California Qualifying Individual (BQI) Bond
Need information about this surety bond? Read on!
What is a California Qualifying Individual (BQI) Bond?
Applicants for a contractor license must prove that they are knowledgeable about the classification of license that they are applying for to be considered as a qualifying individual.
If the qualifying individual is not the proprietor, a general partner, nor a joint licensee, the said person is required by law to obtain this bond. The purpose of this bond is to ensure that the qualifying individual will comply with Division 3, Chapter 9 of the California Business and Professions Code.
Non-compliance to the said provisions of the Code is construed as a violation. Any person who has been harmed by the violation of the qualifying individual is eligible to take action against this bond.
This requirement is in pursuance of Section 7071.9 of the California Business and Professions Code.
How much does a California Qualifying Individual (BQI) Bond cost?
The bond premium ranges from 1% to 5% of the bond amount, depending on the qualifying individual’s credit score.
The bond amount is $12,500.
Know what you need to pay right now! GET YOUR FREE QUOTE HERE today!
How can I get a California Qualifying Individual (BQI) Bond?
Here’s a step-by-step bonding process that we have made easier so that you can get your bond in no time:
APPLY FOR THIS BOND
If you are ready to do this now, you may APPLY HERE!
One of our expert surety bond agents will guide you through the entire process – from the time you have applied until the bond is issued to you.
UNDERWRITING
Next, you will be asked to submit a few important information that our underwriter requires to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
To avoid any delays, make sure that you have gathered the right information needed prior to submitting your application.
BOND ISSUANCE
After the indemnity agreement is signed, the bond will be issued and sent to you!
How does a California Qualifying Individual (BQI) Bond work?
This bond has three parties:
Principal – qualifying individual
Obligee – State of California
Surety – surety bond company
The Principal is required to perform all the pre-determined conditions stated on the bond. The Obligee will be the bond’s beneficiary. The role of the surety is to assure the Obligee that the Principal is capable of fulfilling the obligations covered by the bond. The Surety will also provide security through an extension of credit to the Principal.
When a claim is made against the bond, the Surety will first verify the claim by identifying the laws that have been violated. The Surety will ensure that the obligee will be paid if the claim is valid. After the payment has been settled by the surety, the Principal will be asked to reimburse the said payment.
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