1. (a) A holder of a master, master restricted, or limited heating, ventilation, air-conditioning, and refrigeration license may not contract to provide services on behalf of the licensee, or another person who provides heating, ventilation, air-conditioning, or refrigeration services, unless the work of the licensee, including completed operations, is covered by:

   1. (1) general liability insurance in the amount of at least $300,000; and
   2. (2) property damage insurance in the amount of at least $100,000.

2. (b)

   1. (1) The insurance required under this section may be bought:

      1. (i) by a holder of a master, master restricted, or limited heating, ventilation, air-conditioning, and refrigeration license; or
      2. (ii) by the person who engages in the business of providing heating, ventilation, air-conditioning, or refrigeration services and employs the holder of the master, master restricted, or limited license.
   2. (2) The insurance requirement of this section is not meant for work that a master, master restricted, or limited license holder does outside the scope of employment for the person who carries the insurance.

3. (c)

   1. (1) A licensed apprentice, licensed journeyman, or licensed journeyman restricted in the employ of a master, master restricted, or limited licensee need not obtain separate insurance while providing or assisting in providing heating, ventilation, air-conditioning, or refrigeration services under the control and supervision of the licensee.
   2. (2) Subject to the restrictions of § 9A-309 of this title regarding inactive status, inactive licensees who have had their inactive status approved by the Board need not obtain insurance while maintaining inactive status.

4. (d)

   1. (1) An applicant for any license under this title shall submit proof of the insurance required under this section to the Board with the license application.
   2. (2) Unless the applicant submits proof of insurance, the Board may not issue any license to an applicant to whom the insurance requirements of this section apply.
5. (e) Unless an applicant meets the insurance requirements of this section, the Board may not renew any license of the applicant to whom the insurance requirements of this section apply.
6. (f) A holder of a master, master restricted, or limited license shall give the Board notice of the cancellation of insurance at least 10 days before the effective date of the cancellation.
7. (g) If a county, municipal corporation, special taxing district, or other political subdivision requires a master, master restricted, or limited heating, ventilation, air-conditioning, and refrigeration license holder, or other person who engages in the business of providing heating, ventilation, air-conditioning, and refrigeration services, to execute a surety bond under local heating, ventilation, air-conditioning, and refrigeration requirements, the person may satisfy the bond requirement by submitting proof of the insurance required under this section.
8. (h) The Board shall specify on each license whether the license holder meets the insurance requirements of this section.

Acts 1992, c. 649; Acts 1999, c. 475, § 1, eff. Oct. 1, 1999.