R590. Insurance, Administration.R590-186. Bail Bond Business.
R590-186-1. Authority.
This rule is promulgated by the commissioner pursuant to Sections 31A-35-104 and 31A-35-301.
R590-186-2. Purpose and Scope.
(1) The purpose of this rule is to establish
(a) licensing criteria;
(b) certification guidelines; and
(c) standards of conduct for the bail bond business.
(2) This rule applies to a person licensed as:
(a) a bail bond agency;
(b) a bail bond producer; or
(c) a surety insurer.
R590-186-3. Definitions.
Terms used in this rule are defined in Sections 31A-1-301 and 31A-35-102. Additional terms are defined as follows:
(1) "Bail bond business" means engaging in conduct authorized under Title 31A, Chapter 35, Bail Bond Act.
(2) "Persons or members of their immediate families," used in Subsection 31A-35-701(5), means a spouse, child, stepchild, child-in-law, parent, sibling, parent-in-law, sibling-in-law, stepparent, stepsibling, or half-sibling.
(3) "Unprofessional conduct" means a violation of an insurance law, rule, or order of the commissioner.
R590-186-4. Initial and Renewal Agency License.
(1) An application for an initial or a renewal bail bond agency license shall be filed with the commissioner.
(2) An application shall include:
(a) an initial or renewal license fee in an amount annually established by the Utah Legislature under Section 63J-1-504; and
(b) proof that an applicant satisfies the minimum financial requirements for a bail bond agency license under Section 31A-35-404.
R590-186-5. Bail Bond Producer License and Renewal.
(1) A bail bond agency or surety insurer shall issue a bail bond through a licensed bail bond producer who is designated by the bail bond agency or is contracted with and appointed by the surety insurer.
(2)(a) A person doing business as a bail bond producer shall be licensed in accordance with:
(i) Title 31A, Chapter 23a, Insurance Marketing - Licensing Producers, Consultants, and Reinsurance Intermediaries;
(ii) Section 31A-35-406; and
(iii) any applicable rule regarding individual producer licensing.
(b) A bail bond producer license is an individual limited line license.
(c) A bail bond producer license is issued for a two-year period and requires no licensing examination or continuing education.
R590-186-6. Unprofessional Conduct.
A person licensed as a bail bond agency, a bail bond producer, or a surety insurer may not engage in unprofessional conduct, which includes any of the following acts:
(1) having a professional or occupational license revoked in this or any other state;
(2) being involved in a transaction that shows unfitness to act in a fiduciary capacity;
(3) willfully misstating or negligently reporting a material fact in the initial or renewal application or procuring a misstatement in a document supporting an initial or renewal application;
(4) being the subject of an outstanding civil judgment that reduces a bail bond agency's net worth below the minimum required for licensure;
(5) being convicted of a felony;
(6) being convicted of a misdemeanor that involves the misappropriation of money or property, dishonesty, or perjury;
(7) failing to report collateral taken as security on a bail bond to the principal, indemnitor, or depositor of such collateral;
(8) failing to preserve, or to retain separately, or both, any collateral taken as security on a bail bond;
(9) failing to return collateral taken as security on a bail bond to the depositor of such collateral, or the depositor's designee, within ten business days of being notified of the exoneration of the bail bond or upon payment of all fees owed to the bail bond agent, whichever is later;
(10) failing to advise the commissioner of a change that has reduced the bail bond agency's net worth below the minimum required for licensure;
(11) using a relationship with a person employed by a jail facility or incarcerated in a jail facility to obtain bail bond referrals;
