– Affordability. It is accessible to a wide range of individuals, including those with less-than-optimal financial circumstances.
However, it also has some disadvantages, including:
– Disbursement time. The insurance surety may require a longer disbursement time than the bank surety;
– Less flexibility. The insurance company may not be able to tailor the surety to the specific needs of the borrower.
Bank Surety
The bank surety, as the word itself implies, is issued by a banking institution. It is a credit transaction, in that the guarantor, i.e., the bank, grants a loan to the borrower, who agrees to repay it. The bank surety bond has several advantages, including:
– Speed of disbursement. The bank can issue the surety bond quickly
– Flexibility. The bank can tailor the surety bond to the personal needs of the borrower
– Soundness Guarantee. The bank is a solid and reliable economic entity.
However, the bank surety also has some disadvantages, including:
– Cost. Bank surety is a credit transaction, so it involves costs, which are borne by the debtor
– Requirements. To obtain a bank surety, the debtor must meet certain requirements, such as financial strength and regularity of contributions.
The Choice Between Bank and Insurance Surety
The choice between the two contracts depends on several factors, including:
– Timing. If you need a surety in a short time frame, the bank surety is the best choice
– Cost. If you are looking for a low-cost surety bond, the insurance bond is the best choice
– Flexibility. If you need a surety bond that can be tailored to your needs, the bank surety bond is the best choice.
The Surety For Foreigners
Bank and insurance sureties are often required for foreigners to obtain certain documents, such as a tourist visa or residence permit. For example, to obtain a tourist visa for Italy, a foreigner from certain non-EU countries must submit this kind of contract. This document is required to cover the costs of staying in Italy and returning to the country of origin.
Summing up, the surety is an important legal instrument that can be required for a wide range of situations. As we have analyzed, the choice between the two contracts depends on several factors which must be evaluated according to one’s needs.
Conclusions and Proceedings
So, who can apply for an insurance surety? What are the requirements? What is the average cost? First, the policyholder must be an Italian citizen or a foreign national staying in Italy with a valid residence permit. He must contact the insurance company and provide the following documents:
– A copy of both his and the guest’s identity documents
– Tax code
– A copy of the residence permit
– Declaration of Hospitality
The costs of an insurance surety for foreigners vary with each insurance company: it can range from about 100 to 600 euros. The insurance surety, upon payment of the premium, guarantees the policyholder for the maximum amount specified in the policy. The bank surety, on the other hand, involves depositing the full amount required by law in a special account, which will remain locked for the duration of the contract.
