Insurance

Administration

Rule R590-196: Bail Bond Premium and Fee Standards, Collateral Standards, and Disclosure Form

Effective Date: 06/07/2022

Admin. Code Reference: R590-196

Rule Type: Current Rule

R590. Insurance, Administration.

R590-196. Bail Bond Premium and Fee Standards, Collateral Standards, and Disclosure Form.

R590-196-1. Authority.

This rule is promulgated by the commissioner pursuant to Section 31A-35-104.

R590-196-2. Purpose and Scope.

(1) The purpose of this rule is to establish:

(a) uniform premium and fees; and

(b) collateral standards.

(2) This rule applies to a person engaged in the bail bond business.

R590-196-3. Definitions.

Terms used in this rule are defined in Sections 31A-1-301 and 31A-35-102. Additional rules are defined as follows:

(1) "Bail bond business" means engaging in conduct authorized under Title 31A, Chapter 35, Bail Bond Act.

R590-196-4. Premium and Fee Standards.

(1) Initial bail bond premium and fees.

(a) Bail bond premium amounts:

(i) the minimum premium charged may not be less than 10% of the bail bond amount;

(ii) the maximum premium charged may not exceed 20% of the bail bond amount.

(b) A document preparation fee may not exceed $20 per set of forms relating to a bail bond.

(2) Additional fees.

(a) Fees are limited to actual and reasonable expenses incurred by a surety insurer or a bail bond agency when:

(i) the defendant fails to appear before the court at a designated date and time;

(ii) the defendant fails to comply with a court order; or

(iii) the defendant or the co-signer fails to comply with the terms of a bail bond agreement or a promissory note relating to that agreement.

(b) Reasonable mileage expense fees are allowed pursuant to the Internal Revenue Service standard mileage rates for a business.

(c) Reasonable apprehension expenses such as meals, lodging, commercial travel, and communication, regardless of whether the defendant is apprehended, are limited to actual expenses incurred and must be reasonable, for example, meals at mid-range restaurants, lodging at mid-range hotels, commercial travel in coach class, etc.

(d) Collateral expense fees are allowed for:

(i) actual expenses to obtain collateral; and

(ii) storage expenses, if in a secured storage area, limited to actual expenses.

(e) A late payment fee of $20 or 5% of the delinquent periodic payment, whichever is less, is allowed.

(f) If a fee is charged by a court or a jail to process a bail bond, the actual fee charged may be passed through to the defendant or the co-signer.

R590-196-5. Collateral Standards.

(1) Collateral may be provided to:

(a) secure bail bond fees;

(b) secure the face amount of a bail bond; or

(2) If a surety insurer or a bail bond agency accepts the same collateral to secure the bail bond fee and the face amount of a bail bond, the collateral may not be converted until the bail bond is exonerated or judgment entered against the surety insurer or bail bond agency and the depositor has been given at least 15 days to pay any bail bond fees owing.

(3) If a surety insurer or bail bond agency accepts different collateral to secure the bail bond fee and the face amount of a bail bond:

(i) the collateral securing the bail bond fees may not be converted until payment has been defaulted under the terms of the promissory note for those fees, and the depositor of the collateral has been given at least 15 days to make the required payment;

(ii) the collateral securing the face amount of the bail bond may not be converted until the bail bond is exonerated or judgment entered against the surety insurer or bail bond agency and the depositor of the collateral has been given at least 15 days to reimburse the surety insurer or bail bond agency for any amounts owed to the surety insurer or bail bond agency.

(4) A surety insurer, a bail bond agency, or a bail bond producer taking possession of collateral shall hold the collateral as a fiduciary until ownership of the collateral passes to the surety insurer or bail bond agency.

(5) Collateral held may not be used by a surety insurer, a bail bond agency, or a bail bond producer without the specific written permission of the depositor of the collateral.

(6) If proceeds from converted collateral exceed the outstanding balance due, the surety insurer or bail bond agency shall return the excess proceeds to the depositor of the collateral.

(7) Notice under this rule is proper if sent via first class mail to the address provided by the depositor of the collateral.

R590-196-6. Disclosure Form.

A surety insurer, bail bond agency, or bail bond producer shall use the following disclosure form, or a form that contains substantially similar language.

TABLE

XYZ Bail Bonds Disclosure Form

1234 South 1234 East, Salt Lake City, UT 84444:

801-123-4567 fax: 801-098-7654

Defendant:

Cosigner:

Court:

Charge:

Bail bond amount:

Bail bond number:

Initial Premium and Fees, non-refundable.

....bail bond premium, maximum: no more than 20%; minimum: not less than 10%

$......

....document preparation, not to exceed $20 per set of bail bond forms

$......

....credit card fee, not to exceed 5% of amount charged to credit card

$......

total initial premium and fees

$......

Additional Fees.

(1) Limited to actual and reasonable expenses required because the defendant fails to appear before the court at any designated time, fails to comply with a court order, or fails to comply with the terms of a bail bond agreement or a promissory note pertaining to that agreement. The following are reasonable expense fees:

(i) reasonable mileage expense fee pursuant to IRS standard mileage rates for business;

(ii) reasonable and actual apprehension expense fees, including meals at mid-range restaurants, lodging at mid-range hotels, transportation at no more than coach fares; and

(iii) collateral expense fees: actual expenses to obtain collateral and actual storage expenses, if collateral is in a secured storage area.

(2) A late payment fee of $20 or 5% of the delinquent periodic payment whichever is less.

(3) If a fee is charged by a court or a jail to process a bail bond, the actual fee charged may be passed through to the defendant or the co-signer.

Grounds for Revocation of a Bail Bond.

(1) If the defendant violates any of the following, the defendant shall be subject to immediate bond revocation and the defendant, or the co-signer, or both, shall be subject to all the costs incurred to return the defendant to the court.

(2) Grounds for revocation include the following:

(a) the defendant or co-signer providing materially false information on bail bond application;

(b) the court's increasing the amount of bail beyond sound underwriting criteria employed by the bail bond producer, bail bond agency, or surety insurer;

(d) the defendant changes their address or telephone number or employer without giving reasonable notice to the bail bond producer, bail bond agency, or surety insurer;

(e) the defendant is arrested for another crime, other than a minor traffic violation, while on bail;

(f) the defendant returns to jail in any jurisdiction and revocation is served on the defendant before the defendant is released;

(g) failure by the defendant to appear in court at any appointed time;

(h) the defendant is found guilty by a court of competent jurisdiction;

(i) a request by the co-signer based on reasons (a) through (h) above.

Items (a) through (h) pertain to the defendant; items (a), (c), (e) (g), and (i) pertain to co-signers, if any.

Collateral.

The following has been given as collateral to guarantee all court appearances of the defendant until the bail bond is exonerated:

List collateral......

The following has been given as collateral to guarantee payment of bail bond premium or fees:

List collateral......

If judgment is entered against the surety insurer or bail bond agency, or the bonding premium or fee is not paid according to the terms of the bail bond agreement and its promissory note, if any, following written notice to the undersigned of such judgment or non-payment, the undersigned authorize XYZ Bail Bonds to convert the appropriate collateral to collect the judgment or the unpaid bail bond premium or fees. If proceeds from the sale of the collateral are insufficient to cover the outstanding balance due, the defendant, the co-signer, or both, agree to be personally liable for the difference. If proceeds from the sale exceed the outstanding balance, the difference will be returned to the depositor of the collateral. The depositor's signature below constitutes acknowledgment of a Bill of Sale for the collateral. The depositor accepts this agreement as a bill of sale for the collateral.

By signing below, I certify that I have read and understand this disclosure form, the bail bond agreement and its attached promissory note, if any. I certify under penalty of perjury that all information given to XYZ Bail Bonds verbally and in writing on all documents relevant to this bail bond are true and accurate. The co-signer agrees that should the co-signer request XYZ Bail Bonds to revoke the defendant's bail bond, with or without probable cause, the co-signer will be responsible to pay XYZ Bail Bonds and their agents for the time returning the defendant to jail at the rates stated above, in additional fees. If the co-signer requests to revoke the bail bond without probable cause, the co-signer will be responsible to reimburse the defendant the bail bond premium or fees.

Date:

Defendant:

Date:

Co-Signer:

Date:

Depositor:

I,......................................., agent of XYZ Bail Bonds, certify that I have given a copy of all documents pertaining to this bail bond agreement to the defendant, the co-signer, the depositor, or any of the above, at the time and date said bail bond agreement was executed.

Date:

Bail Bond Agent:

R590-196-7. Severability.

If any provision of this rule, Rule R590-196, or its application to any person or situation is held invalid, such invalidity does not affect any other provision or application of this rule that can be given effect without the invalid provision or application. The remainder of this rule shall be given effect without the invalid provision or application.

KEY: insurance, bail bonds

Date of Last Change: June 7, 2022

Notice of Continuation: November 4, 2024

Authorizing, and Implemented or Interpreted Law: 31A-35-104