Oklahoma Administrative Code › Title 158 - Construction Industries Board › Chapter 30 - Plumbing Industry Regulations › Subchapter 5 - License Types, Bond Requirements, and Display of License Number and Firm Name › Section 158:30-5-2 - Insurance and bond requirements

Current through Vol. 41, No. 20, July 1, 2024
(a) Unless as
				otherwise provided in (b) of this Section: Each active plumbing contractor must
				maintain a five thousand dollar ($5,000.00) corporate surety bond, payable to
				the Board on the Board's call upon the bond, and must cause the surety to file
				a copy of such bond with the Plumbing Licensing Unit.
(b) An active plumbing contractor may also
				satisfy the requirements of (a) of this Section by filing with the Plumbing
				Licensing Unit documentation demonstrating cash funds securely held for bonding
				purposes equivalent to a corporate surety bond of either the sum of $5,000 cash
				or a certificate of deposit in the sum of $5,000 so held for bonding purposes
				and payable to the Board on the Board's call upon the bond.
(c) Failure to maintain a corporate surety
				bond in effect shall constitute an inactive contractor status of a bonded
				plumbing contractor license immediately upon the expiration of such bond.
(d) A corporate surety bond may be
				accepted from any surety authorized to do business in the State of Oklahoma. It
				shall continue in effect until thirty (30) days have elapsed after the Bond and
				Insurance Unit is notified by the surety of the cancellation of such bond,
				unless the bond expired on a date certain on its face.
(e) A bond or other surety filed in
				accordance with (a) of this Section shall be in lieu of filing a bond with each
				municipality where the plumbing contractor works, and shall be conditioned upon
				all the following terms:
(1) Plumbing
				contractors shall faithfully and properly conduct business in compliance with
				applicable statutes, rules of the Oklahoma Construction Industries Board, and
				with all the applicable ordinances of the municipality in which plumbing work
				is performed.
(2) Plumbing
				contractors shall pay all fines and penalties imposed by penalty orders of the
				Board and fines and penalties imposed by courts of competent jurisdiction for
				the violation of municipal ordinances. The Board may seek payment through the
				surety bond of any fines or penalties, which the licensee fails to pay.
(3) In lieu of a corporate surety,
				an active plumbing contractor may deposit with the Bonds and Insurance Unit the
				required amount in lawful money or negotiable bonds of the United States,
				accompanied by a written instrument, to be approved by the Construction
				Industries Board, executed and acknowledged by the active plumbing contractor,
				and setting forth the conditions upon which the deposit is made. When the true
				owner is other than the active plumbing contractor making the deposit, the
				instrument shall so state and shall also be executed and acknowledged by the
				true owner. Upon exoneration, the instrument and deposit may be returned by the
				Bonds and Insurance Unit to the depositor or the true owner, if the depositor
				is other than the named true owner, after application of the deposit to claims
				made pursuant to this Section.
(4)
				Notwithstanding any provision of a security instrument to the contrary, every
				surety or depositor of security subjects himself or herself to the jurisdiction
				of the Construction Industries Board and irrevocably appoints the Administrator
				as his or her agent upon whom any papers affecting his or her liability may be
				served. Every surety or depositor of security consents to his or her liability
				being joint and several. Consequently, judgment may be entered against the
				surety, or depositor of security, in accordance with his or her obligation
				simultaneously with judgment against the principal, and execution may thereupon
				issue.
(5) Plumbing contractors
				shall protect, save harmless and indemnify the State and municipalities against
				any liability imposed by law against the State and municipalities for the
				negligence of said contractor arising from any act or omission while engaged in
				work pursuant to the Plumbing License Law.
(6) Any aggrieved person may bring an action
				upon the bond for the recovery of penalty thereof to the same extent and with
				equal rights as though such aggrieved person had been named as the obligee in
				the bond.
(7) For purposes of this
				Section, the term plumbing contractor also includes the agents, servants, and
				employees of a plumbing contractor.