Surety Bond Requirements

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. AUTHORITY: section 339.511, RSMo Supp. 2012, and section 339.544, RSMo 2000.* Original rule filed Nov. 13, 2012, effective June 30, 2013. *Original authority: 339.511, RSMo 1990, amended 1998 and 339.544, RSMo 1998.