Coalition of individual appraisers working together to unite, promote and protect the collective interests of all appraisal professionals in Virginia; to promote needed changes in laws, rules, regulations, policies and standards affecting all appraisers in Virginia; to observe and report the actions of regulatory, legislative, oversight, and standards-setting entities of the Commonwealth.
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Coester VMS Surety Bond Claims Exceed Value…
Appraisers licensed in North Carolina received the following email by International Fidelity Insurance Company:
Re: Principal: Coestervms
Bond No.: TXIFSU0633863
Obligee: NORTH CAROLINA APPRAISAL BOARD
Please be advised that International Fidelity Insurance Company (the “Surety”) issued an Appraisal Bond to CoesterVMS (“Coester”). The penal limit of the bond is $25,000.00. This letter will advise you that the Surety has received claims against the above referenced bond in excess of the bond’s penal sum. As a result, the Surety will pay claims on the bond on a pro rata basis according to the amount of each parties established claim.
The Surety requests that all potential claimants, that have not already done so, file their claim by sending correspondence and supporting documentation to the addressed or e-mail listed above no later than December 30, 2018. Please note that after December 30, 2018 the Surety will proceed with pro rata distributions to all valid perfected claimants. However, after the penal limit has been exhausted, all claims received after that time will be advised the penal limit has been reached and the bond has been released.
This letter is sent without prejudice to the rights of International Fidelity Insurance Company and its principal and it shall not constitute a waiver or release of their rights, defenses, claims or setoffs, including, without limitation, those based on timely compliance with applicable notice requirements and statutory or contractual periods of limitation.
Very truly yours,
INTERNATIONAL FIDELITY INSURANCE COMPANY
Senior Claims Administrator
cc: Jeri Mach, Underwriting Manager – Commerical Surety
In Virginia, AMCs are required to have a $100,000 Surety bond of a letter of credit.
We hope Virginia appraisers are monitoring their receivables and taking quick action against late payments. In the event a Virginia appraiser is having difficulty collecting money owed from an AMC and wishes to file a claim against the surety bond, please familiarize yourself with the law and procedure:
Excerpt from 54.1-2021.1.
A party having a claim against the licensee may bring suit directly on the surety bond. When a claimant or an appraiser is awarded a final judgment in a court of competent jurisdiction against a licensee of this section for the licensee’s failure to faithfully perform its obligations under this chapter or failure to pay an appraiser who performed an appraisal, the claimant or the appraiser may file a claim with the Board for a directive ordering payment from the bond issuer of the amount of the judgment, court costs and reasonable attorney fees as awarded by the court. Such claim shall be filed with the Board no later than 12 months after the judgment becomes final. Upon receipt of the claim against the licensee, the Board may cause its own investigation to be conducted.”
See the complete Statute on Town Hall.
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