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California bonds

California — Motor Club Bond

California's posted $100,000 Motor Club Bond secures legal compliance and promised member services. It is separate from the applicant's net-worth and admission requirements.

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Recorded state
California
Bond type
Automobile Club / Motor Club Bond
Category
Vehicles, titles & transportation

What this bond does

The Department of Insurance links this bond in its motor-club Certificate of Authority application. The company binds itself with an admitted surety to the People of the State of California under Insurance Code Sections 12162 and 12163.

Who needs it
The corporation applying for, or holding, authority to sell or furnish motor-club services in California. Prepare the actual service contracts and corporate identity used in the admission filing; this is not a member's individual traffic-arrest certificate.
Who it protects
The posted condition covers conformity with motor-club law, payment of lawful fees, fines and penalties, and furnishing the services sold or offered to accepted members. All claims share the bond's aggregate limit. It does not itself provide the separate insurance benefits described in the admission instructions.

Your bond option

This is the option on record for this bond.

The bond amount describes the limit of the bond obligation, not the price. A listed amount does not establish what the requesting party requires. The premium is what you pay and must be confirmed for the actual option. An E&O limit, where listed, is separate errors and omissions insurance.

Match the admission filing and continuing bond

CDI separately describes a $250,000 minimum net worth and an additional start-up cushion for the specified newly organized domestic applicant. The $100,000 bond does not supply that net worth. Its requested effective date cannot precede execution; if the date is omitted, the posted form uses the later execution date.

The bond applies to the stated license period and succeeding renewed periods unless cancelled. The surety's clause requires notice filed with the Insurance Commissioner and similar notice to the principal. Termination occurs after the stated 30 days or upon filing and acceptance of a new bond, whichever first occurs; prior liability is not released.

Purchase Now opens Propeller. Match the corporation, currently accepted CDI form, People of the State of California obligee, required sum and effective date. Follow current execution and filing instructions; buying the bond does not approve the certificate application.

Sources

Have these ready

  1. Match the corporation's name and service addresses to the admission application.
  2. Have the actual member contracts and financial/admission documents available.
  3. Keep the bond requirement separate from minimum net worth and insured benefits.
  4. Confirm the accepted form, State obligee, sum and lawful effective date.
  5. Use current CDI execution/delivery instructions and retain the filed instrument.

Questions about this bond

Does the $100,000 bond satisfy the net-worth requirement?

No. CDI describes net worth separately in its admission instructions. A bond neither creates those assets nor substitutes for the applicant's financial evidence.

Must every annual renewal create a new bond limit?

The posted form extends to succeeding renewed license periods and limits aggregate liability on all claims. Do not infer a fresh separate limit for each member or renewed license period.

Can the bond provide the club's death or legal-defense benefits?

CDI's instructions say accidental death and dismemberment, legal-defense reimbursement and bail benefits must be provided directly by an admitted insurer under an insurance policy. The motor-club bond is a different obligation.

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