Proprietary schools will be affected by changes to current law in the state of Idaho. The Idaho Board of Education implemented temporary rules to revise the present regulations for proprietary schools. The changes apply SB 1012 (2009), which removed the surety bond requirement for individual proprietary school agents and in its place required the school to acquire a blanket bond to cover all of the agents. The school’s bond financially protects students in the event of a school’s closure and from fraud during the enrollment process. The previous law based the required bond size on the amount of students attending the school which ranged from $10,000 to $100,000. The new law states that the bond must be equal to the total tuition and fees charged by the school during the last registration year. The new rules also add “extended coverage clauses” to the bond which will be in effect 120 days after a schools closure; “extended coverage” means that claims can still go out on the bond 120 days after the schools closure.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.