A property broker-agent, a casualty broker-agent, and a personal lines broker-agent shall, prior to acting in the capacity of an insurance broker, file with the commissioner and continuously maintain in force the bond required by this article. Any authority to act as broker shall automatically terminate immediately upon there being no bond in force.
Production AgenciesBonds
Section § 1662
If you're a property, casualty, or personal lines insurance broker-agent in California, you need to file a bond with the state's insurance commissioner before you start working as a broker. You must keep this bond active at all times. If the bond is canceled or lapses, you automatically lose your authority to work as a broker.
property broker-agent casualty broker-agent personal lines broker-agent
Section § 1663
This law requires that the bond must be issued by a surety company that is officially recognized (admitted) in California. The bond should remain in effect without interruption and is meant to protect the interests of the people of California.
Such bond shall be duly executed by an admitted surety insurer, shall be continuous in form, and shall be in favor of the people of the State of California.
admitted surety insurer continuous bond bond execution
Section § 1665
This law requires property and casualty broker-agents in California to have a $10,000 bond as a form of financial protection. If a broker-agent is licensed for both property and casualty, they only need one bond for both activities. The purpose of the bond is to ensure these agents properly handle and account for any money or premiums they collect from clients while acting as a broker, except for life insurance.
The bond of a property broker-agent and a casualty broker-agent shall be in the amount of ten thousand dollars ($10,000). Individuals and organizations licensed for both property and casualty are only required to obtain one ten-thousand-dollar ($10,000) bond to act as a broker. The bond shall be contingent on the accounting by the property broker-agent or the casualty broker-agent to any person requesting insurance, for moneys or premiums collected by the property broker-agent or the casualty broker-agent when acting as a broker for insurance other than life.
property broker-agent casualty broker-agent bond amount
