Posted by Trent Wright on August 10, 2014
Idaho Consumer Asset Recovery Fund (ICAR)
What is the ICAR Fund?
Effective July 1, 2013, all vehicle and vessel dealers are required to pay an additional fee of $300 for deposit into the Idaho Consumer Asset Recovery Fund (ICAR) as a condition for initial license issuance or license renewal. This is due to (Idaho Code 49-1608B, C, D, E, and F). Dealers whose license expiration is July 31, 2013 or later are required to pay this fee at time of renewal. Beginning July 1, 2014, dealers who have operated for at least three consecutive years without any claims against their surety bond or judgments paid against them through the ICAR fund, have the option to operate without a bond, only paying into the ICAR fund. The ICAR fund's fees are subject to annual evaluation; the fee may be suspended upon reaching a maximum threshold.
Why was the ICAR fund established?
For dealers and consumers, the ICAR fund is a mutually beneficial resolution to the long-ago established, and now inadequate, $20,000 bond. For dealers, the ICAR fund is a much less financially burdensome resolution than the premiums required for much higher bond amounts.
How does ICAR impact your current Bond?
For the first year, (July 1, 2013 – June 30, 2014) all dealers will pay into the ICAR fund, and maintain their current surety bond they are required to post. After July 1, 2014, those dealers that have been licensed for at least 3 years, who have never had a claim, can discontinue their bond requirement. To discontinue your bond after July 1, 2014, please contact the Idaho Automobile Dealers Association (or your current agent of record). You may be entitled to a prorated refund of your premium.
Bonds will only be required for new dealers, for a 3-year period, provided no claims are made against the dealer.
Effective July 1, 2013 – An additional fee of $300 will be collected as a condition of new dealer license issuance or license renewal.
July 31, 2013 - If your dealer license expired after this date, you are required to pay this fee, as well as your annual surety bond premium.
June 30, 2014 – if your annual surety bond anniversary date is before this date, you are required to pay your full annual surety bond premium.If you wish to cancel your bond after July 1, 2014, you may be entitled to a prorated refund.
July 1, 2014 – If you have been licensed for at least 3 years, and have had no claims filed against your bond, you can cancel your surety bond, and receive a prorated refund of your annual premium.You must contact the IADA after this date to cancel your bond. Bonds will not be automatically canceled. Dealers have the option of choosing to keep their surety bond, as well as paying into the ICAR fund. Dealers who have been licensed for less than 3 years, will be required to pay into the ICAR fund annually, and maintain their current surety bond requirement. Judgments cannot be filed against the ICAR until this date.