Alabama Private School Bond

Alabama Private School Bond

Certain private schools in Alabama, such as vocational, technical, and proprietary schools are required to obtain a license and a Private School Performance Bond in order to offer their education program. The Alabama Community College System (ACCS) uses the bond as a financial stability tool, provided by Jet Insurance Company, as a guarantee that students are compensated if a school does not refund the students following a failure to provide the agreed-upon education.

VIEW YOUR BOND PRICE

Jet provides this bond directly to its customers with no middlemen agents or brokers, therefore ensuring the original bond filing and subsequent bond renewals to the ACCS occur without hassle and risk to your licensing.

Which Private School Bond Do I Need?

Simply put, private schools offering a degree need a $50,000 bond limit, and schools not offering a degree need a $20,000 bond limit.

What Is the Lowest Price for the Alabama Private School Bond? 

For the $50,000 Private School Bond (degree granting), the lowest rate for the bond is $50 monthly or $500 annually. For the $20,000 Private School Bond (non-degree granting), the lowest rate is $20 monthly or $200 annually. Rates are based on the financial status of the school’s ownership. Below is a chart of Jet’s preferred tier bond rates.

Bond LimitMonthly1 Year2 Years
$20,000$20$200$350
$50,000$50$500$875
Alabama Private School Bond Pricing

The school’s license is renewed every two-years, so a two-year bond term to coincide with the licensing may be preferred. With Jet, you can also take advantage of our monthly rate which gives our customers the freedom to set up payment and never worry about the bond again until they want to cancel.

Why Is the Private School Bond Required?

The Private School Performance Bond is enforced by the Alabama Community College System as a part of licensing to protect students from fiscal losses stemming from a breach of contract or not providing the education that was paid for. The bond purchased by you brings Jet into a financial role to guarantee payment to students who are not refunded appropriately by you or as deemed necessary by the ACCS following a complaint.

The Alabama State Legislature, recognizing the importance of the education system, uses the bond as a tool to provide financial stability and legitimacy for the various private schools that exist for education of Alabama citizens. Should a school misrepresent themselves or unfortunately go out of business, a student should be able to receive a refund. If the school is unwilling or unable to refund the student, it would bring financial damage to the students and create mistrust in the Alabama educational system. Consequently a headache for the ACCS and the Department of Education of Ferris Bueller proportions.

How Does the Application Process Work With Jet? 

You can apply online by clicking the button above or by calling us at (855) 296-2663. Online we gather some basic information and one of our underwriters will get back to you if any additional information is needed. We do gather a social security number from the owner as rates do factor in regarding their personal credit, but don’t worry as it is just a soft check and will not affect the credit score.

Once we have established the rate, you will receive an email with our quote and a link to purchase the bond online. Following the purchase, you will receive a copy of the bond and receipt.

How Does the Private School Bond Get Filed to the ACCS?

Jet will file the bond for you to the ACCS with no fees or the hassle of shipping a piece of paper all over the place. 

During your application to become a licensed school, should you want to submit the original bond form with other paperwork, you may. Simply request that Jet send you the original and we will.

The bond form is filed to the following location:

Alabama Community College System
PO Box 302130
Montgomery, AL 36130-2130

Does the Private School Bond Expire and How Do I Renew It?

The bond has an expiration date on it based on the term that you purchased, unless you buy the monthly option with Jet. In that case, Jet will keep your bond active until you actively cancel the bond or if a monthly payment doesn’t come through from the card provided. 

If you purchase a bond on annual terms, you will have to renew the bond. With Jet, you will simply need to provide payment in advance of the bond’s expiration date. Jet will send plenty of notices well prior to the expiration date, so there will be no issue in keeping the bond active with the ACCS.

The bond does have a 30-day cancellation period with the ACCS. This means the bond stays active even after Jet files for cancellation. With that 30-day period taken into account, Jet will send a prorated refund back to you for any time remaining on the bond.

How Does a Private School Avoid Bond Claims?

Offer the curriculum you are advertising to your students and there will most likely never be an issue regarding a bond claim. If a Private School can foresee itself as unable to operate any longer, a contingent plan to refund students is a must.

Title 16 Chapter 46 Section 16-46-1 to 10 of the Alabama Legislative Code details all the laws surrounding private schools. When it comes to harming students in a way that demands a refund, schools should maintain quality programs and curriculum, sufficient financial stability, adequate staffing and facilities, and not promise employment as a result of the education (unless you are somehow hiring the graduate).

If a student rightfully demands a refund, then the private school should send back the prepaid tuition. Any misrepresentation or fraudulent behavior on the part of the school can bring an investigation from the ACCS. They will review the curriculum, facilities, materials, records and financial status. Any discovered violation can result in fines and even imprisonment.

If mitigation is offered as a solution to damages, it is always in the best interest of the private school (if they want to remain licensed and operational) to abide by the demands of the ACCS. Failure to do so can be problematic and can lead to a bond claim to recover financial damages sustained by the students.

What Happens if I Get a Alabama Private School Bond Claim?

If you are a private school reading this section that has a bond claim and wants to stay in the game, good. That’s half the battle that you are interested in staying in operation. Send Jet the details of the bond claim and we will mount a defense to the claim. Take note, should the bond claim have followed an exhaustive ACCS investigation and mitigation process, there may be little Jet can do aside from a defense against a clear case of malfeasance.

If the bond claims if valid, Jet will make payment to the affected party(ies) up to the limit of the bond. This does not leave the private school off the hook. The surety bond is like an extension of credit or as the State of Alabama views it, a form of financial stability thus guaranteeing payment, but not transferring guilt. The private school is ultimately responsible for their actions (or lack of action refunding students) and must repay Jet.

Are There Other Bonds That a Private School Needs? 

Do you have any agents promoting your enrollment to your school? Then those agents would be in need or permitting with the ACCS and along with that a $2,500 Private School Agent Bond.

Alabama Private School 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: