Alabama Telemarketing Bond

Alabama Telemarketing Bond

The Alabama Office of the Attorney General, Consumer Protection Section, regulates telemarketers, among other licensees, to ensure the general welfare of Alabama’s public. Telemarketers, specifically, are mandated to secure a $50,000 Telemarketing Bond. The license bond ensures financial restitution for consumers and the Attorney General should the telemarketer’s actions cause financial loss.

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There is a list of exemptions from the Alabama Telemarketer’s Act (and bond requirement), which can be found in Section 8-19A-4.

What Is the Cost of the Alabama Telemarketing Bond?

With Jet, the $50,000 Telemarketing Bond costs as low as $500 for one year or $50 monthly. We also offer multi-year rates, which allow you to pay a larger sum up front to save money down the road. A soft credit check is required to be approved for the bond, but don’t worry, it won’t affect your credit. The chart below shows rates for the $50,000 bond for someone with preferred credit.

Bond TermCost
Monthly$50
1 Year$500
2 Years$875
Alabama Telemarketing Bond Cost

Even though the bond limit is almost always $50,000, the Consumer Protection Section of the Attorney General’s Office may require a larger limit if they deem it necessary for the safety of Alabama’s public.

Jet’s Alabama Telemarketing Bond Process

Jet’s process is simple! Refer to the information below for general bond processing information:

Bond Application. The bond application takes only minutes to complete. Once all necessary information has been submitted, such as your business information and social security number, Jet will review it and one of our underwriters will get back to you shortly with the next steps. Once you’ve been approved for a rate, it will be sent to you via email and you are able to purchase it directly from the website and receive a copy of the bond and your receipt.

Bond Filing. A completed bond form includes your signature, Jet’s signature, and a surety seal. All license paperwork, including the bond, should be uploaded to the AGO web portal using your credentials. If you prefer that Jet files the bond for you, we will mail it to the following address:

Office of the Attorney General
Consumer Protection 
PO Box 300152 
Montgomery, Alabama 36130

Bond Renewal. The bond is required for the duration you are operating as a telemarketer. For those utilizing monthly payments, there is no renewal process. The bond will stay active as long as payments are received and until cancellation is requested. For those paying annually or on multi-year terms, Jet will send a renewal notice via email and mail so you have plenty of time to remit payment. Failure to keep the bond active may result in disciplinary action against the license.

Bond Cancellation. If you need to cancel the bond, send Jet a written notice. This can be done via email: [email protected]. Jet will send a cancellation request to the Consumer Protection Section, and once they approve the cancellation you and Jet will be relieved of future liability on the bond. If you paid for the bond up front and are cancelling it early, Jet will calculate the time remaining on the bond to see if there is any unused premium to be returned to you.

How Does an Alabama Telemarketer Avoid Bond Claims?

Avoiding claims is a matter of following all rules, regulations, and laws in accordance with Title 8, Chapter 19A of the Code of Alabama, referred to as the Alabama Telemarketing Act. Claims only occur if a person or the Office of the Attorney General is financially harmed due to the telemarketing company going bankrupt or by other violations of the Telemarketing Act.

Any person may bring civil action against the licensee for recovery of damages. The office of the Attorney General can also take action, including civil and criminal penalties and license suspension or revocation. Civil penalties can be up to $10,000 for each violation. With any violation, the bond may be used. It is important to cooperate and be responsive through any disciplinary action, as a claim may be avoided by doing so.

If Jet is notified of a claim, we will do our part to review the details and ensure the claim’s validity prior to making a payout. If the claim is legitimate, Jet will make the payment to the claimant for the claim amount up to the full $50,000 limit. The telemarketer is responsible to pay Jet back since the bond acts as an extension of credit and the telemarketer is liable for their actions.

Alabama Telemarketing 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: