Brenden Morris Insurance Agency, Inc. Blog
We have multiple carriers that we work with to find the right coverage with competitive pricing to meet all of the insurance requirements listed below.
(a) An applicant for a distributor license shall provide the Bureau with a certificate of insurance that shows the types of insurance coverage and minimum amounts that have been secured as required by this section, and documentation establishing compliance with subsection (d) of this section.
(b) A distributor licensee shall at all times carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than $1,000,000 for each loss.
(c) A distributor licensee shall maintain the insurance required in subsection (b) from an insurance company that is:
(1) A non-admitted insurer, that meets the requirements of Insurance Code section 1765.1 or 1765.2, and the insurance is placed pursuant to Insurance Code section 1763 and through a surplus line broker licensed under Insurance Code section 1765; or
(2) An insurer qualified to do business in California by the Secretary of State and authorized by the Insurance Commissioner to write the liability and property classes of insurance as defined by Insurance Code sections 102, 103, 107, 114, 108, and 120; or
(3) A registered risk retention group compliant with the California Risk Retention Act of 1991. (See California Insurance Code sections 125-140.)
(d) Admitted insurers and risk retention groups must show proof of capitalization in the amount of at least $10,000,000.
(e) A distributor licensee shall notify the Bureau in writing within 10 calendar days of a lapse in insurance.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code.