California Traffic Violator School (TVS) Owner $2,000 Bond

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California Traffic Violator School (TVS) Owner $2,000 Bond

In order to receive a license for this kind of company from the California Department of Motor Vehicles, you will need to provide proof that you have a California Traffic Violator School (TVS) Owner Bond.

For classroom-based education, the owners of Traffic Violations Schools are required to post a surety bond in the amount of $2,000. The required bond amount for students taking courses at home or via online platforms is $15,000. The amount of their California Traffic Violator School Owner Surety Bond that is needed is $25,000, and it is only necessary in the county of Los Angeles.

Customers of the traffic violation school will be protected against financial loss, fraud, and misrepresentation on the part of the owner of the school, as well as the school’s agents, employees, and representatives.

In the state of California, traffic violator school owner bonds are perpetually in effect unless they are canceled and continue simultaneously with the duration of the licensing term for which the license is awarded. In line with the provisions of Article 13, Chapter 2, Title 14, Part 2 of the Code of Civil Procedure, the surety has the ability to revoke the bond.

Bond Amount

In order to maintain their status as legitimate businesses within the state of California, operators of traffic violator schools are required by the Department of Motor Vehicles to post surety bonds. The owners who do not provide home study or online instruction are required to post a bond in the amount of $2,000, while owners who do provide home study or Internet instruction are required to post a bond in the amount of $15,000.

Before assessing whether or not a bond may be provided and at what price, an underwriter looks at the applicant’s personal and financial background, runs a credit check, and looks at the amount of money the application is requesting for their traffic school bond (either $2,000 or $15,000).

Purpose

When a principal (the owner of the school) posts a California Traffic Violator School (TVS) Owner Bond, they are making a commitment to run their school in an honest and legal manner. To be more specific, the bond serves as an assurance that the principal will comply with Vehicle Code sections 11202(a)(3) and 11203.5 in order to prevent any student from incurring financial losses as a result of getting instruction from the institution.

The bond protects the school’s students from financial loss up to the full amount of the bond in the event that one of the school’s students suffers injury as a direct consequence of the conduct of the principal. The guarantee is entitled to be reimbursed by the proprietor for any and all penalties that were paid out.

Becoming a California Traffic Violator School Owner

Surety Bond-Becoming a California Traffic Violator School Owner

In California, potential applicants are required to not only post a surety bond but also obtain a license before they can legally pursue the acts of a traffic violator school operator. The California Department of Motor Vehicles requires that all of the application’s components, as well as any costs, be paid in full before the application may be considered for approval. Some licensing requirements include:

  • Having reached the age of 21 or being older than that.
  • Having finished an educational course of at least four hours.
  • Obtaining a passing grade on a mandatory test within your first three tries.

Frequently Asked Questions

Why Do I Need To Get a Bond for Being the Owner of a California Traffic Violator School?

Owners of traffic violator schools are obliged to comply with sections 11202(a)(3) and 11203.5 of the Vehicle Code. The California Traffic Violator School (TVS) Owner Bond assures that the school owner will conduct business ethically and legally, and will prevent any student from incurring financial loss as a result of the school's teaching. Any party that suffers damages as a result of the principal's violation of these laws or the conditions of the surety agreement has the right to file a claim against the traffic violator school owner bond. When everything is settled, it is the principal's responsibility to reimburse the surety for any damages paid or related legal fees that were incurred.

Is a Credit Check Necessary in Obtaining a California Traffic Violator School Owner Bond?

Instantaneously and without conducting a credit check, the $2,000 bond may be provided to educational institutions that do not provide coursework that is delivered over the Internet. It's possible that prices may start at only $100. Underwriting is needed for the $15,000 bonds that are necessary for Internet-based and home study programs. The cost of the bonds will vary depending on the principal's credit rating. The fee might be as low as $150 for those who have a lot of qualifications.
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