Arizona Service Company Bond

Arizona Service Company Bond

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.

VIEW YOUR BOND PRICE

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.

How Is the Cost Determined for the Arizona Service Company Bond?

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.

What Is the Purpose of the Service Company Bond?

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.

Can Jet File the Bond for Me?

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

How to Apply for the Arizona Service Company Bond

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.

Can I Cancel My Bond and Get a Refund?

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.

How Do I Renew the Service Company Bond?

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.

How Does a Service Company Avoid Bond Claims?

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 ComplaintLawful Duties
Creating false or misleading statements in connection with the sale of a service contractMeeting permit requirements which includes having an active surety bond
Breaching contract by disclosing sensitive and private client information to the publicEstablishing 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 contractStating 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 mannerProviding receipts and accurate accounting records that shall be audited annually by a certified public accountant
Arizona Service Company Duties & Complaints

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.

What Happens if I Get a Bond Claim?

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.

Arizona Service 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: