Sole Prop or Partnership Bond - Ocean Transportation Intermediary (OTI) Group Supplemental (FMC-69) in All States
Table of Contents
Brief Summary
Form FMC-69 is the group bond a group or association of ocean transportation intermediaries files when it accepts liability for its members. It is federal, so the amount does not change from state to state. This version is for a principal signing as an individual or as partners rather than as a corporation.
A group or association of ocean transportation intermediaries that accepts financial responsibility for its members files a group bond on Form FMC-69 under 46 CFR 515.22(d). The amount is the lesser of the amount 46 CFR 515.21(a) requires for each member or $3,000,000 in aggregate. This version uses the individual principal or partner signature block and is filed with the Federal Maritime Commission's Bureau of Certification and Licensing.
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How to Apply for a Sole Prop or Partnership Bond:
- Notify the FMC that the group will provide coverage and supply proof of authority.
- Prepare a certified list of each covered OTI and its existing coverage.
- Calculate the bond amount: lesser of each member's required amount or $3,000,000 aggregate.
- Have the owner or each partner sign Form FMC-69 in the individual or partner block, with the Appendix A member list attached.
- Email the bond and supporting documents to bcl@fmc.gov.
- Report changes to the member list within 30 days.
Detailed Information About the All States Sole Prop or Partnership Bond:
Who files a group bond
Most ocean freight forwarders and NVOCCs post their own bond on Form FMC-48. 46 CFR 515.21(b) also lets a group or association of OTIs accept liability for its members and file a group bond, insurance or guaranty that clearly identifies each OTI covered. A covered member cannot begin providing OTI services until that filing is made.
The group bond is Form FMC-69, set out at Appendix D to 46 CFR part 515 as the OTI Group Supplemental Coverage Bond Form. Covered OTIs are listed in an Appendix An attached to the bond, and the surety must be one found acceptable by the Secretary of the Treasury.
How much
The amount is the lesser of what 46 CFR 515.21(a) requires for each member or $3,000,000 in aggregate. Member amounts are $50,000 for an ocean freight forwarder, $75,000 for a U.S. NVOCC and $150,000 for a registered foreign NVOCC. Coverage the group secures for claims a member's own bond does not cover must sit in excess of that member's individual coverage under 46 CFR 515.22(d)(5). After any paid claim, the bond must be brought back to its original amount within 30 days.
Signing as an individual or partnership
Form FMC-69 has separate signature blocks for an individual principal or partners and for a corporation. This page covers the individual and partner version. Each signer gives a business address and any trade name, with the printed name typed under the signature. The surety will review the personal credit of the people signing.
What the group gives the Commission
Under 46 CFR 515.22(d) the group notifies the Commission that it will take part, shows its authority to represent members, and provides a certified list naming each covered OTI, the amount and type of each member's existing coverage, and each provider's contact details. List changes are due within 30 days. The group must collect valid proof of financial responsibility from each member every year. Filings go to the Bureau of Certification and Licensing at bcl@fmc.gov.
Adding and removing members
A member added to Appendix An is covered once the Commission receives written notice. A member removed stays covered for 30 days after the Commission receives notice. Either the principal or the surety may cancel the bond on 30 days written notice.
Eligibility and Requirements for an All States Sole Prop or Partnership Bond:
- Surety company found acceptable by the Secretary of the Treasury.
- United States of America named as obligee on Form FMC-69.
- Coverage written in excess of each member's individual bond, insurance or guaranty.
- Replenishment to the full amount within 30 days of any paid claim.
- Personal credit review of each individual or partner signing.
- Annual collection of each member's proof of financial responsibility.
All States Sole Prop or Partnership Bond FAQs:
No. This is a federal bond under 46 CFR part 515. The amount is the lesser of each member's required amount or $3,000,000 in aggregate.
No. FMC-48 is an individual OTI bond. FMC-69 is filed for a group or association that accepts liability for its member OTIs.
Supplemental coverage the group secures must be in excess of the member's individual coverage already in place, so members keep their own financial responsibility.
The group bond must be replenished to its original amount within 30 days of payment.
The partners sign in the individual principal or partner blocks on Form FMC-69. Confirm the signer list with the surety before execution.
The surety reviews the signers' personal credit, the group's finances and its member roster, and quotes on the bond amount carried.
