Section 17-11-324 - Bond, insurance, or personal surety(a)(1)(A) Before the certificate of authority is issued, the applicant shall file with the State Board of Appraisers, Abstracters, and Home Inspectors a bond approved by the board conditioned upon the payment by the applicant of any and all damages that may be sustained by or may accrue to any person, firm, or corporation for whom the applicant may compile, make, or furnish abstracts of title by reason of or on account of any error, deficiency, or mistake in any abstract or certificate, or any continuation, made or issued by the abstracter over its authorized signature and seal.(B) The bond shall be written by a corporate surety or other company issuing such bonds licensed and authorized to do business in this state.(2)(A) The bond shall remain in full force and effect for a period of one (1) year and may be renewed annually by a continuation certificate.(B) However, no continuation certificate shall operate to increase the penal sum of the bond beyond the limits established in this section.(3)(A) The penal sum of the bond shall be dependent upon the aggregate population, according to the latest federal census, of all counties in which the applicant proposes to conduct the business of abstracting, as follows: If the population is: | The penalty of the bond shall be: |
Less than | 25,000 ................................................................................................. | $ 5,000 |
More than | 25,000 but less than 50,000 ....................................................................... | 10,000 |
50,000 but less than 100,000 ...................................................................... | 15,000 |
100,000 but less than 200,000 .................................................................... | 20,000 |
Over | 200,000 ................................................................................................. | 25,000 |
(B) No person, firm, or corporation shall be required at any time to have in force and effect and filed with the board valid bonds in excess of the penal sum of twenty-five thousand dollars ($25,000).(b)(1) In lieu of the bond or bonds provided for in subsection (a) of this section, the applicant may file proof with the board that he or she carries abstracters' liability insurance in such a sum as would be required using the population scale in subdivision (a)(3)(A) of this section.(2) The proof shall be the filing of the actual policy or a certificate showing the issuance thereof by the insurance company.(c)(1) In lieu of bond or bonds or liability insurance provided for in subsections (a) and (b) of this section, the applicant shall have the right to file with the board a personal surety bond in such a sum as would be required using the population scale in subdivision (a)(3)(A) of this section, made in favor of any person or client that may suffer a loss for which he or she is liable, which shall be accepted in lieu of the insurance policy.(2) The personal bond shall have the signatures of at least three (3) other persons thereon whose total net worth shall be at least three (3) times the total amount of the personal bond.(3) The applicant shall pay for the actual cost of the credit reports on the bondsmen.Amended by Act 2023, No. 628,§ 12, eff. 7/1/2023.Acts 1969, No. 109, § 6; A.S.A. 1947, § 71-106; Acts 2007, No. 1042, § 11.