14050-14054

INSURANCE CODE
SECTION 14050-14054




14050.  No license shall be issued under this chapter unless the
applicant files with the commissioner a surety bond executed by a
surety company authorized to do business in the state in the sum of
two thousand dollars ($2,000) conditioned for the faithful and honest
conduct of business by such applicant. Such bond as to its form,
execution, and sufficiency of the sureties shall be approved by the
commissioner.



14051.  The bond required by this article shall be taken in the name
of the people of this state and every person injured by the willful,
malicious, or wrongful act of the principal may bring an action on
the bond in his or her own name to recover damages suffered by reason
of such willful, malicious, or wrongful act.




14052.  Every licensee shall at all times maintain on file the
surety bond required by this acticle in full force and effect and
upon failure to do so the license of such licensee shall be forthwith
suspended and shall not be reinstated until an application therefor,
in the form prescribed by the commissioner, is filed together with a
proper bond.
   The commissioner may deny the application notwithstanding the
applicant's compliance with this section:
   (a) For any reason which would justify a refusal to issue, or a
suspension or revocation of, a license.
   (b) For the performance by applicant of any practice while under
suspension for failure to keep his or her bond in force, for which a
license under this article is required.



14053.  In lieu of the surety bond required by this article there
may be deposited with the State of California the sum of two thousand
dollars ($2,000) in cash, or evidence of deposit of the sum of two
thousand dollars ($2,000) in banks authorized to do business in this
state and insured by the Federal Deposit Insurance Corporation, or
investment certificates or share accounts in the amount of two
thousand dollars ($2,000) issued by a savings association doing
business in this state and insured by the Federal Deposit Insurance
Corporation, or evidence of a certificate of funds or share account
of the sum of two thousand dollars ($2,000) in a credit union, as
defined in Section 14000 of the Financial Code, whose share deposits
are guaranteed by the National Credit Union Administration or
guaranteed by any other agency approved by the Department of
Financial Institutions.



14054.  Bonds executed and filed with the commissioner pursuant to
this article shall remain in force and effect until the surety has
terminated future liability by 30-day notice to the commissioner.