The Arizona Department of Insurance and Financial Institutions (DIFI) requires that all Arizona service and warranty companies hold an active permit to conduct business in the state of Arizona and part of that permitting is a Service Company Bond requirement. Jet Insurance Company offers this bond as a guarantee to the DIFI that service companies will faithfully complete their obligations and remain financially solvent as long as they are in operation.
Jet gives you the ability to work directly with the underwriter on our staff, therefore you can expect to get bond quicker and for the best rate available.
With Jet, the cost for the bond is a small percentage of the $100,000 bonding limit. We will need to factor in financial statements, warranty contracts, and experience into our approval and price.
We offer a monthly installment plan which can be a great benefit with a bond such as this that typically has higher premiums. Pay one low monthly rate that comes out from a credit or debit card of your choosing.
Title 20 of the Arizona Revised Statutes states the laws and regulations in place regarding licensing and operations of service and warranty companies. The Arizona Department of Insurance enforces these rules pertaining to service company protocol which helps fulfill their goal of promoting the safety and security of the insurance industry as a whole.
Arizona needs to provide protection from a service company not fulfilling their contractual obligations at the expense of their clients. The Service Company Bond is the tool that serves the State’s purpose to defend clients against this financial injury. A third party surety provider, like Jet, guarantees repayment to the damaged party.
Yes, your bond can be filed for you by Jet. Upon completion, Jet will send an original signed, sealed and notarized bond to the DIFI. You will also be provided with your own copy through mail.
If you prefer to file the surety bond paperwork personally, you can select that option during online checkout. The original bond form and permit paperwork from the DIFI (if necessary) should be sent to the following address:
Arizona Department of Insurance and Financial Institutions
100 North 15th Avenue, Suite 261
Phoenix, Arizona 85007-263
Apply for the bond in a matter of minutes with Jet's efficient online process. All that's needed is information about yourself and your business, including financial statements and warranty contracts. Once everything is submitted Jet will do a quick review and send you a quote via email which will be available for purchase directly online.
Yes! The Service Company Bond can be cancelled via email or mail to Jet. We submit cancellation to the DIFI right away after receiving the request. Take note that the bond will stay active for a 30-day cancellation period with the DIFI. We will return any money available to you, but will have to factor in that 30-day period into the refund calculation as the bond is active during that time.
For those making monthly payments we will stop the bond’s monthly payment withdrawals after the 30-day cancellation period has ended. Basically we need one more payment to account for the bond remaining active for that period.
If you are participating in Jet’s payment plan, you don’t have to worry about renewing the bond. As long as automatic payments continue the bond will remain active.
For those on an annual payment plan, Jet will notify you in advance via email and mail when your bond needs to be renewed. Jet only requires payment to renew your bond; no additional paperwork.
All service and warranty companies operating in Arizona should review Arizona Statutes ARS 20-1095.09 regarding the rules regulating them. To save time, Jet has summarized the duties the prohibited acts as they pertain to the surety bond:
|Grounds For a Complaint||Lawful Duties|
|Creating false or misleading statements in connection with the sale of a service contract||Meeting permit requirements which includes having an active surety bond|
|Breaching contract by disclosing sensitive and private client information to the public||Establishing a written service contract to be signed by both the service company and the client|
|Omitting material statements in connection with sale of a service contract||Stating the total purchase price of the service contract upfront with the client before any operations take place|
|Failing to perform services promised under the service contract with a reasonable time and in a competent workmanlike manner||Providing receipts and accurate accounting records that shall be audited annually by a certified public accountant|
Any policyholder who has been fiscally damaged due to lack of service by a service company can file a complaint through the DIFI’s online complaint page. After acknowledging a complaint submission, the DIFI may choose to conduct their own investigation on the matter. If the investigation reveals the service company to be in violation, disciplinary action will take place, including but not limited to a claim on the surety bond.
If you receive a bond claim, contact Jet immediately. Provide all pertaining information regarding your claim. Jet will do our own investigation and defend you against false accusations.
If your bond claim is valid, Jet will proceed by ensuring compensation is paid to the damaged client up to the maximum limit on the bond. Although funds will be paid to the client by Jet, the service company remains liable for their behaviors, and consequently must repay the surety company, in this case Jet, for claims that have been paid out. With surety bonds, Jet acts as an intermediary to get the required funds to damaged clients without fail, while the debt remains to be repaid by the service company.