36-16-20 Undertaking and insurance required of contractor or Class B electrician--Initial and renew...
Undertaking and insurance required of contractor or Class B electrician--Initial and
renewal deposit--Disbursement from fund--Waiver.
Before receiving a license as an electrical
contractor or as a Class B electrician, an applicant shall execute and deposit with the State Electrical
Commission an undertaking in the sum of ten thousand dollars, and a public liability insurance
policy in a sum of not less than one hundred thousand dollars per occurrence and three hundred
thousand dollars aggregate limit for bodily injury and property damage insurance with limits of not
less than twenty-five thousand dollars per occurrence or a combined single limit of three hundred
thousand dollars, or security approved by the commission in a sum equal to that amount, conditioned
for the faithful performance of all electrical work undertaken by the electrician and the strict
compliance with all the provisions of this chapter and the requirements of the commission. The
required undertaking and liability insurance shall be in force at all times with certificates of insurance
on file in the commission office. No electrical contractor or Class B electrician licensed under the
provisions of this chapter need furnish any additional undertaking for municipal license as such
contractor or electrician. In the case of a partnership or corporation, the licensed person is exempt
from insurance or undertaking requirements if the employer satisfies the requirements. In addition,
a deposit shall be made with the commission in the amount of fifty dollars at the time of the
execution of the undertaking and biennially at the time of renewal of the applicant's license. Deposits
shall be accumulated by the commission in a special fund to be used for the correction or completion
of installations which the contractor or Class B electrician refuses or is unable to correct or complete,
for uncollectable inspection fees or administrative fees, administrative costs of maintaining the fund
and costs of enforcing provisions of this section. Disbursement from the fund may not exceed ten
thousand dollars per occurrence. The commission shall waive the deposit at the time of renewal of
the license for electricians who have made an initial deposit under this section if at the time of
renewal the fund exceeds fifty thousand dollars. The commission may prescribe forms for the
undertaking and may promulgate rules in accordance with chapter 1-26 as necessary to carry out the
intent of this section.
Source: SL 1963, ch 216, § 10; SL 1964, ch 105, § 1; SL 1978, ch 272, § 4; SL 1986, ch 315, § 9;
SL 1987, ch 274, § 1; SL 1991, ch 308, §§ 4, 6; SL 1992, ch 60, § 2.