For-profit legal service contract companies that are applying for their initial or renewal registration license with the Texas Department of Licensing and Regulation (TDLR) must obtain a For-Profit Legal Service Contracts Bond.
Jet Insurance Company provides the For-Profit Legal Service Contract Bond to act as an assurance for the Department of Licensing and Regulation that the for-profit legal service contract company will follow license regulations, as well as fulfill contractual obligations. If the company commits a license violation or breach of contract, the surety bond acts as a financial guarantee for any party that was damaged by the licensee’s actions.
The limit is determined by the Texas Department of Licensing and Regulation and is based on the for-profit legal service contract company’s annual gross revenue from legal service contract sales.
At Jet, the cost of the For-Profit Legal Service Contract Bond is a small percentage of the custom bond limit; a soft credit check of the company owner will help determine the rate. For example, applicants seeking a $50,000 bond amount can pay $500 annually or just $50 a month. Take a look at the chart below to see which bond amount your company qualifies for, as well as our monthly and annual preferred tier rates.
|Annual Gross Revenue||Bond Limit||Annual||Monthly|
|$300,000 or Less||$50,000||$500||$50|
|$300,001 - $750,000||$75,000||$750||$75|
|More than $750,000||$100,000||$1,000||$100|
Our monthly payment plan is exclusive to Jet and is a great option for legal service contract companies that are looking to maintain their license with the TDLR for the foreseeable future. All you need to do is set us up with your preferred account and your license bond will remain active as long as payments are made or until official cancellation is sought.
The Jet team has created a quick and simple application process that can be completed fully online. Our application for the Texas For-Profit Legal Service Contracts Bond will ask for general information such as your contact details, required bond limit, and social security number for a soft credit check. You will then receive rate options that are ready for immediate purchase as soon as a Jet underwriter completes a review of your submitted information. Once payment is received, Jet will send you a copy of your receipt and bond form instantly. It’s that easy!
Jet can file your surety bond for you at no extra cost. However, if you would prefer to file the bond form yourself, this option may be selected at checkout. The original signed and sealed For-Profit Legal Service Contracts Bond must be filed with the Texas Department of Licensing and Regulation at the following mailing address:
Texas Department of Licensing and Regulation
PO Box 12157
Austin, TX 78711
For first-time registration applicants, license application forms can be found on the TDLR “Apply or Renew a License Online” webpage.
If you are enrolled in our monthly payment plan, you won’t have to worry about renewing your Legal Service Contracts Bond! Your bond will remain active with the TDLR as long as payments are continuously made or until you request cancellation with Jet.
As for those who choose to purchase the surety bond in full and upfront, Jet will send you a renewal invoice prior to your bond term expiration date by mail and email. Simply complete the payment due and your bond will remain active with the TDLR for another term.
You may cancel your For-Profit Legal Service Contracts Bond with Jet at any time. We just ask that you send us a written cancellation request to our email at [email protected] and we will begin the termination process. Jet will send an official cancellation notice to the Texas Department of Licensing and Regulation, and once received, the liability of the bond will be released within 60 days.
It is important to note that monthly enrollees will be required to fulfill payment during the 60-day liability period as your bond is technically still active during this time. All future payments will cease once this last step has been taken care of.
For-profit legal service contract companies are expected to perform all duties up to the regulations set forth in the Texas Occupation Code Chapter 953. According to the Department of Licensing and Regulation’s “Penalties and Sanctions” webpage, any for-profit legal service contract company that commits a license violation can face various consequences such as an official reprimand, large fines that can reach upwards of $5,000 per day, and the suspension or complete revocation of their license. A damaged contract holder may also seek civil action which can result in a bond claim.
Claims on the Legal Service Contracts Bond typically occur if the company has committed an unethical or unlawful license violation. For example, failing to give a legal service contract holder their receipt and official copy of the contract within 45 days after issuance is a violation. Other violations include failing to file legal service contracts appropriately before the contract is sold or issued, and using knowingly unclear language within the contract to cause confusion for the legal service contract holder. If a contract holder feels they have been financially damaged by the for-profit legal service contract company, they may file an official complaint with the TDLR and/or seek civil action. In cases where civil action is taken and a Texas court rules in favor of the claimant, the For-Profit Legal Service Contracts Bond may be used as restitution for losses incurred by the financially harmed party.
Immediately contact Jet if you receive a court-ordered claim notice! We will begin the process by asking that you supply us with all available information and documentation regarding the alleged violation. We will utilize these details for our own investigation.
Per the For-Profit Legal Service Contracts Bond form, Jet is legally obligated to payout all justified claims up to the bond’s limit. Claim payouts will never exceed the amount of the surety bond. You, the owner of the for-profit legal service contract company, are ultimately responsible for your own actions and the actions of your employees. Therefore, you must reimburse Jet for the claim payout made on behalf of your license violation. An omission to fulfill this obligation may result in future difficulties obtaining the For-Profit Legal Service Contracts Bond from other surety companies within the State of Texas.
According to Section 953.002 of Chapter 953 of the Texas Occupation Code, companies that perform the following legal services in the State of Texas are exempt from the For-Profit Legal Service Contracts Bond Requirement: