Colorado Hearing Aid Provider Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Colorado Hearing Aid Provider Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month based on the applicant’s credit
- Bond Amount: $10,000
- Who Needs it: Hearing aid providers operating in Colorado
- Purpose: To ensure the public will receive compensation for financial harm if the hearing aid provider violates licensing law
- Who Regulates Hearing Aid Providers in Colorado: The Colorado Hearing Aid Providers Licensure
Background
Colorado statute 711-1.1 requires all hearing aid providers operating in the state to obtain a license with the Hearing Aid Providers Licensure. The Colorado legislature enacted the licensing laws and regulations to ensure that hearing aid providers engage in ethical business practices. To provide financial security for the enforcement of the licensing law, hearing aid providers must purchase and maintain a $10,000 surety bond to be eligible for licensure.
What is the Purpose of the Colorado Hearing Aid Provider Bond?
Colorado requires hearing aid providers to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the hearing aid provider fails to comply with the regulations set forth in Colorado statute 711-1. Specifically, the bond protects the public in the event the provider engages in any acts of fraud or issues faulty equipment. In short, the bond is a type of insurance that protects the public if the hearing aid provider violates licensing law.
Do all Hearing Aid Providers Need to Purchase a Bond?
No, Colorado allows hearing aid providers to choose between purchasing a $10,000 surety bond or maintaining a $1 million liability insurance policy.
How Can an Insurance Agent Obtain a Colorado Hearing Aid Provider Surety Bond?
BondExchange makes obtaining a Colorado Hearing Aid Provider surety bond easy. Simply log in to your account and use our keyword search to find the “hearing” 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 Colorado Hearing Aid Provider Bond?
Surety companies will run a credit check on the provider to determine eligibility and pricing for the Colorado Hearing Aid Provider bond. Providers with excellent credit and work experience can expect to receive the best rates. Providers 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 provider’s credit.
How Much Does the Colorado Hearing Aid Provider Bond Cost?
The Colorado Hearing Aid Provider bond can cost anywhere between $100 to $500 per year or $10 to $50 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 a $10,000 bond requirement.
$10,000 Hearing Aid Provider Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 625+ | $100 | $10 |
| 600 – 624 | $250 | $25 |
| 575 – 599 | $300 | $30 |
| 500 – 574 | $500 | $50 |
*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.
How Does Colorado Define Hearing Aid Provider?
Colorado statute 12-5.5-101 defines a hearing aid provider as any individual or business entity that dispenses, fits, or otherwise deals in hearing aids.
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 Hearing Aid Providers Apply For a License in Colorado?
Hearing aid providers in Colorado must navigate several steps to secure their licenses. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.
License Period – All Colorado Hearing Aid Provider Licenses expire on March 1 of even-numbered years (2022, 2024) and must be renewed before the expiration date
Step 1 – Meet the Initial Qualifications
To be eligible for a hearing aid provider license, applicants must ensure that they meet all of the following conditions:
-
- Completed 6 months of training as an apprentice to a licensed hearing aid provider or audiologist
- Hold an associates degree in hearing aid fitting and dispensing
- Passed the National Competency Examination or has requested approval to take the International Licensing Examination
Step 2 – Complete the Application
All Colorado Hearing Aid Provider License applications should be completed online here. Hearing aid providers must complete the application in its entirety, and pay all applicable fees.
Step 3 – Purchase a Surety Bond or Liability Insurance
Hearing aid providers must either purchase a $10,000 surety bond or obtain $1 million in liability insurance coverage
How Do Colorado Hearing Aid Providers Renew Their License?
Prior to the license expiration date, the Hearing Aid Providers Licensure will contact the hearing aid provider with instructions on how to renew their license. All Colorado Hearing Aid Provider Licenses expire on March 1 of even-numbered years (2022, 2024) and must be renewed before the expiration date.
What are the Insurance Requirements for Hearing Aid Providers in Colorado?
Hearing aid providers must either purchase a $10,000 surety bond or obtain $1 million in liability insurance coverage
How Do Colorado Hearing Aid Providers File Their Bond?
Hearing aid providers should submit their completed bond form, including the power of attorney, online here. The surety bond requires signatures from both the surety company that issues the bond and from the hearing aid provider. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name
- Date the bond goes into effect
- Date the bond is signed
What Can Colorado Hearing Aid Providers Do to Avoid Claims Against Their Bonds?
To avoid claims on their bond, hearing aid providers in Colorado must adhere to the following provisions:
- Do not engage in any acts of fraud
- Do not sell faulty equipment
What Other Insurance Products Can Agents Offer Hearing Aid Providers in Colorado?
Colorado requires hearing aid providers to either purchase a bond or obtain liability insurance. 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 Colorado Hearing Aid Provider Customers?
Colorado conveniently provides a public database to search for licensed hearing aid providers 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.