Kansas Health Care Card Supplier Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Kansas Health Care Card Supplier bond
At a Glance:
- Lowest Cost: $375 per year or $38 per month based on the applicant’s credit
- Bond Amount: $50,000
- Who Needs it: All health care card suppliers operating in Kansas
- Purpose: To ensure the public will receive compensation for financial harm if the health care card supplier engages in any acts of fraud
- Who Regulates Health Care Card Suppliers in Kansas: The Kansas Secretary of State
Background
Kansas Statute 50-1-103 requires all health care card suppliers operating in the state to register with the Secretary of State. The Kansas legislature enacted the registration requirement to ensure that health care card suppliers engage in ethical business practices. To provide financial security for the enforcement of the registration requirement, health care card suppliers must purchase and maintain a $50,000 surety bond, to be eligible for registration.
What is the Purpose of the Kansas Health Care Card Supplier Bond?
Kansas requires health care 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 Kansas statute 50-1,101. Specifically, the bond protects consumers if the supplier engages in any acts of fraud or misrepresents the benefits they provide. In short, the bond is a type of insurance that protects the public if the supplier misleads or defrauds consumers.
How Can an Insurance Agent Obtain a Kansas Health Care Card Supplier Surety Bond?
BondExchange makes obtaining a Kansas Health Care Card Supplier surety bond easy. Simply log in to your account and use our keyword search to find the “health care” 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 Kansas Health Care Card Supplier Bond?
Surety companies will run a credit check on the owners of the health care card supplier to determine eligibility and pricing for the Kansas Health Care 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 Kansas Health Care Card Supplier Bond Cost?
The Kansas Health Care Card Supplier bond can cost anywhere between $375 to $2,500 per year or $38 to $250 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 Health Care Card Supplier Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 800+ | $375 | $38 |
| 625 – 799 | $500 | $50 |
| 600 – 624 | $1,250 | $125 |
| 575 – 599 | $1,500 | $150 |
| 500 – 574 | $2,500 | $250 |
*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 Kansas Define “Health Care Card Supplier”?
To paraphrase Kansas statute 50-1,100, a health care card supplier is any business that offers discounts or access to discounts for health care services, through their network of health care providers, to consumers that have purchased a discount card through their organization.
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 Kansas Health Care Card Suppliers Register with the Secretary of State?
Health Care Card Suppliers in Kansas must navigate several steps to register with the Secretary of State. Below are the general guidelines, but applicants should refer to the application form for details on the process.
Registration Period – All Kansas Health Care Card Supplier Registrations expire annually in the month the registration was initially filed and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Health care card suppliers must purchase and maintain a $50,000 surety bond
Step 2 – Appoint a Resident Agent
Suppliers must appoint a resident agent that is authorized to accept service of process lawsuits on behalf of the organization
Step 3 – Establish a Place of Business
Applicants are required to establish a permanent place of business where the company’s resident agent will be located. The business location must comply with all local zoning ordinances, and cannot be a P.O. box.
Step 4 – Complete the Application
All Kansas Health Care Card supplier Registration applications should be mailed to the following address:
Kansas Office of the Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-1594
Health care card suppliers must complete the application in its entirety, and pay a $250 filing fee.
How do Kansas Health Care Card Suppliers Renew Their Registration?
Health care card suppliers should mail their completed renewal applications, including a $250 filing fee, to the following address:
Kansas Office of the Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-1594
All Kansas Health Care Card Supplier Registrations expire annually in the month the registration was initially filed and must be renewed before the expiration date.
What are the Insurance Requirements for Health Care Card Suppliers in Kansas?
Kansas does not require health care card suppliers to obtain any form of liability insurance as a prerequisite to obtaining a business registration. Health care card suppliers must purchase and maintain a $50,000 surety bond.
How Do Kansas Health Care Card Suppliers File Their Bond?
Health care card suppliers should mail their completed bond form, including the power of attorney, to the following address:
Kansas Office of the Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-1594
The surety bond requires signatures from both the surety company that issues the bond and from a representative of the health care card supplier. The surety company should include the following information on the bond form:
- Legal name, city, and state of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Acknowledgment by surety
What Can Kansas Health Care Card Suppliers Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, health care card suppliers in Kansas 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
What Other Insurance Products Can Agents Offer Health Care Card Suppliers in Kansas?
Kansas does not require health care 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 Kansas Health Care Card Supplier Customers?
Kansas conveniently provides a public database to search for active health care 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.