Tennessee § 62-32-214 - Surety bond — Alternatives to bond.

§ 62-32-214. Surety bond — Alternatives to bond.

A surety bond shall be executed by the applicant and a surety company authorized to do business in this state, made payable to the state of Tennessee in the amount of ten thousand dollars ($10,000). The bond shall be for the use and benefit of any person who may be injured or aggrieved by a wrongful act or omission of any employee, servant, officer or agent in the conduct of business of the fire extinguisher system firm. Any person so injured or aggrieved may sue directly on the bond without assignment of the bond. The bond shall be in effect at all times and places in which the fire extinguisher system firm engages in business in this state. If the bond ceases to be in effect, the certificate of registration of the firm shall become invalid. The aggregate liability of the surety shall not exceed the amount of the bond. The bonding requirement of this section does not apply to any person who is licensed to engage in fire protection sprinkler system work by the board for licensing contractors under chapter 6 of this title. In lieu of the surety bond required by this section, the applicant may deposit with the division: A federally insured certificate of deposit issued by any financial institution in this state in an amount no less than ten thousand dollars ($10,000); An irrevocable letter of credit issued by any federally insured bank or savings and loan association in an amount no less than ten thousand dollars ($10,000); or A written proof of liability insurance coverage provided by a single-limit policy with a limit of no less than one hundred thousand dollars ($100,000) for bodily injury and for damage to property in any one (1) accident. The policy shall be for the use and benefit of any person who may be injured or aggrieved by a wrongful act or omission of any employee, servant, officer or agent in the conduct of business of the fire extinguisher system firm. Acts 1986, ch. 721, § 15; Acts 1987, ch. 371, §§ 1, 2.