Q: I'm an indemnitor for a surety bond. The estate's personal rep ignored and didn't pay bond premiums for four years prior
the court closed the estate on Mar 2024. Does the exoneration of the bond cancel the four years unpaid premiums?
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- California
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- Answered
A:
Under California law, the exoneration of a surety bond does not cancel or eliminate your obligation to pay past-due bond premiums. The exoneration only releases the surety company from future liability on the bond - it does not affect debts that were already incurred while the bond was active.
When you signed as an indemnitor, you entered into a contract with the surety company to pay premiums for the duration the bond remained in force. The personal representative's failure to pay those premiums for four years created a debt that you, as the indemnitor, remain responsible for paying. The court's closure of the estate and exoneration of the bond in March 2024 marks the end point for new premium obligations, but does not erase the existing debt from the previous four years.
Your best path forward would be to contact the surety company to discuss the unpaid premiums and potentially work out a payment arrangement. You may also want to consult with a probate attorney about whether you have any recourse against the personal representative, as their failure to pay the premiums may have breached their fiduciary duties to the estate.
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