Wyoming Appraisal Management Company Bond: A Comprehensive Guide
April 7, 2021
This guide provides information for insurance agents to help their customers obtain a Wyoming Appraisal Management Company Bond
At a Glance:
- Average Cost: $250 per year
- Bond Amount: $25,000
- Who Needs it: All appraisal management companies operating in Wyoming
- Purpose: To ensure the public will receive compensation for any damages should the appraisal management company violates registration law
- Who Regulates Appraisal Management Companies in Wyoming: The Wyoming Real Estate Appraiser Board
Wyoming Statute 33-39-203 requires all appraisal management companies operating in the state to register with the Certified Real Estate Appraiser Board. The Wyoming legislature enacted the registration requirement to ensure that appraisal management companies engage in ethical business practices. To provide financial security for the enforcement of the registration law, appraisal management companies must purchase and maintain a $25,000 surety bond to be eligible for registration.
What is the Purpose of the Wyoming Appraisal Management Company Bond?
Wyoming requires appraisal management companies to purchase a surety bond as part of the application process to obtain a business registration. The bond ensures that the public will receive compensation for financial harm if the company fails to comply with the regulations set forth in the Wyoming Appraisal Management Company Registration and Regulation Act. Specifically, the bond protects the public in the event the company breaches any contracts made with consumers or fails to funds owed to appraisers. In short, the bond is a type of insurance that protects the public if the appraisal management company breaks registration law.
How Can an Insurance Agent Obtain a Wyoming Appraisal Management Company Surety Bond?
BondExchange makes obtaining a Wyoming Appraisal Management Company bond easy. Simply login to your account and use our keyword search to find the “appraisal” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
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Is a Credit Check Required for the Wyoming Appraisal Management Company Bond?
No, a credit check is not required for the Wyoming Appraisal Management Company bond. Because the bond is considered relatively low risk, the same low rate is offered to all appraisal management companies operating in the state, regardless of their credit history.
How Much Does the Wyoming Appraisal Management Company Bond Cost?
The Wyoming Appraisal Management Company bond costs just $250 per year.
Who is Required to Purchase the Bond?
Wyoming requires all appraisal management companies to purchase a $25,000 surety bond as a prerequisite to obtaining a business registration. To paraphrase Wyoming statute 33-29-202, an appraisal management company is a business entity that helps clients assess the value of property by providing one or more of the following services:
- Administers an appraisal panel
- Recruits appraisers to perform appraisals for third parties
- Contracts with appraisers to perform an appraisal assignment
- Provides completed appraisals to clients
- Receives and assigns appraisal orders and reports
- Tracks and determines the status of appraisal orders
- Conducts quality control of completed appraisals
- Collects fees from creditors and underwriters
- Compensates appraisers
How do Wyoming Appraisal Management Companies Apply for a Registration?
Appraisal management companies in Wyoming must navigate several steps to secure a business registration. Below are the general guidelines, but applicants should refer to the application form for details on the process.
Registration Period – All Wyoming Appraisal Management Company Registrations are valid for one year from the date of issuance and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Appraisal management companies must purchase and maintain a $25,000 surety bond
Step 2 – Complete the Application
Appraisal management companies can email their completed registration application, including an $1,800 fee, to [email protected]. The following items must be submitted with the application:
- Fingerprint cards for the company’s designated contact person and all individuals with a 10% stake or higher in the company
- Photo of the company’s designated contact person
- Certificate of Good Standing
- Company formation documents
- Description of how the company verifies the certificates of appraisers
- Sample engagement document between the company and appraisers
- Certification of Owner
How do Wyoming Appraisal Management Companies Renew Their Registrations?
Appraisal management companies should submit their completed renewal applications online here (click here for instructions). Renewal applicants must pay an $1,800 registration fee, plus an additional fee of $25 multiplied by the number of appraisers who performed appraisals for the company for the 12 month period ending 90 days before the registration’s expiration date. All Wyoming Appraisal Management Company Registrations are valid for one year from the date of issuance and must be renewed before the expiration date.
What are the Insurance Requirements for Appraisal Management Companies in Wyoming?
Wyoming does not require appraisal management companies to purchase any form of liability insurance as a prerequisite to obtaining a business registration. Appraisal management companies must purchase and maintain a $25,000 surety bond.
How Do Wyoming Appraisal Management Companies File Their Bonds?
Appraisal management companies should email their completed bond forms, including the power of attorney, to [email protected]. The surety bond requires signatures from both the surety company that issues the bond and a representative of the appraisal management company. The surety company should include the following information on the bond form:
- Legal name and address of the entity/individual(s) buying the bond
- Surety company’s name, address, and state of incorporation
- Date the bond is signed
What Can Wyoming Appraisal Management Companies do to Avoid Claims Against Their Bonds?
To avoid claims against their bonds, appraisal management companies in Wyoming must follow all registration regulations in the state, including some of the most important issues below that tend to cause claims:
- Do not engage in any acts of fraud
- Do not breach any contracts made with consumers
- Pay all funds owed to appraisers
What Other Insurance Products Can Agents Offer Appraisal Management Companies in Wyoming?
Wyoming does not require appraisal management companies to purchase any form of liability insurance as a prerequisite to obtaining a business registration. However, most reputable businesses will purchase this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Wyoming Appraisal Management Company Customers?
Wyoming conveniently provides a public database of active appraisal management companies in the state. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.