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Surety Bond Cancellation Guide - Continuous Form Bonds

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09-06-2021

surety bond email cancellation
Email to Cancel

To cancel your bond with Jet Insurance Company, email a request to [email protected] or call (855) 296-2663. Jet will file cancellation with your request or if we do not receive payment to renew/continue the bond.

A surety bond that is “continuous until cancelled” means the bond remains active and on file with the regulatory agency until cancellation is requested by Jet, rather than you, the licensee/permittee. Most license bonds have this type of provision.

surety bond phone cancellation
Call to Cancel

If Jet does not file a cancellation notice, the bond’s liability remains. Regulatory agencies prefer this “continuous until cancelled" verbiage to ensure the bond’s protection is ongoing while your operation is active. Of course, this method avoids additional paperwork for the regulators, too.

You may see that the bond form has a cancellation period of 30, 60, or 90 days (to name a few). Jet is required to file a written notice of cancellation with the regulator and will do so at your request or for non-payment. Once the regulator receives the notice, the cancellation period will start. During this time, both Jet Insurance Company and you are still liable.

Jet's Edge

The surety industry is outdated in terms of handling and communicating cancellations—not so with Jet. We eliminated middleman agents and brokers, thus can process cancellations quickly and efficiently.

Other surety companies, agents, and brokers often charge cancellation fees, which we don’t agree with. If you cancel your bond before the bond term ends, we calculate a prorated refund and mail a check to you. If paying monthly—yes, we offer monthly payments on most bonds!—your payments cease.

So, What Does the Cancellation Period Look Like From Start to Finish?

Here’s a breakdown of the entire process, using an example:

1. Kim owns a car dealership but is getting ready to retire. Kim has had his auto dealer bond with Jet for 5 years, but will no longer need it. Kim sends an email to [email protected] requesting the cancellation of the surety bond.

2. Jet receives Kim’s request and files formal cancellation with the State DMV.

3. The DMV receives the request and starts the liability period for the bond form. The liability period for Kim’s bond is 30 days.

4. After 30 days, the bond is cancelled and the liability is released for both Jet and Kim.

5. Kim had six months left on his bond, so Jet sends Kim a check for the unused prepaid premium.

return premium

If you have a bond that is continuous until cancelled and have questions, or are looking to get a quote, give Jet a call at the number listed above and we will gladly help.