Regulatory Requirements and Authority

The requirement for this bond is established under California Insurance Code section 1802.5. It provides financial security to the People of the State of California to ensure the permittee accounts for and disposes of all moneys received while performing duties authorized by their license.

The obligation continues until cancellation or acceptance and filing of a replacement, whichever occurs first. The surety's thirty days' written notice runs from the Commissioner's receipt. Cancellation or replacement does not erase liability incurred before the applicable cutoff.

Scope of Coverage and Liability

The funds-accounting condition reaches covered transactions conducted by the principal or their agents, solicitors or employees under the described permittee and applicable agent authority. Maintaining a bond does not itself prove every transaction complies with Chapter 7.

Liability is limited to the penal sum of $5,000. All legal actions related to the bond must be initiated and prosecuted within the state of California, following standard service procedures for legal documents as prescribed by state law.

Filing and Professional Compliance

Use the individual principal and admitted surety's proper execution and current acknowledgment instructions. A requested effective date cannot precede execution; the posted form supplies the later execution date if no date is entered.

CDI expressly describes using only the permittee bond for a joint individual agent/permittee application, or the permittee bond on file when a licensed permittee applies for an agent license. The applicant must still qualify for each license.

Purchase Now opens Propeller for this permittee offering. Match the individual, accepted form, People obligee, required sum and dates before applying, then complete CDI's filing. Use Call first if the actual request or existing bond differs.