Surety Bonds for Louisiana Proprietary Schools

Dec 4 Posted on

Louisiana proprietary schools

Louisiana proprietary schools are private businesses offering vocational or occupational courses, and students do not receive academic degrees. These schools need to be licensed and bonded to operate legally.

The state of Louisiana’s Board of Regents regulates proprietary schools and issues their licenses. Anyone who represents the school, also called solicitors, agents, or recruiters, also needs to be licensed by the Board. While proprietary schools can’t issue academic degrees, they can award certificates or diplomas. Proprietary schools accredited by a federally recognized accreditation body can offer Associate in Occupational Studies degrees.

Applicants for a proprietary school license need to submit all the information listed on the Board’s checklist, including:

  • Completed application form PSC-1
  • Notarized commitment statement, form PSC-2
  • Appropriate documentation from the Secretary of State validating business’s legal structure
  • Current audited financial sheet prepared by a licensed CPA
  • List of equipment available for use in classes
  • Copies of enrollment agreements and refund policies approved by the Proprietary Schools Commission
  • Copies of all advertising materials and diplomas or certificates
  • School catalog
  • $10,000 surety bond for Certificate of Registration, form PSC-3
  • Blanket surety bond for all solicitors, or individual solicitor bonds
  • $2,000 license fee
  • $100 fee per solicitor
  • Outline and fee schedule for each course of study

This is not a complete list�the Board’s website contains all the information you need to submit, including application and bond forms. Applications must be submitted at least 60 days prior to the next scheduled Board meeting, which they list on their website.

Louisiana proprietary schools need a $10,000 surety bond as protection for their students. Should the school close before students complete their course of study, resulting in losses of tuition and fees, they can file a claim against the surety bond to recover those losses. Similarly, school recruiters need a bond of $1,000—or a blanket bond covering all the school’s solicitors—to protect students should the recruiter misrepresent the school or the credentials it offers consumers. If a proprietary schools opts for a blanket bond, each recruiter needs $1,000 of coverage—five recruiters means a $5,000 bond is required.

See the Board of Regents’ website to get familiar with laws for proprietary schools and solicitors to ensure you don’t engage in any practices that may result in a claim against your surety bond.

Ready to get bonded in Louisiana? Single Source Insurance can help!�

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How To Get An Arkansas Car Dealer License

Dec 1 Posted on

Arkansas used auto dealer

Arkansas requires auto dealers to get a license and a surety bond before they conduct business in the state. Learn more about the process below, and apply online for the bond you need today.

Get Bonded

Who Needs An Arkansas Dealer License?

Arkansas defines used auto dealers as those who buy and sell (or offer to sell or advertise for sale) five or more vehicles registered to them in a calendar year, or attempt to. They are licensed through the Arkansas State Police. Dealers license their primary business location and must submit separate applications for any additional locations.

Some of the information required of Arkansas used auto dealer license applicants includes:

  • Business phone number in the dealership’s name appearing in local directories
  • $250 fee for primary location
  • $125 fee for secondary location(s)
  • Business name(s), address, and email
  • Business owner’s name, address, and social security number
  • Business type (individual, partnership, etc.)
  • Names and contact information of anyone with ownership interest
  • Proof of a minimum of $75,000 of liability insurance coverage
  • $25,000 surety bond
  • Names and addresses of all dealership salespersons
  • Photos of business’s sign (must be visible from the nearest road)

These licenses need to be renewed annually, and the state assesses late penalties if licenses aren’t renewed on time. Dealers whose licenses have been expired for more than 31 days but less than six months need to include a $35 late fee with their renewal. A license not renewed within six months of expiring is considered permanently expired, and licensees will need to restart the process. Renewal fees correspond with initial licensure fees.

Once completed, Arkansas auto dealers mail in their application and applicable fees:

Arkansas State Police Attn: Used Motor Vehicles #1 State Police Plaza Drive Little Rock, AR 72209

You can also deliver your application in person to State Police headquarters. Used auto dealers can also get a temporary business location permit that’s valid for ten days, which allows them to sell vehicles from a different location.

Surety Bond Requirements

The state of Arkansas requires a $25,000 surety bond of used auto dealers. However, dealers with multiple dealership locations can get a $100,000 surety bond to cover each location.

The Arkansas used auto dealer surety bond protects consumers in the state from unethical, illegal business practices on the part of the dealer. Should a dealer violatestate law and cause financial damage to a consumer, they can file a claim against the surety bond to seek reimbursement. If their claim is proven, the surety pays the claim up to the bond’s full amount. The bondholder (the used auto dealer) must then reimburse the surety—if a $5,000 claim was paid, the dealer must remit the full amount.

Violations of state law include misrepresenting a vehicle’s condition, falsifying or altering vehicle titles, and operating a dealership without a license. First violations are considered a Class A misdemeanor and second, third, and subsequent violations a Class D felony.�Three or more violations result in a three-year license suspension for each violation.

Ready to get licensed as an Arkansas used auto dealer? Get started with a surety bond from Single Source Insurance!

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