Colorado Private Investigators Now Required to Post $10,000 Surety Bond

Beginning June 1, 2015, all Level I and Level II private investigators in Colorado must adhere to recent changes of legislation and post a surety bond in the amount of $10,000. Prior to this amendment, individuals were not required to secure a surety bond before conducting services as a private investigator due to the Private Investigators Voluntary Licensure Act. This act was repealed on June 6, 2014 and is being replaced by the Private Investigators Licensure Act, generating a new licensure program that is no longer voluntary. Individuals are now strictly required by the State to post this bond  in order to conduct business.

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With the adoption of this new rule, private investigators are expected to meet all credentials stated in section 12-58.5-106 requiring them to obtain a license from the Director. Performing private investigation services without first obtaining the proper license is considered unlawful in the state of Colorado. Applicants seeking Level I or Level II private investigator licenses must meet the following criteria:

  • at least 21 years of ago
  • citizens of the United States

Applicants additionally must be able to demonstrate an understanding of all rules and regulations involving private investigators by passing the appropriate exam approved by the Director

These licenses must be obtained before the enforcement of the Private Investigators Licensure Act starting June 1, 2015.

All previous voluntary private investigator licenses are now considered expired.

This new Act was put in place to ensure that all services performed by private investigators in the state of Colorado are being conducted ethically and in their clients’ best interest. Licensees can expect to receive a pro-rated refund of an amount determined on a case-by-case basis. For more information regarding these legislation changes, please visit the Colorado Office of Private Investigator Licensure.

If you have additional questions regarding this new requirement, a dedicated SuretyBonds.com agent may be reached online or by phone at 1 (800) 308-4358.Our bond experts are familiar with these revisions and will be able to guarantee individuals affected by this change are bonded accurately and at a competitive rate. Although June 1, 2015 is the effective date, individuals are encouraged to apply before then. Get started today by submitting a quote request here.

photo credit: consulting-detective.com

Appraisal Management Companies in New Mexico Must Post $25,000 Bond up from $10,000

As of January 2015, all appraisal management companies (AMCs) in New Mexico are required to post a $25,000 surety bond according to new legislation. Prior to this revision, the New Mexico Regulation and Licensing Department required AMCs to secure a bond in the amount of $10,000. This increase was established in hopes to hold AMCs more accountable to the bond regulations and conditions they agreed upon and also reduce fraudulent behavior occurring among AMCs.

Appraiser reviews real estate listing with seller for a residential property appraisal

photo courtesy of home.howstuffworks.com

Along with the increased bond amount, corporate surety companies can now pay individuals filing a claim against the principal directly with the proper approval from the Board. Otherwise, all previous appraisal management company bond requirements have remained the same.

The principal is expected to follow all rules and regulations for this bond in a professional and ethical manner without the intent to commit deceitful business practices that could harm his or her clients. Failure to maintain a surety bond at all times while performing real estate appraisal may result in the revocation of the AMC registration. If the bond becomes ineffective or gets canceled before the designated date of expiration, the AMC should notify the Board. The AMC then has 40 days to provide proof of the obtainment of a new surety bond, otherwise it will become subject to revocation of registration.

If you find yourself falling under the category of needing a new surety bond of the updated amount, it’s highly recommended that you contact a surety specialist as soon as possible to avoid legal non-compliance. You can speak to a surety expert today at 1 (800) 308-4358 or submit a request online at suretybonds.com/quote for a free no obligation quote. For more information, visit our New Mexico AMC bond page.

Appraisal Management Companies in Virginia now required to post $100,000 surety bond

Effective February 1, 2015, appraisal management companies (AMCs) in Virginia must obtain a $100,000 surety bond from the Virginia Department of Professional and Occupational Regulation to legally operate in the state. All appraisal management companies must also receive an approved license from the Real Estate Appraiser Board effective February 1. The purpose of this new legislation is to enforce stricter regulation of appraisal management companies to help ensure the compliance with state law and faithful business practices.skd273191sdc

What are the new bond requirements?

  • $100,000 bond
  • Holds principal responsible if there is failure to comply with Title 54.1, Chapter 20.2 of the Code of Virginia
  • Aggregate liability of surety cannot exceed penal sum of bond ($100,000)
  • Valid until AMC license expires, at which bond automatically renews for additional 2-year licensure periods unless the surety notifies the Real Estate Appraiser Board at least 60 days prior to expiration that it wishes to cancel the bond

What are licensing requirements?

  • Name, business address, phone contact and email for individual or entity applying for licensure
  • Name, address and contact information for any owner with at least 10% in the company
  • If the entity is not located in Virginia, proof that the entity is registered with the Virginia State Corporation Commission
  • Proof that the entity has a system in place to ensure compliance with the Uniform Standards of Professional Appraisal Practice
  • Proof that the entity maintains detailed record of:
    • every request for an appraisal service the AMC receives
    • the name of every appraiser that conducts appraisal
    • addresses of subject property
    • name of AMC’s clients
    • amount paid to the appraiser
    • amount paid to the AMC
  • Proof that the entity has a system in place to ensure compliance with Section 129E of the Truth in Lending Act

The license application for AMCs in Virginia is available here. All appraisal management companies must receive approved licenses from the Real Estate Appraiser Board by February 1, 2015.

What’s the Next Step?

Since these regulations went into effect February 1, you must secure your bond as soon as possible in order to meet legal requirements for doing business in Virginia as an appraisal management company. Ensure you obtain licensure by contacting a reliable surety provider. The surety experts at SuretyBonds.com are available to answer any questions you might have at 1 (800) 308-4358 and can get your bond application processed today.. You can also submit an application request online at suretybonds.com/quote.

Congress proposes bid bond requirement for Medicare DMEPOS competitive bidding

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On December 8, 2014, Ohio representative Patrick J. Tiberi introduced HR 5809, entitled  Medicare DMEPOS Competitive Bidding Improvement Act of 2014, to the House of Representatives.

What is the DMEPOS Competitive Bidding Program?

The DMEPOS Competitive Bidding Program was established by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. The program implements a competition between suppliers for selected Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) in a given competitive bidding area (CBA). The goal of the program is to reduce out-of-pocket expenses for beneficiaries of Medicare and save money for the Medicare program while ensuring beneficiary access to quality items and services.

How does the DMEPOS Competitive Bidding Program work?

The bidding process involves 4 steps:

  1. Suppliers submit a bid for selected products through a web-based application.
  2. Program representatives review the bids and evaluate them for eligibility, bid price, financial stability and more.
  3. Contracts are awarded to the most attractive bids.
  4. Contract suppliers are paid the bid price amount, which is determined based on a median of all winning bids for an item.

What are the proposed surety bond requirements?

According to the text, the purpose of this bill is:

“To amend title XVIII of the Social Security Act to require State licensure and bid surety bonds for entities submitting bids under the Medicare durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) competitive acquisition program, and for other purposes.”

If passed, the Medicare DMEPOS Competitive Bidding Improvement Act of 2014 would require bidders to secure a state license and a bid surety bond to participate in the DMEPOS competitive bidding program. Its purpose is to provide evidence of financial stability among bidders. The required amount of the bid bond would not be less than $50,000 or more than $100,000 for each competitive bidding area.

For successful bidders who do not accept the offered contract, the bidding entity will forfeit the bid bond if the bid is at or below the product category’s median composite bid rate. If the bid is above the product category’s median composite bid rate and the successful bidder does not accept the contract, the Secretary will return the bid bond within 90 days of the notice of nonacceptance. Likewise if the bid is unsuccessful, the Secretary will return the bid bond within 90 days of the notice of nonacceptance.

The last action on this bill occurred on December 12, 2014, when it was referred to the Subcommittee on Health by the House Energy and Commerce.

The experts at SuretyBonds.com are on the lookout for more information and will publish more about this potential surety bond requirement as it becomes available. In the meantime, if you have any questions about bid and other types of surety bonds, click here to connect with an expert surety specialist. Or, give us a call at 1 (800) 308-4358 between 7 a.m. and 7 p.m. CST Monday through Thursday or between 7 a.m. and 6 p.m. CST on Friday

Surety Bond FAQs, Part 3

 

 

 

 

 

 

 

 

At SuretyBonds.com, we understand that most business professionals don’t know about surety bonds until they need one. That’s why our experts go the extra mile to explain the intricacies of bonding, from what a surety bond is, to why you need one, to how much your bond will cost and everything in between. Today, we’ll answer some frequently-asked questions about surety bonds in the final part of our 3-part series. Read part 1 here and part 2 here.

In part 2, we discussed if and when surety bonds must be renewed. Here’s a little more information about the renewal process.

How do you renew your surety bond?

Whether the bond has a set expiration date, specific term or expires when the principal’s license expires, most surety bonds must be renewed prior to the bond’s expiration. To renew your bond, you’ll pay a renewal premium to your surety provider. Typically, renewal premiums are similar to the premium price you paid for your initial surety bond. There is a chance that your premium could increase or decrease, however,  if there were significant changes to the bond requirement or your credit report. Most principals submit their bond renewal applications to the surety provider that issued the initial bond because they already have their financial history on file, resulting in a more efficient renewal process.

What should you do if you want to cancel your bond?

Give us a call at 1 (800) 308-4358. Our trained surety experts can guide you through the process of cancelling your surety bond and answer any other questions.

What should I do if my surety bond is canceled?

A surety underwriting company can cancel a surety bond at any time for a number of reasons. Although there is typically a cancellation clause in the bond requiring the surety to provide the other two parties in the agreement with a cancellation notice, surety underwriters retain the right to cancel most bonds if they wish. This usually occurs if claims have been made against the bond and the principal has shown a tendency to violate the terms of the surety bond. agreement. If this occurs, you can reapply for the bond, but should expect to pay a higher premium rate if approved due to a higher risk.

Have more questions? Our experts are ready to assist you with all of your bonding needs. Give us a call at 1 (800) 308-4358 between 7 a.m. and 7 p.m. CST Monday through Thursday and between 7 a.m. and 6 p.m. CST on Friday. Or, you can submit an online contact form, and one of our surety specialists will get in touch with you right away. For more information from SuretyBonds.com, check out our Facebook, Twitter, Google+ and LinkedIn profiles. You can also peruse our YouTube video library and online answer forum.