R708-2-8. Surety Bond Requirements

(1) The amount of the surety bond shall be determined by the division with the use of a formula that incorporates the number of students that the school is capable of instructing over a period of three months based on its facility, equipment, personnel, and the tuition that would be collected from each student, with a minimum requirement of $5,000 coverage and a maximum requirement of $60,000 coverage.

(2) When, at any time, there is a change in the number of instructors, the number of vehicles, or the size of the classroom facility, the division shall reevaluate the amount of the required surety bond and adjust it accordingly.

(3) Cancellation of the surety bond is grounds for revocation, probation, or refusal to issue or renew the school license. A school designated by the Department of Public Safety as a testing only school may not be required to obtain a surety bond unless it has been authorized by the division to conduct behind-the-wheel training.

(4) A school that does not charge tuition for driver education is not required to maintain a surety bond.