Alabama Patient Trust Fund Bond

Alabama Patient Trust Fund Bond

The Patient Trust Fund Bond is required by the Alabama Medicaid Agency for all licensed nursing home administrators managing residents’ funds. Jet provides this bond as a guarantee of reimbursement to the Alabama Medicaid Agency and the residents of long-term care facilities should loss occur due to the administrator acting in a fraudulent or negligent manner.

QUOTE

Choosing Jet as your surety provider allows you to get your bond quickly and affordably, and gives you claim defense if it is needed. If you are looking for a Nursing Facility Resident Trust Fund Bond you're in the right place, as this bond can be called a variety of names.

What Is the Cost of the Alabama Patient Trust Fund Bond?

The price is based on the bond limit and personal credit of the administrator. The bond amount varies and is determined by the Alabama Medicaid Agency. The price is only a small percentage of the total bond limit. Refer to the price chart below for different bond limit rates at the preferred pricing tier. 

Bond LimitCost
$10,000$100
$25,000$250
$50,000$500
Alabama Patient Trust Fund Bond Cost

The bond amount or limit will vary as the personal funds held vary. The Alabama Medicaid Agency will notify you of what amount is required. The bond price will vary accordingly as the bond amount increases or decreases.

Why Does the Alabama Medicaid Agency Require the Patient Trust Fund Bond?

Licensing for nursing homes is done through the Board of Examiners of Nursing Home Administrators, but the bond is enforced by the Alabama Medicaid Agency. The Alabama Medicaid Agency exists to enforce rules and regulations across the medical industry. As part of those regulations, nursing home facilities and their administrators must comply with the Alabama Administrative Code, Chapter 420-5-10.05, which states that a surety bond is needed for assurance of financial security. 

The bond brings in a surety company (Jet Insurance Company) as a third-party to guarantee restitution should the administrator mismanage a resident’s funds or otherwise fail to abide by the regulations. Simply, the state does not want it elderly or incapacitated taken advantage of and Jet can provide a payout if the nursing home refuses to account for funds mishandled or stolen. 

How to Apply for the Patient Trust Fund Bond With Jet

Applying for the bond has never been easier. Just fill out the required information in our online application and the bond will be in your hands shortly after. A soft credit check is conducted to get you an approved rate, but don’t worry your credit will not be affected. For smaller bond limits, the bond will be able to purchase immediately online. For larger bond limits, Jet will complete a quick review and a rate will be delivered via email for which you can make payment online. A copy of the bond and the receipt are available upon purchase.

Can Jet File the Patient Trust Fund Bond for Me?

Absolutely! Once payment is complete, Jet is able to file the bond with the Alabama Medicaid Agency for you. If you prefer to file the bond yourself, possibly with other paperwork, it must be sent to the address below:

Alabama Medicaid Agency
Long Term Care Unit
501 Dexter Ave
Montgomery, AL 36130

Can I Cancel My Patient Trust Fund Bond and Get a Refund?

The bond must be on file for the duration of the nursing home administrator’s license. When the bond is ready to be canceled, send Jet written notice (email is fine to [email protected]) and we will notify the Alabama Medicaid Agency. 

Once the Agency receives notice, they keep the bond active and on file for six months. That means during that time, you are responsible for payment and liable under the bond. At the end of the six-month period, if there is any unused premium left on the bond it will be returned to you.

How to Renew the Patient Trust Fund Bond

Jet will send you a renewal notice via mail and email to ensure you have plenty of time to renew the bond term. If there are any changes to the bond amount required this is the time to take care of it with Jet. Then we will be able to send proper bonding coverage to the Medicaid Agency. 

The bond must be renewed prior to the expiration, or you may risk disciplinary action. A continuation certificate may need to accompany your bond renewal, which Jet will supply you with.

How Does a Nursing Home Administrator Avoid Bond Claims?

Claims can be easily avoided by following the licensing requirements in Code of Alabama 1975, Section 34-4-2, and regulations in Alabama Administrative Code, Chapter 420-5-10, pertinent to nursing home facilities and administrators. Claims can arise for reasons such as:

Action can be taken by the Alabama Medicaid Agency or a resident or depositor with written approval from the Commissioner of the Alabama Medicaid Agency. Typically, other corrective actions, such as civil fees, are taken prior to utilizing the bond. It is in your best interest to cooperate with the Medicaid Agency to avoid a bond payout.

What Happens if I Get a Patient Trust Fund Bond Claim?

Jet does our best to protect administrators from faulty claims, so when the payout notice lands in our hands we do our due diligence by thoroughly examining the claim details. If the claim is legitimate, we will make payment to the claimant up to the full bond limit. Since the bond only pays out for failure to comply with regulations, the claim amount must be paid back to Jet to restore the bond to its full limit.

Alabama Patient Trust Fund Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: