§ 17-37-210 - Bond and insurance requirements.
17-37-210. Bond and insurance requirements.
(a) Bond. (1) Before a license is issued or renewed, the State Plant Board shall be furnished an acceptable surety bond by each applicant for a license in either of the following classifications:
(A) Termite and other structural pests; or
(B) Household pests and rodent control.
(2) (A) (i) The bond shall be executed by the applicant for a termite and other structural pests license or any combination of licenses that includes termite and other structural pests as principal and by a surety company licensed to do business in this state in the surety amount of one hundred thousand dollars ($100,000).
(ii) (a) The bond shall be executed by an applicant for a household pests and rodent control license or any combination of licenses that includes household pests and rodent control as principal and by a surety company licensed to do business in this state in the surety amount of fifty thousand dollars ($50,000).
(b) Subdivision (a)(2)(A)(ii)(a) of this section does not apply to a combination of licenses that includes termite and other structural pests.
(B) The bond shall be for a term not to exceed one (1) year and shall coincide with the licensing period.
(3) (A) A bond required by this chapter shall be in favor of the State of Arkansas for the benefit of any person damaged as the result of a violation of this chapter by an operator licensed under this chapter and for the benefit of any person who, after entering into a contract with the licensee, is damaged by the failure of the licensee to properly perform the contract.
(B) A person claiming against the bond may maintain an action at law against the licensee and the surety.
(C) The aggregate liability of the surety to all persons shall not exceed the sum of the bond.
(b) Insurance. (1) In addition to the bond required in subdivision (a)(1) of this section, before a license is issued or renewed, each applicant for a license in the classification of household pests and rodent control or the classification of general fumigation shall furnish the board a certificate of insurance written by an insurance company authorized to do business in this state covering the public liability of the applicant for personal injuries for not less than twenty-five thousand dollars ($25,000) for any one (1) person, and fifty thousand dollars ($50,000) for any one (1) accident, and not less than five thousand dollars ($5,000) for property damage.
(2) In addition to the bond required in subdivision (a)(1) of this section, before a license is issued or renewed, each applicant for a license or any combination of licenses that includes the classification of termite and other structural pests shall furnish the board a certificate of insurance for a general liability insurance policy written by an insurance company authorized to do business in this state covering public liability of the applicant for personal injuries and property damage in an amount not less than five hundred thousand dollars ($500,000) per occurrence or five hundred thousand dollars ($500,000) per aggregate.
(c) Cancellation. (1) The bond and insurance shall not be cancelled or terminated until at least thirty (30) days after a notice of cancellation is received by the board.
(2) Upon failure of a licensee to maintain in full force and effect the bond and insurance required by this section, the license shall become void and shall not be reinstated until a satisfactory bond and insurance have been filed.