Month: September 2017

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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.

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New York City carwash owners will now have to purchase the same amount of surety bond coverage regardless of if their employees are unionized. Judge Alvin Hellerstein, a federal judge in Manhattan, stopped the implementation of the Car Wash Accountability Act�earlier this year and has now modified the law, allowing it to go into effect.

Judge Hellerstein struck down the Car Wash Accountability Act, passed in 2015, because of two different surety bond mandates for New York City carwash owners. The Act required a $150,000 surety bond for carwashes whose employees did not belong to a union, while unionized carwashes only needed a $30,000 surety bond. Hellerstein ruled the law unconstitutional because it encouraged membership in a union, “‘thereby impermissibly intrud[ing] on the labor-management bargaining process.'” The law never went into effect and would have been struck down completely, but the city of New York appealed Hellerstein’s decision.

Hellerstein agreed to allow the Car Wash Accountability Act go into effect if the surety bond mandate was changed,to require all New York City carwash owners to obtain a $150,000 bond.�The bond required is a wage bond, meaning it protects carwash employees from wage theft, dangerous working conditions, or other illegal actions by their employer. If the carwash were to close unexpectedly and employees were owed wages, the surety bond provides a way to seek backpay. The bond protects against the longstanding issue of wage theft in New York City carwashes; Retail, Wholesale, and Department Store Union�President Stuart Appelbaum referred to it as “endemic.”

The Act also contains licensing procedures for New York City carwash owners that have taken effect with Judge Hellerstein’s ruling. Carwash licensee applicants submit information to the New York City Department of Consumer Affairs�(DCA). Some of that information includes:

• $550 fee per business location
• Applicant’s name and address
• Corporate structure and ownership
• Proof of workers’ compensation, unemployment, and disability insurance coverage
• Liability insurance coverage

New York carwash licensee applicants must include signed written statements certifying their compliance with several laws:

• �New York City Plumbing Code section 1003
• NYC Administrative Code section 24-334
• Surety bond requirement
• Certification that there are no judgments or warrants against the applicant for the violation of Chapter 2 of Title 20 of the NYC Administrative Code

New York City carwash licenses are valid for two years. The Car Wash Accountability Act details several more laws pertaining to licensure, including the records that must be kept by licensees. Read the law in its entirety and contact the New York City DCA with questions about carwash licenses.

Ready to get a New York surety bond? Single Source Insurance is here to help!

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Wholesale fish buyers and limited fish sellers in Washington will need to increase their surety bond per the passage of HB 1597. The new law takes effect on January 1, 2018�keep reading to see what other changes the bill will bring.

HB 1597 is Washington’s effort to ease the financial burden on the commercial fishing industry because of its “benefit to the state as a whole, but particularly to coastal communities.”�The bill amends and adds several terms to define persons in the commercial fishing industry:

• “Anadromous game fish buyer” and its definition is removed from the Revised Code of Washington (RCW)
• “Fish buyer” and its definition are removed from the RCW
• “Fish broker” is redefined to mean “a person who facilitates the sale or purchase of raw or frozen fish or shellfish on a fee or commission basis, without assuming title to the fish or shellfish”
• “Fish dealer” is a person who engages in activities that would require a fish dealer license per RCW 77.65.280�(as revised in Section 29 of the bill)
• “Limited fish seller” is a licensed commercial fisherman who sells to someone other than a wholesale fish buyer, triggering the requirement to become a limited fish seller per RCW 77.65.510�(as revised in Section 41 of the bill)
• “Wholesale fish dealer” is replaced with “wholesale fish buyer” and amended to mean a person engaged in fish buying or selling activity that will require a wholesale fish buyers’ license per RCW 77.65.340, as revised in Section 33 of HB 1597

The changes to the circumstances under which wholesale fish buyers’, limited fish sellers’, and fish dealers’ licenses (also called endorsements) are required are detailed in HB 1597. Wholesale fish buyers must be licensed in order to:

• Take first possession of fish or shellfish directly from a commercial fisherman in Washington
• Take first possession of fish or shellfish from interstate or foreign commerce
• To engage in wholesale buying or selling of fish or shellfish harvested by Indian fishermen

Their licensing fees have increased�resident wholesale fish buyers must pay a $245 endorsement fee, up from $95. Nonresident wholesale fish buyers must now pay a $320 fee. The application fee for both remains at $105.

Limited fish sellers are licensed or endorsed to sell commercially harvested fish to customers at retail. It can be issued as an addition to any commercial fishing license. Limited fish sellers must follow food safety standards when selling fish. The fee for a limited fish seller endorsement is set at $70 for residents and $140 for nonresidents. Commercial fishing license holders must be endorsed as a limited fish seller or a wholesale fish buyer in order to sell to anyone other than licensed wholesale fish buyers.

Both wholesale fish buyers and limited fish sellers need a surety bond�previously only buyers (formerly called dealers) needed the bond. Wholesale fish buyers must now post a $2,000 surety bond, up from $1,000. Limited fish sellers are mandated to post a $1,000 surety bond. The Washington Department of Fish & Wildlife can increase the surety bond amount if the buyers or sellers have previously violated rules for the accounting of commercial harvesting. The bond is in place to ensure that buyers and sellers pay all fees required by the state, as well as adhering to state rules for the accounting of commercially harvested fish and shellfish.

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

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Public land lessees in Minnesota may need a surety bond following SF 1124‘s passage in May. The bill was passed on May 12 and took effect on May 13, 2017.

The Minnesota Department of Natural Resources�(DNR) can issue permits or leases allowing the permitted party to use state-owned land “for any purpose which that in the commissioner’s opinion is not inconsistent with the maintenance and management of the forest lands, on forestry principles for timber production.” This means the commissioner of the DNR can allow individuals to use public forests, via lease or permit, for purposes the Commissioner deems in accordance with the DNR’s mission. The length of the lease or permit cannot be longer than 21 years without the approval of the Executive Council.

Those issued a permit or lease to use state land may be required by the commissioner of the DNR to purchase a performance surety bond for removing anything left on the land by public land lessees or permit holders after their lease or permit expires or is canceled or revoked. If the lessee or permit holder does not leave any personal property behind, the state would not have a reason to make a claim on the performance bond.

Current law mandates that while state land is leased, public access to the land will not change. Current law also states that the approval of the Commissioner of the Department of Administration is not required to grant a lease or permit.

In addition to adding a surety bond provision for public land lessees, SF 1124 introduces regulations for the public and private sale of tax-forfeited lands in several Minnesota counties.

Ready to get bonded in Minnesota? Get in touch with Single Source Insurance today!