Assembly Bill 1608 Signed Into Law
Effective January 1, 2015, a Private Investigator license may be organized as a Limited Liability Company (LLC) pursuant to the provisions of recently enacted Assembly Bill 1608 (Chapter 669, Statutes of 2014). AB 1608 authorizes a Private Investigator license to be organized as a LLC until January 1, 2018 and requires the LLC licensee to maintain a minimum of one million dollars ($1,000,000) general liability insurance policy.
Specifically, a Private Investigator LLC licensee must maintain a policy or policies of insurance against liability claims for acts, errors, or omissions arising out of the private investigator services it provides. For an LLC with five or fewer managing members, the aggregate liability limit shall not be less than one million dollars ($1,000,000). For an LLC with more than five managing members, an additional one hundred thousand dollars ($100,000) of insurance must be obtained for each person named as a managing member not to exceed five million dollars ($5,000,000) in any one designated period.
In accordance with AB 1608, each Private Investigator LLC license applicant and licensee must provide proof of the required insurance by submitting a Certificate of Liability Insurance, signed by an authorized agent or employee of the insurer, to the Bureau. Furthermore, each Private Investigator LLC licensee will be responsible for ensuring the Bureau has current insurance information on file, which means the licensee will need to submit a new Certificate of Liability Insurance when a current policy expires. Failure to maintain the required insurance or provide the Bureau with a current Certificate of Liability subjects the Private Investigator LLC license to automatic suspension.
The Certificate of Liability Insurance must include:
- The Private Investigator LLC’s company name,
- The Private Investigator’s PI License Number (if already licensed),
- The insurance policy number,
- Dates that coverage is scheduled to commence and lapse, and
- The date and amount of any claims paid pursuant to the policy, and cancellation date if applicable.
Current Private Investigator licensees seeking licensure as a LLC must apply to the Bureau Chief for approval to have their license reassigned. Only reassignments involving no change in direct or indirect owners of the assignor to the assignee are eligible for reassignment. Private Investigator licensees seeking reassignment of their license will need to complete a Private Investigator License Application Packet in accordance with the directions for reassignment specified in the packet. BSIS is in the process of updating the packet to include the reassignment information and the updated packet will be available after January 1, 2015.
Questions regarding private investigator LLC licenses may be directed to the Bureau at (916) 322-4000 or (800) 952-5210.