No license shall be issued under this chapter unless the applicant files with the commissioner a surety bond executed by a surety company authorized to do business in the state in the sum of twenty thousand dollars ($20,000) conditioned for the faithful and honest conduct of business by the applicant. The bond, as to its form, execution, and sufficiency of the surety shall be approved by the commissioner.
Public Insurance Adjusters ActBonds
Section § 15033
To get a license, applicants must submit a $20,000 surety bond from an authorized company to ensure they run their business honestly and competently. The state's commissioner must approve the form and adequacy of the bond.
surety bond business conduct license application
Section § 15034
This law section states that a bond, related to a certain obligation, is issued in the name of the state. If someone suffers harm due to a deliberate or wrong act of the person responsible for the bond, they can sue using the bond to recover their damages.
The bond required by this chapter shall be taken in the name of the people in the state and every person injured by the willful, malicious, or wrongful act of the principal may bring an action on the bond in his or her name to recover damages suffered by reason of that willful, malicious, or wrongful act.
bond requirement willful act malicious act
Section § 15035
If you have a license under this chapter, you must always keep a surety bond active on file. If you don't, your license will be suspended immediately and won't be reinstated until you file a new application with the proper bond as the commissioner specifies. Even if you comply, the commissioner can still deny your application.
Reasons for denial include anything that would normally justify not giving you a license or revoking it, and if you did any work requiring the license while it was suspended due to the bond issue.
Every licensee shall at all times maintain on file the surety bond required by this chapter in full force and effect and upon failure to do so the license of the licensee shall be forthwith suspended and shall not be reinstated until an application therefore, in the form prescribed by the commissioner, is filed together with a proper bond. The commissioner may deny the application notwithstanding the applicant’s compliance with this section:
(a)CA Insurance Code § 15035(a) For any reason which would justify a refusal to issue, or a suspension or revocation of, a license.
(b)CA Insurance Code § 15035(b) For the performance of applicant of any practice while under suspension for failure to keep his or her bond in force, for which a license under this chapter is required.
license suspension surety bond requirement license reinstatement
Section § 15036
Instead of providing a surety bond, a person or business in California can choose to deposit $20,000 with the state. This can be in the form of cash, a bank deposit, savings association investment certificates, or a credit union account, as long as they are insured or guaranteed by a recognized federal agency. Essentially, it offers flexibility in meeting the bond requirement by allowing several types of financial instruments or cash to be used.
In lieu of the surety bond required by this chapter there may be deposited with the State of California the sum of twenty thousand dollars ($20,000) in cash, or evidence of deposit of the sum of twenty thousand dollars ($20,000) in banks authorized to do business in this state and insured by the Federal Deposit Insurance Corporation, or investment certificates or share accounts in the amount of twenty thousand dollars ($20,000) issued by a savings association doing business in this state and insured by the Federal Deposit Insurance Corporation, or evidence of a certificate of funds or share account of the sum of twenty thousand dollars ($20,000) in a credit union as defined in Section 14002 of the Financial Code whose share deposits are guaranteed by the National Credit Union Administration or guaranteed by any other agency approved by the Department
of Financial Protection and Innovation.
surety bond alternative cash deposit bank deposit
Section § 15037
If a surety company has issued a bond according to the rules in this chapter, the bond will stay active until the surety gives a 30-day notice to the insurance commissioner to end their future responsibility.
Bonds executed and filed with the commissioner pursuant to this chapter shall remain in force and effect until the surety has terminated future liability by 30-day notice to the commissioner.
surety bond future liability termination bond execution
