SECTIONS 8697-8697.5 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 8697-8697.5

8697. Each company registered under the provisions of this chapter
shall maintain a bond executed by an admitted surety insurer in the
amount of four thousand dollars ($4,000).

8697.2. 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.

8697.3. 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) of this chapter, 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 which
sum shall not be less than one thousand dollars ($1,000) nor more
than eight thousand dollars ($8,000).
The bond required by this section shall be in addition to the bond
required by Section 8697 of this article.
Each applicant, licensee, or registered company required to
maintain a bond of the type provided in this section shall post such
bond with the registrar for a period of at least two years and during
such additional time as there may be unsatisfied claims outstanding
against the same.

8697.4. 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.

8697.5. Such bonds as are required by this article shall be in
addition to any bond which may be maintained pursuant to the
provisions of Article 9 (commencing with Section 8690) of this
chapter.