The Department of Social Services – Community Care Licensing Division (CCLD) regulates and licenses long-term care facilities and other care givers in the State of California. Per Section 1318 of the California Health and Safety Code, if a facility is handling or will handle patient trust funds, they are required to file a surety bond with the CCLD. This surety bond guarantees that the principal (care facility) manages money in the trust faithfully, honestly and in a manner consistent with the law. Bond amounts are based on the total amount of trust money handled by the facility per month. Below is a list of funds handled per month and the bond amount required:
- $750 or Less: $1,000
- $751 to $1,500: $2,000
- $1,501 to $2,500: $3,000
- Every further increment of $1,000 or fraction thereof shall require an additional $1,000 on the bond.
If the facility fails to fulfill the bond’s terms, a claim can be filed against the bond by the harmed party. If the claim is validated, the surety will reimburse the harmed party up to the penal sum of the bond. All monies paid out by the surety must be reimbursed by the principal.
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.
Surety Bond Name
Patient Trust Surety Bonds – California
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