The California Department of Insurance is a consumer protection agency for the nation’s insurance market that includes over 1,400 insurance companies with more than half a million agents, brokers, adjusters, bail agents, and other business entities. They provide safeguards for the general public by regulating the insurance industry. They help maintain that insurance rates are reasonably priced, not excessive, adequate, and fairly distributed. They also ensure that insurance companies pay out on claims and set the licensing standards that the agents and brokers are held to. They perform market reviews, resolve consumer complaints, and investigate and prosecute any potential fraud. In a given year, they will issue or renew approximately 215,000 licenses.
In an effort to oversee so many licenses, the California Department of Insurance requires many license applicants to carry a surety bond that covers their specific license. These bonds act as a safeguard if the license holder breaks any law or regulation that is covered by the license. If a company or entity violates the law, the surety bond can cover any damages that result from the wrongdoing.
Common types of surety bonds that the California Department of Insurance requires include:
California Motor Club Bond
A California Motor Club Surety Bond is required for any business that wishes to engage in offering subscription services for travel and products relating to vehicles. The bond is there to protect the public from unethical business practices and helps to guarantee that the Motor Club with follow all state laws and regulations.
California Surplus Line Broker Surety Bond
A Surplus Line Broker Surety Bond is required by the Department of Insurance for any insurance broker with surplus lines authority. If a broker deals in this category, they must have the proper bond before they can be issued a license. A Surplus Line Broker Surety Bond is used to ensure that all laws and regulations are followed by the bond holder when dealing in surplus lines insurance.
California Insurance Adjuster Bond
Insurance adjusters investigate the validity of insurance claims. They are licensed by the state of California and must be properly bonded before they can be issued their license. This bond is set at $2,000 and helps protect against fraud and negligence on the insurance adjuster’s behalf.
California Bail Agent Bond
SafelineSuretyBonds.com does not offer bail bonds. However, for bail agents who wish to engage in the business of selling bail bonds, we can help them get the proper coverage. All applicants who wish to be licensed in the state of California must obtain a Bail Agent Surety Bond of at least $1,000. This is to ensure that the bail agent will properly handle and allocate all matters when it comes to money.
California Bond of Insurance Broker
Insurance Brokers are licensed professionals who sell insurance policies. These brokers must obtain the proper surety bond before they can be licensed, as well as complete the required education and training. The amount of the bond must be a minimum of $10,000.