Idaho State Statutes - Idaho Attorney Directory

A surety bond issued by an insurer duly authorized
to do business in this state in favor of the state of Idaho for the
indemnification of any person for any loss suffered as a result of the
occurrence, during the period of coverage, of any fraud or misrepresentation
used in connection with the solicitation for the sale or the sale of any
course of study, or as a result of any violation of this chapter or the rules
promulgated pursuant to this chapter shall be required of an agent. The term
of the bond shall extend over the period of the permit. The bond shall be
supplied by the school.
The bond shall provide for liability in the penal sum of one hundred
thousand dollars ($100,000) for those schools with one hundred (100) or more
students; fifty thousand dollars ($50,000) for those schools with fifty (50)
to ninety-nine (99) students; twenty-five thousand dollars ($25,000) for those
schools with less than fifty (50) students. Notwithstanding the above, for
those schools that submit evidence acceptable to the board that the total
unearned tuition of the school will not exceed ten thousand dollars ($10,000)
at any given time during the period of registration, a bond in the penal sum
of ten thousand dollars ($10,000) may be provided, regardless of the number of
students.
The board 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 fraud or misrepresentation used in connection with the solicitation for
the sale or the sale of any course of study, 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 may terminate the coverage of
the bond, except upon giving one hundred twenty (120) days' prior written
notice to the board, and contemporaneously surrendering all agents' permits.
Each school shall certify, at the time of registration, the number of
students presently enrolled at the school and shall make available, upon
request of the board, proof of enrollment numbers.

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