Each company registered under the provisions of this chapter shall maintain a bond executed by an admitted surety insurer in the amount of twelve thousand five hundred dollars ($12,500). Another method of deposit, including a certificate of deposit, or other undertaking shall not satisfy this requirement.
Structural Pest Control OperatorsIndemnity Bonds
Section § 8697
This law requires that every company registered under this chapter must have a bond worth $12,500 from an approved insurance company. Other forms of security, like a certificate of deposit, aren't acceptable as substitutes for this bond.
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Section § 8697.2
This law specifies that companies must have a bond (a kind of financial protection) in place to safeguard people who might be harmed if the company acts dishonestly or breaks rules while carrying out a contract. The bond is meant to protect both the person or people directly affected by the company's actions and others who experience damage due to the company's violations.
The bonds required by this article shall be in favor of the State of California for the benefit of any person who, after entering into a contract with a registered company, is damaged by fraud or dishonesty of the registered company in the performance of the contract, or any person who is damaged as a result of a violation of this chapter by the registered company.
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Section § 8697.3
If a business license or registration is suspended or revoked due to violations, the person or company must post an extra bond before getting their license back. This bond amount will be decided based on how serious the violation was, but it must be between $1,000 and $25,000. This bond is in addition to any other bond already required. The bond must be kept active for at least two years and longer if there are any unresolved claims against it.
(a)CA Business & Professions Code § 8697.3(a) If, after a hearing conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, a license or company registration is suspended or revoked upon the grounds set forth in Article 7 (commencing with Section 8620), the registrar shall require the applicant, licensee, or registered company, as a condition to the issuance, reissuance, or restoration of the license or company registration, to file a surety bond in the sum to be determined by the registrar based upon the seriousness of the violation, but the sum shall not be less than one thousand dollars ($1,000) nor more than twenty-five thousand dollars ($25,000).
(b)CA Business & Professions Code § 8697.3(b) The bond required by this section shall be in addition to the bond required by Section 8697 of this article.
(c)CA Business & Professions Code § 8697.3(c) Each applicant, licensee, or registered company required to maintain a bond of the type provided in this section shall post the bond with the registrar for a period of at least two years and during the additional time as there may be unsatisfied claims outstanding against the same.
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Section § 8697.4
If a licensed individual or company fails to keep a necessary bond active, their license or registration will be suspended or revoked. To get it back, they have to file a new bond.
Upon failure of a licensee or registered company to maintain in full force and effect any bond required by this article the registrar shall issue an order suspending or revoking the license or company registration, which shall not be reinstated until a new bond is filed.
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