Alabama Preneed Funeral Contract Bond

Alabama Preneed Funeral Contract Bond

The Preneed Funeral Merchandise and Services Contracts Bond, also referred to as the Preneed Funeral Bond, is required by the Alabama Department of Insurance (ALDOI) for any licensed cemetery authority, funeral establishment, third-party seller, or any other person or entity who has been granted a certificate of authority to sell preneed funeral contracts. The bond is a form of financial security for the ALDOI and Alabama’s public should the certificate holder fail to abide by laws and regulations.

APPLY FOR YOUR BOND

Whether you are applying for your first Preneed Funeral Bond or renewing one, Jet’s streamlined application process allows you to get your bond quickly and avoid any unnecessary stress.

This surety bond is an alternative to the trust requirement of Alabama Code Section 34-13-194.

How Much Does the Preneed Funeral Bond Cost? What Is the Bond Amount?

The cost of the bond is dependent on a few factors including your personal credit, financial status, and the bond limit. The price you pay is only a small percentage of the bond limit.

The bond limit is based on reports documenting the aggregate value of services, merchandise, and cash advances (outstanding liability) on undelivered preneed funeral contracts written after April 30, 2002. The certificate holder quarterly report is to be compiled semi-annually using generally accepted accounting principles at the end of the certificate holder’s fiscal year and updated on a quarterly basis. The bond amount will be increased or decreased to reflect any changes in outstanding liabilities.

Why Does the Department of Insurance Require the Alabama Preneed Funeral Bond?

The Alabama Department of Insurance oversees licensing requirements for various industries, including preneed companies. The ALDOI requires the surety bond, provided by a third party (Jet), as a guarantee of reimbursement when a preneed certificate holder doesn’t obey the Alabama Preneed Funeral and Cemetery Act (Code of Alabama, 1975, Title 27, Chapter 17A). Let’s say for example a funeral home collects money for preneed funeral services. The person later dies and services are needed, but the funeral home refuses to provide said services. The funeral home may then have a claim filed on their bond.

How to Apply for the Preneed Funeral Merchandise and Services Contracts Bond With Jet

Jet’s online application asks for basic information including the required bond limit and your social security number for the soft credit check. Once submitted, an underwriter will review the information and let you know the next steps. Once a rate is approved, you will receive an email to purchase the bond online. Immediately after payment is made, a copy of the bond and receipt will be emailed to you.

Can Jet File the Alabama Preneed Funeral Bond for Me?

Absolutely! Once payment is completed we will send the bond form to the Alabama Department of Insurance for you. If you prefer to file the bond yourself, you can choose that option at checkout.

The bond and any other licensing paperwork must be sent to the address below:

State of Alabama Department of Insurance
Preneed Division
PO Box 303351
Montgomery, AL 36130

Can I Cancel My Alabama Preneed Funeral Bond and Get a Refund?

With Jet, the bond can be cancelled at any time. It is important to keep in mind, though, that a bond must be on file for the duration you hold a certificate of authority for preneed funeral merchandise and service contracts. 

When you are ready to cancel, just email a request to Jet at [email protected]. We must then send a written notice of cancellation to the ALDOI where the bond is kept active for 60 days upon receipt of said notice. You and Jet are still liable under the bond during those 60 days, so that time must be taken into account when calculating any potential refunds.

How to Renew the Alabama Preneed Funeral Bond

Jet sends a renewal notice to your email and your mailing address. If there has been an increase or decrease in your bond limit, please let us know so we can adjust the cost accordingly. To keep the bond active, simply provide payment either online or send in payment with the renewal notice.

How Does a Certificate Holder Avoid Preneed Funeral Merchandise and Services Contracts Bond Claims?

Following the Alabama Preneed Funeral and Cemetery Act is the best way to avoid disciplinary actions, including a bond claim. In short, you shouldn’t steal or commit other heinous acts while conducting business. If a funeral home collects money upfront for services to be performed later on, then they must provide them.

The Attorney General, Department of Insurance Commissioner, or any other person or entity may bring civil action against the certificate holder for infractions. Oftentimes, prior to the bond being used for a payout, the Department of Insurance will utilize other penalties. Fines, civil penalties, misdemeanors and felonies, and suspension or revocation of the certificate of authority are all possibilities for not following the regulations.

It is in the best interest of the preneed funeral certificate holder to work alongside the ALDOI should any issues arise.

What Happens if I Get a Claim on My Alabama Preneed Funeral Bond?

The Alabama Department of Insurance generally does a thorough job looking into violations, but upon receiving notice of a claim, Jet will still look into it further to throw out any false accusations. Any just claims will be paid out in the amount of the claim up to the full bond limit. Because the bond acts as an extension of credit, and you are liable for your actions as a certificate holder, you are responsible to pay Jet back. Failure to restore the bond to its full capacity will result in complications with your certificate of authority.

Alabama Preneed Funeral Contract 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: