Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 2245 - Real Estate Appraisers › Chapter 10 - Appraisal Management Company › Section 20 CSR 2245-10.040 - Surety Bond Requirements

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule establishes surety bond
				  requirements for appraisal management companies.
(1) The appraisal management company (AMC)
				shall maintain a valid surety bond in the amount of twenty thousand dollars
				($20,000) and shall submit proof of such bond at the time of initial
				application, upon renewal, upon maintaining the bond after a draw-down, and at
				any time requested by the commission. The surety bond shall be in a form
				prescribed by the commission.
(2)
				The bond shall accrue to the Missouri Real Estate Appraisers Commission for the
				benefit of a consumer claimant against the AMC to secure the faithful
				performance of the AMC's obligations pursuant to sections
				339.500 through
				339.549,
				RSMo, and regulations validly promulgated thereunder.
(3) The bond shall be issued by a bonding or
				insurance company authorized to do business in Missouri and shall secure the
				faithful performance of the AMC, its employees, or agents in connection with
				the activities of the AMC.
(4) When
				an action is commenced on the AMC's bond, the commission may require the filing
				of a new bond. Immediately upon any recovery on the bond, the AMC shall file a
				new bond with the commission demonstrating the full penal amount of twenty
				thousand dollars ($20,000).
(5) The
				surety bond is for the protection of consumers and the commission may make a
				claim on the bond on behalf of a consumer sustaining injury as a result of the
				actions of an AMC not in compliance with or in violation of sections
				339.500 through
				339.549,
				RSMo.
(6) Alternatively, in lieu of
				presenting a claim on the bond directly, the commission may release a copy of
				the bond to a consumer or the consumer's attorney. The request for release of
				the bond to the commission shall be in writing and contain sufficient
				documentation of the basis for the claim and/or a final judgment from a court
				of law granting the consumer relief against the AMC. The release of the bond
				from the commission shall be in writing to the consumer or the consumer's
				attorney.
(7) On receipt by the
				commission of notice of intent to cancel a bond by a corporate surety, the
				commission shall immediately notify the AMC that is the principal of the bond
				of the effective date of the cancellation. The AMC shall provide, from the
				corporate surety to the commission, no less than thirty (30) days notice prior
				to cancellation of the bond. Upon notice from the commission of the
				cancellation of the bond, the AMC shall furnish a like bond before the
				cancellation date and within seven (7) business days after mailing the notice
				by the commission. The AMC shall maintain and replace the bond to twenty
				thousand dollars ($20,000) after each draw-down and the bond shall remain in
				effect for the life of the registration and for one (1) year after expiration,
				revocation, surrender, or cessation of business by the AMC.
*Original authority: 339.511 , RSMo 1990, amended 1998 and
					 339.544, RSMo 1998.