The Legal Expense Organization Qualifying Bond must be submitted to the Department of Consumer and Business Services (DCBS) by legal firms to offer plans to be on retainer in Oregon. The bond can range from a $10,000 to $100,000 limit and protects the legal firm’s expense plan clients from losing money as a result of the legal firm’s failure to fulfill its contracts.
APPLY FOR BOND
The cost of the Legal Expense Organization Qualifying Bond can start as low as $100 per year or $10 per month for a $10,000 bond limit, but the cost varies with the bond limit and the type of legal expense plans offered whether an Access Plan or Comprehensive Plan. The bond limit changes annually based on the total amount of plan fees and can go up to a limit of $100,000.
Jet is able to offer the lowest rates regardless of the bond limit because Jet cuts out the middleman. Above are examples of a preferred credit tier bond offering with Jet for a couple of bond limits.
This bond goes through underwriting to determine the rate that can be offered. Underwriting will take several factors into account, such as personal credit, legal plan type and legal plan total fees collected. A legal expense organization providing advice or consultation for legal matters that can be dealt with over the phone or a restricted review of common legal documents is considered an “Access Plan” and must carry a bond ranging from $10,000 – $50,000. Legal expense plans for advice and consultation that calls for more involved review and representation are called “Comprehensive Plans” and must carry a bond ranging from $25,000 – $100,000. The bond limit must be within the range and in an amount that reflects ten percent of the prepaid fees paid by clients in the previous year.
Yes! Jet will send the Legal Expense Organization Qualifying Bond to the DCBS once you have purchased it. Jet streamlines the process by completing the original bond and sending it directly to be filed.
If the original bond is needed to be submitted for receiving your initial certificate of registration, Jet will mail to bond directly to you. Once completed, please forward all paperwork to:
Department of Consumer and Business Services
Financial Services Division
P.O. Box 14480
Salem, OR 97309-0405
Claims against a Legal Expense Organization Qualifying Bond are a result of the failure to complete commitments, either to a client or to the DCBS. Under the Oregon Revised Statutes (ORS) 750.685, a legal expense organization is obligated to hold securities for the reimbursement of any services that were not completed. To keep from receiving claims, the legal expense organization must:
In the event that a claim is filed against the Legal Expense Organization Bond, Jet will take all information to verify whether the claim is valid. Jet will follow the Oregon Insurance Regulations regarding the bond claims procedure.
An investigation will be conducted following the receipt of a claim. The investigation usually concludes within 45 days, but additional time may be requested if a decision cannot be made. To reach a conclusion, both parties must be truthful and submit all applicable documentation. If the claim is proved to be valid, Jet will pay the claimant in the amount of the damages incurred. However, the legal expense organization is responsible for paying back Jet (the surety) in the amount of the claim.
The purpose of the Legal Expense Organization Qualifying Bond is for the reimbursement of the client or state when a legal expense organization has not fulfilled an obligation for which they received prepayment for. By enforcing the bond requirement, the DCBS is able to protect the public from being defrauded or taken advantage of by a legal expense organization.
Applying for the Legal Expense Organization Qualifying Bond only takes a few minutes. The application will need some certification information and some personal information to be used for the underwriting process. Once your bond rate is approved, we will send an email with the ability to purchase online.
APPLY FOR LEGAL EXPENSE BOND
This bond must be in effect during the course of your certification as a legal expense organization. When it is time to renew your bond, Jet will send you a renewal notice. At that time, any updates to the bond limit or payment information can be made before renewing the bond.
With the monthly payment option, you will not need to renew the bond. The bond remains active so long as the payments keep coming through.
No, the bond does not expire but it may be cancelled upon request. Bonds are purchased for yearly terms and must be renewed to avoid cancellation. If payment is not made for the upcoming term, the surety (Jet) will cancel the bond at the end of the bond term