§ 5308. Insurance Requirements
(a) An applicant for a distributor license shall provide the Bureau with a certificate of insurance
that shows the types of insurance coverage and minimum amounts that have been secured as
required by this section, and documentation establishing compliance with subsection (d) of this
(b) A distributor licensee shall at all times carry and maintain commercial general liability
insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than
$1,000,000 for each loss.
(c) A distributor licensee shall maintain the insurance required in subsection (b) from an
insurance company that is:
(1) A non-admitted insurer that meets the requirements of Insurance Code section 1765.1 or
1765.2, and the insurance is placed pursuant to Insurance Code section 1763 and through a
surplus line broker licensed under Insurance Code section 1765;
(2) An insurer qualified to do business in California by the Secretary of State and authorized by
the Insurance Commissioner to write the liability and property classes of insurance as defined by
Insurance Code sections 102, 103, 107, 114, 108, and 120; or
(3) A registered risk retention group compliant with the California Risk Retention Act of 1991.
(See California Insurance Code sections 125-140.)
(d) Admitted insurers and risk retention groups must show proof of capitalization in the amount
of at least $10,000,000.
(e) A distributor licensee shall notify the Bureau in writing within 10 calendar days of a lapse in
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
and Professions Code.