North Carolina Discount Buying Club Bond
The Discount Buying Club Bond is required for all discount buying clubs as enforced by the State of North Carolina Office of the Attorney General. Jet Insurance Company offers this surety bond as guarantee for discount buying clubs to the Attorney General allowing the clubs to operate in North Carolina.
PURCHASE DISCOUNT BUYING CLUB BOND
Jet offers the advantage of discount buying clubs working directly with the surety provider and not some middleman agent or broker delaying the bonding process.
How Is the Bond Limit and Price Determined?
The North Carolina State statutes in relation to this bond specify that the appropriate bond limit shall be made to no less than one hundred times the one-time or annual membership fee, or fifty thousand dollars, whichever is greater. The price for the bond from Jet is just a small percentage of that amount.
The bond price is based on the discount buying club operators personal and business financial standing. With Jet, you get to work directly with the surety underwriter who will make all eligibility and pricing decisions related to the bond. No unnecessary third party paperwork!
At Jet, you can avoid high cost annual premiums with a monthly payment plan. This monthly pay as you go rate is just as convenient as it sounds, pick a card to have for the monthly withdrawal, done.
Why Is the Discount Buying Club Bond Required?
The State of North Carolina Office of the Attorney General represents all state government departments through investigation and prosecution of crimes against the state ensuring the safety of the public. Discount buying clubs are mandated by State Law to return any and all refunds due to members upon cancellation of their cancellation. This surety bond provides a financial guarantee from Jet to the public (via the NC Attorney General) should discount buying clubs not refund former customers properly, Jet will.
Can Jet File the Discount Buying Club Bond For Me?
Yes, Jet can! The bond application for the discount buying bond shall be sent with the necessary signatures and corporate seals to the Attorney General.
A copy of the bond and receipt will be made available immediately after the purchase has been made.
The bond form will be sent directly to the address stated below:
State of North Carolina Office of Attorney General
PO Box 629
Raleigh, NC, 27602
Can I Cancel My Discount Buying Club Bond and Get a Refund?
At Jet, it is possible! If the discount buying club operator chooses to cancel their bond, they must first provide a written notice to the Jet Insurance Company stating their intent of cancellation. Jet will then have to request cancellation from the Attorney General.
Jet does not charge additional cancellation fees. Should there be a potential refund made to the discount buying club operator, Jet will send a check to your address. Jet will have to take into account the cancellation provisional period. The cancellation period attached to this bond is a total of 90 days in which the bond will remain active even after there has been notification of cancellation.
How Does a Discount Buying Club Bond Club Operator Avoid Disciplinary Action from the Attorney General?
The discount buying club operator must comply with the regulations stated within the North Carolina State Statutes in relation to this bond: Chapter 66 - Article 22. Per § 66-134. The discount buying club operator must not engage in the following actions:
- Portray a limit in time to any potential customer or that their delay in joining will result in an increase of price.
- Discourage potential customers to inspect current merchandise catalogs and price lists during normal business hours.
- Compare prices for goods or services unless the prices relate to substantial sales of the same goods or services made in the same geographic region within the past 90 days.
- Fail to cancel upon a customer’s request without a charge for goods or services provided.
- Charge in excess for actual damages upon a customer’s cancellation of an order.
The State of North Carolina Office of the Attorney General may pursue an investigation on the potential claims against the discount buying club operator.
Any customer that has established a contract with a discount buying club has the right to cancel the contract at any time and receive within 10 days a full refund for their membership fee. If the discount buying club fails to perform their contractual obligation of providing a refund, a claim may be made on the surety bond. The injured person may collect reasonable fees including attorneys’ fees.
What Happens If I Get a Bond Claim?
Should there be a claim on your bond, Jet will step in and provide a proper defense for the discount buying club operator. If the State of North Carolina Office of the Attorney General has already conducted their investigation and made their determination of the validity of the claim, Jet will provide a defense within their capability.
Should the claim be determined as valid, Jet will come in and pay the damages up to the bonding limit that has been established by the discount buying club operator. Once the payout has been made to the damaged party, the discount buying club operator will be expected to responsibly pay Jet back for any amount paid out. Think of the bond as a letter of credit to the Attorney General that clubs will uphold their refund requirements, failure to do so does not dismiss the liability from the damages.
How Does the Application Process Work With Jet?
At Jet, the application process to obtain the Discount Buying Club Bond has been streamlined down to requiring only necessary information. We will need prepared personal and business financial statements in addition to our questions.
The personal credit score of the discount buying club operator will be needed and completed within seconds during the bond application. This will be a soft credit check and will not affect your credit score in any way. Once Jet has thoroughly reviewed the provided information and supplementary documents, a rate will be generated available for the discount buying club operator.
A copy of the bond as well as a receipt of the transaction will be issued to the discount buying club after they have made their purchase. It’s that simple.
PURCHASE DISCOUNT BUYING CLUB BOND
How Do I Renew the Discount Buying Club Bond?
The process to renew the Discount Buying Club Bond does not require additional paperwork or any other increase in your time. Bonds that have been purchased on annual terms will need to be renewed before the expiration date simply with payment. Jet will notify you with plenty of time to make your payment so that your bond coverage continues as needed.
Bonds purchased on a monthly basis do not need to be renewed as long as the monthly payments are sent on a timely basis.
