The California Department of Motor Vehicles requires that those engaged in License Registration Services execute a California Motor License Agent Bond in the amount of $25,000 to ensure compliance with Section 11401 of the Vehicle Code.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The California Motor License Agent Bond holds you accountable for your business decisions.
By possessing a California Motor License Agent Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.