Article 9 - Financial Responsibility

California Business and Professions Code — §§ 8690-8695

Sections (5)

Amended by Stats. 2013, Ch. 218, Sec. 1. (SB 662) Effective January 1, 2014.

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 evidence of an insurance policy approved by the board as specified in this article, being in effect at the time of the issuance of the company registration. This evidence shall include a provision that the board shall be given a 10-day notice by the insurance company should the policy be canceled or changed during the policy period in a manner as to affect the evidence. Another method of deposit, including a certificate of deposit, or other undertaking shall not satisfy this requirement.

§ 8691

Amended by Stats. 2013, Ch. 218, Sec. 2. (SB 662) Effective January 1, 2014.

A registered company shall not engage in the practices for which it is required to be registered by this chapter unless it maintains an insurance policy as specified in this article.

§ 8692

Amended by Stats. 2013, Ch. 218, Sec. 3. (SB 662) Effective January 1, 2014.

(a)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 control, prevention, or repair activities that require a license under this chapter. The insurance policy shall provide minimum limits of five hundred thousand dollars ($500,000) for any one loss due to bodily injury, sickness, or

disease, including death at any time resulting therefrom, sustained by any person, and five hundred thousand dollars ($500,000) minimum for any one loss due to injury or destruction of property, including the loss of use of the property.

(b)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

Added by Stats. 2022, Ch. 190, Sec. 1. (SB 1064) Effective January 1, 2023.

(a)The board shall not issue, reinstate, or continue to maintain any company registration under this chapter unless the applicant or existing company has filed a current and valid Certificate of Workers’ Compensation Insurance as evidence of current and valid Workers’ Compensation Insurance coverage. A Certificate of Workers’ Compensation Insurance shall be issued and filed, electronically or otherwise, by an insurer duly licensed to write workers’ compensation insurance in this state. If reciprocity conditions exist, as provided in Section 3600.5 of the Labor Code, the registrar shall require the information deemed necessary to ensure compliance with this section.

(b)This section does not apply to a registered company that has no employees

provided that a statement is filed with the board on a form prescribed by the registrar prior to the issuance, reinstatement, or continued maintenance of a company registration, certifying that the registered company does not employ any person in any manner so as to become subject to the workers’ compensation laws of California or is not otherwise required to provide for workers’ compensation insurance coverage under California law.

(c)(1) The insurer, including the State Compensation Insurance Fund, shall report to the registrar the following information for any policy required under this section: company name, registration number, policy number, dates that coverage is scheduled to commence and lapse, and cancellation date if applicable.

(2)A workers’ compensation insurer shall also report to the registrar a registered company whose workers’ compensation

insurance policy is canceled by the insurer if all of the following conditions are met:

(A)The insurer has completed a premium audit or investigation.

(B)A material misrepresentation has been made by the insured that results in financial harm to the insurer.

(C)No reimbursement has been paid by the insured to the insurer.

(d)(1) Willful or deliberate disregard and violation of workers’ compensation insurance laws constitutes a cause for disciplinary action by the registrar against the registered company and the qualifying manager or managers.

(2)The provisions of Section 8553 shall not apply to any violation of this

section.

§ 8695

Amended by Stats. 1985, Ch. 1348, Sec. 90. Operative January 1, 1987, by Sec. 97 of Ch. 1348.

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.