Oregon Dental Service or Optometrical Service Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain an Oregon Dental Service or Optometrical Service bond
At a Glance:
- Lowest Cost: $550 per year or $55 per month, based on the applicant’s credit
- Bond Amount: $55,000
- Who Needs it: All Oregon health care service contractors that only provide complementary health, dental, or optometrical services
- Purpose: To ensure the public will receive compensation for financial harm if the contractor violates the regulations set forth in Oregon statute 750
- Who Regulates Health Health Care Service Contractors in Oregon: The Oregon Department of Consumer and Business Services
Background
Oregon statute 750.045 requires all health care service contractors operating in the state to obtain a Certificate of Authority with the Department of Consumer and Business Services. The Oregon legislature enacted the certification laws and regulations to ensure that contractors engage in ethical business practices. To provide financial security for the enforcement of the certification requirement, health care service contractors that only provide complementary health, dental, or optometrical services must purchase and maintain a $55,000 surety bond to be eligible for certification.
What is the Purpose of the Oregon Dental Service or Optometrical Service Bond?
Oregon requires health care service contractors that only provide complementary health, dental, or optometrical services to purchase a $55,000 surety bond as part of the application process to obtain a Certificate of Authority. The bond ensures that the public will receive compensation for financial harm if the contractor fails to abide by the regulations set forth in Oregon statute 750. Specifically, the bond protects consumers if the contractor engages in any acts of fraud or fails to provide services that have been paid for. In short, the bond is a type of insurance that protects the public if the contractor defrauds consumers.
How Can an Insurance Agent Obtain an Oregon Dental Service or Optometrical Service Bond?
BondExchange makes obtaining an Oregon Dental Service or Optometrical Service bond easy. Simply log in to your account and use our keyword search to find the “dental” 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.
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How is the Bond Amount Determined?
Oregon statute 750.045 dictates that the bond amount must be a minimum of $50,000. However, Oregon statute 731.616 grants the Department of Consumer and Business Services the authority to increase the required bond amount based on material fluctuations in market value. Currently, the required bond amount for health care service contractors that provide complementary health, dental, or optometrical services is $55,000.
Is a Credit Check Required for the Oregon Dental Service or Optometrical Service Bond?
Surety companies will run a credit check on the owners of the contracting company to determine eligibility and pricing for the Oregon Dental Service or Optometrical Service 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 Oregon Dental Service or Optometrical Service Bond Cost?
The Oregon Dental Service or Optometrical Service bond can cost anywhere between $550 to $4,125 per year or $55 to $413 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 $55,000 bond requirement.
$55,000 Dental Service or Optometrical Service Bond Cost
| Credit Score | Bond Cost (1 year) | Bond Cost (1 month) |
|---|---|---|
| 680+ | $550 | $55 |
| 625 – 679 | $825 | $83 |
| 575 – 624 | $2,063 | $207 |
| 550 – 574 | $2,750 | $275 |
| 500 – 549 | $4,125 | $413 |
*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 Oregon Dental Service or Optometrical Service Bond?
Oregon requires all health care service contractors that only provide complementary health, dental, or optometrical services to purchase a $55,000 surety bond as a prerequisite to obtaining a Certificate of Authority.
Oregon defines a “health care service contractor” as a business that is typically connected with a group of doctors or hospitals that provides subscribers with heath care services. Additionally, Oregon statute 750.005 defines “complementary health service” as chiropractic, naturopathic, massage therapy, or acupuncture service.
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 Health Care Service Contractors Obtain a Certificate of Authority in Oregon?
Health care service contractors in Oregon must navigate several steps to obtain a Certificate of Authority. Below are the general guidelines, but applicants should refer to the application instructions for details on the process.
Certification Period – All Oregon Health Care Service Contractor Certificates of Authority are valid for one year from the date of issuance and must be renewed before the expiration date
Step 1 – Meet the Capital Requirements
Contractors must at all times maintain at least $1 million in capital, surplus, or any combination of the two to be eligible for certification
Step 2 – Purchase a Surety Bond
Contractors that only provide complementary health, dental, or optometrical services must purchase and maintain a $55,000 surety bond
Step 3 – Register with the Secretary of State
Contractors must register their business with the Oregon Secretary of State
Step 4 – Complete the Application
All Oregon Health Care Service Contractor Certificate of Authority applications can be obtained through the NAIC and should be mailed to the following address:
Department of Consumer & Business Services
Division of Financial Regulation
P.O. Box 14480
Salem, OR
Contractors must complete the application in its entirety, and submit a $2,500 fee.
How Do Oregon Health Care Service Contractors Renew Their Certifications?
Prior to the expiration date, the Department of Consumer and Business Services will email the contractor with instructions on how to renew their certification. All Oregon Health Care Service Contractor Certificates of Authority are valid for one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Health Care Service Contractors in Oregon?
Oregon does not require health care service contractors to purchase any form of liability insurance as a prerequisite to obtaining a Certificate of Authority. Contractors that only provide complementary health, dental, or optometrical services must purchase and maintain a $55,000 surety bond.
How do Oregon Health Care Service Contractors File Their Bond?
Health care service contractors should mail their completed bond form, including the power of attorney, to the following address:
Department of Consumer & Business Services
Division of Financial Regulation
P.O. Box 14480
Salem, OR
The surety bond requires signatures from both the surety company that issues the bond and from a representative of the contracting company. 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
- Bond amount
- Date the bond is signed
- Type of business the principal conducts
What Can Oregon Health Care Service Contractors Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, health care service contractors in Oregon must remain in compliance with all regulations outlined in Oregon statute 750, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Provide all services that have been paid for
What Other Insurance Products Can Agents Offer Health Care Service Contractors in Oregon?
Oregon does not require health care service contractors to purchase any form of liability insurance as a prerequisite to obtaining a Certificate of Authority. 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 Oregon Health Care Service Contractor Customers?
The Oregon Secretary of State conveniently provides a public database to search for active businesses 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.