A Freight Broker’s Guide to Success: How to Cancel Your BMC-84 Bond

We understand that sometimes your business venture just doesn’t work out the way you wish it would. Here at Jet, we don’t exploit unearned premiums and upon cancellation, will return any premium not used for your surety bond. Cancelling and renewing your bond with Jet is quite simple and in this article, we will go over the different circumstances in which your bond can be cancelled.

Voluntary Cancellation

In the case where you cancel your surety bond voluntarily, all you have to do is reach out to our freight broker unit and let us know. We will ask for written confirmation so we can properly record the cancellation request.

If you paid for the annual rate when purchasing your surety bond, we will provide a prorated refund of any unearned premium to the original form of payment. If you chose the monthly option, there is no refund offered. Any premium collected on a monthly payment term is fully earned.

Renewing your surety bond after a voluntary cancellation will require you to reapply for a new surety bond. The good news is that we already have your information and verified your identity. We will perform our underwriting requirements needed for a new surety bond, send over the new rate and once purchased, file your new bond to the FMCSA.

Involuntary Cancellation (Missed Payment)

We understand that offering monthly payments provides freight brokers with financial flexibility by not having to pay up to $10,000 up front every year to start or renew their surety bond. With that being said, monthly payments are consistently monitored. If a monthly payment is missed and not resolved within 48 hours, Jet will submit a Notice of Cancellation to the FMCSA to begin the process of revoking a broker’s authority.

Once this notice is submitted, the freight broker still has the opportunity to reinstate their surety bond with Jet. To do this, the past due amount will need to be paid including the following month’s payment in advance. You will have until the end of your 30-day notice to make these required payments. Once payment is made, Jet will reinstate your surety bond with the FMCSA.

PLEASE NOTE! Your monthly payments must be made on time because once a notice of cancellation is filed there is no way for us to remove it from your public FMCSA profile. Your freight broker will be assigned a red flag “pending insurance cancellation”. This will remain on the account for 30 days. 

If your surety bond has been inactive long enough for the FMCSA to revoke your authority, then please see our article on how to reactivate your brokerage authority.
If you have any questions about cancellations or renewals with Jet Surety, you can email us at freight@jetsurety.com or call us at 855-470-3773.