California Motor Club Bond
The financial guarantee to start your business! Find out how to easily apply for one below!
What is a California Motor Club Bond?
This bond is for the protection of any person who will suffer damages from the misconduct, wrongful acts, misrepresentation, or failure of the motor club to sell or render any of its benefits or services. The said person can seek financial recovery for the amount lost by filing a bond claim.
This bond is mandated by Section 12162 of the California Insurance Code and enforced by the California Department of Insurance.
The following requirements should be filed along with this surety bond:
- Completed application form.
- A certified copy of the motor club’s charter or articles of incorporation and its bylaws.
- A copy of the motor club’s latest financial statement or report of an independent audit.
- For foreign corporations: a certificate from its domiciliary state regulatory authority executed not more than 30 days before the filing.
- An explanation of its plan of doing business.
- Copies of the application for membership; proposed membership certificate or identification card; any individual insurance policy and any group master policy and individual certificates thereunder to be offered; and any service contract to be issued.
How much does a California Motor Club Bond cost?
The bond premium will range from 1% to 10% of the bond amount, depending on the motor club’s credit score.
The bond amount is $100,000.
Know what you need to pay right now! GET YOUR FREE QUOTE HERE today!
How can I get a California Motor Club Bond?
APPLY FOR THIS BOND – We begin the bonding process with an application. You may send your application for this bond HERE!
ASSESSMENT – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
To avoid any delay, make sure that your requirements are complete prior to submitting them.
ISSUANCE – Once the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you as soon as the indemnity agreement has been signed.
How does a California Motor Club Bond work?
A California Motor Club Bond is a legal assurance provided by two parties to another party. The two parties being the principal (motor club) and the surety or the surety bond company who will issue the bond. The obligee is the party who is requiring the assurance. The obligee will also be the beneficiary of this bond. In this case, the obligee will be the State of California.
As long as the principal fulfills all his contractual obligations, no action will be taken against the bond. If the opposite happens and the principal commits a violation or misconduct, the obligee will file a bond claim. The principal must repay the surety once the surety has settled the claim.
Ready to start on your bond? APPLY HERE!
