Single Source Blog - Surety News - Page 31

New York talent agency surety bonds are required of certain types of talent recruitment agencies in the state. Think your business may need one? Keep reading to find out.

What is a New York talent agency?

The state of New York and New York City both license talent agencies; agencies outside of the city register with the state Department of Labor�(DOL), while those in the city register with the NYC Department of Consumer Affairs (DCA).

In all of New York state, talent agencies are licensed as employment agencies. A talent agency is specifically one that finds employment for models, artists, and other entertainment professionals, and is�also referred to as a theatrical employment agency or modeling agency. A $10,000 surety bond is required for all talent agencies in New York.

In NYC, a talent agency applicant can apply for licensure online or in person through the DCA. Before filing the application, agencies must obtain the following documentation:

• Applicable business certificates based on business structure (sole proprietorship, LLC, etc.)
• Premises approval by the Department of Buildings
• Theatrical Employment Agency Self-Certification
• $10,000 surety bond
• Copy of Fee Paid letters if applicable
• Fingerprints for each control member plus $87 processing fee
• Granting Authority to Act Affirmation if someone other than the applicant files the application

Talent agency licenses are valid for two years and expire on May 1 of even years. Applicants pay a fee based on when their application is filed and the number of placement employees:

• Filed between May 2 in an even year to April 30 of an odd year, 1-4 placement employees�$500
• Filed between May 2 in an even year to April 30 of an odd year, 5 or more placement employees�$70
• Filed between May 1 in an odd year to October 31 of an odd year, 1-4 placement employees�$250
• Filed between May 1 in an odd year to October 31 of an odd year, 5 or more�placement employees�$350
• Filed between November 1 in an odd year to May 1 of an even year, 1-4�placement employees�$125 or $625
• Filed between November 1 in an odd year to May 1 of an even year,�5 or more�placement employees�$175 or $875

Those filing between November 1 of an odd year and May 1 of an even year can pay the prorated amounts to cover the rest of the licensing term plus the next licensing term.

Outside of NYC, talent agency applicants apply with the DOL and submit an application�similar to the DCA’s. Their licensing fee schedule is the same, and their application and other forms are available online.�New York talent agencies must display a sign that is at least 12 inches by 18 inches, with letters at least one inch high, and must display their license conspicuously.

This is not a complete list of all information required by NYC and New York state governments, and applicants should thoroughly review all provisions of their application.

Why do talent agencies need a bond?

The $10,000 surety bond any NY or NYC talent agency must post is the agency’s guarantee that they will obey the law and conduct business according to the terms of the license and bond. In this case, it ensures agencies follow New York’s Employment Agency Laws�or risk facing license revocation, misdemeanor charges, and fines of up to $2,500 per violation.

Talent agency surety bonds protect any client that suffers financial damages as a result of the agency’s business practices. If the client files a claim that is proven valid, they can be compensated by the surety. The bond is a reassurance to clients that the agency is following the law, and offers recourse should that change.

Ready to get your New York talent agency bond? Single Source Insurance is ready to help!

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New York insurance adjusters, both public and independent, must be licensed and get a $1,000 surety bond before they can start conducting business. Find out how to get licensed and what it means to be bonded as an insurance adjuster in the state.

Public vs independent adjusters

While public and independent insurance adjusters are licensed similarly and follow many of the same business laws, there is a difference between the two. Public adjusters work only on behalf of the insured party, the policyholder, while independent adjusters work only on behalf of the insurance company. Keep in mind that policyholders do not always hire public adjusters; they are more commonly hired if the claim is complex.

How to get a New York insurance adjuster’s license

The Department of Financial Services�(DFS) handles licensing for both�public and independent�New York insurance adjusters. Applicants for either license must submit some identical information to the DFS:

• $100 full or $50 half licensing fee
• Original passed score report for NYS exam taken within past two years
• Fingerprinting plus $87 fee
• Certificates of character for each licensee or sub-licensee executed the same day or after the execution date of the application
• Proof of required filing of partnership, corporation, LLC, or trade name
• $1,000 surety bond

First-time public adjuster applicants must submit other materials related to continuing education:

• School certificate from an approved Prelicensing Course Provider
• DFS Licensing Bureau Statement of Employer�stating that applicant has been employed for at least one of the previous three years by a licensed insurance company, with duties relating to sales, underwriting, or claims

Public and independent New York insurance adjuster applicants must include certificates of character from five people that have known the applicant at least five years, are at least 18 years old, and that are themselves of good character and standing within their communities.�Both licenses are valid for two years, from January 1 of odd-numbered years to December 31 of even-numbered years.

What does the NY insurance adjusters’ surety bond do?

Independent and public New York insurance adjusters need to get a $1,000 surety bond to be properly licensed. The bond form is included on page nine in both the public adjuster application and the independent adjuster application. When purchasing the bond, applicants should be sure to specify the type of adjuster’s license they’re applying for.

Getting bonded is an adjuster’s guarantee that they will follow regulations found in Section 2108 of the Insurance Law of the State of New York. If an independent or public insurance adjuster does not adhere to those laws, causing damages to consumers, consumers can file a claim against the surety bond. If the claim is valid, they can be reimbursed up to the bond’s full amount. The adjuster must then repay the surety for any paid claims.

Ready to take the first step toward getting an insurance adjuster license in New York? Get in touch with Single Source Insurance!

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Tennessee RV dealers have been required to get a license and a surety bond since July 1, 2017. SB 1980 was passed in April 2016, leading to changes for RV dealers in 2017. Here’s a quick guide to the new regulations.

How do I get a Tennessee RV dealer license?

Tennessee RV dealers are licensed through the state Motor Vehicle Commission; before SB 1980’s passage they were not licensed separately from other vehicle dealers. Recreational vehicle dealers are engaged in the sale, offer to sell, advertisement and solicitation to sell, and possession of RVs for sale as their primary business.

SB 1980 requires a license of RV dealers, manufacturers, factory representatives, and salespersons.�Tennessee RV dealers need separate licenses for each location where business is conducted. They can hire only licensed RV salespersons. Applicants must send their information to the Motor Vehicle Commission, including the following:

• Applicant’s name, residential address, and trade name, if applicable
• If applicant is a partnership or corporation, the names and addresses of all directors, partners, and owners of more than 5% of shares, plus the name of the partnership or corporation
• Names of inventory financers including floor planners used by dealership
• Complete description, including addresses, of any proposed places of business
• Any fees set by the Commission (75% refundable if license application is denied)
• $50,000 surety bond

If an RV dealer renews their license after its expiration, the Commission can assess a 50% application fee penalty in addition to the license renewal fee. Licenses must be renewed every other year, and renewal applications will not be accepted 90 days after the license expires.

What does the RV dealer surety bond do?

The $50,000 Tennessee RV dealer’s surety bond is similar to the bond required for motor vehicle dealers. The bond is the dealer’s promise that they will follow all the laws set forth in SB 1980, and any other applicable rules. Circumstances under which a customer could file a claim against the bond include the following:

• RV dealer’s nonpayment of prepaid title, registration, or other fees or taxes
• RV dealer’s failure to provide a title free of previous owners’ interests and liens

The bond protects customers in case the RV dealer does not conduct business in accordance with law. The bond must remain in effect for the term of the dealer’s license, and it can be canceled with 60 days’ notice to the Commission.

How much does this bond cost?

The surety bond provides $50,000 of coverage to consumers, and principals (bondholders) typically pay anywhere from 1-10% of the bond’s full amount. In this case, Tennessee RV dealer applicants can expect to pay $500-$5,000 for their surety bond.

Applicants with a good credit history should expect to pay a smaller percentage of the bond amount, and Single Source Insurance can work with clients whose credit isn’t perfect. Ready to get a Tennessee RV dealer surety bond? Start here today!

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In 2015, a wage bond was mandated for New York nail salons. The bond mandate came following the publication of a two-part expos� in the New York Times alleging that “manicurists [were] routinely underpaid and exploited, and endure[d] ethnic bias and other abuse.” The piece caused enough of a stir that state and city government noticed, and Governor Cuomo quickly issued the wage bond mandate with an October 6, 2015 deadline. Keep reading for the rundown on the New York nail salon wage bond.

Why was the wage bond mandated for nail salons?

The two�New York Times articles detailed Sarah Maslin Nir’s interviews with nail salon employees in New York City, and she claimed that many were paid below minimum wage and suffered various abuses at the hands of salon owners. The article also said that labor violations in the industry went largely unchecked, and workers were being exposed to harsh working conditions that had caused health problems for many of them.

Another assertion made in Nir’s expos� was that salon owners were exploiting immigrants who spoke little English and were often in the country illegally. Because of this, salon owners could get away with unsafe working conditions, underpaying or not paying workers at all, and charging them training fees.

The backlash from the articles resulted in Governor Cuomo quickly taking action to instate a wage bond and a workers’ bill of rights, along with offering free training for unlicensed New York nail salon employees. Cuomo began a public awareness campaign and distributed pocket cards to involve consumers in worker protections. In addition, legislation requiring nail salon owners to provide equipment to protect employees from harsh chemicals was passed.

What does the wage bond do?

The mandated wage bond is a salon owner’s guarantee that employees will be paid fairly and in accordance with New York law, including being paid overtime and any fringe benefits they are entitled to. If employers do not pay employees the wages they are owed, employees can file a claim against the surety bond to recoup lost wages. Failing to comply with the wage bond requirement can result in loss of business licensure and fines.

Who needs this bond and how much does it cost?

Any New York nail salon that employs two or more licensed full-time employees must purchase wage bond. The amount of surety bond coverage depends on the number of full-time employees or the equivalent (two part-time employees equal one full-time employee):

• Two to five licensed full-time employees�$25,000 surety bond
• Six to ten licensed full-time employees�$40,000 surety bond
• 11 to 25 licensed full-time employees�$75,000 surety bond
• 26 or more licensed full-time employees�$125,000 surety bond

The surety bond must be displayed and visible in the salon.�New York nail salons must also obtain accident and professional liability or general liability insurance with coverage of $25,000 per individual occurrence and $75,000 in the aggregate.

The cost of the surety bond is determined on a case-by-case basis, but applicants with good credit history should expect to pay anywhere from 1-10% of the bond’s coverage amount. For example, a $40,000 surety bond’s premium might range from $400-$4,000.

Ready to get this New York surety bond? Get in touch with Single Source Insurance to get a quote!

New York City process servers are required by the city to obtain a license and surety bond. There are no statewide licensing laws for process servers, but those doing business in New York City must follow rules set by the City Council.

How to get a New York City process servers’ license

A process server is someone who delivers legal documents on behalf of a lawyer�anyone serving more than five documents in a year must obtain a license. Businesses must also be licensed if they plan to assign, distribute, or deliver process to another for actual service. Process servers and agencies are licensed by the city Department of Consumer Affairs�(DCA). Process servers do not need to be individually licensed if they are a licensed attorney in New York or if they are an employee of city, state, or federal agency acting within the scope of their position.

Those applying for an individual NYC process server license have the option to apply online on the DCA’s website or in person with the Basic Individual License Application. Other documents and information the DCA needs with the application include:

• Applicant’s photo ID
• Completed process server individual background information form
• Current passport-size color photo of applicant
• $10,000 surety bond (found on pages 4-5)
• Completed roster of process serving agencies (whether or not the applicant will be serving for an agency)
• Process server exam and $75 exam fee
• Electronic Device Certification
• Recordkeeping Certification
• Child Support Certification
• Granting Authority to Act Affirmation if the license is filed by someone who is not the applicant
• $75 fingerprints and processing fee

These licenses are good for two years and expire on February 28 in even years (2018, 2020, etc.). Process server applicants pay license fees based on the date of their application submission:

• Submitted between March 31 and August 1 of an even year�$340 fee
• Submitted between September 1 in an even year and February 28 of an odd year�$255 fee
• Submitted between March 1 and August 31 of an odd year�$170 fee
• Submitted between September 1 in an odd year and February 28 of an even year�$85 or $425 fee (Those renewing within six months of license expiration can choose to pay a prorated fee for the rest of the license term plus the rest of the next licensing term.)

The process server exam is 30 questions, and applicants must answer at least 21 questions correctly. If the applicant fails the exam more than twice, they must reapply for licensure and pay the $75 fee again. The DAC has compiled a list of FAQs about the exam for NYC process servers with information about registration, preparation, and other important details. Their page for process server licensing contains more details about applying online or in person.

Agencies applying for a New York City process server license can also apply online or in person with a Basic License Application. They are required to provide much of the same information as individual applicants, and need to make sure they have obtained any business certificates applicable to their business’s structure. They must also submit a Process Serving Agency Compliance Plan Affirmation. Visit the DCA’s process server agency licensing page for more detailed information.

Why do NYC process servers need a surety bond?

The $10,000 New York City process server surety bond is required as a promise from servers to their clients that they will follow all regulations as written in the NYC Administrative Code. If there is an instance in which a client suffers financial damage as a result of the process server’s unlawful actions, the bond gives the client a way to seek compensation.

Process server agencies need a $100,000 surety bond to guarantee their compliance with the same regulations. They assign or distribute process to individual servers, meaning they work with many process servers, hence the higher bond coverage amount. Their surety bond provides the same means for recourse as the individual process server bond.

Individual New York City process servers can also file a Process Server Individual Trust form�with two proof of bond denials�if they’re unable to obtain a surety bond. If they serve process only as an agency employee, individuals can file an Employee Bond Exemption form. Agencies must always obtain the $100,000 surety bond.

Ready to become a licensed New York City process server? Single Source Insurance can help you or your agency get bonded today!

Since 2009, the state of New York has adopted and re-adopted emergency regulations for the governance of mortgage loan servicers. The re-adopted rules require New York mortgage loan servicers to get a surety bond before becoming licensed.

Licensing for NY Mortgage Loan Servicers

The�Department of Financial Services�(DFS) first adopted emergency regulations for New York mortgage loan servicers in 2009. The regulations�adopted on July 23, 2017�can be viewed in their entirety on the DFS website.

As in many other states, New York mortgage loan servicers’�applications are submitted through the Nationwide Multistate Licensing System (NMLS). Mortgage loan servicers must pay the following nonrefundable fees:

• $3,000 investigation fee
• $102.25 fingerprint processing fee per control person
• $500 fee per additional branch office
• $15 credit report fee per control person
• $100 NMLS processing fee

Upon initial application, New York mortgage loan servicers can apply for only two branch locations. Once received, complete applications are published in the DFS’s Weekly Bulletin, and those who submitted incomplete applications are notified in writing. Applicants must submit the missing information within 30 days, or their application is considered withdrawn. If a would-be servicer’s application is withdrawn, the applicant must submit a new application.

Mortgage loan servicers must provide a written statement promising to maintain a minimum adjusted new worth of $250 million plus one-quarter of one percent of the outstanding principal balance of aggregate mortgages serviced. The letter must be signed by a designated officer. Applicants are required to have errors & omissions insurance coverage of at least $300,000, and post a fidelity bond of at least $300,000 (in addition to the $250,000 surety bond).

The NMLS’s New York mortgage loan servicer application checklist contains a full list of information required for licensure�read it thoroughly before sending in your application. Don’t purchase the $250,000 surety bond until your application is approved.

What does this bond do?

New York mortgage loan servicer applicants are not required to purchase a surety bond until the application is approved. If a servicer were to become insolvent, go bankrupt, liquidate, or lose licensure, the surety bond would provide consumers a means of seeking reimbursement for fees and undisbursed payments. The bond would also pay any costs owed to the DFS after business closure or loss of licensure.

The surety bond must be at least $250,000 but the Superintendent of the DFS can require it to be double that�$500,000�at his or her discretion. A history of consumer complaints against a servicer can result in the surety bond increase. The DFS provides a bond form for applicants’ surety companies to use.

The $300,000 fidelity bond serves as protection against fraud, embezzlement, forgery, and similar employee theft�revisit our post on fidelity bonds vs. surety bonds to brush up on their differences.