(A) If an applicant is required to provide proof of a bond in order to receive a license pursuant to this chapter, the bond must:

1. (1) be payable for losses because of defective construction or performance by the bond principal or the principal's agents operating in the course and scope of the principal's agency; and
2. (2) be cancelable only upon thirty days' written notice to the board; and
3. (3) provide that cancellation does not affect any liability on the bond that accrued before cancellation; and
4. (4) be subject to claims as authorized by subsection (B); and
5. (5) be approved by the board as to form, execution, and sufficiency of the surety.

(B) If proof of a bond is required for licensure by this chapter, the requirement may be satisfied by proof that:

1. (1) the applicant maintains a current bond in his own name that is in compliance with the requirements of subsection (A);
2. (2) the applicant is a bona fide employee of a corporation that maintains a current bond in the corporate name that is in compliance with the requirements of subsection (A); or
3. (3) the applicant is a bona fide employee of a licensed well driller who maintains a current bond in the employer licensee's name that is in compliance with the requirements of subsection (A).