2005 Arizona Revised Statutes - Revised Statutes §32-2313  Business license; renewal; financial security; definition

A. A person who wishes to engage in the business of structural pest control shall first obtain a business license from the commission as provided in this article. A person who is not exempt under this article and who advertises for, solicits or holds himself out as willing to engage in the business of structural pest control is presumed to be in the business of structural pest control.

B. An application for a business license shall:

1. Be in a form prescribed by the commission.

2. Be accompanied by the prescribed fee.

3. Include the name and address of the qualifying party and written documentation of how the qualifying party will be active in the day-to-day management of the business licensee.

4. List all owners with more than a ten per cent ownership interest in the company, all corporate officers and members of the board of directors.

C. A business licensee shall register each primary and branch office with the commission before it opens for business.

D. An applicant shall furnish the following to the commission:

1. Proof of financial responsibility consisting of either a deposit of money, liability insurance, a surety bond or a certified check protecting persons who may suffer legal damages as a result of the operations of the applicant. The commission shall not accept a bond or a liability insurance policy unless issued by an insurer that holds a valid certificate of authority or that is permitted to transact surplus lines insurance in this state. The amount of the deposit, insurance or bond shall be at least three hundred thousand dollars for property damage and public liability insurance, each separately, and shall be maintained at not less than that amount at all times during the licensing period. The license of a business licensee who permits the security of either property damage or public liability insurance to fall below the sum of three hundred thousand dollars shall be suspended by the commission and shall remain suspended until the security meets the minimum financial requirement. The property damage and public liability insurance need only cover those particular operations in which the licensee is engaged at any time. If the financial security is in the form of liability insurance or a surety bond, the insurer or surety shall provide a certificate of coverage that indicates the coverages and endorsements required by this subsection.

2. Either of the following if the business licensee performs termite treatments:

(a) Proof of a surety bond in the amount of one hundred thousand dollars per business license for actual damages including reasonable costs of collection suffered by persons as a result of termite damage due to negligent treatment.

(b) Proof of a liability insurance policy rider in the amount of one hundred thousand dollars per business license that covers termite damage due to negligent treatment.

3. If the business licensee provides wood-destroying insect inspection reports or fungi inspection reports, proof of a surety bond or a liability insurance policy rider in the amount of one hundred thousand dollars per business license for actual damages plus reasonable costs of collection suffered by persons as a result of errors and omissions contained in the reports.

4. If an insurance policy provides for a deductible, the deductible amount shall be limited to ten thousand dollars for each occurrence. If the deductible amount is in excess of ten thousand dollars for each occurrence, the business licensee shall provide other security as provided in this subsection or other evidence of financial security for the excess deductible amount.

5. If the financial security is in the form of liability insurance, a licensee shall maintain a coverage endorsement for pesticides and herbicides, fumigation, care, custody and control, rights-of-way, wood-destroying insect inspection report errors and omissions, fungi inspection report errors and omissions and pollution transit for its applicable license categories.

E. If the financial security is in the form of liability insurance, the business license is automatically suspended until a current certificate of insurance or proof of financial responsibility is furnished to the commission.

F. Each business licensee shall annually renew the business license and each office registration on or before January 1 by filing renewal forms prescribed by the commission and paying the prescribed renewal fees. If a business licensee fails to renew the business license as required by this subsection, the licensee shall not engage in the business of structural pest control.

G. Each branch office of a business licensee shall be supervised by a licensed applicator or qualifying party who is licensed in all categories in which the branch office operates.

H. For the purposes of this section, "financial security" means liability insurance, a deposit of cash or certified monies, a surety bond or other equivalent item.