Alabama Premium Finance Company Bond

Alabama Premium Finance Company Bond

In the State of Alabama, premium finance companies are required to obtain a license from the Alabama Department of Insurance (ALDOI) and post a $35,000 surety bond. Jet Insurance Company offers the Alabama Premium Finance Company Bond as a financial guarantee to the consumers of Alabama that licensed premium finance companies will act lawfully in accordance with the Code of Alabama Section 27-40-3 and that consumers may be compensated through the bond if they are financially damaged by an errant licensee.

APPLY FOR BOND

With Jet, you are buying your bond directly from the surety carrier that is backing your bond. That means you get a streamlined application process, a competitive rate, and claim support throughout the life of your bond.

How Much Does the Alabama Premium Finance Company Bond Cost?

At Jet, the Premium Finance Company Bond is always priced at a competitive rate based on several factors related to the business such as personal credit score of the applicant, the years of experience of the business, and potentially financial statements. 

The Jet team is cutting out the middlemen from the bonding process in order to provide the bond you need without brokers and agents who slow you down and cost you more through fees and commissions.

Why Do I Need the Alabama Premium Finance Company Bond?

The Alabama Premium Finance Company Bond is required by the ALDOI under the Code of Alabama Section 27-40-3 for all businesses that engage in financial contracts to finance insurance premiums. The bond assures the ALDOI that you will abide by the laws for its licensees, and provides the Alabama public with a financial guarantee in the event that they are damaged by a premium finance company who violates the regulations.

The bond is required for any business entering into insurance premium financing agreements, with the exception of businesses that are licensed and regulated under other areas of the Code of Alabama:

The bond is required for any business entering into insurance premium financing agreements, with the exception of businesses that are licensed and regulated under other areas of the Code of Alabama:

  1. Any insurance company licensed to do business in the State
  2. Any banking institution regulated by the State, savings and loan association, credit union authorized to do business in this state, or any national banking institution or federal savings and loan association located within this state
  3. Premium agreements in connection with installment sales of motor vehicles, boats, or mobile homes
  4. Any insurance agent or agency licensed in Alabama that charges a collection fee on unpaid balances for insurance premiums under Section 27-12-17 or under the Alabama Consumer Credit Act

The Alabama Department of Insurance serves the Alabama public by regulating the insurance industry, to include managing the licensing process for many business types within the industry. The ALDOI regulates premium finance companies through the licensing and bond requirements, in order to ensure that they are presenting legal premium finance contracts to their customers.

How To Apply for the Alabama Premium Finance Company Bond With Jet

Applying for the Premium Finance Company Bond is easy with Jet! The application can be completed in minutes, asking for some basic information about your business. After you have finished the application, the Jet team will conduct a short review and get back to you. 

Jet will send you an approved rate and an option to purchase. Once you have provided payment, a purchase receipt and copy of the bond will be emailed to you for your records.

Can Jet File the Alabama Premium Finance Company Bond for Me?

Yes, Jet can! Once you have provided payment, Jet can immediately ship the original sealed bond to the ALDOI. If you prefer to file your bond directly with ALDOI, that option will be available for you at checkout. 

All paperwork must be filed at the following address:

State of Alabama Department of Insurance
201 Monroe Street, Suite 502
Montgomery, AL 36104

How Do I Cancel My Alabama Premium Finance Company Bond and Can I Get a Refund?

With Jet, cancelling your bond is easy! Just send Jet written notice that you would like to cancel your bond (an email to [email protected] will work). Jet will relay this information to the ALDOI, and the liability for the bond will end after 30 days. 

With Jet’s unique monthly payment option, cancelling your bond is simple. Your payments will cease following the 30-day cancellation period, as the bond is technically active during this time. On Jet’s annual, 2-year, or 3-year payment options, Jet will review your bond once cancelled and return any available premium to you.

How Do I Renew the Alabama Premium Finance Company Bond?

The Alabama Premium Finance Company Bond is continuous until cancelled, and will need to be renewed with Jet to prevent cancellation. The bond may be up for renewal along with your license — due by October 1st of each year. 

If you have selected the monthly payment option, no renewal is required! Simply continue to make your monthly payment and your bond stays active.

If you are paying through one of Jet’s annual, 2-year, or 3-year options, don’t worry. The Jet team will begin sending you reminders well in advance of the deadline to ensure you have time to pay the renewal premium. 

How Does an Alabama Premium Finance Company Avoid Bond Claims?

Licensed premium finance companies in Alabama should be thoroughly familiar with Code of Alabama Section 27-40-1 through 27-40-18 to ensure that they are in compliance with the rules and regulations imposed by the ALDOI. Premium finance companies can avoid complaints and potential claims against the bond by acting in good faith in their contracts with the public.

While the Code of Alabama does not list specific violations that may result in bond claim, it does allow the Commissioner of the ALDOI to suspend or revoke licenses if a complaint is filed against a premium finance company and the business is found incompetent or untrustworthy. The Commissioner also retains the right to levy civil penalties from $200 to $5,000.

What Happens if I Get a Bond Claim Against the Premium Finance Company ?

Notify Jet immediately if you receive notice that a complaint has been filed against your premium finance company or a hearing is being called by the Commissioner of the ALDOI. Jet will defend you to the fullest extent. In order to do so, we will need your cooperation and transparency with the details of the complaint.

If the claim is deemed valid, Jet Insurance Company is obligated to pay the claim up to the bond limit. If this occurs, Jet is acting as the financial guarantor, paying the claim on your behalf. You are still responsible for the actions that resulted in the claim and are required to reimburse Jet for the amount paid. Failure to do so would result in the bond becoming inactive, a suspension of your license and, potentially, future difficulties obtaining a surety bond.

Alabama Premium Finance Company 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: