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326.601 ALTERNATIVE STATE BONDING AND INSURANCE REGULATION.
    Subdivision 1. Bonds. (a) An applicant for a water conditioning contractor or installer
license or renewal thereof who is required by any political subdivision to give a bond to obtain or
maintain the license, may comply with any political subdivision bonding requirement by giving a
bond to the state as described in paragraph (b). No applicant for a water conditioning contractor or
installer license who maintains the bond under paragraph (b) shall be otherwise required to meet
the bond requirements of any political subdivision.
    (b) Each bond given to the state under this subdivision shall be in the total sum of $3,000
conditioned upon the faithful and lawful performance of all water conditioning contracting or
installing work done within the state. The bond shall be for the benefit of persons suffering
injuries or damages due to the work. The bond shall be filed with the commissioner and shall be
written by a corporate surety licensed to do business in this state. The bond must remain in effect
at all times while the application is pending and while the license is in effect.
    Subd. 2. Insurance. (a) Each applicant for a water conditioning contractor or installer
license or renewal thereof who is required by any political subdivision to maintain insurance to
obtain or maintain the license may comply with any political subdivision's insurance requirement
by maintaining the insurance described in paragraph (b). No applicant for a water conditioning
contractor or installer license who maintains the insurance described in paragraph (b) shall be
otherwise required to meet the insurance requirements of any political subdivision.
    (b) The insurance shall provide coverage, including products liability coverage, for all
damages in connection with licensed work for which the licensee is liable, with personal damage
limits of at least $50,000 per person and $100,000 per occurrence and property damage insurance
with limits of at least $10,000. The insurance shall be written by an insurer licensed to do business
in this state and a certificate evidencing the insurance shall be filed with the commissioner. The
insurance must remain in effect at all times while the application is pending and while the license
is in effect. The insurance shall not be canceled without the insurer first giving 15 days' written
notice to the commissioner.
    Subd. 3. Bond and insurance exemption. A water conditioning contractor or installer who
is an employee of a water conditioning contractor or installer, including an employee engaged in
the maintenance and repair of water conditioning equipment, apparatus, or facilities owned, leased
and operated, or maintained by the employer, is not required to meet the bond and insurance
requirements of subdivisions 1 and 2 or of any political subdivision.
    Subd. 4. Fee. The commissioner shall collect a $40 bond registration fee from each applicant
for issuance or renewal of a water conditioning contractor or installer license who elects to
proceed under subdivisions 1 and 2.
History: 1980 c 614 s 134; 1986 c 444; 2007 c 140 art 7 s 5

Official Publication of the State of Minnesota
Revisor of Statutes