Q Who sets the standard for the Bail Bond industry?
A. All Bail Agents are licensed; regulated and audited through the Department of Insurance within the state they conduct business. The premiums and procedures are established by this department and are supported by state law.
Q. Who establishes the premium charged for bail?
A. The Department of Insurance within each state. The standard rate by law in California is 10%
Q. What are my obligations when signing a bail bond agreement?
A. All costs that are and may be incurred by the bail bond company. All costs include the bail premium, annual renewal premiums and in the case of a non-appearance, the full dollar amount of the bond and any skip tracing fees.
Q. Why is collateral taken and is it necessary?
A. A bonding company writes a check for the dollar amount of the bail and that check remains a liability until the judge makes a decision on the case. If the defendant is missing the Bond Company forfeits the bail and would need compensation for their loss. Retaining collateral is at the discretion of the Bail Agent and company’s underwriting procedures and reviewed on a case by case basis.
Q. When is the collateral returned?
A. Collateral should be returned when the judge makes a decision on the case and exonerates the bond. (relieves the Bond Company from their liability). Every party that anticipates the return of collateral should take the initiative in retaining exoneration paperwork from the clerk’s office within the courthouse to help expedite the process.
Q. Who are the parties involved with a Surety Bond?
A. These bonds are a 3 party instrument by which one party (Surety) guarantees or promises a second party (Obligee)
the successful performance of a third party (Principal).
1. The Surety – The one who has become legally liable for the debt, default, or failure in duty of another. A surety may be an individual or a company.
2. The Obligee – The party in whose favor a bond runs, the party protected by the bond against loss. As obligee may be a
person, firm, corporation, government or an agency of a government.
3. The Principal – The one who is primarily bound on a bond furnished by a surety company.
Q. What is an Indemnity Agreement?
A. An agreement whereby the principal and/or others agree to make reimbursement to the surety for any loss the surety may incur under a bond.
Q. What is a Power of Attorney?
A. The authority given to a person to act for and obligate another.