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 using the information provided
in the "Talk to Us" section.
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