Arizona Appraisal Management Company Bond

Arizona Appraisal Management Company Bond

In Arizona, Appraisal Management Companies (AMC) that utilize third-party appraisers must register with the Arizona Department of Financial Institutions (AZDFI). Part of the registration requirements is to obtain a $20,000 Appraisal Management Company Bond which acts as a fiscal guarantee from Jet Insurance Company to the AZDFI that the AMC will pay appraisers and uphold contract obligations.

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Most will save 50% on their surety bond renewal. Take a moment by clicking the above button to get your bond now.

What Is the Price for the Arizona Appraisal Management Company Bond?

Jet’s price for the Appraisal Management Company Bond is $100 annually or $10 monthly. The Jet team also offers 2- or 3-year bond term payment options at a discount.

Bond TermCost
Monthly$10
1 Year$100
2 Years$175
3 Years$250
Arizona Appraisal Management Bond Pricing

The above price is what you will pay after a quick online application wherein we only collect some basic information to go onto the bond. With Jet there are no middlemen brokers or agents applying fees and slowing down the bonding process.

Why Is the Appraisal Management Company Bond Required?

As a result of the Great Recession of 2008, there has been a serious need for appraisal management companies to be regulated through government entities such as the Arizona Department of Financial Institutions. Consequently, the AZDFI requires all Arizona AMCs to acquire the $20,000 Appraisal Management Company Bond to display financial responsibility in regards to payment of appraisers and contracts with clients. 

The Arizona Appraisal Management Bond is a tool utilized by the Arizona Administrative Code (Title 4. Chapter 46) as a financial safeguard in cases where the AMC may commit violations that may result in damages caused in relation to appraisal management services or by failing to pay an appraiser hired by the AMC.

Who Needs the AMC Bond and Who Does Not?

While it may seem that the bond is for appraisers, it is not. It is for companies that hire appraisers. Real Estate Appraisal companies or companies that employ full time appraisers do not need to obtain this bond. 

You will need to register with the AZDFI and obtain this bond if your organization hires or contracts with independent appraisers to conduct property appraisal services.

A list of common occupations that are considered “appraisal management companies” that utilize third party appraisers and need the bond can be found below:

How Does the Application Process Work With Jet?

Our online application for the Appraisal Management Company Bond will request basic information to complete the bond form, nothing personal. You will then be able to select your bond term and make payment. A copy of your bond and receipt will be ready immediately. The whole process should only take a couple of minutes.

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How Is the Appraisal Management Company Bond Filed in Arizona?

The original signed and sealed $20,000 Appraisal Management Company Bond must be filed with the Arizona Department of Financial Institutions, which Jet can complete for you! After  purchase, Jet will file the original bond with the AZDFI and send you a copy for your personal records.

If you would prefer to file the bond yourself with the initial or renewal license application, Jet’s application process will allow you to select that option. The original bond form and license paperwork should be mailed to the following address:

For those who choose either an annual or multi-year option, Jet will send you a bond renewal invoice prior to the expiration date. No additional paperwork or fees will be requested, just provide the renewal payment and Jet will take care of the rest for you!

Arizona Department of Financial Institutions
100 N 15th Ave, Suite 261
Phoenix, AZ 85007

Can I Cancel My Bond and Get a Refund?

At Jet, you can! Just send a cancellation request to Jet through email or mail and we will cancel the bond. Jet must send a cancellation notice to the Arizona Department of Financial Institutions and will finally cancel the bond after a 30 day grace period.

Regarding refunds, Jet does have to factor in the 30-day period as the bond is still active. If the monthly payment option was chosen, Jet will stop the payments after the cancellation period has ended.

Does the Appraisal Management Company Bond Need to Be Renewed?

Not with Jet! Our monthly bond payment option eliminates the need for a renewal. So long as payments will continue to come out from your provided card the bond will stay active. Don’t worry if a payment is missed as we will give you a heads up before we request cancellation on the bond and don’t forget there is a 30 day period at that point to get caught up. 

If you chose one of our 1-, 2-, or 3-year bond terms, Jet will deliver a renewal invoice prior to the bond term’s expiration. There is no additional paperwork required from Jet; payment is all that is needed.

How Does an AMC Avoid Bond Claims?

Appraisal management companies and their appraisers are expected to follow all state laws and regulations pursuant to Arizona statutes. The statutes are quite extensive, but in concerns to the required surety bond AMCs need to center in on three points:

  1. Pay all appraisers as agreed upon for services they provided
  2. Pay all amounts the court demands that resulted from negligent or improper appraisal services
  3. Pay all amounts the court demands that resulted from a breach of contract in performing appraisal services

As far as courts are concerned, don’t involve them; it is best to run a business honestly and with integrity (we are sure you do). An appraiser or client who has suffered financial damage may bring their complaint to the Department of Financial Institutions or take civil action directly against the AMC which could result in a drawn out court process. The AZDFI will proceed with a thorough review and investigation of said complaint.

For less serious violations: the AZDFI may suspend, revoke, or refuse to renew the AMC’s license for a set period of time. For more serious violations: the AZDFI may impose civil penalties on the AMC up to $10,000 for first time violations or $25,000 for repeated violations.

Whether the determination of the AZDFI or the court was to pay an appraiser or an affected client the AMC has a chance to follow the order. To not follow the demands of the regulator will put the bond in jeopardy and the registration.

What Happens if I Get a Bond Claim?

Promptly reach out to and provide all relevant information regarding your case to Jet upon receipt of a claim notice on your bond, and we will perform an investigation of the claim details. Jet will defend our customers and maintain our obligation to uphold our legislative surety duty in regards to claims.

Should the claim be decided as valid, Jet will provide payment to those financially affected up to the maximum limit of the bond. The AMC is still responsible for their actions (or lack of action in paying appraisers or damaged clients) and must repay the surety company (Jet) for all paid claims. Failure to repay will result in difficulties in obtaining the required Appraisal Management Company Bond and may result in a denial of registration from the AZDFI.

Arizona Appraisal Management 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: