North Carolina Motor Club Bond

North Carolina Motor Club Bond

The North Carolina Department of Insurance (NCDOI) requires all Motor Club licensee holders to secure a $50,000 Motor Club Surety Bond. The bond ensures that the Motor Club will abide by North Carolina Statutes Chapter 58, Article 69 and is a fiscal guarantee for damages pertaining to violations of licensing laws.

PURCHASE MOTOR CLUB BOND

What Is the Price for a Motor Club Bond?

With Jet, Motor Club Bond rates start at $500 annually or $50 monthly. The bond rate may vary based on the licensee holder’s personal credit.

Our monthly rate option requires no down payment and will not accumulate interest regardless of your credit. You are able to apply, purchase, and have your bond instantly approved online. 

What Is the Bond Filing Process With the Department of Insurance?

That is something you will not have to worry about as Jet will take care of the bond filing for you! An original signed and notarized bond must be on file with the North Carolina Department of Insurance to become and remain a licensed Motor Club. Once all information has been submitted through Jet’s online bond application, Jet will file the bond to the NCDOI on your behalf. 

If you are a new Motor Club applicant sending in a license application and the other required paperwork to the NCDOI, Jet will give you the option to have the original bond sent to you first. The original bond can be mailed to the following address:

NC Dept. of Insurance
Agent Services Division
ATTN: NIBE Team
1204 Mail Service Center
Raleigh, NC 27699-1204

What Is the Purpose of the Motor Club Surety Bond?

The North Carolina Department of Insurance was created to not only educate and offer services to citizens related to insurance, but also to oversee and regulate businesses in order to ensure that the public is being protected from fraud. The Motor Club Bond is required by the NCDOI to for licensure and to guarantee all North Carolina statutes rules and regulations are followed. If damage is caused by the Motor Club the surety will step in to provide financial assistance. This could be related to the Motor Club not providing service promised in the terms, such as roadside assistance or personal travel insurance.

It is important to note that any Motor Club business within the State of North Carolina without an active license shall be guilty of a Class I Felony. You must acquire a surety bond in order to keep your Motor Club license active and in good standing.

Why Would a Motor Club Bond Claim Arise?

Claims can be easily avoided by following the rules and regulations put in place by the North Carolina Department of Insurance. These regulations are listed out in the North Carolina Statutes Chapter 58, Article 69 as well as additional rules on the NCDOI website. Some key reasons a claim would be filed on the Motor Club Bond include the following:

  1. Not maintaining an up-to-date “claims register”
  2. Not maintaining a constant reserve of assets for the benefit of the members
  3. Failing to advise the Commissioner info on new stockholders, employees, or the termination of such within 10 days by written notice
  4. Offering a Motor Club membership with a contract of insurance through an unlicensed insurance employee, agent, or salesman

If the NCDOI finds you liable for any violations in accordance with the above statutes or rules pertaining to the bond, they will first contact you to address the matter. It is in the Motor Club licensee holders best interest to correct the violations if possible to avoid a bond payout and possible suspension or cancellation of the license. The Commissioner can also choose to take these violations to court with charges facing up to a Class I Misdemeanor verdict.

What Happens if a Claim Is Filed on the Motor Club Bond?

The Commissioner will ensue an investigation upon their own accord or if they receive any violation complaints against the Motor Club from the public. If the violation proves to be valid, the Commissioner may choose to file a claim on the surety bond.

Once Jet receives the official claim notice from the NCDOI Commissioner or the public, we will notify you immediately. Jet will then commence a review and thorough investigation of the accused claim from any public source. Jet works hard to protect its bond holders, but if the claim is coming from a government agency, like the Department of Insurance, there is only so much we can do when facing a claim that has been investigated and had determination made upon the case previously. 

If the claim is proven to be justified, Jet will make payment up to the bonding limit if necessary. The Motor Club Bond holder is ultimately responsible for their actions and must reimburse Jet for paid claims. Failure to do so will result in difficulties to obtain future Motor Club Bonds.

How Does the Application Process Work With Jet?

Jet’s Motor Club Bond application was created to be quick and easy! The online application will ask for some simple information including the motor club owner’s social security number. A soft credit check, which is done in only seconds, is required. Once the payment has been completed, Jet will send the original bond for filing to the address of your choice.

PURCHASE MOTOR CLUB BOND

Does the Motor Club Bond Expire?

Not with Jet! If you choose our monthly payment options, there is no need for a bond renewal and the bond will remain active for you to have on hand when your yearly license renewal occurs.

If you choose to make annual payments for the bond, Jet will send renewal invoices prior to the bond’s expiration. We do not require any extra paperwork, like many insurance carriers and their agents. Motor clubs need only to make payment.

Can I Cancel the Motor Club Bond?

With Jet, you can cancel the bond at any time. Upon receiving your notice (email is fine), Jet will send a cancellation request to the North Carolina Department of Insurance. If the cancellation request is accepted, there is a 30-day cancellation period in which the bond will remain active following the date of the written request. If the monthly payment option was chosen, Jet will charge for that 30-day period since the bond is still considered active.

It is important to remember that the Motor Club Bond is a requirement in order to maintain a Motor Club license. If the bond is cancelled, the license will be in violation of the NC statutes. A new bond will need to be issued if this occurs, which can be done just as easily with Jet, in order to keep the license active.

North Carolina Motor Club Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: