What Is a Kentucky Proprietary School Bond?
A Kentucky proprietary or private school bond creates a financial guarantee for prepaid tuition funds. This type of surety bond protects students and tuition-payers from financial harm if their school unexpectedly goes out of business or fails to meet contractual obligations.
The Kentucky private school blanket agent bond protects school and tuition payers from any fraudulent or unethical acts by agents working on behalf of a proprietary school.
How Much Do Kentucky Proprietary School Bonds Cost?
The Kentucky Commission on Proprietary Education requires all private schools to file a $20,000 bond. Prices start as low as 1%, or $200, for applicants with excellent credit. Apply for your free quote now.
Kentucky private school agents need a $5,000 blanket surety bond. Premium rates start at 1%, or $50. Get a personalized quote below.
SuretyBonds.com provides the lowest private school bond rates available with no additional brokerage fees.
How Does a Kentucky Proprietary School Bond Work?
Kentucky private school performance bonds protect students from financial loss if a school closes for any reason. Additionally, these bonds guarantee that private schools operate in accordance with Kentucky Statutes 165A.350.
If a school closes or breaks student contracts, tuition-payers can file claims up to the full bond amount. The surety will pay out valid claims, then the principal must reimburse the surety.
These bonds expire annually on June 30th, coinciding with the proprietary school license. Be sure to pay your SuretyBonds.com renewal invoice in advance to maintain an active bond for the next term.
How Does a Kentucky Proprietary School Blanket Agent Bond Work?
Under Kentucky Statutes 165A.350, agents that solicit on behalf of a private school in Kentucky must have a $5,000 surety bond. If you are an agency, you must have $5,000 in coverage per agent.
This financial security ensures recovery of costs resulting from fraud or misrepresentation by an agent. If harmed parties file claims on the bond, the surety will repay valid claims up to the full bond coverage limit. Then, the agent is responsible for refunding the surety provider.
How Do I Get a Proprietary School Bond in Kentucky?
To get your Kentucky private school performance bond, just follow these steps:
- Submit an online application
- Provide financial documentation, if necessary
- Receive a free quote and digital invoice
- Purchase your bond online
Once you check out, we’ll process and mail your official bond documentation. You can select three-day, two-day or overnight shipping. Lastly, sign and file the bond with the Kentucky Commission on Proprietary Education.
