4 Colo. Code Regs. § 725-2, ch. 6

Current through Register Vol. 47, No. 22, November 25, 2024

Chapter 6 - APPLICATION FOR LICENSURE

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).

6.12. Repealed.

4 CCR 725-2, ch. 6

37 CR 15, August 10, 2014, effective 8/30/2014

37 CR 23, December 10, 2014, effective 1/1/2015

38 CR 19, October 10, 2015, effective 10/30/2015

39 CR 11, June 10, 2016, effective 6/30/2016

39 CR 23, December 10, 2016, effective 1/1/2017

40 CR 15, August 10, 2017, effective 8/30/2017

40 CR 23, December 10, 2017, effective 1/1/2018

41 CR 07, April 10, 2018, effective 4/30/2018

41 CR 15, August 10, 2018, effective 8/30/2018

41 CR 23, December 10, 2018, effective 12/31/2018

42 CR 11, June 10, 2019, effective 6/30/2019

42 CR 23, December 10, 2019, effective 1/1/2020

43 CR 23, December 10, 2020, effective 1/1/2021

44 CR 07, April 10, 2021, effective 4/30/2021

44 CR 23, December 10, 2021, effective 1/1/2022

45 CR 07, April 10, 2022, effective 4/30/2022

45 CR 19, October 10, 2022, effective 10/30/2022

45 CR 23, December 10, 2022, effective 12/30/2022

46 CR 23, December 10, 2023, effective 1/1/2024