Suver v. Personal Service Insurance

The issue presented by this case is whether an injured third party can state a claim for compensatory and punitive damages against an issuer of a financial responsibility bond for the malicious and willful failure to pay the amount of the bond. The court of appeals concluded *7that the responsibility of the surety was discharged when it paid the face amount of the bond. In light of the purpose of and policy behind financial responsibility bonds, this court cannot agree with that conclusion.

Personal Service Insurance Company relies on Republic-Franklin Ins. Co. v. Progressive Cas. Ins. Co.…