Surety Bond Encyclopedia

CDL Third Party Tester Bond - Statewide in Pennsylvania

Brief Summary

There is no single bond amount for this program. It depends on how many CDL skills tests you plan to give in a calendar year, so count your tests before you order the bond. You secure it only after PennDOT selects you, and it has to be in place before the agreement is signed. A surety bond covers the $100,000 to $250,000 requirement without parking that money with the state.

PennDOT requires every selected CDL third party tester to maintain a performance bond of $100,000 for 0 to 99 skills tests, $150,000 for 100 to 249 tests, or $250,000 for over 250 tests, based on the proposed number of tests in a calendar year. The bond is secured after selection and before the agreement is executed, and it must come from a surety authorized in Pennsylvania. The program rests on 49 CFR 383.75 and 75 Pa.C.S. § 1607(a)(3).

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How to Apply for a CDL Third Party Tester Bond:

  • Apply to PennDOT with the Third-Party Testing CDL Skills Testing Program Provider Application.
  • Project how many skills tests you will give in a calendar year and match it to the $100,000, $150,000 or $250,000 tier.
  • After selection, buy the performance bond from a surety authorized in Pennsylvania.
  • Deliver the bond to PennDOT before the agreement is executed, with a start date on or before your first test.
  • Send the continuation of surety 60 days before the bond expires.
  • Carry liability insurance of at least $250,000 per person and $1,000,000 per occurrence.

Detailed Information About the Pennsylvania CDL Third Party Tester Bond:

Pick the right tier

Section 17 of PennDOT's Exhibit A, the CDL third party tester program requirements, says the tester shall maintain with PennDOT a performance bond in one of three amounts, depending on the proposed number of tests to be administered in a calendar year.

  • $100,000 for 0 to 99 skills tests
  • $150,000 for 100 to 249 skills tests
  • $250,000 for over 250 skills tests

If your projected count sits right at 250, ask PennDOT which tier it wants before the bond is written.

Why the bond exists

Federal rule 49 CFR 383.75 requires states that use third party testers to make them initiate and maintain a bond in an amount the state decides is enough to pay for re-testing drivers if the tester or one of its examiners is involved in fraud related to CDL skills testing. Pennsylvania's program cites that rule along with 75 Pa.C.S. § 1607(a)(3). The same federal rule says a third party tester that is a government entity is not required to maintain a bond. Government applicants should confirm with PennDOT how that applies to their agreement.

Timing

Applying does not require the bond. After PennDOT notifies you of selection, you must secure the performance bond before the agreement is executed. The bond term has to start on or before the day you begin skills testing and stay in effect through the final expiration or termination of the agreement. A continuation of surety should reach PennDOT 60 days before the bond expires and no later than 30 days after.

The bond is not the only financial requirement

Exhibit A also requires liability insurance with minimums of $250,000 per person and $1,000,000 per occurrence. The bond does not satisfy the insurance requirement and the insurance does not replace the bond.

Eligibility and Requirements for a Pennsylvania CDL Third Party Tester Bond:

  • Performance bond maintained with PennDOT for the life of the agreement.
  • Surety company authorized to transact business in Pennsylvania.
  • Bond amount tied to proposed annual skills test volume, from $100,000 to $250,000.
  • Bond must state that skills testing under the agreement will be administered in a manner satisfactory to PennDOT.
  • Separate certificate of liability insurance at the program minimums.

Pennsylvania CDL Third Party Tester Bond FAQs:

How much bond do I need?

It depends on the number of skills tests you propose to give in a calendar year. PennDOT sets $100,000 for 0 to 99 tests, $150,000 for 100 to 249 tests and $250,000 for over 250 tests.

Do I need the bond to submit my application?

No. PennDOT asks for the performance bond after it notifies you that you were selected, and the bond must be in hand before the agreement is executed.

What does the bond pay for?

Under 49 CFR 383.75 the bond must be enough to pay for re-testing drivers if the tester or its examiners are involved in fraudulent skills testing. PennDOT's agreement also ties it to administering tests in a manner satisfactory to PennDOT.

We are a government agency. Do we still need it?

The federal rule says a third party tester that is a government entity is not required to maintain a bond. PennDOT's Exhibit A does not spell out that exception, so confirm your status with PennDOT before the agreement is signed.

Does my liability insurance count toward the bond?

No. Exhibit A requires both a performance bond and liability insurance of at least $250,000 per person and $1,000,000 per occurrence.

Official and Additional Resources for the Pennsylvania CDL Third Party Tester Bond:

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