Montana Medical Care Discount Card Supplier Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Montana Medical Care Discount Card Supplier bond
At a Glance:
- Lowest Cost: $500 per year or $50 per month based on the applicant’s credit
- Bond Amount: $50,000
- Who Needs it: All medical care discount card suppliers operating in Montana
- Purpose: To ensure the public will receive compensation for financial harm if the supplier violates the registration law
- Who Regulates Medical Care Discount Card Suppliers in Montana: The Montana Commissioner of Securities and Insurance
Access the bond filing instructions here.
Background
Montana Statute 33-38-105 requires all medical care discount card suppliers operating in the state to register with the Commissioner of Securities and Insurance. The Montana legislature enacted the registration requirement to ensure that suppliers engage in ethical business practices. To provide financial security for the enforcement of the registration law, medical care discount card suppliers must purchase and maintain a $50,000 surety bond to be eligible for registration.
What is the Purpose of the Montana Medical Care Discount Card Supplier Bond?
Montana requires medical care discount card suppliers to purchase a surety bond as part of the application process to obtain a business registration. The bond ensures that the public will receive compensation for financial harm if the supplier fails to abide by the regulations set forth in Montana statute 33-38-106. Specifically, the bond protects consumers if the supplier engages in any acts of fraud or fails to pay any fines levied against them. In short, the bond is a type of insurance that protects the public if the supplier violates the registration law.
How Can an Insurance Agent Obtain a Montana Medical Care Discount Card Supplier Surety Bond?
BondExchange makes obtaining a Montana Medical Care Discount Card Supplier bond easy. Simply log in to your account and use our keyword search to find the “discount card” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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Is a Credit Check Required for the Montana Medical Care Discount Card Supplier Bond?
Surety companies will run a credit check on the owners of the discount care card supplier to determine eligibility and pricing for the Montana Medical Care Discount Card Supplier bond. Owners with excellent credit and work experience can expect to receive the best rates. Owners with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Montana Medical Care Discount Card Supplier Bond Cost?
The Montana Medical Care Discount Card Supplier bond can cost anywhere between $500 to $3,750 per year or $50 to $375 per month. Insurance companies determine the rate based on a number of factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on the $50,000 bond requirement.
$50,000 Medical Care Discount Card Supplier Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $500 | $50 |
| 650 – 679 | $750 | $75 |
| 575 – 649 | $1,875 | $188 |
| 550 – 574 | $2,500 | $250 |
| 500 – 549 | $3,750 | $375 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
Montana requires medical care discount card suppliers to purchase a $50,000 surety bond. To paraphrase Montana statute 33-38-102, a medical care discount card supplier is any individual or business that provides card-carrying members with access to discounted medical services from participating providers.
Suppliers that are health insurance issuers and/or provide discount cards solely to Montana residents that are members of self-funded group health plans are exempt from the bonding requirement. Additionally, suppliers that meet any of the below criteria may have both their registration and bond requirements waived.
- Has contracts in place with Montana health care providers
- Has contracts in place with Montana residents that use discount cards in conjunction with a self-funded or fully insured health plan
- Has been doing business in Montana before October 1, 2005
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Montana Medical Care Discount Card Suppliers Apply for Registration?
Medical care discount card suppliers in Montana must navigate several steps to obtain a Certificate of Registration. Below are the general guidelines, but applicants should refer to the application form for details on the process.
Registration Period – All Montana Medical Care Discount Card Supplier Registrations expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Medical care discount card suppliers must purchase and maintain a $50,000 surety bond
Step 2 – Complete the Application
All Montana Medical Care Discount Card Supplier Registration applications should be mailed to the following address:
Commissioner of Securities & Insurance
Montana State Auditor
840 Helena Ave
Helena, MT 59601
Suppliers must complete the application in its entirety, and submit a biographical affidavit form along with a $100 filing fee.
How do Montana Medical Care Discount Card Suppliers Renew Their Registration?
Suppliers should mail their completed renewal application, including a $100 renewal fee, to the following address:
Office of the Montana State Auditor
840 Helena Ave
Helena, MT 59601
All Montana Medical Care Discount Card Supplier Registrations expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Medical Care Discount Card Suppliers in Montana?
Montana does not require medical care discount card suppliers to obtain any form of liability insurance as a prerequisite to obtaining a business registration. Medical care discount card suppliers must purchase and maintain a $50,000 surety bond.
How Do Montana Medical Care Discount Card Suppliers File Their Bond?
Medical care discount card suppliers should mail their completed bond form, including the power of attorney, to the following address:
Commissioner of Securities & Insurance
Montana State Auditor
840 Helena Ave
Helena, MT 59601
The surety bond requires signatures from both the surety company that issues the bond and from a representative of the supplier. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
Suppliers must pay a $250 fee when filing their bond.
What Can Montana Medical Care Discount Card Suppliers Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, medical care discount card suppliers in Montana must ensure that they adhere to all regulations governing their business registration, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not falsely advertise or in any way misrepresent the benefits associated with the offered discount cards
- Pay all fines that have been levied
What Other Insurance Products Can Agents Offer Medical Care Discount Card Suppliers in Montana?
Montana does not require medical care discount card suppliers to purchase any form of liability insurance as a prerequisite to obtaining a business registration. However, most reputable businesses will seek to obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Montana Medical Care Discount Card Supplier Customers?
Montana conveniently provides a public database to search for active medical care discount card suppliers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.