Single Source Blog - Surety News - Page 24

As of January 2, 2017, Arizona collection agencies submit license applications via the Nationwide Multistate Licensing System (NMLS). Arizona joined many states in the U.S. that use the NMLS as a tool for financial institutions to submit licensing information.

Getting a license

Though applicants submit their information to the NMLS, the agency that grants Arizona collection agencies’ licenses is the state Department of Financial Institutions (AZDFI). Here’s some of the information the state asks for on the application:

• Legal name approved by the Secretary of State or Arizona Corporation Commission
• Background checks for anyone with 20%�ownership or more
• List of owners and indirect owners
• List of executive officers, partners, etc.
• Name of business’s CPA
• Surety bond

If an agency is applying to do business at more than one location, the applicant needs to submit�branch applications for each additional location. The application comes with a nonrefundable $1,500 fee, plus $500 per branch location. The licensing year is from January 1 through December 31. Agencies can renew their license from November 15 through January 1 with no penalty, and until January 31 with a penalty. Collection agencies’ license renewal is $600, plus $200 per branch location renewal. Fees are also assessed if the agency changes its name, address, or active managers.

Arizona collection agencies are required to keep a record of any fake names used by debt collectors, and submit thefictitious names report twice a year on July 1 and December 31. The report should list the collectors’ names, any fake names they use, and their home address.

How much does the Arizona collection agency surety bond cost?

The collection agency surety bond amount is determined by the gross annual income of the agency in the preceding year, as follows:

• No more than $250,000 in annual income�$10,000 surety bond
• $250,001-$500,000�$15,000 bond
• $500,001-$750,000�$25,000 bond
• $750,001 or more�$35,000 bond

This surety bond is collection agencies’ guarantee that they will pay their clients any funds collected within thirty days of collection, minus the agency’s fees. If the total amount collected is less than five dollars, then payment can be delayed another thirty days.

The cost of Arizona collection agencies’ bonds varies, since the bond amount varies. Qualified applicants applying for a bond can expect to pay 1-5% of the bond’s total amount�that’s anywhere from $250-$1,250 for a $25,000 surety bond.

More questions about the license? Get in touch with AZDFI. Questions about getting bonded? Get in touch with Single Source Insurance today!

Photo by�Cole Keister on Unsplash

Nonpublic postsecondary schools in Georgia need get bonded during the application process�how do they become authorized and why do they need a bond?

How do schools get authorization?

Private postsecondary schools, both for- and not-for-profit, and degree or nondegree granting, are authorized by the Georgia Nonpublic Postsecondary Education Commission (GNPEC). The GNPEC’s goal is to make sure that authorized schools are financially stable, to confirm to the government and to students that the curriculum meets minimum standards. In the case of trade or vocational schools, the Commission provides assurance to employers that students have earned the skills they earn certification for upon program completion.

Schools apply for authorization—not accreditation or licensure—and have to meet the state’s minimum standards. To be eligible to apply, the applicant (whether an individual or a business organization) needs to submit an Institutional Proposal. The proposal needs to contain:

• Basic information like the school’s address, mission statement, and names of known personnel
• List of all program names and certifications or degrees awarded
• Needs Assessment justifying the school’s authorization using Georgia Department of Labor information

Nonpublic postsecondary schools need to submit the proposal via email to GNPEC�Deputy Director Laura Vieth. After their Institutional Proposal is approved, schools can then start the process of applying for a Certificate of Authorization. Applicants are interviewed by the GNPEC to go over the application process and get approval to proceed, at which time they’re given login information for the online application portal.

Though the complete list is much longer, these are a few pieces of information schools need to provide GNPEC:

• Minimum Standards Self-Evaluation form
• New program application for each program the school will offer
• Entrance requirements and entrance information students are given
• Enrollment Agreement/Student Contract
• Postsecondary school’s educational goals
• Example of certificate or diploma awarded
• Preliminary bond approval letter (do not apply for a surety bond until your Standards Administrator tells you to do so)

A Standards Administrator will be assigned to nonpublic postsecondary schools’ applications once the Application Evaluation fee (ranging from $1,000-$5,000) is paid and a complete application submitted. They help schools complete the rest of the process and review the school’s curriculum and financial stability. The GNPEC has compiled a full list of the process, so make sure you know what to expect when applying.

Once granted, schools’ Certificates of Authorization are good for a maximum of one year, and they need to apply for renewal at least 60 days before it expires.

Getting a nonpublic postsecondary school surety bond

When the institution meets the GNPEC’s standards, it’s time to get a surety bond. The institution will also need to pay the Tuition Guaranty Trust Fund fee and the Authorization fee (see the fee schedule for more information). The surety bond’s minimum amount is based on the larger of the institution’s annual gross tuition for the year prior, or the current year’s anticipated gross tuition:

• Gross tuition of $50,000 or less�$20,000 bond
• $50,001-$100,000�$30,000 bond
• $100,001-$200,000�$50,000 bond
• $200,001-$300,000�$75,000 bond
• $300,001-$400,000�$100,000 bond
• $400,001-$500,000�$150,000 bond
• $500,001 or more�$200,000 bond

The surety bond is required of some schools to reassure students that the school meets the state’s minimum standards to operate. If the school misrepresents its degrees or certifications, or otherwise causes financial damages to students, the surety bond provides a means of recovering tuition and fees already paid.

Ready to get this surety bond? Get in touch with Single Source Insurance today!

Sometimes, you might need a surety bond even if you don’t own a business. One of these bonds is the lost title surety bond. Keep reading to find out when you might need it.

In Arizona, vehicles that are registered and operated in the state and less than 35 years old need to have a title. This also applies to travel trailers and mobile homes that are less than 20 years old. If the title is lost, stolen, or damaged and illegible, the owner of the vehicle needs to apply for a new title through the state Department of Revenue.

Getting a new title requires providing proof of ownership�but since a title often serves as this proof, there need to be other means of ownership verification. If the Alabama DOR is not satisfied with the vehicle owner’s proof of ownership, they can require the replacement title applicant to get a three-year lost title surety bond. Regardless, vehicle owners do need a valid bill of sale for the vehicle they’re titling, or current registration in the applicant’s name to apply for the surety bond.

Lost title bond amounts vary depending on the type of vehicle and its age:

Trailers:
– Less than five (model) years old: $25,000
- At least five but less than ten years old: $10,000
– Ten or more years old: $5,000

Passenger vehicles and pickup trucks:
– Less than five years old: $50,000
- At least five but less than ten years old: $25,000
– Ten or more years old: $10,000

Trucks, buses and RVs
– Less than five years old: $100,000
- At least five but less than ten years old: $50,000
– Ten or more years old: $25,000

Motorcycles
– Less than five years old: $25,000
- At least five but less than ten years old: $10,000
– Ten or more years old: $5,000

Manufactured homes
– Less than ten years old: $50,000
– Ten or more years old: $25,000

If you apply for a lost title replacement and the state of Alabama needs a surety bond from you, make sure your bond amount has been confirmed by the state before getting in touch with Single Source Insurance.

Know your bond amount and ready to get started? Get in touch today!

Arizona home inspectors need a $25,000 surety bond to be licensed. Keep reading to find out how to get licensed and bonded.

Home inspectors are licensed by the Arizona State Board of Technical Registration. Before applying, home inspector applicants should make sure to be familiar with state laws for their profession, found in Chapter 1 of Title 32 of the Arizona Revised Statutes. On the application, the Board asks for information that includes the following:

• Nonrefundable $100 application fee
• Completed fingerprint card plus $42 processing fee
• Copy of results of the National Home Inspector Examination showing successful completion, taken within two years of the application
• Proof of completion of at least 84 hours of training from an approved, accredited facility
• Log of 30 parallel inspections (completed with the supervision of a licensed inspector)
• Arizona Statement of Citizenship
• Government-issued photo ID
• Report Checklist Supplement
• Verification of Experience form completed by a certified home inspector
• Applicant’s personal and contact information
• $25,000 surety bond

The Board can take anywhere from two to six months to process an application, and refunds are not issued if the application is incomplete. Home inspectors need to apply for license renewal annually and pay all fees that are required.

When Arizona home inspectors purchase their $25,000 surety bond, they are guaranteeing that they will adhere with all Arizona laws relating to their profession or industry. Those include their Standards of Professional Practice as well as the Arizona Revised Statutes. The Board can revoke or suspend an inspector’s license and assess fines of up to $2,000 per violation, in addition to other punishments. Consumers who suffer loss as a result of the home inspector’s negligence or disregard for the law can file claims against the inspector’s bond. If paid, the inspector must reimburse the surety for the amount of the claim or claims.

Ready to get an Arizona home inspector surety bond? Get in touch with Single Source Insurance today!

Some Florida construction businesses designate financially responsible officers, and those officers need to get a $100,000 surety bond. Find out what they do and why they need a surety bond.

What is a financially responsible officer?

Florida financially responsible officers do just what their name implies�they take on responsibility for all financial aspects of a construction business. They have authority over all financial aspects of the business, including contract approval, checks, and payments on the business’s behalf. These officers are separate from primary qualifying agents, individuals who are responsible for general business and project management.

Financially responsible officers�need to submit an application with the Florida Department of Business and Professional Regulation (DBPR). Some of the information the application requires for new officers includes:

• Name of construction business for which applicant will be the financially responsible officer
• Construction business’s primary qualifying agent’s name and license number
• Applicant’s personal information, including social security number and any other names the applicant has used
• $100,000 surety bond
• $200 application fee
• Credit report for applicant from a nationally recognized credit reporting agency
• Proof of satisfaction of any liens, judgments, and bankruptcy discharges, if applicable
• Electronic fingerprints

If the officer changes or is removed another application needs to be submitted to the DBPR to confirm the changes. Make sure to fill out the correct sections of the application�II and VIII for removing an officer, III through VIII for a new officer, and the entire application for changing officers.

Why do officers need a surety bond?

Financially responsible officers in Florida need a surety bond for the protection of the state and consumers. The Construction Industry Licensing Board is the bond’s obligee, or the entity requiring the bond. The $100,000 bond is the officer’s promise to accurately keep the business’s books and records and pay the State Treasury all required payments.

Should the financially responsible officer fail to keep accurate records, or fail to make required payments to the state, the surety bond is a means of recovering any lost funds. A claim can be filed against the bond, and the surety pays out on any proven claims. Then, the principal (the officer) is required to reimburse the surety company. This way, the state isn’t held responsible and doesn’t lose money if the officer fails to adhere to the law.

Ready to get a Florida financially responsible officer surety bond? Get in touch with Single Source Insurance today!�