The California Telephonic Seller Surety Bond is required by the California Department of Justice, Office of the Attorney General for any entity wishing to obtain a license in this business.
This bond is required to cover consumer losses and protect them from financial harm and deceit. It ensures that telemarketers follow all rules and laws that apply to them, while also providing a safeguard against financial losses for the customer. Unlike insurance, the bond principal (the telephonic seller in this case) must repay the surety company for any losses incurred due to claims made by clients.
According to the California Business and Professions Code article 1.4, all telephonic sellers in California are required to register with the state at least 10 days prior to the first day of business. This includes California residents that are soliciting inside or outside of California, as well as non-residents that are soliciting inside California.
To register as a telephonic seller, the following must be filed with the state:
While the bond amount is set at $100k, the price to obtain the bond will only be a small percentage of this bond amount. The percentage rate starts around 1% ($1,000) and will vary based on the applicant’s credit and other underwriting considerations.
In order to obtain this bond, simply fill out our free online application! One of our licensed agents will contact you within one business day with a quote for the price to obtain your bond (the “premium”). If you choose to move forward after receiving your quote, we will have you sign any necessary paperwork and remit the premium payment, at which time we will ship your bond (form A) to you via USPS Priority Mail (with overnight shipping options also available).
Why choose Surety1?
At Surety1, our agents work with over a dozen “A” rated surety markets to ensure we are finding you the lowest price for your bond. We’ve been issuing surety bonds since 2003 and our quality, reliable service has led us to an A+ rating by the Better Business Bureau! Licensed in all 50 states.