(a) The bureau shall require, as a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, that the applicant or licensee file or have on file with the bureau, an insurance policy, as defined in Section 7583.40.

(b) If a licensee fails to maintain sufficient insurance, as required by this section, or fails to provide proof of the required insurance policy upon request by the bureau, the license shall be automatically suspended by operation of law until the date that the licensee provides proof to the bureau of compliance with the insurance coverage requirement. Prior to an automatic suspension, the bureau shall notify the licensee, in writing, that it has 30 days to provide proof to the bureau of having the required insurance policy or the license shall be automatically suspended.

Terms Used In California Business and Professions Code 7583.39

  • bureau: means the Bureau of Security and Investigative Services. See California Business and Professions Code 7580.4
  • employee: means an individual who works for an employer, is listed on the employer's payroll records, and is under the employer's direction and control. See California Business and Professions Code 7580.9
  • Insurance policy: as used in this article , means a commercial general liability policy of insurance issued by an insurance company authorized to transact business in this state that provides minimum limits of insurance of one million dollars ($1,000,000) for any one loss or occurrence due to bodily injury, including death, or property damage, or both. See California Business and Professions Code 7583.40 v2
  • license: means license, certificate, registration, or other means to engage in a business or profession regulated by this code or referred to in Section 1000 or 3600. See California Business and Professions Code 23.7
  • licensee: means a person licensed under this chapter and includes, but is not limited to, private patrol operator and armored contract carrier. See California Business and Professions Code 7580.6
  • Precedent: A court decision in an earlier case with facts and law similar to a dispute currently before a court. Precedent will ordinarily govern the decision of a later similar case, unless a party can show that it was wrongly decided or that it differed in some significant way.

(c) (1) A Certificate of Liability Insurance issued by an authorized agent or employee of the insurer shall be submitted to the bureau electronically, or in a manner authorized by the bureau, for an insurance policy secured by a licensee in satisfaction of this section. The insurer shall list the bureau as the certificate holder for the purposes of receiving notifications related to the policy’s status.

(2) An insurer issuing a Certificate of Liability Insurance pursuant to paragraph (1) shall report the following information to the bureau for an insurance policy required by this section:

(A) The name of the insured.

(B) The licensee’s license number.

(C) The policy number.

(D) The dates that coverage is scheduled to commence and end.

(E) The cancellation date, if applicable.

(Amended by Stats. 2016, Ch. 800, Sec. 36. (SB 1196) Effective January 1, 2017.)

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