2005 Idaho Code - 30-909 — FINANCIAL RESPONSIBILITY -- FIDELITY BOND -- ERRORS AND OMISSIONS POLICY -- SURETY BOND

                                  TITLE  30
                                 CORPORATIONS
                                  CHAPTER 9
                               IDAHO ESCROW ACT
    30-909.  FINANCIAL RESPONSIBILITY -- FIDELITY BOND -- ERRORS AND OMISSIONS
POLICY -- SURETY BOND. At the time of filing an application for an escrow
agency license, and at the time of any renewal or reinstatement of such
license, the applicant or licensee shall provide satisfactory evidence to the
director of having obtained the following as evidence of financial
responsibility:
    (1)  A fidelity bond providing coverage in the aggregate amount of two
hundred thousand dollars ($200,000) with a deductible no greater than ten
thousand dollars ($10,000) covering the applicant or licensee, as well as each
corporate officer, partner, managing member, escrow agent and employee of the
applicant or licensee;
    (2)  An errors and omissions policy issued to the escrow agency providing
coverage in the minimum aggregate amount of fifty thousand dollars ($50,000)
or, alternatively, cash or securities in such amount deposited in a depository
approved by the director on condition that they be available for payment of
any claim payable under an equivalent errors and omissions policy in such
amount; and
    (3)  A surety bond in an amount as set forth in paragraphs (a) through (f)
of this subsection. The surety bond shall be in a form provided by the
director and the applicant shall be named as principal. The bond shall be
executed by the applicant as obligor and by a company authorized to do a
surety business in Idaho. The bond shall be conditioned that the obligor as
licensee will faithfully conform to and abide by this chapter and all rules
adopted thereunder, and shall be liable for reimbursement to all persons who
suffer loss by reason of a violation of this chapter or rules adopted
thereunder. The surety bond provided shall be in an amount based upon the
average month-end balance of the escrow trust accounts of the applicant or
licensee for the preceding calendar year, in increments as described in the
following subsections:
    (a)  For average month-end escrow trust account balances of fifty thousand
    dollars ($50,000) or less, a surety bond in the amount of twenty thousand
    dollars ($20,000) is required;
    (b)  For average month-end escrow trust account balances of more than
    fifty thousand dollars ($50,000) but not more than two hundred fifty
    thousand dollars ($250,000), a surety bond in the amount of fifty thousand
    dollars ($50,000) is required;
    (c)  For average month-end escrow trust account balances of more than two
    hundred fifty thousand dollars ($250,000) but not more than five hundred
    thousand dollars ($500,000), a surety bond in the amount of one hundred
    thousand dollars ($100,000) is required;
    (d)  For average month-end escrow trust account balances of more than five
    hundred thousand dollars ($500,000) but not more than seven hundred fifty
    thousand dollars ($750,000), a surety bond in the amount of one hundred
    fifty thousand dollars ($150,000) is required;
    (e)  For average month-end escrow trust account balances of more than
    seven hundred fifty thousand dollars ($750,000) but not more than one
    million dollars ($1,000,000), a surety bond in the amount of two hundred
    thousand dollars ($200,000) is required;
    (f)  For average month-end escrow trust account balances of more than one
    million dollars ($1,000,000), a surety bond in the amount of two hundred
    fifty thousand dollars ($250,000) is required.
    (4)  The escrow agency licensee shall place on file with the director the
surety bond and proof of its errors and omissions coverage and its fidelity
bond, which bonds and insurance coverage shall be continuous during the period
of licensure of the licensee whether or not the bond is renewed, continued,
reinstated, reissued, or otherwise extended, replaced or modified, including
increases or decreases in the penal sum. The surety upon the bond shall not be
liable in an aggregate amount exceeding the penal sum set forth on the face of
the bond.
    (5)  The surety bond shall name as beneficiaries:
    (a)  The state, for payment of any costs incurred and charges made in
    connection with any escrow agency's insolvency or default, including costs
    and charges relating to an examination and receivership of any escrow
    agency; and
    (b)  Any person who has a claim against the surety on the bonds based on
    any default or violation of any duty or obligation of the escrow agency.
    (6)  In lieu of the bonds required by this section, a certificate of
deposit issued by a financial institution authorized to conduct business in
Idaho and made payable to the director may be provided to the director in the
same principal amount as required for the bonds. The interest on the
certificate of deposit shall be payable to the escrow agency  licensee. The
certificate of deposit shall be maintained at all times during which the
licensee is authorized to engage in business as an escrow agency under this
chapter, and must provide that it will remain in effect for at least three (3)
years following discontinuance of operations unless released earlier by the
director.
    (7)  The director may, in the public interest and for good cause shown,
waive or modify any requirements of this section.