Bond Amount
100% of the sum of payments received for air and sea transportation and any refunds made by carriers or providers of travel services
Requiring Entity
State of California
Underwriting Criteria
Personal Credit Check of Business Owner
Premium Rate(s)
Preferred Rate - 3% of Bond Amount*
Who is Required to Secure this Bond
A California Seller of Travel Bond in the amount of one hundred percent (100%) of the sum of payments received for air and sea transportation and any refunds made by carriers or providers of travel services is mandatorily required to be filed with the State of California, as set forth in the provisions of Section 17550.15 of the Business and Professions Code, for all Travel Agencies or Seller of Travel. The seller of travel shall deposit directly into a trust account in a federally insured bank, savings and loan association, or credit union 100 percent of all sums received from any person or entity, including, but not limited to, those payments made in cash, by credit card, or any other method of payment, for air or sea transportation for any person, or for any travel services offered by the seller of travel, and any refunds made by carriers or providers of travel services. This subdivision does not require that a seller of travel establish a separate trust account for each transaction.
Bond Requirement Specifics
As set forth in the provisions of Section 17550.15 of the Business and Professions Code, every seller of travel or travel agency must maintain a surety bond in the amount of 100% of the sum or payments received for air and sea transportation and any refunds made by carriers or providers of travel services with the State of California in order to operate a Travel Agency.
Who is protected Under this Bond
Any person or persons to whom the seller of travel rendered services. Every seller of travel has a fiduciary responsibility with respect to all sums received for transportation or travel services.
Underwriting Process
The California Seller of Travel Bond is underwritten based on a personal credit check of the business owner(s). In the event the personal credit does not meet the minimum threshold for a standard approval, the premium rate may be elevated. The Seller of Travel Bond requires a signed application, which can be found through our web-site, as well as a statement of experience & length of time in business. 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
As the original Seller of Travel bond must be filed with the State of California, the original bond will be mailed to the Seller of Travel within 24 hours of submitting their application online so long as the bond is approved and the first year term premium is paid. The bond will be placed in regular mail unless the applicant opts to pay the fee associated with overnight delivery during the application process.
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.