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California Cargo Shipper’s Agent ($10,000) Bond
This need for surety bonds is a part of the Cargo Shippers Agent license that is imposed by Division 1, Part 2, Chapter 5, Article 15.5 of the California Insurance Code. The Insurance Commissioner of the State of California is in charge of enforcing this requirement.
The purpose of the California Cargo Shipper’s Agent Bond is to provide the Insurance Commissioner of the State of California with the confidence that the cargo shipper agent will carry out their professional responsibilities in a manner that is consistent with the requirements of their license. One of the responsibilities of the agent for the cargo shipper is to provide a report detailing all of the insurance premiums and cash that have been received on behalf of the cargo owner.
The Insurance Commissioner of the State of California is the one who is in charge of enforcing this licensing requirement for cargo shipper’s agents, which is specified by Division 1, Part 2, Chapter 5, Article 15.5 of the California Insurance Code.
The purpose of this bond is to provide the Insurance Commissioner of the State of California with the assurance that the cargo shipper agent (either a natural person or a corporate organization) will carry out their professional responsibilities in line with the requirements of their license. A report outlining all of the insurance payments or premiums that were collected on behalf of the owner of the cargo or the shipper is one of the tasks that fall within the purview of the agent working for the shipper of the cargo. This task is one of the agents’ obligations.
Among the other responsibilities are the following:
- Performing the duties of an agent on behalf of the shippers, cargo owners, or both.
- Making arrangements for the transportation of the items.
The California Cargo Shipper’s Agent Bond serves as a financial guarantee, and it also ensures that any individual who is hurt as a result of the irresponsible actions of a licensed cargo shipper agent will be compensated for their losses.
Bond Amount
For freight shipper’s agents who have great credit ratings, the bond price will begin at $100. The amount of the California Cargo Shipper’s Agent Bond is $10,000.
People who have a credit history that is spotless might anticipate paying between 1% and 5% of the whole bond amount. A $10,000 Surety Bond might be obtained by qualified candidates for as low as $100 per year in premiums.
How It Works
The role of the surety company is to back up the principal by ensuring the obligee that the principal will carry out the responsibilities without committing any acts of dishonesty or making any mistakes. The obligee may be the shipper, the owner of the cargo, or any other individual who has suffered losses as a direct result of the actions of the principal.
In the event that the principal is found guilty of committing such a conduct, the obligee has the legal ability to properly recover the amount lost by submitting a bond claim. The principal is responsible for resolving the claim in question. In the event that the principal is unable to carry out these responsibilities, the surety company will do so on their behalf.
The surety company will first conduct an investigation to determine the legitimacy of the claim. If this is the case, the surety company will be responsible for making the required payment to the obligee. Following the completion of the payment to the obligee, the principal is responsible for reimbursing the surety company.