DEPARTMENT OF REGULATORY AGENCIES
DIVISION OF REAL ESTATE
BOARD OF REAL ESTATE APPRAISERS
4 CCR 725-2

CHAPTER 6:	APPLICATION FOR LICENSURE

6.1	 An applicant or licensee 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 Investigations 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 defined in Board Rule 4.1, submit a copy of the examination results with proof of the required errors and omissions insurance policy as defined in Board Rule 6.10.

6.	An application is deemed complete at the time all required supporting documents and fees are received by the Board.

B.	Licensure for a Licensed Ad Valorem 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 defined in Board Rule 4.1 and proof of employment with a qualified employer as defined in Board Rule 1.37.

2.	Applicants for a Licensed Ad Valorem credential are not required to submit a set of fingerprints for the purposes of conducting a state and national criminal history record check and are exempt from the errors and omissions insurance requirements.

3.	 An application is deemed complete at the time all required supporting documents and fees are received by the Board.

6.2	Repealed.

6.3	Repealed.

6.5	Once the application is deemed completed, the Board will timely process the application. The Board reserves the right to require additional information and documentation from an applicant or licensee to determine compliance with applicable laws and regulations, and to verify any information and documentation submitted.

6.6	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 12-61-719, 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.

6.7	Pursuant to section 12-61-712(1), C.R.S., an applicant who has been convicted of, entered a plea of guilty to, entered a plea of nolo contendere, or received a deferred judgment and sentence to a crime, must file with his or her application an addendum to the application in a form prescribed by the Board. Such addendum must be supported and documented by, without limitation, the following:

A.	Court documents, including original charges, disposition, pre-sentencing report and certification of completion of terms of sentence;

B.	Police officer’s report(s);

C.	Probation or parole officer’s report(s);

D.	A written personal statement explaining the circumstances surrounding each violation, and including the statement attesting that “I have no other violations either past or pending”;

E.	Letters of recommendation; and

F.	Employment history for the preceding five (5) years.

6.8	Prior to application for licensure, an individual may request that the Board issue a preliminary advisory opinion regarding the possible effect of convictions, pleas of guilt or nolo contendere or deferred judgments and sentences for criminal offenses. A person requesting such an opinion is not an applicant for licensure. The Board may, at its sole discretion, issue such 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 later application for licensure. The issuance of such an opinion will not prohibit a person from submitting an application for licensure. A person requesting such 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.	Court documents, including original charges, disposition, pre-sentencing report and certification of completion of terms of sentence;

B.	Police officer’s report(s);

C.	Probation or parole officer’s report(s);

D.	A written personal statement explaining the circumstances surrounding each violation, and including the statement attesting that “I have no other violations either past or pending”;

E.	Letters of recommendation; and

F.	Employment history for the preceding five (5) years.

6.9	Repealed.

6.10	Every active appraiser, or applicant for an active appraiser’s credential, must have in effect a policy of errors and omissions insurance to cover all acts requiring a license.

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 Board 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 his or her 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 Board Rule 6.10(c)(1) will apply, except Board Rule 6.10(c)(1)(F) and (G)  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 Board Rule 6.10 and section 12-61-708, 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.

E.	Appraisers employed by a local, state, or federal government entity are exempt from the errors and omissions insurance requirements.

6.11	Pursuant to section 12-61-706(6)(a), C.R.S., the Board must establish the fitness standards that an applicant for a license must demonstrate. Therefore, an applicant must demonstrate that he or she does 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 he or she possesses 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.

6.12    If the fees accompanying any application to the Board (including fees for renewals, transfers, etc.) 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 deemed incomplete. The application will only be deemed complete if the Board has received payment of all application fees together with any fees incurred by the Division including the fee required by state fiscal rules for the clerical services necessary for reinstatement within sixty (60) days of the Division mailing notification of an incomplete application.