Calif. Business and Professions Code § 10145
Amended by S. B. 764
Effective date: January 1, 2018

A real estate broker may obtain insurance which protects the broker from wrongful acts committed by employees instead of obtaining a surety bond to cover an unlicensed employee who is authorized to withdraw funds from the broker’s trust fund account.

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Editor’s note — A broker’s errors and omissions insurance policy may exclude coverage for wrongful acts. Thus, a broker who allows unlicensed employees access to trust funds need to check their coverage and obtain additional fidelity and crime insurance, or obtain a surety bond to cover the amount of trust funds to which the unlicensed employee has access.

Related article:

Surety bond deductibles for unlicensed trust fund handlers