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 set forth in Rule 4.1., submit a copy of the Examination results
with proof of the required errors and omissions insurance policy as set forth
in Rule 6.10.
6. An application is
Deemed Complete at the time that all required supporting documentation and the
Fee 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 set forth in Rule 4.1. and proof of
employment with a qualified employer as defined in Rule 1.24.
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 the Fee are received by the
Board.
4. Applicants for a Licensed
Ad Valorem Appraiser credential will not receive nor are required to show proof
of a "Letter of Exam Eligibility".
6.2. Invalid Payment. If the Fees
accompanying any application made to the Board 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 canceled.
The application or renewal must be re-submitted to the Board along with full
payment of any Fees and payment of the fee required by State Fiscal Rules for
the clerical services necessary for invalid payment.
6.3. Review of Application Completeness. All
applications will be reviewed by the Division for completeness of all required
supporting documents and the Fee. If the application is deemed incomplete by
the Division, the Applicant will be notified in writing of the deficiencies
identified within the application and will have thirty (30) days to provide the
documentation; otherwise, the application will be canceled, and the Fee will be
forfeited.
6.4. 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.
6.5. 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.
6.6. Pursuant to sections
12-10-606(6)(a)
and 12-10-607(3),
C.R.S., the Board must establish the fitness standards that an Applicant for a
license must demonstrate. An Applicant must demonstrate that they do 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 they possess 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.
6.7. Applicants who have at any time in the
past been convicted of, entered a plea of guilty to, entered a plea of nolo
contendere to, entered an Alford plea to, or received a deferred judgment and
sentence to any felony or misdemeanor offense, excluding misdemeanor traffic
offenses, municipal code violations, petty offenses, or has such charges
pending must submit with their application the required documentation as listed
below. If the required documentation is no longer available, the Applicant must
provide written confirmation by the appropriate authority that such
documentation is no longer available. For any charges or convictions which have
been dismissed, expunged, or sealed, the Applicant must include court
document(s) evidencing the dismissal, expungement, or sealing of the criminal
case(s). Failure to provide the required documentation within the time frame as
set forth in Rule 6.3. will result in the cancelation of the application and
forfeiture of the Fee. In addition to the required documentation, Applicants
may submit supplemental documentation as listed below to demonstrate their
rehabilitation, prior professional licensure and general fitness for
consideration by the Board.
A. Required
documentation includes:
1. Court case
disposition, registry of action, or a case action summary, which must include
the following information:
a. Offense(s)
convicted of;
b. Statute(s) or
municipal code(s) violated;
c.
Classification(s) of offense(s) (i.e. felony or misdemeanor);
d. Date of conviction;
e. Date of sentencing;
f. Sentencing Terms; and
g. Status of case.
i. If the sentencing and probation terms have
been completed, the status of case should show as closed or
dismissed.
ii. If the sentencing
and probation terms have not been completed, documentation must be submitted
that shows current compliance with the sentencing and probation terms. Proof of
current compliance should include a letter from the parole or probation officer
and, if applicable, a payment history from the court showing a current account
balance of payment.
2. Police Officer's report(s), arrest
report(s), or incident report(s);
3. A signed written explanation of the
circumstances surrounding each violation and, including the statement attesting
that "I have no other criminal violations either past or pending, other than
those I have stated on the application"; and
4. Any other information or documentation
that the Board deems necessary.
B. Supplemental documentation includes:
1. Employment history for the preceding five
(5) years;
2. Letter(s) of
recommendation; and
3. A personal
written statement that demonstrates and evidences the Applicant's
rehabilitation, prior professional licensure and general
fitness.
6.8.
Pursuant to sections
12-10-607(4),
12-10-607(5),
12-10-607(6) and
12-10-612(1),
C.R.S., an Applicant who has any past or pending administrative disciplinary
actions or findings from any Jurisdiction regarding the Applicant's appraiser
registration, license, certificate or any other professional license must
submit with their application the following information and documentation as
listed below that is relevant and available to the Applicant. If the required
documentation is no longer available or accessible, the Applicant must provide
written confirmation by the appropriate authority that such documentation is no
longer available or the reasons why the document is not accessible. Failure to
provide the required documentation within the time frame as set forth in Rule
6.3. will result in the cancellation of the application and forfeiture of the
Fee.
A. Any final agency order(s);
B. Any consent order(s);
C. Any stipulation(s);
D. Any investigative report(s); and
E. A signed written explanation of the
circumstances surrounding each disciplinary action.
6.9. Prior to an application for licensure, a
Person may request that the Board issue a preliminary advisory opinion
regarding the potential effect that previous professional conduct, criminal
conviction(s), plea(s) of guilt, Alford plea(s) or nolo contendere plea(s),
deferred judgment(s) and sentence for criminal offense(s), or violation(s) of
the real estate appraiser license law may have on a future formal application
for licensure. A Person requesting such an opinion is not an Applicant for
licensure. The Board may, at its sole discretion, issue 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 future application for licensure.
However, if the Board issues a favorable advisory opinion, the Board may elect
to adopt such advisory opinion as the final decision of the Board without
further investigation or hearing. The issuance of a negative or unfavorable
opinion will not prohibit a Person from submitting an application for
licensure. A Person requesting 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. Pending or Past Criminal
Record
The required and supplemental documentation as set forth in
Rule 6.7. for any pending or past criminal record.
B. Pending or Past Professional Disciplinary
Action(s)
The documentation as set forth in Rule 6.8. for any pending
or past professional conduct.
6.10. Every appraiser with an Active license,
or Applicant for an Active license appraiser's credential, must have in effect
a policy of errors and omissions insurance to cover all acts requiring a
license. Appraisers employed by a local, state, or federal government entity
are exempt from the errors and omissions insurance requirements but would need
to comply with this Rule 6.10. if performing licensed activities outside the
capacity of their employment with a government entity.
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 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 their 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
subsection C.1. of this Rule will apply, except subsections C.1.f. and C.1.g.
of this Rule 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 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.
6.11. Upon expiration of the Initial License,
the license cycle will be a two (2) year licensing period commencing on January
1 of year one (1) and expiring on December 31 of year two (2).
