Financial Responsibility - Structural Pest Control Operators - Business & Professions - CA

Section § 8690

The board won't give a company registration unless the applicant shows proof of an active insurance policy approved by the board. If the insurance policy is canceled or altered, the insurance company must notify the board 10 days in advance. Other forms of financial assurance, like a certificate of deposit, don't count.

The board shall not issue any company registration under this chapter unless the applicant shall have filed with the board on a form prescribed by the board evidence of an insurance policy approved by the board as specified in this article, being in effect at the time of the issuance of the company registration. This evidence shall include a provision that the board shall be given a 10-day notice by the insurance company should the policy be canceled or changed during the policy period in a manner as to affect the evidence. Another method of deposit, including a certificate of deposit, or other undertaking shall not satisfy this requirement.

company registration insurance policy board approval

Section § 8691

This law says that a company, which needs to be officially registered for certain activities, must have a specific type of insurance policy if it wants to operate legally.

A registered company shall not engage in the practices for which it is required to be registered by this chapter unless it maintains an insurance policy as specified in this article.

registered company insurance policy required registration

Section § 8692

This law defines what an insurance policy must cover for someone involved in activities requiring a specific license, such as repair or prevention work on a property. To meet this requirement, the insurance must cover at least $500,000 for any single incident of bodily injury or property damage. However, it doesn't require insurance for mistakes made during inspections or while giving estimates and bids.

(a) An “insurance policy” as used in this article means a contract of liability insurance issued by an insurance company authorized to transact business in this state or one issued by a nonadmitted carrier whose activities in this state are controlled by the Surplus Line Association, which insures the policyholder against loss from legal liability for damages on property upon which work is being performed or has been completed, including third-party losses, as a result of an accident or occurrence due to participation in control, prevention, or repair activities that require a license under this chapter. The insurance policy shall provide minimum limits of five hundred thousand dollars ($500,000) for any one loss due to bodily injury, sickness, or disease, including death at any time resulting therefrom, sustained by any person, and five hundred thousand dollars ($500,000) minimum for any one loss due to injury or destruction of property, including the loss of use of the property.

(b) This section shall not be construed to require errors and omissions insurance for all activities relating to or during inspections, inspection reports, recommendations, estimates, and bids, whether oral or written.

liability insurance nonadmitted carrier Surplus Line Association

Section § 8693

If a company wants to get or keep a license to operate, it must show proof that it has workers' compensation insurance, unless it has no employees. Insurance providers must give certain details about the policy to the board, like the company name, policy number, and policy dates. If an insurance policy is cancelled due to fraud by the company, this must also be reported. Ignoring or breaking these rules can lead to punishment. One specific exception to these rules does not apply here.

(a) The board shall not issue, reinstate, or continue to maintain any company registration under this chapter unless the applicant or existing company has filed a current and valid Certificate of Workers’ Compensation Insurance as evidence of current and valid Workers’ Compensation Insurance coverage. A Certificate of Workers’ Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer duly licensed to write workers’ compensation insurance in this state. If reciprocity conditions exist, as provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.

(b) This section does not apply to a registered company that has no employees provided that a statement is filed with the board on a form prescribed by the registrar prior to the issuance, reinstatement, or continued maintenance of a company registration, certifying that the registered company does not employ any person in any manner so as to become subject to the workers’ compensation laws of California or is not otherwise required to provide for workers’ compensation insurance coverage under California law.

(c)

(1) The insurer, including the State Compensation Insurance Fund, shall report to the registrar the following information for any policy required under this section: company name, registration number, policy number, dates that coverage is scheduled to commence and lapse, and cancellation date if applicable.

(2) A workers’ compensation insurer shall also report to the registrar a registered company whose workers’ compensation insurance policy is canceled by the insurer if all of the following conditions are met:

(A) The insurer has completed a premium audit or investigation.

(B) A material misrepresentation has been made by the insured that results in financial harm to the insurer.

(d)

(1) Willful or deliberate disregard and violation of workers’ compensation insurance laws constitutes a cause for disciplinary action by the registrar against the registered company and the qualifying manager or managers.

(2) The provisions of Section 8553 shall not apply to any violation of this section.

company registration workers' compensation insurance Certificate of Workers’ Compensation Insurance

Section § 8695

If a company breaks any rule in this article, it can be charged with a minor crime called a misdemeanor. This could also lead to the company or its managers losing their operating license, either temporarily or permanently.

The violation of any provision of this article is a misdemeanor and shall be grounds for the suspension or revocation by the board of the operator’s license of the owner or qualifying manager or managers of the registered company and of the company registration.

misdemeanor operator's license license suspension