Bond Amount
$10,000 - $1,000,000 Depending on Type and Size of Business
Requiring Entity
State of California Department of Motor Vehicles
Underwriting Criteria
INSTANT ISSUE WITH NO CREDIT CHECK REQUIRED for bonds that do not exeed $50,000. A credit check will apply to applicants with a history of bankruptcy, tax lien(s), judgments and/or felony convictions. Each applicant must first complete and submit the application for a Business Partner Automation Bond, which contains all of the pertinent information regarding the business and business owners. However, bond approval and conditions vary based on the required bond amount.
Premium Rate(s)
- $10,000 - $250 Annually
- $50,000 - $750 Annually
- $650,000 - $1,000,000 – Rate determined by financial strength and credit score*
Who is Required to Secure this Bond
Under California Vehicle Code 1685 the Department of Motor Vehicles has allowed for the establishment of qualified private industry partners to join the department in providing services that include processing and payment programs for vehicle registration and titling programs (CCV 1685). The Department of Motor Vehicles has established three types of private industry partnerships:
- First-line industry partner is a partner that receives data directly from the department and uses it to complete registration and titling activities for that partner’s own business purposes.
- First-line service provider is an industry partner that receives information from the department and then transmits it to another authorized industry partner.
- Second-line business partner is a partner that receives information from a first-line service provider.
Each of these business entities must provide a bond to the Department of Motor Vehicles. The bond amount varies based on the type of business partnership. The bond amounts for the different types of businesses are outlined below:
- First-line business partners are required to file a bond in the amount of $650,000 under section 225.09(b)(1), Chapter 1, Division 1, in Title 13.
- First-line service providers are required to file a bond in the amount of $1,000,000 under section 225.09(b)(2), Chapter 1, Division 1, in Title 13.
- Second-line business partner processing registration renewal transactions only are required to file a bond in the amount of $10,000 under section 225.09(b)(3), Chapter 1, Division 1, in Title 13.
- Second-line business partner processing new vehicle reports of sale transactions or vehicle fee refunds, or salvage of non-repairable salvage transactions or transfers, or any combination of transactions, including registration renewals to file a bond in the amount of $50,000 under 225.09(b)(4), Chapter 1, Division 1, in Title 13.
Bond Requirement Specifics
The bond is required by the State of California Department of Motor Vehicles to compensate the officers of the department and any other person who may suffer loss or damage by reason of any failure or neglect of the principal, the principal's agents, or employees to preserve carefully and surrender any records examined in the department and by reason of any act of the principal, the principal's agents, or employees in respect to the loss, alteration, substitution, or mutilation of any records of the department (CCV 1815).
Who is protected Under this Bond
The bond protects the officers of the department and any other person who may suffer loss or damage as the result or failure of the principal to execute documents properly.
Underwriting Process
Each applicant must first complete and submit the application for a Business Partner Automation Bond, which contains all of the pertinent information regarding the business and business owners. However, bond approval and conditions vary based on the required bond amount. The process for each business partner type is outlined below:
- First-line business partner ($650,000 or $1,000,000 bond): Applicant must submit a completed application, business financial statements and personal financial statements for all business owners. Application is subject to a review of applicant’s credit history
- Second-line business partner ($10,000 bond): Bond approval is provided instantly upon receipt of application so long as applicant does not have a prior bankruptcy or felony conviction. Original application must be received by our office before bond can be released.
- Second-line business partner ($50,000 bond): Applicant must submit a completed application, with approval being subject to a review of the applicant’s personal credit. Upon approval of the bond, the original application must be received by our office before the bond can be released.
Upon receipt of the application, our agency will be able to provide a response as to approval for the Business Partner Automation Bond within one business day. Once the application is approved, the bond will be executed and released to the applicant upon receipt of payment and original application.
What you Need to do Once you have your Bond
Once the Business Partner Automation bond has been approved and released to the applicant’s care, it must be filed with the Department of Motor Vehicles along with the all related paperwork. The Department of Motor Vehicles will maintain the bond, which must remain effective at all times to prevent any suspension of the Business Partner Automation license.
Obligee Link
www.dmv.ca.gov/otherser/bpa/bpa.htm
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.