§ 206.13 — Evidence of financial responsibility required by commercial applicator

Iowa § 206.13

• Jurisdiction: Iowa
• Title V: AGRICULTURE
• Ch. 206: PESTICIDES

Text

1. The department shall not issue a commercial applicator’s license as required in
section 206.6 until the applicant has furnished evidence of financial responsibility with
the department. The evidence of financial responsibility shall consist of a surety bond, a
liability insurance policy, or an irrevocable letter of credit issued by a financial institution.
The department may accept a certification of the evidence of financial responsibility. The
evidence of financial responsibility shall pay the amount that the beneficiary is legally
obligated to pay as damages caused by the pesticide operations of the applicant. However,
the evidence of financial responsibility does not apply to damages or an injury which is
expected or intended from the standpoint of the beneficiary. A liability insurance policy shall
be subject to the insurer’s policy provisions filed with and approved by the commissioner of
insurance. The evidence of financial responsibility need not apply to damages or injury to
agricultural crops, plants, or land being worked upon by the applicant.
2. The amount of the evidence of financial responsibility as provided for in this section
shall be not less than one hundred thousand dollars for property damage and public liability
insurance, each separately, or liability insurance with limits of one hundred thousand dollars
per occurrence and three hundred thousand dollars annual aggregate. The evidence of
financial responsibility shall be maintained at not less than that amount at all times during
the licensed period. The department shall be notified ten days prior to any reduction in
the surety bond or liability insurance made at the request of the applicant or cancellation
of the surety bond by the surety or the liability insurance by the insurer. The department
shall be notified ninety days prior to any reduction of the amount of the irrevocable letter of
credit at the request of the applicant or the cancellation of the irrevocable letter of credit by
the financial institution. The total and aggregate liability of the surety, insurer, or financial
institution for all claims shall be limited to the face of the surety bond, liability insurance
policy, or irrevocable letter of credit.

Legislative History

[C75, 77, 79, 81, §206.13]