Which of the following influences premium rates for surety bonds?

The premium rates for surety bonds are significantly influenced by a contractor's previous bond claims. When a contractor has a history of claims against their bonds, it indicates a higher level of risk to the surety company. This is because past performance can be a predictor of future performance; frequent claims suggest that the contractor may not fulfill their obligations, making them a higher-risk client. Due to this increased risk, surety companies often charge higher premium rates to compensate for the potential liabilities associated with a contractor's poor track record.

Factors such as the type of projects undertaken and the client’s relationship with the surety company do play a role in the underwriting process, but they do not have as direct an impact on premium rates as previous claims do. Likewise, while the surety company's own revenue can influence its operations, it is not a key determinant for setting bond premium rates for individual contractors. The payment of premiums is more directly related to the individual risks associated with the contractor’s previous bonding history.