Alabama private postsecondary institutions often hire private school agents to work on their behalf to sell courses and/or solicit students for enrollment in their institution. Private school agents must be approved for a permit through the Alabama Community College System (ACCS), who first requires a $2,500 Private School Agent Surety Bond. Jet Insurance Company provides the Private School Agent Bond to protect students and the ACCS from financial harm that may arise when an agent acts in a fraudulent manner.
Whether you are a new applicant or looking to renew your permit, Jet can help you secure the Private School Agent Bond quickly and at an affordable rate.
With Jet, the lowest price for the bond is $100 for one year, or $10 per month. Refer to the chart below for the different payment options nearly all applicants will be able to purchase online in moments.
Jet is currently the only surety carrier that offers the Private School Agent Bond in monthly installments, allowing you to pay a smaller price up front. At Jet, we know licensing and other fees can add up quickly, so we work hard to provide a pricing option that works for everyone.
The Alabama Community College System, formerly known as the Department of Postsecondary Education, has the responsibility of regulating licensed private postsecondary institutions to protect Alabama’s public from any misrepresentation or fraudulent acts. The surety bond for private school agents is a tool used to reinforce those regulations.
At Jet, we provide the license bond as a guarantee to the ACCS that students who have first-hand encounters with private school agents and are in some way caused financial damage resulting from fraud or misrepresentation the student will be reimbursed.
There are some schools that are excluded from these requirements, as stated in Title 16, Chapter 46, Section 3 of the Code of Alabama.
Our application process takes only a few minutes to complete. All that’s needed to apply for the bond is some basic information. Jet does require a credit check, which doesn’t affect your score, and a rate will be provided immediately following submission of your application. You will be able to provide payment directly online and receive your bond the same day! A copy is also sent to you for your records.
Yes! Once payment is received, Jet will sign and seal the Private School Agent Bond and send it to the Alabama Community College System. A copy of the bond is available to you immediately after purchase, and also sent via mail.
If you prefer to file the original bond yourself, possibly along with other paperwork, our online bond process allows you to select that option at checkout. The signed bond form should be mailed to the following address:
Alabama Community College System
PO Box 302130
Montgomery, AL 36130
Jet allows you to cancel the bond at any time. All that’s needed from you is a request in writing, which you can do via email: [email protected].
Once we receive your request, we will notify the ACCS which will keep the bond on file for an additional 30 days. During that 30-day period, the bond is still active which means Jet needs payment for that time. If you are on a monthly payment plan, the automatic payments will stop after the 30-day cancellation period.
If you paid for the bond up front, Jet will see if there is any unused premium left on the bond to be returned to you, with the 30-day period calculated in.
A private school agent’s permit is valid for a two-year term, but the bond can be purchased monthly, annually, or in multi-year terms. Agent’s paying monthly will not have a renewal process, as long as the payments continue to be received by Jet. Those paying on annual or multi-year terms will receive a notice from Jet via both mail and email with plenty of time to renew the bond.
Private school agents acting in accordance with the Code of Alabama 1975, Title 16, Chapter 46 can easily avoid an infraction against their permit and bond. Failure to follow these regulations can lead to suspension or revocation of the permit, probation, civil fines, and a claim on the bond. The statutes are substantial, but in terms of listing out actions that could lead to a disciplinary action only the following are mentioned: fraud, deception, and misrepresentation against a prospective student.
A student can file a complaint with the ACCS if they have incurred financial damage due to a private school agent’s actions, such as false advertising or soliciting without a permit ID. The ACCS will review the complaint and may conduct a hearing to determine the validity of the complaint. The ACCS can also seek restitution from the bond if corrective action isn’t taken by the private school agent for failure to comply with the Alabama Code.
Civil penalties and other disciplinary action is typically pursued prior to the bond being used for reimbursement. It is in the agent’s best interest to be responsive to any complaints that arise, and work with the ACCS to resolve any issues before a claim occurs.
If you receive a claim on your bond, please notify Jet right away. By the time the claim reaches us, the ACCS may have already conducted a thorough investigation, but Jet will still do a thorough review of the details to ensure no faulty claims have slipped through the cracks.
Jet will take up to 30 days to review the claim details, but if the claim is valid we will pay out to the claimant up to the full bond limit of $2,500. Ultimately, the private school agent is responsible for their actions, and therefore must pay Jet back the claim amount. The bond must be replenished if the agent wishes to keep the permit active.