Former President Donald Trump is facing hurdles in finding an insurance company to underwrite his bond in the New York attorney general’s civil fraud case. With a judgment totaling over $464 million, very few companies are willing to take on the risk.
Trump has approached 30 underwriters in search of backing for the bond, which is due by the end of this month. However, potential underwriters are demanding cash to support the bond, rather than properties. An insurance broker even testified that securing a bond for the full amount is nearly impossible.
In response, Trump’s lawyers are requesting the appeals court to delay the posting of the bond until the appeal process is complete. They argue that Trump’s properties exceed the judgment amount and should be considered as collateral.
The civil fraud case, brought by New York Attorney General Letitia James, resulted in Trump being ordered to pay $355 million in disgorgement, along with additional fines. Despite appealing the ruling, Trump must post a bond to prevent the state from enforcing the judgment.
The situation is complicated by the fact that many of the largest underwriters have policies limiting them from securing a bond over $100 million. Trump’s campaign spokesman has criticized the size of the fraud judgment, calling it an abuse of the law and a threat to the rule of law in New York.
As the deadline for the bond approaches, Trump continues to face challenges in finding a company willing to underwrite the substantial judgment against him. The outcome of this legal battle remains uncertain as both sides navigate the complex world of insurance and bonding in the face of such a significant financial obligation.
