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Why is a Kentucky Health Spa Bond Required?
The health spa surety bond must be held for the benefit of any member who suffers loss of money paid pursuant to a contract due to the insolvency of the health spa, cessation of operation of the health spa, or failure of the health spa to open for business within ninety days from the sale of the first contract. The bond ensures faithful and honest fulfillment of all obligations to its health spa members in accordance with the provisions of its membership contracts and KRS 367.900 to 367.930.
This surety bond is continuous and the surety has the right to cancel this bond at any time by a written notice stating when the cancellation shall take effect and served upon or sent by certified mail to the Office of the Attorney General, Division of Consumer Protection, 1024 Capital Center Drive, Frankfort, Kentucky 40601-8204, with at least sixty days prior notice to the effective date of the cancellation.
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