33-2406. SURETY BOND. Unless exempted as provided in this section, as a condition of registration, a proprietary school shall obtain a surety bond issued by an insurer duly authorized to do business in this state or other financial instrument in a format approved by the director, in favor of the state of Idaho for the indemnification of any student for any loss suffered as a result of a failure by such proprietary school to satisfy its obligations pursuant to the terms and conditions of any contract for tuition or other instructional fees entered into between the proprietary school and a student, or as a result of any violation of the provisions of this chapter or the rules promulgated pursuant to this chapter. The term of the bond shall extend over the period of registration, and shall be in such amount as is established in rule by the board.
The director may submit a demand upon the surety on the bond on behalf of a student or students when it is reasonably believed that a loss has occurred due to a failure by such proprietary school to satisfy its obligations pursuant to the terms and conditions of any contract for tuition or other instructional fees entered into between the proprietary school and a student, or as a result of any violation of the provisions of this chapter or the rules promulgated pursuant to this chapter.
Neither the principal nor surety on the bond or other financial instrument may terminate the coverage of the bond, except upon giving one hundred twenty (120) days’ prior written notice to the director.
Proprietary schools that are accredited by an accreditation organization recognized by the board shall not be required to obtain a surety bond or other financial instrument.
History:
[(33-2406) 33-2407, added 1993, ch. 57, sec. 3, p. 159; am. and redesig. 2006, ch. 240, sec. 10, p. 731; am. 2009, ch. 26, sec. 7, p. 78; am. 2010, ch. 79, sec. 9, p. 138; am. 2011, ch. 159, sec. 5, p. 451; am. 2013, ch. 31, sec. 1, p. 69; am. 2014, ch. 35, sec. 1, p. 60.]