The State of Alabama Department of Insurance requires automobile or motor clubs to obtain a $25,000 Automobile Club Surety Bond as one of their licensing requisites. The bond is a guarantee to club members and/or subscribers to receive financial recourse from Jet Insurance Company should they not receive the agreed upon contractual services.
By Jet providing your surety bond needs directly, without middlemen agents or brokers, you will be driving away quickly with savings in hand.
The bond costs $25 monthly or $250 for a one year term. Rates are dependent on the personal credit of the club owner. Below is a chart of our preferred rates:
Our monthly payment option is one-of-a-kind; giving our customers the option to pay as they go and cancel at any time.
The Alabama Automobile Club Bond is required by the State of Alabama to protect the club's members from fraudulent actions of the club or failure to provide contractual benefits offered by the club. The surety bond brings a third party entity (Jet) in as a financial guarantor that protects the state’s citizens from losses sustained at the hands of a motor club.
The Alabama Department of Insurance regulates these motor clubs that offer services in exchange for membership dues. There are various assurances (basically insurance) which provide assistance in vehicle maintenance or ownership for example. While regulation of your typical insurance company is quite extensive, something we are fully aware of at Jet, the motor club can jump through less hoops by just having to secure a bond for financial security when offering their services.
Our online application takes about 3-5 minutes to complete, and you will be able to purchase the bond once all has been submitted. We require some basic business information and will need the club owner’s name and social security number. Once all info has been gathered, a Jet team member will run a soft credit check (only takes a second) as part of the underwriting process.
The purchase screen will allow you to pick your bond term and enter payment information. Once done, you will receive a copy of the bond and receipt.
As Macho Man Randy Savage would say - Oh Yeah! After purchase has been completed, we will send the original bond form directly to the Department of Insurance.
If you want to submit the original bond yourself, just let us know at checkout and we will send the bond form to you. The bond form must be filed to the following address:
Alabama Department of Insurance
201 Monroe St. Suite 502
Montgomery, AL 36104
Once again, we can leave it to the Macho Man. Oooohhh Yeaa!! With Jet, you can cancel the bond via written request. Email works great, you can send the request to [email protected]. Jet will send a refund for any time remaining on the bond back to you.
A Jet team will send a cancellation notice to the Department of Insurance. The department requires a 30-day period in which the bond will remain in effect, just in case there are some last second infractions that come up as a motor club discontinues coverage.
The 30-day cancellation period does need to be taken into account when calculating the return or cancelling the automatic payments for monthly subscribers to the bond.
Bond renewal is as easy as making payment before the current bond term expires. Don’t fret when the bond expires, as Jet will send you a reminder well in advance with the ability to pay the renewal premium.
If you are on the monthly plan, then there is nothing you need to do. Just make sure the card you submit remains active and you are set.
Automobile Clubs fall under The Code of Alabama Title 27 Chapter 39 1-8 rules and regulations. To sum it up, if a club makes an offer of services to members in exchange for dues and fees, then the club must provide those services when necessary. Acts of fraud or the misrepresentation of services are no brainer ways to invite complaints against your organization, so don’t do it.
The insurance commissioner will investigate complaints as they are the regulatory agency which oversees automobile clubs. Should the complaints be founded upon the investigation, the insurance commissioner will demand action be taken by the automobile club to rectify any wrongdoing. Failure to act upon the demands of the regulatory agency may result in nothing (surprisingly a realistic option), another letter with stronger wording, or further disciplinary action including a revocation of license and/or a claim on the surety bond.
Drop a flying elbow drop from the top turnbuckle on the claimant? Nope. Best to send Jet all information you have available. Even in the face of a regulatory agency's decree, we will verify the validity of the claim and defend you as necessary.
If the Motor Club Bond claim is valid, it is Jet’s responsibility to make payment to the damaged party or parties for the losses sustained, but not to exceed the $25,000 bond limit. For Jet and any surety company, the story doesn’t end there. The bond is a guarantee of payment and not a transfer of responsibility, much like a letter of credit. The motor club will be required to pay Jet back the amount of the claim.