{"data":{"id":"us-ky/krs-165a.350","jurisdiction":"us-ky","citation":"KRS 165A.350","heading":"Requirements for agent's permit -- Bond or other collateral --","body":"Conditional license -- Renewal -- Owner's liability for actions of agents.\n(1) No person shall solicit or perform the services of an agent in this state for a\nproprietary school, located either within or without this state, unless the school shall\nhave been issued by the commission a license pursuant to KRS 165A.310 to\n165A.410 and the person shall have been issued an agent's permit for said\nproprietary school.\n(2) No person shall be issued an agent's permit unless he is an individual of good moral\ncharacter as determined by the commission.\n(3) Except as otherwise provided, no person shall be issued an agent's permit unless he\nshall make application upon forms to be provided by the c ommission, and unless\nthe application shall be accompanied by a fee as established by the commission and\na good and sufficient surety bond or other collateral in a form as required by the\ncommission but not less than five thousand dollars ($5,000).\n(4) (a) The surety bond or other collateral shall be conditioned by the commission to\nrecover all necessary administrative costs, including but not limited to costs\nfor the acquisition, permanent filing, and maintenance of student records of\nthe proprietary school or to provide indemnification to any student or enrollee\nor the student's or enrollee's parent or guardian suffering loss or damage as a\nresult of any fraud or misrepresentation used in procuring his enrollment in a\ncourse or courses of instruction or st udy offered or maintained by the\nproprietary school, or as a result of the student being unable to complete the\ncourse or courses because the proprietary school ceased operations. The\namount of liability on the surety bond or other collateral shall cover e ach\nagent each school year, as the term \"school year\" is defined in KRS 165A.310.\nRegardless of the number of years that an agent's bond is in force, the\naggregate liability of the surety bond shall not exceed the penal sum of the\nbond. The surety bond or other collateral may be continuous.\n(b) Any claimant may file with the commission a duly verified claim against an\nagent. The commission shall consider claims in a timely manner after ten (10)\ndays' written notice by certified mail, return receipt requeste d, to the licensee\nof the claim giving time and place of hearing thereon and if the claim is found\nto be correct and due to the claimant, and if the commission cannot effect a\nsettlement by persuasion and conciliation, the commission shall make a\ndemand up on the principal on the bond and the surety or other collateral\nthereon, and if not paid shall bring an action on the bond in Franklin Circuit\nCourt.\n(5) The surety bond or other collateral may be of blanket form to cover more than one\n(1) agent for a prop rietary school, but it shall provide the required minimum\ncoverage for each agent.\n(6) A surety on the bond or other collateral may be released therefrom after the surety\nshall make a written notice thereof directed to the commission at least thirty (30)\ndays prior to release.\n(7) The surety bond or other collateral shall cover the period of the agent's permit,\nexcept when a surety shall be released in the manner provided herein.\n(8) Notwithstanding the provisions of other sections, the commission may issue  an\nagent's permit to each person who is an owner of more than ten percent (10%) legal\ninterest in a proprietary school located in this state and who is a resident of this\nstate, and no owner shall be required to pay the agent's permit fee or execute an\nagent's surety bond or other collateral as otherwise required by this section, if the\nproprietary school shall have been issued a license pursuant to the provisions of\nKRS 165A.310 to 165A.410.\n(9) The commission may issue a conditional license on a monthly basis for up to a nine\n(9) month period of time.\n(10) An agent's permit shall be suspended by operation of law when the agent is no\nlonger covered by a surety bond or other collateral is withdrawn as required by KRS\n165A.310 to 165A.410; but the commission  shall cause the agent to receive at least\nten (10) days' written notice prior to the release of his surety to the effect that the\npermit shall be suspended by operation of law until another surety bond or other\ncollateral shall be filed in the same manner  and like amount as required by the\ncommission.\n(11) An agent's permit shall be valid for a period of one (1) school year as herein\ndefined, except when suspended or canceled pursuant to these provisions. An\nagent's permit may be renewed in the same manner  and under the same conditions\nprescribed for the issuance of an initial agent's permit.\n(12) The owner or owners of the proprietary school shall be held responsible for all\nactions of their agents when performing their duties as agents.","path":["KRS Chapter 165A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49045","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:20Z","sha256":"bfb658ce2a5a732d6d9aa9001779a877313623b5a1a4b6103de0da9156eaa919","source_id":"us-ky","stale":false,"prev":"us-ky/krs-165a.340","next":"us-ky/krs-165a.360"},"notice":"GroundRules: Original legal text. Not legal advice."}