A. Surety companies carefully underwrite bond requests in order to be certain that the principal can meet the obligations required under the bond. To do this, they look at the "3C's" - character, capacity, and capital. This may involve analysis of corporate and personal financial statements, looking at the principal's past work history, or obtaining business references in order to determine that the principal is capable of meeting the bonded obligation. The extent to which the surety underwrites a bond request depends largely upon the nature of the bond obligation and the degree of risk involved.