What type of coverage is provided as proof of financial responsibility for non-performance?
In most instance, the coverage is provided by guaranty issued by an acceptable Protection and Indemnity Association or a surety bond issued by an acceptable surety, e.g., on the Department of Treasury list of acceptable sureties. In lieu of these financial instruments, the cruise line may establish an escrow account administered by a neutral financial institution in which these unearned passenger revenues are deposited, to be withdrawn by the cruise line as voyages are completed and the revenue earned.
