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California Code Of Regulations
Title 8 - Industrial RelationsDivision 1 - Department of Industrial RelationsChapter 4.5 - Division of Workers' CompensationSubchapter 1 - Administrative Director-Administrative Rules
Article 4 - Certification Standards for Health Care Organizations
Section 9771.74 - Fidelity Bond

Cal. Code Regs. tit. 8 § 9771.74

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Current through Register 2024 Notice Reg. No. 41, October 11, 2024
Section 9771.74 - Fidelity Bond
(a) Each organization shall at all times maintain a fidelity bond covering each officer, director, trustee, partner and employee of the organization, 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 Commissioner, and it shall provide for 30 days' notice to the Administrative Director prior to cancellation. The fidelity bond shall provide at least the minimum coverage for the organization determined by the following schedule:

Annual Gross Income

Minimum Coverage

Up to$ 100,000..........................$10,000
100,000 to300,000..........................20,000
300,000 to500,000..........................30,000
500,000 to750,000..........................50,000
750,000 to1,000,000..........................75,000
1,000,000 to2,000,000..........................100,000
2,000,000 to4,000,000..........................200,000
4,000,000 to6,000,000..........................400,000
6,000,000 to 10,000,000..........................600,000
10,000,000 to20,000,000.......................... 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. 8, § 9771.74

1. New section filed 4-15-98; operative 4-15-98. Submitted to OAL for printing only pursuant to Stats. 1997, Ch. 346 Section 5 (Register 98, No. 16).

Note: Authority cited: Stats. 1997, Ch. 346 Section 5. Reference: Sections 4600.3, 4500.5 and 4600.6, Labor Code.

1. New section filed 4-15-98; operative 4-15-98. Submitted to OAL for printing only pursuant to Stats. 1997, Ch. 346 , TION sec 5 (Register 98, No. 16).