There are 3 parts to a Proprietary School surety bond. The Principal "YOU", The Surety Company, and the Obligee. The Principal is the business or individual applying for the Proprietary School Surety Bond. The Obligee is the individual or entity requiring the Surety Bond and the Surety Company is the company who provides the Surety Bond coverage.
A condition of annual registration is that a proprietary school shall obtain a surety bond issued by an insurer duly authorized to do business in this state in favor of the State of Idaho for the indemnification of any student for any loss suffered as a result of a failure by such proprietary school to satisfy its obligations pursuant to the terms and conditions of any contract for tuition or other instructional fees entered into between the propriety school and a student, or as a result of any violation of the laws applicable to proprietary schools in Idaho.
The term of the bond shall extend over the period of registration, and shall be in the
amount established by the Idaho State Board of Education through administrative rule. The bond shall not be cumulative from year to year. The
Executive Director of the Idaho State Board of Education may submit a demand upon the surety on the bond on behalf of a student or students
when it is reasonably believed that a loss has occurred due to a failure by such proprietary school to satisfy its obligations pursuant to the terms and
conditions of any contract for tuition or other instructional fees entered into between the propriety school and a student, or as a result of any
violation of the provisions of Idaho code, Tittle 33, Chapter 24 or the administrative rules set forth in IDAPA 08.01.11.
Neither the Principal nor Surety on the bond may terminate the coverage of the bond, except upon giving one hundred twenty (120) days' prior
written notice to the Idaho State Board of Education. The bond shall remain in force for 120 days after a school closure to allow time for filing of
any potential claims that may arise.