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Arizona Wholesale Pharmacy Bond
Arizona full service drug wholesalers are required by the State of Arizona Board of Pharmacy to obtain the $100,000 Wholesale Pharmacy Bond, sometimes known as the Full Service Drug Wholesaler Bond. Jet Insurance Company provides this surety bond to wholesale prescription-only drug distributors as a financial guarantee to the ASBP and public should the permittee act in a fraudulent or negligent manner.
Jet cuts out middleman agents and brokers to deliver you a streamlined process, competitive rates, and an insurance company that has your back from start to finish.
What Is the Cost of the Wholesale Pharmacy Bond?
With Jet, the cost of the Arizona Wholesale Pharmacy Bond starts at $750 for one year, or $75 monthly. Prices will vary based on factors such as the personal credit of the permittee. The qualifying rates shown below demonstrate the options for a permittee with preferred credit.
| Bond Term | Cost |
|---|---|
| Monthly | $75 |
| 1 Year | $750 |
| 2 Years | $1313 |
Choosing Jet as your surety provider allows you to choose a payment option that works best for you. Our monthly payment plans are exclusive to the market - you won’t find it anywhere else!
Why Is the Arizona Wholesale Pharmacy Bond Required?
The State of Arizona Board of Pharmacy exists to protect the health, safety, and welfare of the citizens of Arizona through the regulation of pharmaceutical practice, manufacturing, distribution and storage. In combination with the relevant Arizona Revised Statutes Title 32, Chapter 18, the ASBP requires full service wholesale permittees to maintain a Wholesale Pharmacy Bond in accordance with 32-1982. The bond guarantees the permittee will make due payments to the Pharmacy Board and abide by regulatory guidelines.
All permittees applying for their initial permit or renewal of permit must file a bond of at least $100,000 or submit a comparable means of security to the Board. The Board may choose to waive the bond requirement if the permittee has shown a history of having successfully maintained a comparable surety bond or other means of security in another state where the permittee had also possessed a valid license in good standing.
Jet’s role is making sure the permittee remains properly bonded to continue operations as a full service drug wholesaler.
How Does the Application Process Work With Jet?
The application process at Jet has been designed to take only a few minutes of your time. The application asks for basic permittee information, including the social security number for a soft credit check. Additional financial information may be requested.
Once the application has been processed, a rate will be sent via email available for direct online purchase. The permittee will receive a copy of the bond and receipt at checkout.
Can Jet File the Bond to the Arizona State Board of Pharmacy For Me?
Absolutely! At Jet, you can leave the bond filing process to us. The bond form will be considered complete with the signature of the permittee, the surety, and an Arizona registered agent. If you prefer to file the bond yourself alongside other paperwork, you can select that option when completing payment.
All bond documentation must be sent to the following address:
Arizona State Board Of Pharmacy
P. O. Box 18520
Phoenix, AZ, 85005
Can I Cancel My Bond? Will I Get a Refund?
Yes, the bond can be cancelled. The cancellation process can go a few ways:
- The executive director of the Pharmacy Board will have the right and authorization to cancel the bond through a written notice to the surety at any moment for any given reason
- The surety reserves the right to terminate the bond through a written notice to the Pharmacy Board with reason to justify the cancellation. This can be for non-payment of the bond
- The permittee wishes to cancel the bond. They must send a written request to Jet (email is fine) and Jet will then send the cancellation notice to the Pharmacy Board.
The cancellation provision attached to this bond is a total of 60 days. That means that in the event the permittee or Jet requests cancellation, the bond will stay active for an additional 60 day after the Pharmacy Board receives the notice. The permittee is responsible for payment of the bond during this time.
For bonds purchased on a monthly basis, the bond will be considered inactive once Jet stops the automatic payments after the 60-day period.
Permittees that purchase the bonds on annual or multi-year terms may be eligible for a return premium. The refund will be calculated based on the remainder of time left on the bond while also considering the cancellation provision.
How Do I Renew My Wholesale Pharmacy Bond in Arizona?
Prescription-only drug wholesalers can renew their bond without having to worry about submitting any additional paperwork. Bonds purchased on monthly terms will renew automatically as long as the monthly payments to Jet continue. Likewise, bonds purchased on annual or multi-year terms will only require a payment in full to continue the bond coverage. Jet will issue a renewal reminder for bonds through email or mail with plenty of time for the permittee to make payment or notify us of any changes.
It’s important to keep in mind that the bond must remain active for at least one year after the expiration of your full service wholesale permit or until 30 days after any administrative or legal proceedings, whichever occurs later.
How Does a Permittee Avoid Bond Claims?
Permittees must follow the Arizona Revised Statutes Title 32, Chapter 18, in order to remain in compliance while operating. Full service drug wholesalers will be subject to receiving a claim if they violate any section of the relevant statutes or fail to provide the appropriate payments to the ASBP.
Per 32-1901.01, the permittee must not conduct business in an unethical and unprofessional manner. A few examples include:
- Omitting information or providing false/misleading information to the Board in any communications
- Working while under the influence
- Failing to write a report to the board regarding a pharmacist that is professionally incompetent
- Intending to sell, offer, transfer, or distribute an imitation prescription-only drug
Per 32-1961, permittees must acknowledge the limitations on dispensing and the actions that lead to violations, including:
- Unlawfully dispensing, selling, or compounding drugs
- Stock, offer, or expose drugs for retail sale
- Advertise, open, or conduct a pharmacy
Per 32-1965, permittees must refrain from the following prohibited acts which include, but are not limited to:
- Failure to obtain proper licensing prior to engaging in pharmaceutical practices
- Alteration or destruction of prescription labels
- Selling, offering, holding, or manufacturing of a drug that is mislabeled or adulterated.
A permittee in violation of Chapter 18 is subject to disciplinary action from the Board as well as civil penalties; a hearing will be held to reach a verdict. Wholesale prescription-only drug distributors are subject to the following penalties if found guilty: a civil penalty not to exceed $1,000 per violation, a letter of reprimand, a decree of censure, completion of continuing education courses, probation, and revocation or suspension of the permit. The Pharmacy Board has jurisdiction to find a perpetrator guilty of a class 2 misdemeanor or a class 5 felony depending on the severity of offense.
In any case, the bond may be used for restitution. so it is in the best interest of the full service prescription provider to follow all regulations.
What Happens If I Get a Bond Claim?
If a claim has been deemed valid after a formal hearing from the board, Jet does their due diligence by reviewing all documentation from all parties involved. Valid claims must be paid out to the claimant(s) up to the bonding limit of $100,000. The permittee is expected to pay Jet back the full amount of the claim, as they are liable for their actions as a full service drug wholesaler.
