Sec. 8. (a) If required by the department, each CPAP provider licensed by the department under this article must be covered by a surety bond in accordance with this section in an amount not to exceed fifty thousand dollars ($50,000).
(b) Any surety bond required under this section must:
(1) provide coverage for the CPAP provider in the amount set forth in subsection (d);
(2) be in a form prescribed by the director;
(3) be in effect during the term of the CPAP provider's license under this article;
(4) subject to subsection (c), remain in effect during the two (2) years after the license of the CPAP provider is surrendered or terminated;
(5) be payable to the department for the benefit of:
(A) the state; and
(B) individuals who reside in Indiana when they agree to enter into CPAP transactions with the CPAP provider;
(6) be issued by a bonding, surety, or insurance company authorized to do business in Indiana and rated at least "A-" by at least one (1) nationally recognized investment rating service; and
(7) have payment conditioned upon the CPAP provider's noncompliance with or violation of this chapter or other federal or state laws or regulations applicable to CPAP transactions.
(c) The director may adopt rules or guidance documents with respect to the requirements for a surety bond as necessary to accomplish the purposes of this article. Upon written request from a CPAP provider, the director may, at the discretion of the director, waive or shorten the two (2) year period set forth in subsection (b)(4) during which a surety bond required by this section must remain in effect after the CPAP provider's license under this article is surrendered or terminated.
(d) The penal sum of the surety bond shall be maintained in an amount determined by the director. If the principal amount of a surety bond required under this section is reduced by payment of a claim or judgment, the CPAP provider for whom the bond is issued shall immediately notify the director of the reduction and, not later than thirty (30) days after notice by the director, file a new or an additional surety bond in an amount set by the director. The amount of the new or additional bond set by the director must be at least the amount of the bond before payment of the claim or judgment.
(e) If for any reason a surety terminates a bond issued under this section, the CPAP provider shall immediately notify the department and file a new surety bond in an amount determined by the director.
(f) Cancellation of a surety bond issued under this section does not affect any liability incurred or accrued during the period when the surety bond was in effect.
(g) The director may obtain satisfaction from a surety bond issued under this section if the director incurs expenses, issues a final order, or recovers a final judgment under this chapter.
(h) Notices required under this section must be made in writing and submitted through the NMLSR or any other electronic registration system that may be approved by the director.
As added by P.L.176-2019, SEC.49. Amended by P.L.129-2020, SEC.9.
Structure Indiana Code