Motor Transportation Broker ($15,000) Bond - Statewide in California

Brief Summary

A California motor transportation broker sells or arranges highway transportation that someone else's trucks or buses perform, and the $15,000 bond is the financial guarantee behind that role. You pay a premium for the bond instead of setting aside $15,000 in cash, and the executed bond goes to the State of California agency that holds your broker authority.

The California Motor Transportation Broker bond is a $15,000 surety bond posted by a person or company that sells, offers, negotiates for or arranges transportation over California highways performed by motor carriers it does not operate. The California Public Utilities Commission has historically licensed these brokers and required a surety bond on file before granting the license. Confirm the current bond form and filing steps with the obligee before the bond is written.

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How to Apply for a Motor Transportation Broker ($15,000) Bond:

• Confirm the current bond form, amount and filing address with the obligee before ordering the bond.
• Legal name of the broker exactly as it appears on the broker authority application.
• Owner or principal name, home address and Social Security number for the surety's credit review.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed $15,000 bond.
• File the original bond with the obligee before acting as a broker.

Detailed Information About the California Motor Transportation Broker ($15,000) Bond:

What a motor transportation broker does

A broker does not run the equipment. It sells, offers for sale, negotiates for, furnishes or provides transportation over the public highways of California on behalf of the motor carriers that actually haul. CPUC licensing decisions describe the broker license in those terms and tie it to the carriers named in the broker's application.

The bond comes before the license

The mistake applicants make is treating the bond as paperwork to finish after they start booking business. In CPUC broker decisions the Commission noted that the applicant already had a surety bond on file, as provided for in Public Utilities Code section 4838, before it granted the license. Plan on having the bond in place first.

What the bond guarantees

The $15,000 bond is a promise by a surety company that the broker will meet the obligations that come with its broker authority. A person harmed when the broker fails to meet those obligations can make a claim. If the claim is valid, the surety pays up to the bond amount and the broker repays the surety.

Before the bond is issued

Ask the obligee for its current bond form and confirm the amount, the exact principal name and where the original bond is filed. Have the surety issue the bond on that form, with the principal name matching your broker application exactly.

Eligibility and Requirements for a California Motor Transportation Broker ($15,000) Bond:

• Bond amount of $15,000.
• Obligee named as the State of California agency that issues your broker authority, on that agency's bond form.
• Principal name on the bond matching the broker application exactly.
• Bond kept continuously in force for as long as you act as a broker.
• Owner credit review by the surety.

California Motor Transportation Broker ($15,000) Bond FAQs:

Official and Additional Resources for the California Motor Transportation Broker ($15,000) Bond: