Cal. Code Regs. tit. 28 § 1300.76.3

Current through Register 2024 Notice Reg. No. 49, December 6, 2024

Section 1300.76.3 - Fidelity Bond

(a) Each plan shall at all times maintain a fidelity bond covering each officer, director, trustee, partner and employee of the plan, whether or not they are compensated. The fidelity bond may be either a primary commercial blanket bond or a blanket position bond written by an insurer licensed by the California Insurance Director, and it shall provide for 30 days' notice to the Director prior to cancellation. The fidelity bond shall provide at least the minimum coverage for the plan determined by the following schedule:

Annual				Minimum
Gross Income				Coverage
Up to $100,000	........................................................			..........................$10,000
100,000	to	$300,000	..........................	..........................20,000
300,000	to	500,000	..........................	..........................30,000
500,000	to	750,000	..........................	..........................50,000
750,000	to	1,000,000	..........................	..........................75,000
1,000,000	to	2,000,000	..........................	..........................100,000
2,000,000	to	4,000,000	..........................	..........................200,000
4,000,000	to	6,000,000	..........................	..........................400,000
6,000,000	to	10,000,000	..........................	..........................600,000
10,000,000	to	20,000,000	..........................	..........................1,000,000
20,000,000	and over..........................................			..........................2,000,000

(b) The fidelity bond required pursuant to subsection (a) may contain a provision for a deductible amount from any loss which, except for such deductible provision, would be recoverable from the insurer. A deductible provision shall not be in excess of 10 percent of the required minimum bond coverage, but in no event shall the deductible amount be in excess of $100,000.

Cal. Code Regs. Tit. 28, § 1300.76.3

1. Editorial correction adding NOTE filed 12-8-82 (Register 82, No. 50).
2. Change without regulatory effect amending subsection (a) filed 7-18-2000 pursuant to section 100, title 1, California Code of Regulations (Register 2000, No. 29).

Note: Authority cited: Section 1344, Health and Safety Code. Reference: Section 1376, Health and Safety Code.