Bond Amount
$25,000
Requiring Entity
State of California Department of Social Services
Underwriting Criteria
Personal Credit Check of Business Owner
Premium Rate(s)
1 Year - $350.00*
Who is Required to Secure this Bond
A California Dance Studio Bond in the amount of $25,000 is mandatorily required to be filed with the State of California Department of Social Services, as set forth in the Civil Code Section 1812.50-1812.69, for every dance studio. The principal sum of the bond shall be 25 percent of the dance studio’s gross income from the studio business in the state during the studio’s last fiscal year, except that the principal sum of the bond shall not be less than twenty-five thousand dollars ($25,000) in the first or any subsequent year of operation.
Bond Requirement Specifics
The Dance Studio Bond requirement is set forth in the Civil Code Section 1812.50-1812.69, to be in favor of the State of California for the benefit of any person who, after entering into a contract for dance studio lessons and other services with the dance studio, is damaged by fraud or dishonesty or failure to provide the services of the studio in performance of the contract. Any person who violates any provision of this title relating to dance studio contracts is guilty of a misdemeanor.
Who is protected Under this Bond
The Dance Studio Bond safeguards the public against fraud, deceit, imposition, and financial hardship, and to foster and encourage competition, fair dealing, and prosperity in the field of dance studio lessons and other services by prohibiting or restricting false or misleading advertising, onerous contract terms, harmful financial practices, and other unfair, dishonest, deceptive, destructive, unscrupulous, fraudulent, and discriminatory practices by which the public has been injured in connection with contracts for dance studio lessons and other services.
Underwriting Process
The Dance Studio Bond requires a signed application, which can be found through our web-site. The bond is underwritten based on a personal credit check of the business owner(s). In the event the personal credit check does not meet the minimum threshold for a standard approval, the premium rate may be elevated. Upon approval for the bond, the original signed application must be forwarded to our office.
What you Need to do Once you have your Bond
Upon approval and payment of the bond, the original bond will be mailed to you. A copy of the bond must be filed with the Secretary of State.
Obligee Link
http://www.dss.cahwnet.gov/cdssweb/default.htm
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.