With Jet Insurance Company, the renewal process for larger bond requirements has been simplified and eliminates the complications from unnecessary middleman agents and brokers.
There are two different processes when it comes to renewing a bond with Jet that depend on the bond term purchased: Monthly versus Annual. Let’s break down how renewal works in either case.
Annual Bond Term Renewal Process
Jet will send renewal instructions well in advance of the bond’s expiration date. It would be hard to miss, as we send several notices via email and mail to ensure that no person has licensing issues due to a surety bond.
Renewal Underwriting Requirements
Due to the increased risk of a large financial guarantee bond, Jet requires its customers to submit business and personal financial information before offering renewal terms. Business income statements and balance sheets can be exported from accounting software or sent over from an accountant.
A personal financial statement can be completed by submitting the Jet Personal Financial Statement Form and submitting bank statements to prove asset amounts. Jet does perform a credit check prior to the renewal notice being sent out to streamline the overall process.
Review and Invoice
Once Jet has received the financial statements, a review is performed by an underwriter. The underwriter will then send an invoice for the bond renewal. Again, you will receive this via mail and email.
Jet’s customers can pay either (a) online via a link sent in their email invoice, (b) mail via return envelope, or (c) call (855) 296-2663. Most often there are term options for the bond that can be selected when payment is made: either monthly or in a 1-, 2- or 3-year term.
Immediately following payment, customers receive a receipt and bond renewal confirmation form (unless mailed of course). No further action is necessary as the bond is continuous until cancelled by Jet. More details on that are below.
Monthly Bond Term Renewal Process
For those making monthly payments, Jet still has to collect financial statements on an annual basis. In certain cases, this review can be extended to every two or three years.
If credit, financial health, and the overall surety bond risk remain the same, then our customer will receive notice that the monthly payments will continue as originally set up.
However, if there is a material change, then we will notify our customers of the change monthly rate whether increasing or decreasing. The ability to opt-out or change to an annual term is always available.
Large Financial Guarantee Surety Bond Details
One key to a smooth bond renewal process is knowing bond form language, and Jet Insurance Company is the foremost expert. “Continuous Until Cancelled” bonds are an efficient way to keep a bond active for the regulators (sometimes called an obligee) enforcing the bond and for the bondholders (sometimes called the principal) who purchased the bond. The bond will remain active until the surety company, Jet, files a cancellation notice with the regulator.
Jet will not file cancellation until after the bond’s expiration date has passed or upon our customer’s written request. We will send the cancellation notice to both the regulator and our customer via mail and email.
There is a grace or cancellation period on nearly every bond form. This time period is typically around 30-60 days and keeps the bond active following the regulator’s receipt of the cancellation notice from Jet. Regulators choose to have this provision in place as an added window of protection for anyone damaged by the bondholder.
The cancellation period also gives Jet’s customers the opportunity to make any past due payment within that window and not face any suspension for not having their required bond active.