License & Permit
Discount Medical Plan Organization Bond
A discount medical plan organization bond is required by state insurance regulators from companies that sell memberships giving discounts on health care services.
- Required by
- State insurance regulators (for example, the Florida Office of Insurance Regulation)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state insurance regulator and protects members' money if the plan organization becomes insolvent. The regulator uses the bond at its discretion to protect affected members. Claims usually follow a failure or collapse of the plan.
Who needs it
- Discount medical plan organizations
- Discount health or dental plan sellers
- Companies licensed as discount plan organizations
What the underwriter looks at
- Company financial statements
- Membership size and fee volume
- Owners' credit
- State bond amount
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much is the bond in Florida?
Florida requires a surety bond of at least $35,000 from each licensed discount plan organization. Securities deposited in trust can be used instead.
Is a discount plan the same as insurance?
No. Members pay for access to discounted rates, not coverage. That is why states license and bond these organizations separately.