California Code of Regulations
Title 16 - Professional and Vocational Regulations
Division 15 - State Board of Optometry
Article 7 - Optometric Corporations
Section 1547 - Security for Claims Against an Optometric Corporation

(a) When an optometric corporation provides security by means of insurance for claims against it by its patients, the security shall consist of a policy or policies of insurance insuring the corporation against liability imposed upon it by law for damages arising out of claims against it by its patients arising out of the rendering of, or failure to render, optometric services by the corporation in an amount of each claim of at least $50,000 multiplied by the number of employed licensed persons rendering such optometric services and an aggregate maximum limit of liability per policy year of at least $150,000 multiplied by the number of such employees, provided that the maximum coverage shall not be required to exceed $150,000 for each claim and $450,000 for all claims during the policy year, and provided further that the deductible portion of such insurance shall not exceed $5,000 multiplied by the number of such employees.

(b) All shareholders of the corporation shall be jointly and severally liable for all claims established against the corporation by its patients arising out of the rendering of, or failure to render, optometric services up to the minimum amounts specified for insurance under subdivision (a) hereof except during periods of time when the corporation shall provide and maintain insurance for claims against it by its patients arising out of the rendering of, or failure to render, optometric services. Said insurance, when provided, shall meet the minimum standards established in subdivision (a) above.