Jet Insurance Company has a dislike for unnecessary paperwork almost as much as you do and our renewal process is reflective of our feelings. We have eliminated middleman agents and brokers to create a streamlined bond renewal process.
Bonds with continuous until cancelled language ensure the bond stays in force until the surety company files a cancellation notice with the obligee (or regulatory agency) who required the bond. The obligee prefers this method to cut down on redundant bond filings. The principal (bondholder) benefits by not needing to file a new bond form.
However, certain obligees will require the principal or the surety company to file a continuation certificate indicating the bond term has been extended. Jet will provide the certificate immediately after purchase for the principal to send—and in some cases, we are allowed to send the form directly to the obligee.
Jet Insurance Company does need to underwrite these bond types at regular intervals to account for fluctuations in risk from you or within your industry. Part of the underwriting is a soft credit check. Reassessing the bond risk may give you an opportunity for a better rate or different payment options that would better suit you. Conversely, should your personal credit decrease, there may be a higher renewal cost.
Jet’s Renewal Process
Our monthly paying customers do not concern themselves with renewing their bond. As long as the card on file with Jet goes through, the bond stays active. A continuation certificate will be delivered as needed, typically after several years have passed to keep the regulator happy.
If you have purchased your bond upfront in a one-, two-, or three-year term. Jet sends a renewal invoice months in advance via email and mail. All Jet needs to proceed is payment which can be done the following ways:
First, a link is sent to your email to purchase online—simply click that link and complete the payment. Second, you can call (855) 296-2663 to pay for a bond renewal over the phone. Lastly, when you receive an invoice in the mail, it can be sent back with a check in the prepaid envelope you receive.
Whether monthly, annually or multi-yearly, Jet will notify you of legislative and/or underwriting changes. For monthly customers these notifications will occur every one to three years; annual and multi-year customers are notified at renewal.
What Happens if I Don’t Renew on Time?
If Jet does not receive payment on time, a request for cancellation is sent to the obligee to terminate the bond obligation. Typically, there is a cancellation period around 30-60 days where the bond liability remains. You can make any past due payments within that period and there will not be any gap in bond coverage!
Contractor Bob has a $25,000 Contractor License Bond that is due for renewal on December 31st. In October, Jet will send renewal invoices via mail and email. Contractor Bob likes to save time, so he clicks the link in his email to pay for his renewal. But, he notices that his price is different from his previous rate of $500 for one year. Contractor Bob hasn’t only been building homes, he’s been building up his credit. With his improved credit score, Jet approved Bob at a lower rate and his new bond rate is $350 a year.
Contractor Bob selects a one-year bond term and submits payment information. The continuation certificate and receipt are available for Contractor Bob! Bob sends the continuation certificate to the Contractor Board in his state and his bond is set for another year.