California Code of Regulations
Title 10 - Investment
Chapter 3 - Commissioner of Financial Protection and Innovation
Subchapter 10 - Check Sellers, Bill Payers and Proraters
Article 4 - Bonds and Insurance
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.
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.
