The California ID 1060 form is an application for a contractor's license bond, essential for individuals and businesses operating in the construction industry. This form gathers vital information about the applicant, including their business structure and financial status, to assess creditworthiness and ensure compliance with state regulations. For contractors seeking to secure their bond, filling out the ID 1060 form is a crucial step; click the button below to get started.
The California ID 1060 form is an essential document for contractors seeking to obtain a license bond in the state of California. This form serves as an application for a bond, which is a type of credit relationship rather than an insurance policy. It requires detailed information about the applicant, including their business structure—whether they are an individual, corporation, LLC, partnership, or a qualifying individual under a Responsible Managing Employee (RME) or Responsible Managing Officer (RMO). The form asks for the business address, contact details, and specific personal information about the owners or partners involved. Additionally, it inquires about the applicant's financial history, including any past claims against bonds, unpaid judgments, or bankruptcies. It is crucial for applicants to understand that they, along with any indemnitors, are jointly responsible for the obligations covered by the bond. The form also emphasizes the importance of providing accurate and complete information to facilitate the underwriting process. For roofing and swimming pool contractors, separate underwriting requirements apply, necessitating the use of an alternative application. Completing the California ID 1060 form accurately is vital for securing the necessary bond and ensuring compliance with state regulations.
INSCO INSURANCE SERVICES, INC.
Underwriting Manager for:
Developers Surety and Indemnity Company
Indemnity Company of California
17780 Fitch, Suite 200 • Irvine, California 92614 • (949) 263-3300
www.InscoDico.com
CALIFORNIA CONTRACTORS LICENSE BOND APPLICATION
NOTE: Roofing (C39) and Swimming Pool (C53) contractors are separately underwritten. Those applicants must complete our Application ID-1049, attach Business and Personal Financial Statements and have our branch office review the information.
TYPE OF BOND
BOND #
AMOUNT
$
REQUESTED EFFECTIVE DATE
NAME (MUST BE EXACTLY AS IT IS TO APPEAR ON BOND)
n INDIVIDUAL
n CORPORATION
n LLC/LLP
n PARTNERSHIP
n RME/RMO
LICENSE # OR APPLICATION INDENTIFICATION #
LICENSE CLASS
BOND TERM
n ONE YEAR
n TWO YEARS
n THREE YEARS
BUSINESS ADDRESS
CITY
STATE
ZIP
IF RME/RMO (BOND OF QUALIFYING INDIVIDUAL) COMPLETE THE FOLLOWING:
BUSINESS PHONE NUMBER
NAME OF FIRM ON LICENSE
(
)
ADDRESS
PERSONAL
INFORMATION
MUST BE
COMPLETED
BY APPLICANT,
PARTNERS,
CORPORATE
OWNER/OFFICERS
AND MEMBERS/ MANAGERS OF LIMITED LIABILITY COMPANIES.
USE ADDITIONAL
APPLICATION
IF MORE
THAN TWO.
WARNING
THIS IS AN
APPLICATION FOR A BOND. A BOND IS A CREDIT RELATIONSHIP.
A BOND IS NOT AN INSURANCE POLICY. THE APPLICANT (PRINCIPAL)
AND INDEMNITORS
ARE JOINTLY
AND SEVERALLY
RESPONSIBLE
FOR THE
OBLIGATIONS
COVERED BY
THE BOND AND
THE CONDITIONS
OF THE
INDEMNITY
AGREEMENT
CONTAINED
IN THIS
APPLICATION.
PERSONAL INFORMATION
NAME
RELATIONSHIP
n OWNER
n OFFICER/
n MEMBER/
TO APPLICANT
n PARTNER
STOCKHOLDER
MANAGER
HOME ADDRESS
HOME PHONE
DRIVER’S LICENSE NO.
SOCIAL SECURITY NO.
BANK
STREET ADDRESS
ACCOUNT NO.
ADDITIONAL OWNER, PARTNER OR MEMBER AS REQUIRED
BOND INFORMATION
Please answer each of the following:
1.
If currently or previously bonded, are there any open or paid claims against any bonds? n Yes n No
2.
Do you have any accounts placed for collection, unpaid judgements, liens, or past due payables against you? n Yes n No
3.
Have you had a bankruptcy, business or personal, in the last ten years? n Yes n No
4.
Is this a Disciplinary Bond? n Yes n No
ONLY CONTRACTORS WITH ACCEPTABLE CREDIT AND NO PAID CONTRACTORS LICENSE BOND LOSSES QUALIFY.
SAME DAY SERVICE BY:
Please have your producer number ready when you call.
Phone: 1-800-458-2663 Fax: 1-800-251-1955
Mail: PO BOX 19725, IRVINE, CA 92623-9725
Attn: Customer Service
For service on this or any other type of bond already issued, please call 1-800-782-1546
IMPORTANT: READ & SIGN REVERSE SIDE INDEMNIFICATION
ID-1060 (CA) (Rev. 3/10) • PAGE 1 of 2
INDEMNITY AGREEMENT — READ CAREFULLY
Principal and each of the other undersigned (collectively “Indemnitors”) affirm that the statements in the foregoing application are true and are made to induce Developers Surety and Indemnity Company and/or Indemnity Company of California (hereinafter “Surety”) to issue the bond or bonds described therein (collectively “Bond”), including any extensions, renewals, modifications or substitutions of or additions to the Bond. Each Indemnitor further affirms that he, she or it understands that a Bond is a credit relationship, and authorizes Surety or its authorized agent, Insco Insurance Services, Inc., to gather the information it considers necessary and appropriate to evaluate creditworthiness.
AS CONSIDERATION for issuing the Bond, Indemnitors hereby jointly and severally agree, for themselves, their personal representatives, successors and assigns:
1.To fully reimburse Surety and indemnify it against all liability, loss, claims, demands, attorney’s fees, costs and expenses of every kind and nature which Surety incurs or for which it may become liable as a consequence of issuing the Bond (collectively “Loss”), regardless of whether the Surety has actually received a claim or paid any amount.
2.To pay Surety the initial, fully earned, premium and all subsequent renewals, extensions, or modifications until there is no further liability under the Bond.
3.Surety may, at its sole discretion, deny, pay, compromise, defend or appeal any claim or suit against the Bond. An itemized statement of or sworn voucher from the Surety attesting to the Loss shall be prima facie evidence of the Loss.
4.If Surety establishes a reserve account, the Indemnitors shall immediately upon demand provide Surety with acceptable collateral equal to the reserve set and any future reserve increases, whether or not Surety has yet made a payment or incurred a Loss. Surety may retain the collateral until all actual and potential claims against the bond are exonerated and all loss is fully reimbursed.
5.All money and other proceeds of the obligations covered by the Bond (“Obligation”) are received by Principal in trust for the benefit of Surety for the sole purpose of performing the Obligation until the Surety’s liability is completely exonerated.
6.To secure Indemnitors’ duties and obligations to Surety, Indemnitors, upon Surety’s declaration of principals default, assign to Surety all rights and title to and interest in all amounts due under the Obligation and under all other bonded and unbonded contracts; all agreements, notes, accounts or accounts receivable in which Indemnitors have any interest; and all subcontracts under the Obligation.
7.Each Indemnitor irrevocably appoints Surety or its designee as his, her or its attorney-in-fact with the right and power, but not the obligation, to exercise all of the rights assigned to Surety under this Agreement and to make, execute and deliver any and all additional contracts, instruments, assignments, documents or papers (including, but not limited to, the endorsement of checks or other instruments payable to Principal or any Indemnitor representing payment of Obligation monies) deemed necessary and proper by Surety in order to give full effect to the intent and meaning of the assignments or rights contained herein. It is expressly agreed that this power-of-attorney is coupled with the interest of Surety in receiving the indemnification from Indemnitors. Indemnitors hereby ratify all acts by Surety or its designee as attorney-in-fact.
8.Until full satisfactory performance of the Obligation and exoneration of the Bond, Surety may freely access, examine and copy Indemnitors’ books, records, credit reports and accounts (“Records”). Indemnitors authorize third parties in possession of these Records to furnish to Surety any information requested in connection with any transaction.
9.Indemnitors agree that the place of performance of the obligations created by this Agreement or issuance of the Bond is Orange County, California.
10.Each Indemnitor agrees he, she or it is bound to every obligation in this Agreement regardless of (a) whether the principal fails to sign a Bond; (b) the existence, release, return, exchange or viability of or failure to obtain collateral or security securing Indemnitors’ duties and obligations under this Agreement; (c) the identity of any other Indemnitor; (d) whether or not any other Indemnitor is bound; or (e) the failure of any other person or entity to sign this Agreement.
11.Indemnitors expressly waive notice of any claim or demand against the Bond or information provided to the Surety. Surety shall have the right to decline issuance of any or all bonds and may cancel, withdraw or procure its release from the Bond or any bond at any time, without incurring liability to Indemnitors.
12.As used in this Agreement, the plural and singular shall include each other as circumstances require. If any portion of this Agreement is unenforceable that portion shall be considered deleted with the remainder continuing in full force and effect.
13.A facsimile, photocopy, electronic or optical reproduction shall be admissible in a court of law with the same force and effect as the original.
14.This Agreement is a continuing obligation of the Principal and Indemnitors and may not be terminated.
15.As consideration for Surety’s execution of the Bond applied for, each Indemnitor jointly and severally agrees to be bound by all of the terms of this Agreement as though each were the sole applicant and each admits to being financially interested in the performance of the Obligation.
Signed this
day of
,
.
IMPORTANT
If a Sole Proprietorship, applicant must sign. Applicant and spouse must sign personal indemnity below.
If a Partnership, two authorized partners must sign on behalf of the firm. The two authorized partners and their spouses must sign personal indemnity below. If a Corporation, two corporate officers must sign below on behalf of firm. Owners of the corporation and their spouses must sign personal indemnity below.
If a Limited Liability Company, two managers/members must sign on behalf of the company. The two authorized managers/members and their spouses must sign personal indemnity below.
(Company Name)
(Indemnitor)
By:
(Name/Title)
(Signature)
(Spouse’s Signature)
AGENCY
CONTACT PERSON
PHONE
PRODUCER CODE
r AGENCY BILL r DIRECT BILL
ID-1060 (CA) (Rev. 3/10) • PAGE 2 of 2
Filling out the California ID 1060 form is an important step in securing a contractor's license bond. Once you complete the form, you'll submit it to the appropriate agency for processing. This form requires personal and business information, so it's essential to gather all necessary details before you begin.
The California ID 1060 form is an application for a contractor's license bond. This form is specifically designed for contractors seeking to obtain a bond, which is a credit relationship, not an insurance policy. It includes personal information, business details, and indemnification agreements that are essential for the bond issuance process.
Any contractor applying for a license bond in California must complete the California ID 1060 form. This includes individuals, corporations, LLCs, partnerships, and qualifying individuals under a contractor’s license. However, roofing and swimming pool contractors must use a different form, the Application ID-1049.
The form requires various details, including:
The indemnification agreement outlines the responsibilities of the applicant and indemnitors. It states that they are jointly and severally responsible for any liabilities or losses incurred by the surety as a result of issuing the bond. This includes the obligation to reimburse the surety for claims, attorney’s fees, and other costs.
Yes, applicants must have acceptable credit and no prior paid contractor license bond losses to qualify for the bond. Additionally, personal information must be provided for all owners, partners, or members associated with the business.
If there are open or paid claims against any previous bonds, this must be disclosed on the application. Such claims may impact the approval of the bond application, as they indicate potential risks associated with the applicant.
The bond term can be selected for one, two, or three years. The applicant must indicate their preferred term on the form, which will affect the duration of the bond’s validity and the associated premiums.
If you have questions or need assistance, you can contact the customer service department at Insco Insurance Services. They can be reached by phone, fax, or mail. It is advisable to have your producer number ready when calling for quicker assistance.
Yes, by signing the California ID 1060 form, the applicant and indemnitors agree to the terms outlined in the indemnification agreement. This includes their obligations and responsibilities related to the bond, making it a legally binding document once executed.
Incorrect Name Format: Ensure the name is exactly as it should appear on the bond. Any variations can lead to delays.
Missing Signature: All required parties must sign the application. A missing signature can result in rejection.
Inaccurate Personal Information: Double-check personal details like Social Security numbers and driver’s license numbers. Errors can complicate processing.
Omitting Financial History: Failing to disclose any bankruptcies or claims can lead to issues. Full transparency is crucial.
Not Specifying Bond Amount: Clearly state the requested bond amount. Leaving this blank can cause delays in processing.
Ignoring the Effective Date: Make sure to include the effective date for the bond. This information is essential for timely coverage.
Neglecting to Provide Contact Information: Include accurate business phone numbers. This ensures the surety can reach you if needed.
Incorrectly Identifying the Type of Bond: Choose the correct type of bond. Misidentifying it can lead to processing errors.
Failure to Review the Application: Always review the completed application before submission. Small mistakes can lead to big problems.
Not Including Additional Owners: If there are more than two owners or partners, use an additional application. Omitting this can result in incomplete information.
When applying for a contractor's license bond in California, the California ID 1060 form is essential. However, there are several other documents that often accompany this form to ensure a smooth application process. Each of these documents plays a crucial role in providing the necessary information for underwriting and approval. Below is a list of commonly used forms and documents that you may encounter.
Gathering these documents can seem overwhelming, but each one serves a specific purpose in the application process. Ensuring that all forms are completed accurately and submitted together can significantly enhance the chances of a successful bond application. Being well-prepared can lead to a smoother experience and quicker approval times.
The California Contractor's License Bond Application (ID-1049) is closely related to the California ID 1060 form. Both documents serve as applications for bonds necessary for contractors to operate legally in California. The ID-1049 specifically targets roofing and swimming pool contractors, requiring additional financial statements and a review process. This ensures that the specific needs of these specialized contractors are met while maintaining the same fundamental purpose of securing a bond for business operations.
The Surety Bond Application is another document that shares similarities with the California ID 1060 form. This application is used by various businesses seeking a surety bond to guarantee their contractual obligations. Like the ID 1060, it requires personal information from the applicant and indemnitors, emphasizing the credit relationship involved. Both documents aim to protect the interests of the surety company while ensuring compliance with state regulations.
The Indemnity Agreement is also akin to the California ID 1060 form. This agreement outlines the responsibilities of the indemnitors in relation to the bond issued. Both documents highlight the importance of indemnification, where the indemnitors agree to cover any losses incurred by the surety. This shared focus on liability and financial responsibility makes the indemnity agreement a crucial counterpart to the bond application process.
The Personal Guarantee form is another document that complements the California ID 1060. This form is often required by lenders or sureties to ensure that individuals are personally liable for the obligations of their business. Similar to the ID 1060, it seeks to establish a personal commitment from the indemnitors, reinforcing the bond's security by holding individuals accountable for the business's financial obligations.
The Contractor's License Renewal Application is also relevant in this context. While primarily focused on renewing a contractor's license, it often requires proof of bonding similar to what is needed in the ID 1060. Both documents work together to ensure that contractors remain compliant with state regulations and maintain their ability to operate legally, emphasizing the ongoing nature of bonding requirements in the contracting industry.
Lastly, the Business License Application shares common ground with the California ID 1060 form. This application is essential for any business looking to operate legally within a municipality. Like the ID 1060, it often requires proof of bonding, ensuring that businesses meet local requirements. Both documents are integral to establishing a contractor's legitimacy and financial responsibility in their respective fields.
When filling out the California ID 1060 form, it’s important to follow some best practices to ensure your application is processed smoothly. Here are six things to do and avoid:
By following these guidelines, you can help facilitate a smoother application process for your bond request.
Misconceptions about the California ID 1060 form can lead to confusion and mistakes. Here are six common misconceptions explained:
Understanding these points can help streamline the application process and avoid unnecessary delays. Always ensure that all information is accurate and complete to facilitate approval.
Filling out the California ID 1060 form requires attention to detail and understanding of the bond application process. Here are some key takeaways to keep in mind:
By keeping these points in mind, you can navigate the California ID 1060 form more effectively and ensure a smoother application process.