165A.350 Requirements for agent's permit -- Bond or other collateral --
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/ky/165a-350A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Conditional license -- Renewal -- Owner's liability for actions of agents.
(1)No person shall solicit or perform the services of an agent in this state for a
proprietary school, located either within or without this state, unless the school shall
have been issued by the commission a license pursuant to KRS 165A.310 to
165A.410 and the person shall have been issued an agent's permit for said
proprietary school.
(2)No person shall be issued an agent's permit unless he is an individual of good moral
character as determined by the commission.
(3)Except as otherwise provided, no person shall be issued an agent's permit unless he
shall make application upon forms to be provided by the commission, and unless
the application shall be accompanied by a fee as established by the commission and
a good and sufficient surety bond or other collateral in a form as required by the
commission but not less than five thousand dollars ($5,000).
(a)The surety bond or other collateral shall be conditioned by the commission to
recover all necessary administrative costs, including but not limited to costs
for the acquisition, permanent filing, and maintenance of student records of
the proprietary school or to provide indemnification to any student or enrollee
or the student's or enrollee's parent or guardian suffering loss or damage as a
result of any fraud or misrepresentation used in procuring his enrollment in a
course or courses of instruction or study offered or maintained by the
proprietary school, or as a result of the student being unable to complete the
course or courses because the proprietary school ceased operations. The
amount of liability on the surety bond or other collateral shall cover each
agent each school year, as the term "school year" is defined in KRS 165A.310.
Regardless of the number of years that an agent's bond is in force, the
aggregate liability of the surety bond shall not exceed the penal sum of the
bond. The surety bond or other collateral may be continuous.
(b)Any claimant may file with the commission a duly verified claim against an
agent. The commission shall consider claims in a timely manner after ten
days' written notice by certified mail, return receipt requested, to the licensee
of the claim giving time and place of hearing thereon and if the claim is found
to be correct and due to the claimant, and if the commission cannot effect a
settlement by persuasion and conciliation, the commission shall make a
demand upon the principal on the bond and the surety or other collateral
thereon, and if not paid shall bring an action on the bond in Franklin Circuit
Court.
(5)The surety bond or other collateral may be of blanket form to cover more than one
(1)agent for a proprietary school, but it shall provide the required minimum
coverage for each agent.
(6)A surety on the bond or other collateral may be released therefrom after the surety
shall make a written notice thereof directed to the commission at least thirty
days prior to release.
(7)The surety bond or other collateral shall cover the period of the agent's permit,
except when a surety shall be released in the manner provided herein.
(8)Notwithstanding the provisions of other sections, the commission may issue an
agent's permit to each person who is an owner of more than ten percent (10%) legal
interest in a proprietary school located in this state and who is a resident of this
state, and no owner shall be required to pay the agent's permit fee or execute an
agent's surety bond or other collateral as otherwise required by this section, if the
proprietary school shall have been issued a license pursuant to the provisions of
KRS 165A.310 to 165A.410.
(9)The commission may issue a conditional license on a monthly basis for up to a nine
(9)month period of time.
(10)An agent's permit shall be suspended by operation of law when the agent is no
longer covered by a surety bond or other collateral is withdrawn as required by KRS
165A.310 to 165A.410; but the commission shall cause the agent to receive at least
ten
(10)days' written notice prior to the release of his surety to the effect that the
permit shall be suspended by operation of law until another surety bond or other
collateral shall be filed in the same manner and like amount as required by the
commission.
(11)An agent's permit shall be valid for a period of one
(1)school year as herein
defined, except when suspended or canceled pursuant to these provisions. An
agent's permit may be renewed in the same manner and under the same conditions
prescribed for the issuance of an initial agent's permit.
(12)The owner or owners of the proprietary school shall be held responsible for all
actions of their agents when performing their duties as agents.