2009 California Business and Professions Code - Section 8690-8695 :: Article 9. Financial Responsibility

8690.  The board shall not issue any company registration under this
chapter unless the applicant shall have filed with the board on a
form prescribed by the board written evidence of an insurance policy
approved by the board or a bond as specified in this article, being
in effect at the time of the issuance of the company registration.
This written evidence shall include a provision that the board shall
be given a 10-day notice by the insurance company or bonding company
should the policy or bond be canceled or changed during the policy or
bond period in a manner as to affect the written evidence.

8691.  No registered company shall engage in any of the practices
for which it is required to be registered by this chapter unless it
maintains such insurance policy or bond as specified in this article.

8692.  An "insurance policy" as used in this article means a
contract of liability insurance issued by an insurance company
authorized to transact business in this state or one issued by a
nonadmitted carrier whose activities in this state are controlled by
the Surplus Line Association, which insures the policyholder against
loss from legal liability for damages on property upon which work is
being performed or has been completed, including third party losses,
as a result of an accident or occurrence due to participation in any
control, prevention, or repair activities which require a license
under this chapter. The insurance policy shall provide minimum limits
of twenty-five thousand dollars ($25,000) for any one loss due to
bodily injury, sickness or disease, including death at any time
resulting therefrom, sustained by any person or persons, and
twenty-five thousand dollars ($25,000) minimum for any one loss due
to injury or destruction of property, including the loss of use
thereof.
   This section shall not be construed to require errors and
omissions insurance for all activities relating to or during
inspections, inspection reports, recommendations, estimates, and
bids, whether oral or written.

8693.  In lieu of the insurance policy specified in this article an
applicant for a company registration may file with the board a bond
executed by an admitted surety insurer in the penalty of twenty-five
thousand dollars ($25,000) with the State of California as obligee.

8695.  The violation of any provision of this article is a
misdemeanor and shall be grounds for the suspension or revocation by
the board of the operator's license of the owner or qualifying
manager or managers of the registered company and of the company
registration.