Arizona Authorized Third Party Provider Bond

Arizona Authorized Third Party Provider Bond

The Motor Vehicle Division of the Arizona Department of Transportation (ADOT) allows Authorized Third Party (ATP) providers to perform many of the motor vehicle service functions that support a safe, efficient transportation system. To become authorized providers for these services, businesses are required to post the Arizona Third Party Bond with Jet, protecting consumers from damages that may be caused during the issuance of driver’s licenses and ID cards, titles and registrations processing, and vehicle inspections.

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Jet Insurance Company has streamlined the bonding process, cutting out the middlemen who charge you fees and commissions, and delivering you the bond you need at the lowest possible rate. Apply now to get your Third Party Bond quickly!

What Is the Lowest Price for the Third Party Provider Bond?

The cost for the Arizona Third Party Bond starts at $188 (for a $25,000 bond) but is determined by the bond limit set by ADOT and a personal credit check. With some basic information and a review of credit, Jet will provide you with a quote within minutes. The chart below indicates costs for an applicant with good credit standing at different bond limits.

Bond LimitMonthlyAnnual
$10,000$10$100
$25,000$19$188
$50,000$38$375
Arizona Authorized Third Party Bond Cost

Jet is the only surety bond carrier in the market offering the Arizona Third Party Bond in monthly payments. With most carriers, monthly payments are only available through third party premium finance companies, and that company will charge interest (sometimes up to 30% APR), as well as fees. Since Jet is a direct carrier, you pay a straightforward monthly rate with no fees or interest, and your bond stays active for as long as you keep making your monthly payment.

What Is the Required Limit for My Third Party Bond?

In Arizona, the Third Party Bond can be issued at multiple limits depending on the services you provide as an authorized third party. Under the Arizona Revised Statutes Chapter 28-5104, towing companies conducting level one motor vehicle inspections must post a $25,000 bond. Driver’s license providers must post a bond for $300,000 in their initial application and $100,000 for each additional location, unless they also provide registration and title services (this reduces the requirement to $100,000 per location).

What Is the Purpose of the Arizona Third Party Bond?

As part of ADOT’s mission to provide the State with a safe and efficient transportation system, it allows Authorized Third Parties (ATPs) to provide necessary services for registering, titling, and inspecting vehicles, and licensing drivers. This takes a time-consuming, labor-intensive process and disperses administrative duties to a wider group of competent businesses, providing more opportunities for the public to take care of paperwork.

As a key piece of this mission, the Third Party Bond serves as a means of consumer protection from three categories of damages outlined in the Arizona Revised Statute:

1. Nonpayment by the authorized person of any fee or tax paid to the third party by that person. In other words, the bond guarantees a consumer will not be held liable if a consumer pays the ATP taxes or fees, and the ATP fails to pay those to the state of Arizona.

2. Insolvency or discontinuance of business. The consumer is protected in the event that an ATP goes out of business after collecting payment from a consumer, but before completing their duties with ADOT.

3. Failure of the authorized third party to comply with the authorized third party's duties pursuant to this article. 

Arizona Revised Statutes Title 28, Chapter 13 details the specific requirements ATPs must follow to be in compliance. The bond protects consumers from any failure on the part of the ATP to adhere to these requirements.

How Does the Application Process Work With Jet?

Jet makes this part easy. To get started, we will just need some basic business information and a social security number to produce your quote. Once you complete the application (in just a few minutes), you will receive a quote with a link to purchase the bond. Once your purchase is complete, we will send you a receipt and a copy of the bond for your records.

Can Jet File the Bond with ADOT for Me?

Yes, Jet can! Once you complete your purchase, Jet will file the original Third Party Bond with ADOT for you. Remember, the bond is just one part of the application requirements that must be submitted to ADOT to become an Authorized Third Party.

A copy of the bond will be sent to you for your records, along with an electronic copy. If you need to send the original bond to ADOT yourself, you may choose to have the original mailed to you at checkout.

All paperwork will need to be filed with ADOT at the following address:

Competitive Government Partnerships 
Mail Drop 532M 
Motor Vehicle Division 
PO Box 2100 
Phoenix, AZ  85001-2100

What Happens if I Need to Cancel My Bond?

With Jet, you can cancel your bond easily! You will need to notify Jet in writing (email is fine). We will notify ADOT that you would like to cancel. After 60 days, the cancellation is final, per the AZ Revised Statute Section 28-4362. During this 60-day period, the obligation to ADOT still stands and you (and Jet) are still liable for any claims. 

Dealers who have paid for an annual term for the bond may receive a prorated refund, based on the time remaining. Jet will calculate the unearned premium (beyond the 60 days noted above), and the remainder will be refunded to you. Monthly payments subscribers will continue to be charged the monthly rate during the 60 days after cancellation has been requested with ADOT.  Once cancellation is complete, payments will cease.

How to Renew the Third Party Bond

For authorized third parties who pay on a monthly basis, the Third Party Bond stays in force automatically, as long as you continue to make your payments.

For those paying for the bond annually, all you need to do to renew the bond is to pay your renewal premium before the renewal date of your bond. Don’t worry, Jet will remind you well in advance, so you can pay online or through the mail.

How Does an Authorized Third Party Avoid Bond Claims?

For authorized third parties performing services on behalf of the MVD, a claim on the Third Party Bond can be avoided by complying with the rules set forth in the Arizona Revised Statutes Chapter 13. Essentially, you must pay all appropriate taxes and fees due to the ADOT and comply with all rules of operations for issuing licenses, registration, and IDs. If any complaints arise from ADOT or customers, endeavor to address them promptly before they escalate.

What Happens if I Get a Bond Claim?

If a customer files a complaint of damages to ADOT, it may process a claim against the bond. If this happens, Jet will begin an investigation into the circumstances within 10 days to assess the validity of the claim under the Arizona Administrative Code R20-6-801. To aid in this, we will need to maintain honest communication and any necessary documentation to conduct a proper assessment.  

If the claim is deemed valid, Jet Insurance Company is bound to pay for the damages within 30 days of the ruling. Consider Jet as a financial guarantor of your actions in delivering services to the public — if Jet pays a claim on your behalf, you remain liable for their actions that resulted in the claim. As such, you will be required to reimburse Jet for the amount paid to settle the claim. Once that amount is repaid, the bond will be reinstated, allowing you to return to business operations.

Arizona Authorized Third Party Provider 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: