Bail Bonds in California
Bondsman
Need A Bail Bond in California?
Most people are familiar with bail bonds. Someone arrested on a criminal
charge may be held until trial, unless they furnish the required bail.
The posting of a bail bond acquired by or on behalf of the incarcerated
person is one means of meeting the required bail. When a bond is issued,
the bonding company guarantees that the defendant will appear in court
at a given time and place. The Government entity (state or federal)
in whose court the defendant must appear, is protected by the bond.
If the defendant fails to appear, the bond amount becomes payable and
is forfeited as a penalty by the surety insurer issuing the bond. Bail
bonds usually require collateral (cash, a deed, or other property)
to protect the surety.
Bail bonds in California are issued by licensed "Bail Agents" who
specialize in their underwriting and issuance. Bail agents act as the appointed
representatives of licensed surety insurance companies.
Surety Bonds in California
Surety Bonds are contracts guaranteeing that specific obligations
will be fulfilled. The obligation may involve meeting a contractual
commitment, paying a debt, or performing certain duties. Under the
terms of a bond, one party becomes answerable to a third party for
the acts or neglect of a second party.
Under modern suretyship, an insurer’s promise of performance
is available to meet a wide variety of business, governmental and individual
needs. Surety bonds are required in a significant number of business
transactions as a means of reducing or transferring business risk.
State and federal government agencies require surety bonds for the
purpose of reducing public responsibility for the acts of others, and
the courts require bonds to secure the various responsibilities of
litigants, including the ability to pay damages.
A typical surety bond identifies each of three parties to the contract and
spells out their relationship and obligations. The parties are:
1. A Principal – The party who has initially agreed to fulfill
the obligation which is the subject of the bond. Also known as the Obligor.
2. An Obligee - The person or organization protected by
the bond. This term is used most frequently in surety bonds.
3. A Guarantor or Surety - The insurer issuing the bond.
Frequently Asked Questions
Q. Who licenses and regulates bail agents?
A. Bail agents are licensed and regulated by the
California Department of Insurance. You can obtain the licensing
status of a bail agent by contacting the CDI Consumer Hotline at
1-800-927-4357 or by visiting the California Department of Insurance
Web site.
Q. How much does a bail agent charge?
A. The cost to the consumer will be about 10% of the total amount of the bond,
plus actual, necessary and reasonable expenses incurred in connection with
the transaction. The court determines the amount of the bond.
Each surety company must file rates with the Department of Insurance. Bail
agents representing a company must charge the same, filed rates. A "Rate
Chart" is required to be posted in a visible location at every bail bond
office.
Q. What is the consumer agreeing to in the bail
bond contract?
A. The consumer is agreeing to:
1. Pay the premium for the bond at the established rates.
2. Provide required collateral.
3. Pay actual, necessary and reasonable expenses incurred by the bail agent
in connection with the transaction. These may include:
• Reimbursement for long distance phone calls.
• Excess travel expenses (described as outside of the bail agent’s
normal scope of business,
or into an area where the agent does not advertise).
• Posting fees (for payment to an agent in another area to physically deliver
a bond. An agent should
not charge a posting fee for the normal delivery of a bond in the agent’s
advertising area).
• Bounty agent/skip tracer expenses (These are usually based upon the amount
of the bond).
• Payment of the bond amount for the defendant’s failure to appear.
• Attorney fees and court costs.
4. Keep the bail agent advised of address/employment changes of the defendant
or other parties to the agreement.
5. Aid the bail agent/skip tracers in locating the defendant (where someone
other than the defendant has secured the bond).
The consumer should read all agreements thoroughly, asking questions until
all items and obligations are understood.
Q. What does the bail agent do for the consumer?
A. Provides an avenue for the incarcerated person to be out of custody until
his/her day in court, allowing the defendant to continue his/her day-to-day
life until the criminal matter is resolved. The bail agent will provide the
following:
• Receipts and copies of all signed documents.
• Information regarding the status of the bond and changes in assigned court
dates.
• The status of any costs due, as imposed by the court.
• Assistance in locating the defendant should a forfeiture occur.
• Appearance before the court regarding the bail bond when such appearances
are
necessary (sometimes requiring the hiring of legal counsel).
• The timely return of collateral upon exoneration of the bond.
Q. How long is a bail bond good for, and can the
amount be reduced?
A. 1. Length of the contract. The bail bond runs for the length of the case
that is being bonded. However, the agreement may provide for the payment of
premium at inception, and upon "renewal" on an annual basis. Once
paid, premium for a bail bond is not refundable.
2. Reduction of Responsibility. Although not usually the case, a court may
reduce the amount of bail required. If a bail reduction occurs, the bail agreement
should be amended to reflect the reduced exposure of the bail agent and surety
insurer. A bail reduction does not result in a refund of premium paid, although
it may result in a partial return of collateral. If a bail reduction occurs,
it should result in a reduced renewal premium. Under any circumstances, where
a bail reduction has occurred, the bail agent and insurer cannot recover more
than the amount to which they are actually exposed, plus necessary related
expenses.
Q. What if I have a problem or dispute with a bail agent,
such as a failure to return collateral?
A. Contact the California Department of Insurance |
