§ 22-4.1-21-34 — Claims by students for loss or damage; investigation; limitations; claim against balance of fund

(a) This section applies to claims against
the surety bond of a postsecondary proprietary educational institution.
(b) A student who believes that the student is suffering loss or
damage resulting from any of the occurrences described in section
15(c) of this chapter may request the department to file a claim against
the surety of the postsecondary proprietary educational institution or
agent.
(c) The request must state the grounds for the claim and must
include material substantiating the claim.
(d) The department shall investigate all claims submitted to the
department and attempt to resolve the claims informally. If the
department determines that a claim is valid, and an informal resolution
cannot be made, the department shall submit a formal claim to the
surety.
(e) A claim against the surety bond may not be filed by the
department unless the student's request under subsection (b) is
commenced not more than five (5) years after the date on which the
loss or damage occurred.
(f) If the amount of the surety bond is insufficient to cover all or part
of the claim, a claim for the balance of the claim against the surety
bond in the amount that is insufficient must be construed to be a claim
against the balance of the fund under section 35 of this chapter.

Legislative History

As added by P.L.107-2012, SEC.61. Amended by P.L.178-2016, SEC.22.