Solicitor Bond Claims Guide

Solicitor Bonds are a license/registration requirement for solicitors in many states and municipalities as a means to protect the public being solicited and protect the organizations hiring solicitors. This surety bond financially guarantees solicitors will act ethically and uphold whatever licensing code they are working under.

Should there be financial damage sustained by a member of the public, charity, fundraiser, religious group, school, alumni association, booster club, etc. then the bond is a tool that brings fiscal relief from Jet Insurance Company when the solicitor cannot or will not rectify the situation.

What Not to Do

• Fail to identify a professional relationship with the organization
• Use false, misleading, or inaccurate information
• Unlawfully use organization’s name or likeness
• Falsely claim association with an organization or government entity
• Fail to transfer contribution as agreed upon
• Commingle funds

Bond Claim Process

Before any claim can be made against a solicitor’s bond, a complaint must be made to the regulatory agency (state, county, or city) or to the courts. Hopefully, a solicitor catches wind of the issue and corrects any mistake before the situation escalates. 

The regulator or court will call upon evidence and make a judgment whether in favor of the solicitor or the complainant. If the solicitor is found guilty and does not abide by the terms of the judgment, then a claim can be made upon the surety bond to make recompense. 

Jet Insurance Company will perform its own due diligence to verify the validity of the claim. If we determine that the damages are justified, then payment will be made to the damaged party. 

Attorney, court, and collection fees can be lumped into the claim amount that Jet will have to pay. This payment cannot exceed the bond’s set limit. 

Recovery and Indemnification

This surety agreement acts differently than insurance after the claim payout has been made. Insurance covers accidental behavior and surety bonds cover fraudulent and unlawful behavior. Moreover, surety covers fraudulent and unlawful behavior that has yet to be rectified by the guilty solicitor. 

At the outset of the bond’s purchase, the surety company is indemnified against any guilt and therefore any financial loss at the hands of the solicitor. Meaning the solicitor still needs to pay the surety company back for all damages incurred.

Bond Timelines

Once a bond goes on file with the regulatory agency, a claim can be made against the bond. A claim may be made against that bond for an infraction that happens from the start of the bond until it is fully cancelled.

Jet Insurance Company must request cancellation from the regulator to cancel the bond’s term. Jet will only request cancellation in the event of a bond claim or if requested by our customer if the renewal or monthly payment does not occur. 

When Jet requests cancellation, that will begin a 3-day cancellation period or grace period. Some states and cities’ solicitor bonds have longer cancellation periods. It is not until after that cancellation period that the bond is fully cancelled. No infraction after that point can have a claim made upon the bond.

A late claim can trickle in against a bond but is limited by the statutes of limitations within that state. Meaning that claim still needs to generate from an infraction that occurred during that bond’s active term. This may be an important feature if there are a group of affected parties and their claims against a fraudulent solicitor show up slowly over time. As stated before, the total amount of the bond payout cannot exceed the bond’s limit.

More can be discovered on the solicitor bonds Jet offers below.