Iowa Admin. Code r. 185-5.9

Current through Register Vol. 47, No. 8, October 30, 2024

Rule 185-5.9 - Surety bond requirements

Each surety bond shall meet the following requirements.

(1)Certificate of authority. The surety bond shall be issued by a company holding a current certificate of authority from the commissioner of insurance authorizing the company to issue bonds in Iowa.

(2)Forfeiture of bond. The surety bond shall contain a provision for the principal and surety to consent to the forfeiture of the principal sum of the bond in the event of revocation of the license or permit by the violation of any Iowa Code provision which requires forfeiture of the bond.

(3)Cancellation. A surety company or a principal may cancel a bond by giving a minimum of 30 days' written notice to the division of the party's intent to cancel the bond. The 30-day period shall commence on the date that the division receives the notice of cancellation. The party seeking to cancel a bond shall submit written notice of such cancellation to the division in Ankeny, Iowa, and further shall submit a copy of the notice of cancellation to the other party. The notice of cancellation shall contain the following: the name of the party to whom the copy of the notice of cancellation was submitted, the date on which the notice of cancellation was submitted, the date the bond is being canceled, and the license or permit number of the licensee or permittee to be affected by such cancellation.

(4)Proof of bond. A licensee or permittee shall be deemed to have furnished a surety bond when the licensee or permittee has:

a. Filed with the division a form prescribed by the division containing the following: the name of the bond provider; the city and state where the bond provider is located; the bond number, the names of the principal, and the city and state where the principal is located; the amount of the bond; the type of license or permit guaranteed by the bond; the effective date of the bond; signatures of the principal and the bond provider; and any other information the administrator of the division may require, or

b. Met this requirement by any other method deemed acceptable by the administrator of the division or a designee.

(5) to (7) Reserved.

This rule is intended to implement Iowa Code sections 123.30, 123.50, 123.127, and 123.175.

Iowa Admin. Code r. 185-5.9

Amended by IAB August 1, 2018/Volume XLI, Number 3, effective 9/5/2018

Amended by IAB September 20, 2023/Volume XLVI, Number 6, effective 10/25/2023