Delaware discount medical plan organization bonds.
From $1,000.
Before a company sells discount health cards in Delaware, it needs a discount medical plan organization (DMPO) license from the Insurance Commissioner, and every licensee must keep a surety bond of at least $50,000 in force under 18 Del. C. § 7604. The one-year premium starts at $1,000.
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How much does a Delaware discount medical plan organization bond cost?
From $1,000; the exact price shows at the application once you enter your bond amount.
Built around your DMPO license filing.
Delaware will not license a discount medical plan organization until the bond is attached to the application. Here is the whole process, from application to filing:
Send us the file
Apply online with your entity type, business address, owner and contact details, years in business, and a short set of underwriting questions about past bankruptcies, judgments, and prior surety history. The application includes a credit review; it sets your exact premium above the $1,000 starting price.
See your exact price
The one-year premium starts at $1,000 for the $50,000 bond. The application shows your exact price before you pay — most applicants land at or near that starting price. If the Commissioner has set a higher bond amount for your organization, tell us and we underwrite to that figure.
Bind, sign & file
Once you bind, the executed bond arrives by email with the power of attorney attached. Send it to the Department of Insurance with your license application — by email to the licensing mailbox or by fax, as the Department’s requirements sheet directs.
What it is and who needs it.
What the DMPO bond actually guarantees
Delaware regulates discount medical plans under Title 18, Chapter 76 of the Delaware Code. A discount medical plan is not insurance: members pay a fee for access to a network of providers who agree to charge them discounted prices for medical or ancillary services — dental, vision, audiology, chiropractic, mental health and the like. The discount medical plan organization is the company that contracts with those providers or networks and sets what members pay.
Under § 7603, a company must hold a license from the Insurance Commissioner before doing business in Delaware as a DMPO. Section 7604(a) then requires every licensee to keep a surety bond in its own name of not less than $50,000, to be used in the Commissioner’s discretion to protect the financial interest of members. If an organization collects member fees and fails to deliver the promised access or refunds, the Commissioner can draw on the bond.
Two details matter when you order it. First, $50,000 is a floor, not a fixed figure — the Commissioner determines and approves the final amount and form, and the bond must be written by an insurer licensed in Delaware. Second, § 7604(b) lets a DMPO post a cash or securities deposit with the Commissioner instead. A bond keeps that capital working in your business; the deposit ties it up for as long as you hold the license.
The bond has to stay in force for the life of the license. A DMPO license runs one year, and the renewal application and fee are due at least 90 days before it expires. The Department can refuse to renew or revoke a license when an organization is not operating in compliance with Chapter 76, so a lapsed bond puts the license itself at risk.
You need this bond if you’re
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $50,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The term is set on the carrier’s application; the premium covers the period shown there.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
Bind, sign & file. Once you bind, the executed bond arrives by email with the power of attorney attached. Send it to the Department of Insurance with your license application — by email to the licensing mailbox or by fax, as the Department’s requirements sheet directs.
What sets the price
From $1,000; your exact price appears at the application once you enter the amount.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, one soft pull.
These are the actual underwriting fields — entity type, ownership, business address, years in business, and the surety questions an underwriter prices from. The application includes a credit review; the one-year premium starts at $1,000 and your exact price appears there before you pay. Free until issued.
Start the application →Common questions.
Other Delaware bonds.
Been told you need a different amount?
Price and requirements checked on the carrier’s application, . Page updated .
Get your Delaware DMPO license filing bonded.
One application, a one-year premium from $1,000, and a bond ready to attach to your Department of Insurance filing. Free until issued.