Arizona Securities Dealer Bond

Arizona Securities Dealer Bond

Arizona securities dealers who haven’t registered under the Securities Exchange Act of 1934 must hold a Securities Dealer Bond. Jet offers this bond as a financial guarantee to the Arizona Corporate Commission ("Commission") to cover payment of up to $25,000 to the public should they sustain financial injury from fraudulent behaviors of a security dealer.

APPLY FOR A SECURITIES DEALER BOND

Jet provides this bond without middlemen brokers or agents to give you a stress free and fairly priced bond.

What Is the Lowest Price for the Securities Dealer Bond?

The price for the bond can be as low as $100 with Jet. However, the bond limit may vary based on the discretion of the Commission which will affect bond rates. The bond limit is never more than $25,000. Jet does have to factor in the personal credit of the security dealer.

What Is the Purpose of the Securities Dealer Bond?

The Securities Dealer Bond is from Jet is a promise to the Commission that you, the dealer, will not act fraudulently. If a dealer were to commit fraud and not remedy any damage inflicted on a client, Jet would provide proper compensation to the unlawfully damaged party up to the bond limit.

The Securities Dealer Bond is required by any business or person acting as a licensed securities dealer in the state, as stated by ARS 44-1943 that is not registered under the securities exchange act of 1934.

How Does the Application Process Work With Jet?

Jet’s online application will ask for simple business information plus a social security number for a soft credit check. Fear not, as the credit check will not hurt your credit score. You will receive your quote online immediately and the Securities Dealer Bond can be purchased at that time.

Once purchased, Jet will provide you a downloadable copy of the bond.

Can Jet File the Securities Dealer Bond for Me?

Yes, Jet can file the bond for you directly to the Commission Securities Division. You will receive a copy of the bond for your own records.

Should you want to file the bond yourself, please make that clear to us during checkout and we will get you the original form. When mailing in the bond filing it would go to the following location:

Arizona Corporate Commission
1300 West Washington Street
Phoenix, AZ, 85007

What Happens if I Need to Cancel My Bond?

If you need to cancel your bond, notify Jet and we will process cancellation with the Commission. After the cancellation notice is received by the Commission, the bond will remain active for 90 days during a grace period with the Commission. If you have any unearned premium from your cancelled bond following that 90-day period, we refund that amount to you.

If you are a monthly payment subscriber, Jet will halt payments as soon as that 90-day cancellation period has passed.

How Do I Renew the Securities Dealer Bond?

If you are on an annual payment plan, Jet will email and mail you in advance regarding your bond renewal as a reminder. For renewal, Jet only requires payment. Following payment, a copy of the updated bond and receipt of purchase will be sent to you.

If you participate in Jet’s monthly payment plan, simply provide payment and the bond will stay active.

How Does a Principal Avoid a Bond Claim?

To avoid a bond claim, securities dealers should be familiar with the limitations of their job duties  and what operations are considered legal versus illegal, all which are listed on Arizona Statutes ARS 44-1991. Jet has summarized the foremost points below:

Violations and means for bond claim includeLawful duties include
Filing misleading information with the Arizona Corporate CommissionMaintaining an active surety bond
Performing a fake audit on financial statementsRegistering with FINRA and the SEC before applying for a license
Misrepresenting a sale of securitiesAdmitting liability for all money covered by payment instruments that it sells or issues
Collecting unlawful commission from a referral of a clientPaying required fees: annual registration, filing, and application
Providing false information on a registration formFulfilling special filing requirements for certain exempt or federal covered securities
Omitting material facts from a proof of sale statementRequiring an order of nondisclosure for testimony of records
Arizona Securities Dealer Bond Complaints

Any market buyer or seller who endures financial hardship as a direct result of a fraudulent securities dealer has the option to file a complaint through the Commission. The Commission will investigate if the claim is valid and if needed, move forward with disciplinary action against the violating dealer.

Should a securities dealer cause financial injury by violating any of the following requirements stated above, the recipient can place a claim on the surety bond.

What Happens if I Get a Bond Claim?

If you receive a claim on your bond, notify Jet immediately. Send all information pertaining to your case and we will begin our own investigation.

Should the claim be validated, Jet will fulfill our duty as a surety carrier to provide payment up to the maximum bond limit to those affected. That being said, the securities dealer remains liable for their fraudulent actions and is required to refund the surety company for paid out claims. The bond, unlike is insurance, is a guarantee of payment and does not transfer liability to the carrier. Jet will still defend you, however, as we are incentivized to weed out fraudulent claims against security dealers.

Arizona Securities Dealer 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: