Cal. Code Regs. tit. 10 § 1790

Current through Register 2024 Notice Reg. No. 45, November 8, 2024

Section 1790 - Fidelity Bond for Officers and Employees

A licensee engaged in the business of selling checks or accepting money for the purpose of forwarding it to others in payment of utility bills should obtain and file with the Commissioner a fidelity bond providing fidelity coverage on each officer and employee of not less than $50,000. The fidelity bond may be either a primary commercial blanket bond or a blanket position bond, but shall be written by an insurer who has been licensed by the Department of Insurance of the State of California. The bond shall contain a rider which provides that the coverage of the bond extends to all officers and employees of the insured whether or not such officers and employees are compensated by the insured.

A licensee should maintain minimum fidelity coverage in accordance with the following schedule:

		*Monthly average liability*	*Minimum coverage*

Up to.....................................		..........................$50,000.............	..........................$50,000
$50,001	to..........................	60,000	55,000
60,001	to..........................	70,000	60,000
70,001	to..........................	80,000	65,000
80,001	to..........................	90,000	70,000
90,001	to..........................	100,000	75,000
100,001	to..........................	115,000	80,000
115,001	to..........................	145,000	90,000
145,001	to..........................	175,000	100,000
175,001	to..........................	200,000	110,000

and additional coverage at the rate of 25 percent of any monthly average in excess of $200,000.

The minimum fidelity coverage required of a licensee as set forth herein shall be obtained and maintained in effect unless the Commissioner for good cause, in writing, has found that a different amount of coverage would be in the public interest.

Cal. Code Regs. Tit. 10, § 1790

1. Amendment filed 12-31-58; effective thirtieth day thereafter (Register 59, No. 1).
2. Amendment filed 6-11-82; effective thirtieth day thereafter (Register 82, No. 24).
3. Change without regulatory effect amending last paragraph filed 6-26-96 pursuant to section 100, title 1, California Code of Regulations (Register 96, No. 26).

Note: Authority cited: Section 12300, Financial Code. Reference: Section 12223, Financial Code.