The $250,000 Multiple Employer Welfare Arrangement Bond offered by Jet Insurance Company allows you, the Multiple Employer Welfare Arrangement (MEWA), to avoid an expensive deposit to the Oregon Department of Consumer and Business Services (DCBS). Jet’s surety bond provides the guarantee to the DCBS that the trust account will perform as set forth in the MEWA’s health benefit plan.
Due to the high bond limit required by the DCBS, premiums can be expensive, but with Jet, you can receive this bond directly from us without middleman markups and fees. Also, Jet exclusively offers a monthly payment option without any financing interest rates.
The rates and eligibility for this bond are contingent on a review of the MEWA’s health plan and financial statements. Jet’s team of underwriters will get back to you shortly after the initial application to discuss rate and next steps.
A deposit of $250,000 must be made to the DCBS in addition to the health plan trust account for the health plan beneficiaries. At Jet, we wouldn’t want a quarter million of our money tied up in a state government account and we are sure you are here because you feel the same way. The surety bond from Jet is our guarantee to the DCBS if that deposit money is ever needed, then we will make the necessary payment.
The Oregon Department of Consumer and Business Services Division of Financial Regulation exists to protect Oregon’s populace from unfair or unlawful business practices and products. This includes the regulation of MEWA’s health care benefit plans for their employees. Those employees have been promised benefits and should they not receive those benefits, the DCBS is the agency that will take action.
The Multiple Employer Welfare Arrangement Bond is a financial recourse, we hope is never needed, but may be necessary in the case where beneficiaries do not receive their agreed upon benefits. MEWA and the regulation surrounding their certification was put into effect by the Oregon State Legislature and can be reviewed in the statutes ORS 750.30 to 750.341.
Our online application will gather some generic information about the MEWA that will take a couple of minutes. You will receive contact for one of our underwriters shortly following that submission and they will inform you of what, if any, additional information will be needed to determine eligibility and the premium rate. We may require information that will already be required by the DCBS certificate process like the health plan and financial statements.
Once we have the MEWA approved, you will receive and email with a link to purchase the bond online. Once complete you will get a copy of the bond and receipt, while Jet handles the filing of the bond.
Jet will ship the bond to the Oregon Department of Consumer and Business Services Division of Financial Regulation for you with no shipping fees. You may request to have the bond sent directly to your location during our checkout process to submit the bond with any other paperwork you may have for the DCBS.
The bond is submitted to the following location:
State of Oregon Department of Consumer and Business Services
Division of Financial Regulation
P.O. Box 14480
Salem, OR 97309
Yes, the bond can be cancelled at any time via written request to Jet and a refund will be provided for any remaining unearned premium. The DCBS will hold the bond active for 60 days following the notice to cancel the bond. That amount will have to be accounted for when calculating the refund amount for a prepaid annual bond. For customers on a monthly plan, Jet will have to keep the payments plan active until that 60 day time period is up.
With Jet there never is a cancellation fee or a withholding of commission. As a direct writer of surety, you get a quick response without delays that may be experienced through agents and brokers.
If you are on our monthly plan, you do not have to renew the bond. So long as payments are made the bond stays active.
For MEWAs on annual terms, Jet will provide a renewal notification prior to the bond’s expiration date. All we need to renew is payment which can be done simply online, over the phone or via check in the mail.
The bond does need to be renewed or paid for or else Jet will have to cancel the bond. Without the bond in place, the DCBS will come looking for $250,000 for the deposit or another bond in place to guarantee that amount.
Should there be an issue with the trust account and its obligations to the benefit plan the DCBS will investigate. If deficiencies are discovered or actions are taken by the DCBS against the MEWA, the MEWA should obey and take the proper steps to fall into compliance. Should the MEWA continue to disobey the requirements set upon them, the DCBS may bring a claim against the bond held by Jet.
Should a claim be made against your Multiple Employer Welfare Arrangement Bond please notify Jet immediately. If Jet receives notice, we will contact you immediately to gather necessary information for your defense. As your representative carrier, it is our obligation to verify the validity of the claim and provide due defense with the evidence provided.
If the claim is determined to be valid, Jet will make payment for the claim amount up to the $250,000 bond limit. Following claim payment, the MEWA remains responsible for their actions and the trust fund deposit (in this case the bond amount paid out). The MEWA will need to indemnify (reimburse) Jet for the bond. Think of the bond as a letter of credit, where Jet has provided the necessary guarantee to allow the MEWA to perform business.
With Jet made whole again with a reimbursement payment the bond will remain active and the MEWA can continue it’s benefit plan. Otherwise Jet will cancel the bond and there will not be the proper deposit or bond in place for the MEWA to continue its plan.