Admitted Surety Insurers - Bonds And Undertakings - Civil Procedure - CA

Section § 995.610

This law says that when a bond is required, instead of needing multiple sureties, one qualified insurance company can serve as the only surety. This insurance company has the same responsibilities and rights as individual sureties would have.

(a) If a statute provides for a bond with any number of sureties, one sufficient admitted surety insurer may become and shall be accepted as sole surety on the bond.

(b) The admitted surety insurer is subject to all the liabilities and entitled to all the rights of personal sureties.

bond surety insurer admitted insurer ...

Section § 995.620

This section allows multiple insurance companies that are approved to provide surety bonds to collectively cover the total bond amount needed. Each company is responsible for the portion of the bond they agree to cover, but they can also be held accountable for the whole amount if required.

Two or more admitted surety insurers may be sureties on a bond by executing the same or separate bonds for amounts aggregating the required amount of the bond. Each admitted surety insurer is jointly and severally liable to the extent of the amount of the liability assumed by it.

admitted surety insurers sureties on a bond jointly and severally liable ...

Section § 995.630

If a surety company that's officially recognized issues a bond, the court automatically accepts it if the bond is signed under penalty of perjury or acknowledged officially. The surety must meet either of two conditions: filing proof of authority in the relevant county clerk's office or attaching a power of attorney to the bond.

An admitted surety insurer shall be accepted or approved by the court or officer as surety on a bond without further acknowledgment if the bond is executed in the name of the surety insurer under penalty of perjury or the fact of execution of the bond is duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions, at the option of the surety insurer, is satisfied:

(a) A copy of the transcript or record of the unrevoked appointment, power of attorney, bylaws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the bond to do so for and in behalf of the insurer, is filed in the office of the clerk of the county in which the court or officer is located.

(b) A copy of a power of attorney is attached to the bond.

surety bond admitted surety insurer penalty of perjury ...

Section § 995.640

This law says that if you request it, the county clerk must issue certificates about certain details of surety insurers. Firstly, they can confirm whether a surety is allowed to operate or if their permission has been revoked or any changes have been made to their status. They get this information from the Department of Insurance. Secondly, they can verify whether documents like power of attorney or other important records for a surety bond holder are on file and valid.

Upon review of the Internet Web site of the Department of Insurance, the county clerk of any county shall, upon request of any person, do any of the following:

(a) Issue a certificate stating whether a surety is admitted or if the certificate of authority of an admitted surety insurer issued by the Insurance Commissioner authorizing the insurer to transact surety insurance has been surrendered, revoked, canceled, annulled, or suspended, and, in the event that it has, whether renewed authority has been granted. The county clerk in issuing the certificate shall rely solely upon the information furnished by the Insurance Commissioner pursuant to Article 2 (commencing with Section 12070) of Chapter 1 of Part 4 of Division 2 of the Insurance Code.

(b) Issue a certificate stating whether a copy of the transcript or record of the unrevoked appointment, power of attorney, bylaws, or other instrument, duly certified by the proper authority and attested by the seal of an admitted surety insurer entitling or authorizing the person who executed a bond to do so for and on behalf of the insurer, is filed in the office of the clerk.

county clerk responsibility certificate of surety status Department of Insurance ...

Section § 995.650

If someone thinks that a surety insurance company, which guarantees another's obligations, isn't strong enough or sufficient, they need to provide proof. This could be a certificate from the county clerk showing the insurer isn't officially admitted or their authority has issues, like being canceled or suspended. Alternatively, they could submit a sworn statement explaining why the insurer isn't adequate.

If an objection is made to the sufficiency of an admitted surety insurer, the person making the objection shall attach to and incorporate in the objection one or both of the following:

(a) The certificate of the county clerk of the county in which the court is located stating that the insurer is not listed as an admitted surety insurer on the department’s Internet Web site or that the certificate of authority of the insurer has been surrendered, revoked, canceled, annulled, or suspended and has not been renewed.

(b) An affidavit stating facts that establish the insufficiency of the insurer.

objection sufficiency admitted surety insurer ...

Section § 995.660

If there's a challenge to the legitimacy of an insurance company acting as a surety (a party that ensures obligations are met) on a bond, specific documents need to be given to the court. These include proof of authorization for those who signed the bond and certificates showing the insurer's authority and financial health. These documents should be submitted within 10 days of a request. If everything checks out, the bond is considered valid, provided the company is legally allowed to operate in California and has enough assets to cover its promises.

(a) If an objection is made to the sufficiency of an admitted surety insurer on a bond or if the bond is required to be approved, the insurer shall submit to the court or officer the following documents:

(1) The original, or a certified copy, of the unrevoked appointment, power of attorney, bylaws, or other instrument entitling or authorizing the person who executed the bond to do so, within 10 calendar days of the insurer’s receipt of a request to submit the instrument.

(2) A certified copy of the certificate of authority of the insurer issued by the Insurance Commissioner, within 10 calendar days of the insurer’s receipt of a request to submit the copy.

(3) A certificate from the clerk of the county in which the court or officer is located that the certificate of authority of the insurer has not been surrendered, revoked, canceled, annulled, or suspended or, in the event that it has, that renewed authority has been granted, within 10 calendar days of the insurer’s receipt of the certificate.

(4) Copies of the insurer’s most recent annual statement and quarterly statement filed with the Department of Insurance pursuant to Article 10 (commencing with Section 900) of Chapter 1 of Part 2 of Division 1 of the Insurance Code, within 10 calendar days of the insurer’s receipt of a request to submit the statements.

(b) If the admitted surety insurer complies with subdivision (a), and if it appears that the bond was duly executed, that the insurer is authorized to transact surety insurance in the state, and that its assets exceed its liabilities in an amount equal to or in excess of the amount of the bond, the insurer is sufficient and shall be accepted or approved as surety on the bond, subject to Section 12090 of the Insurance Code.

surety bond admitted surety insurer bond approval ...

Section § 995.670

This section dictates that when a bond is given as security for a government-related requirement, a public agency cannot impose additional demands on an admitted surety insurer beyond what's stated in another specific section, 995.660, if there are objections to the insurer's adequacy or if the bond needs approval. It also clarifies that 'public agency' includes various state and local government entities.

(a) This section applies to a bond executed, filed, posted, furnished, or otherwise given as security pursuant to any statute of this state or any law or ordinance of a public agency.

No public agency shall require an admitted surety insurer to comply with any requirements other than those in Section 995.660 whenever an objection is made to the sufficiency of the admitted surety insurer on the bond or if the bond is required to be approved.

(b) For the purposes of this section, “public agency” means the state, any agency or authority, any city, county, city and county, district, municipal or public corporation, or any instrumentality thereof.

bond security admitted surety insurer public agency ...

Section § 995.675

This section says that certain California boards related to waste management and resources can require insurance companies they work with to be approved by the U.S. Treasury. This is needed to comply with specific parts of a federal law about waste management and environmental protection.

Notwithstanding Sections 995.660 and 995.670, the California Integrated Waste Management Board, the State Water Resources Control Board, and the Department of Toxic Substances Control may require, in order to comply with Subtitle C or Subtitle D of the federal Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. Sec. 6901 et seq.), an admitted surety insurer to be listed in Circular 570 issued by the United States Treasury.

California Integrated Waste Management Board State Water Resources Control Board Department of Toxic Substances Control ...

Bonds And Undertakings

Bonds and UndertakingsAdmitted Surety Insurers

Section § 995.610

Section § 995.620

Section § 995.630

Section § 995.640

Section § 995.650

Section § 995.660

Section § 995.670

Section § 995.675

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