Current through Register Vol. 47, No. 17, September 10, 2024
6.1 Except as
provided under Chapter 9 of these Rules, an applicant must complete and submit
an application as follows:
A. Licensure for a
Licensed Appraiser, Certified Residential Appraiser or Certified General
Appraiser credential:
1. An applicant for an
initial license must submit a set of fingerprints to the Colorado Bureau of
Investigation for the purpose of conducting a state and national criminal
history record check prior to submitting an application.
2. Complete the Board created application and
submit the application with the supporting documentation to include: qualifying
education course completion certificates, college transcripts, and experience
log.
3. Upon the Board approving
the education and experience requirements, a "Letter of Exam Eligibility" will
be issued.
4. After the issuance of
the "Letter of Exam Eligibility", schedule the appropriate examination with the
examination provider approved by the Board.
5. After successfully passing the appropriate
examination as defined in Board Rule 4.1, submit a copy of the examination
results with proof of the required errors and omissions insurance policy as
defined in Board Rule 6.10.
6. An
application is deemed complete at the time that all required supporting
documentation and fees are received by the Board.
B. Licensure for a Licensed Ad Valorem
Appraiser credential:
1. Complete the Board
created application and submit the application with the supporting
documentation to include: qualifying education course completion certificates,
a copy of the examination results as defined in Board Rule 4.1 and proof of
employment with a qualified employer as defined in Board Rule 1.37.
2. Applicants for a Licensed Ad Valorem
Appraiser credential are not required to submit a set of fingerprints for the
purpose of conducting a state and national criminal history record check and
are also exempt from the errors and omissions insurance requirements.
3. An application is deemed complete at the
time that all required supporting documentation and fees are received by the
Board.
6.5 Once the application is deemed complete,
the Board will timely process the application. The Board reserves the right to
require additional information and documentation from an applicant to determine
compliance with applicable laws and regulations, and to verify any information
and documentation submitted.
6.6
Submission of an application does not guarantee issuance of a license, or
issuance of a license within a specific period of time. Applicants must observe
the provisions of section
12-10-619, C.R.S., and Chapter 12
of these Rules. Applicants will not represent themselves as being licensees of
the Board until the license has been issued by the Board.
6.7 Pursuant to section
12-10-612(1),
C.R.S., an applicant who has been convicted of, entered a plea of guilty to,
entered a plea of nolo contendere, or received a deferred judgment and sentence
to a crime, must file with his or her application an addendum to the
application in a form prescribed by the Board. Such addendum must be supported
and documented by, without limitation, the following:
A. Court documents, including original
charges, disposition, pre-sentencing report and certification of completion of
terms of sentence;
B. Police
officer's report(s);
C. Probation
or parole officer's report(s);
D. A
written personal statement explaining the circumstances surrounding each
violation, and including the statement attesting that "I have no other
violations either past or pending";
E. Letters of recommendation; and
F. Employment history for the preceding five
(5) years.
6.8 Prior to
application for licensure, an individual may request that the Board issue a
preliminary advisory opinion regarding the possible effect of convictions,
pleas of guilt or nolo contendere or deferred judgments and sentences for
criminal offenses. A person requesting such an opinion is not an applicant for
licensure. The Board may, at its sole discretion, issue such an opinion, which
will not be binding on the Board; is not appealable; and will not limit the
authority of the Board to investigate a later application for licensure. The
issuance of such an opinion will not prohibit a person from submitting an
application for licensure. A person requesting such an opinion must do so in a
form prescribed by the Board. Such form must be supported and documented by,
without limitation, the following:
A. Court
documents, including original charges, disposition, pre-sentencing report and
certification of completion of terms of sentence;
B. Police officer's report(s);
C. Probation or parole officer's
report(s);
D. A written personal
statement explaining the circumstances surrounding each violation, and
including the statement attesting that "I have no other violations either past
or pending";
E. Letters of
recommendation; and
F. Employment
history for the preceding five (5) years.
6.10 Every active appraiser, or applicant for
an active appraiser's credential, must have in effect a policy of errors and
omissions insurance to cover all acts requiring a license.
A. The Division will enter into a contract
with a qualified insurance carrier to make available to all licensees and
license applicants a group policy of insurance under the following terms and
conditions:
1. The insurance carrier is
licensed or authorized by the Colorado Division of Insurance to write policies
of errors and omissions insurance in this state.
2. The insurance carrier maintains an A.M.
best rating of "A-" or better.
3.
The insurance carrier will collect premiums, maintain records and report names
of those insured and a record of claims to the Board on a timely basis and at
no expense to the Board.
4. The
insurance carrier has been selected through a competitive bidding
process.
5. The contract and policy
are in conformance with this Board Rule 6.10 and all relevant Colorado
statutory requirements.
B. The group policy must provide, at a
minimum, the following terms of coverage:
1.
Coverage for all acts for which a real estate appraiser's license is required
to the extent of the professional appraisal work the appraiser is permitted by
his or her credential level to perform, except those illegal, fraudulent, or
other acts which are normally excluded from such coverage.
2. That the coverage cannot be canceled by
the insurance carrier except for nonpayment of the premium or in the event a
licensee becomes inactive, is revoked or an applicant is denied a
license.
3. The coverage afforded
by the policy must not contain exclusions for coverage of claims for damages
reasonably expected in connection with professional appraisal services,
including, but not limited to, claims for damages made by or on behalf of the
Federal Deposit Insurance Corporation (FDIC), the Federal Housing Finance
Agency (FHFA), or any other state or federal agency having regulatory authority
over a lender or financial institution, and claims arising from failure of a
financial institution.
4.
Pro-ration of premiums for coverage which is purchased during the course of a
calendar year but with no provision for refunds of unused premiums.
5. Coverage is for not less than $100,000
coverage per claim, with an aggregate limit of not less than $300,000 per
individual, not including costs of investigation and defense.
6. A deductible amount for each occurrence of
not more than $1,000 for claims and no deductible for legal expenses and
defense.
7. The obligation of the
carrier to defend all covered claims and the ability of the insured licensee to
select counsel of choice subject to the written permission of the carrier,
which must not be unreasonably withheld.
8. The ability of a licensee, upon payment of
an additional premium, to obtain higher or excess coverage or to purchase
additional coverage from the group carrier as may be determined by the
carrier.
9. The ability of a
licensee, upon payment of an additional premium to obtain an extended reporting
period of not less than three hundred sixty-five (365) days.
10. A conformity endorsement allowing a
Colorado resident licensee to meet the errors and omissions insurance
requirement for an active license in another group mandated state without the
need to purchase separate coverage in that state.
11. Policy must not be issued or underwritten
using a "self-rated" application form. A "self-rated" application is defined as
being an application where a policy is issued based on the answers listed on
the application with no subsequent underwriter review.
12. Prior acts coverage must be offered to
licensees with continuous past coverage.
C. Licensees or applicants may obtain errors
and omissions coverage independent of the group plan from any insurance carrier
subject to the following terms and conditions:
1. Individual policies must, at a minimum,
comply with the following conditions and the insurance carrier must certify
compliance in an affidavit issued to the insured licensee or applicant in a
form specified by the Board. The insurance carrier agrees to immediately notify
the Board of any cancellation or lapse in coverage. Independent individual
coverage must provide, at a minimum, the following:
a. The insurance carrier is in compliance
with all applicable rules and statutes set forth by the Colorado Division of
Insurance, and, if required, are licensed or authorized to write policies of
Errors and Omissions Insurance in this state.
b. The insurance carrier maintains an A.M.
best rating of "A-" or better.
c.
The contract and policy are in conformance with all relevant Colorado statutory
requirements.
d. Coverage includes
all acts for which an appraiser's credential is required, except those illegal,
fraudulent or other acts which are normally excluded from such
coverage.
e. Coverage cannot be
canceled by the insurance provider, except for nonpayment of the premium or in
the event the licensee becomes inactive, is revoked or an applicant is denied a
license. Cancellation notice must be provided in manner that complies with
section 10-4-109.7, C.R.S.
f. Coverage is for not less than $100,000 per
claim, with an annual aggregate limit of not less than $300,000 per individual,
not including costs of investigation and defense.
g. A deductible amount for each occurrence of
not more than $1,000 for claims, and no deductible for legal expenses and
defense.
h. The ability of a
licensee, upon payment of an additional premium to obtain an extended reporting
period of not less than three hundred sixty-five (365) days.
i. The coverage afforded by the policy must
not contain exclusions for coverage of claims for damages reasonably expected
in connection with professional appraisal services, including, but not limited
to, claims for damages made by or on behalf of the Federal Deposit Insurance
Corporation, the Federal Housing Finance Authority, or any other state or
federal agency having regulatory authority over a lender or financial
institution, and claims arising from the failure of a financial
institution.
j. The policy may not
be issued or underwritten using a "self-rated" application. A "self-rated"
application is defined as being an application where a policy is issued based
on the answers listed on the application with no subsequent underwriter review.
k. Prior acts coverage must be
offered to licensees with continuous past coverage.
2. For firms that carry policies that cover
one (1) or more licensees associated with that firm, all requirements listed in
Board Rule 6.10 will apply, except Board Rule 6.10 will be replaced with the
following:
a. The per claim limit must be not
less than $1,000,000, not including the costs of investigation and
defense.
b. The aggregate limit
must be not less than $1,000,000, not including the costs of investigation and
defense.
c. The maximum deductible
amount for each occurrence must not exceed $10,000 and the provider must look
to the insured for payment of any deductible. There must not be a deductible
for legal expenses and defense.
D. Applicants for licensure, activation,
renewal, and reinstatement must certify compliance with this Board Rule 6.10
and section
12-10-608, C.R.S. on forms or in a
manner prescribed by the Board. Any active licensee who so certifies and fails
to obtain errors and omissions coverage or to provide proof of continuous
coverage, either through the group carrier or directly to the Board, will be
placed on inactive status:
1. Immediately, if
certification of current insurance coverage is not provided to the Board;
or
2. Immediately upon the
expiration of any current insurance when certification of continued coverage is
not provided.
E.
Appraisers employed by a local, state, or federal government entity are exempt
from the errors and omissions insurance requirements.
6.11 Pursuant to section
12-10-606(6)(a),
C.R.S., the Board must establish the fitness standards that an applicant for a
license must demonstrate. Therefore, an applicant must demonstrate that he or
she does not possess a background that could call into question the public
trust. Some of the criteria that the Board may evaluate in determining whether
the public trust may be called into question are:
A. Whether the applicant has previously had
an appraiser credential revoked;
B.
Whether the applicant has previously had a professional license disciplined in
any jurisdiction;
C. Whether the
applicant has been convicted of, or pled guilty to, entered a plea of nolo
contendere to, or received a deferred judgment and sentence to a crime. An
applicant will not be eligible for a license if, during at least the five (5)
year period immediately preceding the date of application for a license, the
applicant has been convicted of, plead guilty to, or entered a plea of nolo
contendere to a crime that would call into question the applicant's fitness for
licensure; and
D. Whether the
applicant has failed to demonstrate that he or she possesses the character
necessary to command the confidence of the community and to warrant a
determination that the applicant will operate honestly, fairly and efficiently
within the scope and purpose of real property appraisal practice.
6.12 If the fees accompanying any
application to the Board (including fees for renewals, transfers, etc.) are
paid for by check and the check is not immediately paid upon presentment to the
bank upon which the check was drawn, or if payment is submitted in any other
manner, and payment is denied, rescinded or returned as invalid, the
application will be deemed incomplete. The application will only be deemed
complete if the Board has received payment of all application fees together
with any fees incurred by the Division including the fee required by state
fiscal rules for the clerical services necessary for reinstatement within sixty
(60) days of the Division mailing notification of an incomplete
application.
