2010 Arizona Revised Statutes
Title 32 - Professions and Occupations
32-2313 Business license; renewal; financial security; definition

32-2313. Business license; renewal; financial security; definition

A. A person who wishes to engage in the business of pest management shall first obtain a business license from the office 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 pest management is presumed to be in the business of pest management.

B. An application for a business license shall:

1. Be in a form prescribed by the acting director.

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 acting director before it opens for business.

D. An applicant shall furnish the following to the acting director:

1. Proof of financial responsibility consisting of either a deposit of money, liability insurance, self-insured retention, a surety bond or a certified check protecting persons who may suffer legal damages as a result of the operations of the applicant. The acting director 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, self-insured retention or bond shall be at least five hundred thousand dollars and shall be maintained at not less than that amount at all times during the licensing period. The license of a business licensee whose financial security falls below the minimum five hundred thousand dollars shall be suspended by the acting director and shall remain suspended until the security meets the minimum financial security requirement. The financial security 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 licensee shall furnish the acting director with a certificate of coverage that indicates the coverages and endorsements required by this subsection on a form prescribed by the acting director.

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 not exceed one per cent of the total financial security for each occurrence. If the deductible amount is in excess of one per cent of the total financial security 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 proof of financial security on file with the office expires, the business license is automatically suspended until a current certificate of insurance or proof of financial responsibility is furnished to the acting director.

F. Except as provided in section 32-4301, each business licensee shall renew the business license and each office registration on or before the expiration date of the license by filing renewal forms prescribed by the acting director 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 pest management.

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.