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How much does a prepaid service plan qualifying bond cost in Kansas?
The Kansas Commissioner of Insurance mandates that operators of prepaid service plans in the state execute a surety bond. The required bond amount varies according to the degree of business the prepaid service plan conducts with its members. If the prepaid service plan has no history of transacting business in Kansas, the initial bond requirement is $50,000. As the service plan’s annual membership fees increase, so does the required bond amount.
Surety underwriting companies might require current business financials and a personal financial statement to underwrite this bond, so having these documents handy when you contact SuretyBonds.com will expedite the bonding process.
Because both the required amount and price of this bond can vary so much, our experts recommend submitting a bond request to find out exactly how much you’ll pay for your Kansas surety bond. We can provide your free, no-obligation bond quote within 1 business day of submitting your application!
Ready to get bonded quickly and easily? Call 1 (800) 308-4358 or apply for your free bond quote now!
Why do I need this bond?
By posting a prepaid service plan qualifying surety bond in Kansas, principals (prepaid service plan operators) and their agents, servants and employees pledge to comply with the prepaid service plan and faithfully furnish and render all of the prepaid services sold or offered for sale by it. Specifically, these bonds ensure that principals will pay any fines, fees or penalties that become due if the principal fails to conduct business according to the provisions of K.S.A. 40-4201.
Let our experts do all of the hard work for you when it comes to purchasing your Kansas surety bond. Request your free bond quote now!
What’s the fine print?
Kansas prepaid service plan qualifying bonds remain in full force and effect until canceled according to the provisions of K.S.A. 40-4211 (e).
The Commissioner of Insurance can increase the required amount of the surety bond if there has been a significant change in annual membership fees. These bonds are continuous and expire when the prepaid service plan ceases to do business in Kansas and the commissioner releases the bond.
How to become a prepaid service plan operator in Kansas
Prepaid service plans in Kansas must obtain a Certificate of Registration to operate. Applicants should send completed applications to the Kansas Insurance Department for processing. The following must be included with the application:
- list of all individuals who will solicit memberships (must be updated every January 1 and July 1)
- surety bond ($50,000)
- copies of Certified Financial Audits
- provider and membership agreements
- sales brochures and other marketing materials
- $100 registration fee
For an applicant plan to be approved, he or she cannot have been denied registration as a prepaid plan operator within the past 5 years. The certificate of registration can be renewed annually with a $50 fee.