REGULATION 1-2-13



DEPARTMENT OF REGULATORY AGENCIES

Division of Insurance

3 CCR 702-1

ADMINISTRATIVE PROCEDURES

EMERGENCY REGULATION 09-E-05

CASH BONDING AGENT AND PROFESSIONAL CASH BAIL AGENT REPORTING REQUIREMENTS AND TAX PAYMENT METHOD AND LICENSURE REQUIREMENTS FOR PROFESSIONAL CASH BAIL AGENTS

Section 1 Authority

Section 2 Scope and Purpose

Section 3 Applicability

Section 4 Definitions

Section 5 Forms, Reports and Records

Section 6 Tax on Bail Bond Fees

Section 7 Qualification Bond

Section 8 Qualification for Licensure as a Professional Cash Bail Agent

Section 9 Procedures for Increase, Decrease and Release of Qualification Bond

Section 10 Severability

Section 11 Enforcement

Section 12 Effective Date

Section 13 History

Section 1 Authority

This regulation is promulgated and adopted by the Commissioner of Insurance under the authority of §§10-1-109(1), and 12-7-102(3), C.R.S.

Section 2 Scope and Purpose

The purpose of this emergency regulation is to provide timely processing of the renewal applications for Cash Bonding Agents and Professional Cash Bail Agents whose licenses expire by operation of law on January 1, 2010 pursuant to § 12-7-102(4), C.R.S., and to ensure that the qualification bonds posted by Cash Bonding Agents and Professional Cash Bail Agents are fully compliant with §§ 12-7-103(3)(a) and (8)(b), C.R.S.

Cash Bonding Agents or Professional Cash Bail Agents self-insure the liability of the bail bonds that they post with the Colorado courts by posting a qualification bond with the Colorado Division of Insurance in accordance with §§ 12-7-103(3)(a) and (8)(a), C.R.S. The qualification bond is intended to be posted with funds that are solely owned by the licensee and not a third party entity or individual. Underwriting of liability of bail bonds by a third party entity or individual results in the unauthorized transaction of insurance business by that third party entity or individual in violation of § 10-3-903, C.R.S., and creates a de facto bail insurance agency or bail general managing agency business model that is specifically not authorized in accordance with § 12-7-102(2), C.R.S.. The Colorado Division of Insurance is aware of some individuals who are not the sole owners of the monies that fund their qualification bonds that are posted with the Colorado Division of Insurance.

In order to ensure that all Cash Bonding Agents and Professional Cash Bail Agents are using assets that solely fund their qualification bonds and to be consistent with the interpretation of §§ 12-7-103(3)(a) and (8)(b), C.R.S., the Colorado Division of Insurance is removing a claims made bond as an option for satisfying the posting of a qualification bond. Allowing a licensee to submit a claims made bond is not only contrary to the laws governing Cash Bonding Agents and Professional Cash Bail Agents, but claims made bonds are unworkable from both an administrative perspective, as well as from a consumer protection and public interest point of view. The Colorado Division of Insurance cannot guarantee that the Colorado courts and public at large will be adequately protected with the use of claims made bonds for the underwriting of bail bond liability, nor can the Colorado Division of Insurance guarantee that licensees’ will be in compliance with the laws governing Cash Bonding Agents and Professional Cash Bail Agents with respect to the monies that fund or collateralize said claims made bonds.

The Colorado Division of Insurance’s interpretation of §§ 12-7-103(3)(a) and (8)(a), C.R.S., is based upon the intent of the Colorado General Assembly that Cash Bonding Agents and Professional Cash Bail Agents were not intended to create de facto insurance agencies or general managing agents or to engage in the unauthorized transaction of insurance business by underwriting liability of a third party entity or individual. The Colorado Division of Insurance’s interpretation of a qualification bond is also consistent with ensuring that those who engage in the business of bail as a Cash Bonding Agent or Professional Cash Bail Agent are financially responsible and have the personal financial backing in order to underwrite the bail bond liability they post with the Colorado courts.

The purpose of this emergency regulation is also to add the statutory citations that refer to Professional Cash Bail Agents in the Qualification Bond form attached hereto as Appendix ID so that pending applicants will submit the proper Qualification Bond form with their license application.

The Colorado Division of Insurance finds that the immediate adoption of this emergency regulation is imperatively necessary for the preservation of public health, safety, and welfare of the public.

A. This regulation describes the information which is required to be filed by Cash Bonding Agents and Professional Cash Bail Agents with the Division of Insurance, and the format which must be used in the semiannual reports. It also describes the method for the calculation and payment of taxes on fees charged by Cash Bonding Agents and Professional Cash Bail Agents.

B. Pursuant to §12-7-103(3) and (8) C.R.S., Cash Bonding Agents and Professional Cash Bail Agents are required to post a qualification bond in the amount of $50,000 to secure payment of defaulted bonds and to pay any final, nonappealable judgment for failure to return collateral, including costs and attorney's fees, if awarded. This regulation sets the terms and conditions for such qualification bonds.

C. Effective January 1, 2000, a new category of bail bonding agent known as Professional Cash Bail Agent was added to Article 7, Title 12, C.R.S. Professional Cash Bail Agents are licensed to transact bail bond business without posting a power-of-attorney from an authorized insurance company.

The Professional Cash Bail Agent designation will only be granted to agents who meet the statutory requirements for such designation.

D. This regulation also sets forth the procedures required for increase, decrease and release of the qualification bond.

Section 3 Applicability

This regulation shall apply to the following: any person currently licensed as a Cash Bonding Agent or a Professional Cash Bail Agent; any person seeking to renew a Cash Bonding Agent or a Professional Cash Bail Agent; any person seeking to obtain licensure as a Professional Cash Bail Agent; any Professional Cash Bail Agent seeking to increase or decrease the amount of the qualification bond and any Cash Bonding Agent or Professional Cash Bail Agent seeking the release of the qualification bond.

Section 4 Definitions

“Commissioner of Insurance” is defined as the office of the Commissioner of Insurance as established in § 10-1-104(1), C.R.S. Reference to the Commissioner of Insurance in this Regulation means any past, present, or future Commissioner of Insurance who holds said appointed office.

“Qualification bond” is defined as any minimum asset in the amount of $50,000 that is solely owned and in the legal name of the Cash Bonding Agent or Professional Cash Bail Agent and the Colorado Division of Insurance and Commissioner of Insurance that can be liquidated at any time upon request by the Commissioner of Insurance in order to underwrite the bail bond obligations of the Cash Bonding Agent or Professional Cash Bail Agent for bail bonds written in Colorado courts.

Section 5 Forms Reports and Records

A. Each Cash Bonding Agent and Professional Cash Bail Agent shall report the following information to the Division of Insurance on the forms prescribed by the Division of Insurance and attached hereto as Appendix I. The reports shall be made semiannually and shall be filed with the Division of Insurance prior to July 31 for business written for the six month period between January and June, and prior to January 31 for business written during the six month period from July through December.

B. These reports shall contain the following information for each and every bond written:

1. The names of the person for whom such bail bonding agent has become surety;

2. The date the bond was written;

3. The amount of the bond issued by such bail bonding agent;

4. The court in which such bond was posted;

5. The fee for the bond charged by the bail bonding agent;

6. The amount of collateral or security received from insured principals or persons acting on behalf of such principals by such bail bonding agent on the bond;

7. Finalized total amount of premiums, commissions or fees charged; and

8. Such further information as the Division of Insurance may require including, but not limited to, residence and business addresses, financial statements and other business activities of the bail bonding agent.

C. If a Cash Bonding Agent or Professional Cash Bail Agent did not write any bail bonds during the particular six (6) month reporting period, the individual shall file a report stating "no bonds written" during this time period.

D. All reports required to be filed in this Section 5, must be filed in electronic format either by email to: filebailreport@dora.state.co.us, or via facsimile to: 303-869-0228. Paper reports will not be accepted by the Division of Insurance and will be rejected and returned to the Cash Bonding Agent or Professional Cash Bail Agent with instructions for proper filing. Any paper report that is rejected must be refiled electronically and must be timely filed as required by Section 5.A. Noncompliance with this requirement may result in sanctions against the Cash Bonding Agent or Professional Cash Bail Agent as set forth in Section 11 below.

Section 6 Tax on Bail Bond Fees

A. Each Cash Bonding Agent and Professional Cash Bail Agent shall pay to the Division of Insurance a tax on the fee charged for bail. The rate of tax on the gross fee shall be one percent as set forth in §10-3-209(1)(b)(I)(B), C.R.S. All applicable provisions of § 10-3-209(1), C.R.S. shall apply to the agent.

B. The taxes provided for in §§ 10-3-209 and 12-7-111, c.r.s. shall be due and payable to the Division of Insurance on the first day of March each year.

C. Cash Bonding Agents and Professional Cash Bail Agents shall file copies of the affidavit/summary pages from the bail bonding agent's January 31 and July 31 semiannual bail bond reports to the Division of Insurance with the tax payment (See appendix I).

Section 7 Qualification Bond

A. Qualification Bond Requirements for Cash Bonding Agents

1. The qualification bond deposited by a Cash Bonding Agent shall be held solely owned and in the name of the Cash Bonding Agent, the Commissioner of Insurance, and Colorado Division of Insurance, and shall meet the following requirements.

a. The Division of Insurance and Commissioner of Insurance must be designated as an authorized signatory with right of survivorship on any bank account, certification of deposit, commercial instrument, or security that funds the qualification bond. When designating the Commissioner of Insurance as an authorized signatory with right of survivorship, the office title shall only be used without reference to a particular Commissioner of Insurance.

b. The bank account, certificate of deposit, commercial instrument, or security must be in the legal name of the Cash Bonding Agent and not a trade name or other business name.

c. The qualification bond must consist of assets that are solely owned and in the name of the Cash Bonding Agent, which may be immediately liquidated by the Commissioner of Insurance or the Division of Insurance.

d. The qualification bond must be worth $50,000 net of any penalty for withdrawal or liquidation.

e. If the qualification bond does not comply with this Section 7.A.1., the Cash Bonding Agent will be required to substitute another qualification bond or to provide additional security.

f. If the qualification bond is an interest bearing instrument, the Cash Bonding Agent may receive interest thereon, unless the principal amount of the qualification bond falls below the required $50,000.

g. If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, and financial arrangement must be submitted to the Division of Insurance. If the qualification bond consists of monies from a loan, promissory note or other financial arrangement, such must be an arms-length transaction in which the agreement terminates upon a fixed period of time and any rate of return is not tied to any bail bond business posted by the Cash Bonding Agent but to an annual percentage rate. “Any bail bond business” means the financial arrangement cannot be tied to any premium or collateral or any other direct function to which a Cash bonding Agent conducts bail bond business.

2. Cash Bonding Agents licensed with the Division of Insurance who have posted qualification bonds that complied with previous versions of Colorado Insurance Regulation 1-2-13 must provide verification that the cash qualification bond satisfies the new requirements of Section 7.A.1. above as follows:

a. At the first renewal of a Cash Bonding Agent’s license subsequent to the effective date of this Regulation, the Cash Bonding Agent must produce the following:

(1) The qualification bond form prescribed by the Division of Insurance and attached hereto as Appendix ID to this Regulation.

(2) A copy of the bank account application, certificate of deposit, or commercial instrument or actual deposit of other security that evidences that the qualification bond is solely owned and in the legal name of the Cash Bonding Agent and the Division of Insurance and Commissioner of Insurance and that the Division of Insurance and Commissioner of Insurance are authorized signatories on the bank account, certificate of deposit, commercial instrument, or other security with a right of survivorship.

(3) A statement from the bank or other financial institution where the qualification bond is held that the bank or financial institution shall not release such funds unless upon prior written approval or order by the Division of Insurance or Commissioner of Insurance.

(4) If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, and financial arrangement must be submitted to the Division of Insurance. If the qualification bond consists of monies from a loan, promissory note or other financial arrangement, such must be an arms-length transaction in which the agreement terminates upon a fixed period of time and any rate of return is not tied to any bail bond business posted by the Cash Bonding Agent but to an annual percentage rate. “Any bail bond business” means the financial arrangement cannot be tied to any premium or collateral or any other direct function to which a Cash Bonding Agent conducts bail bond business.

b. A Cash Bonding Agent shall have sixty (60) days from the date the application for renewal is submitted to alter the qualification bond in compliance with Section 7.A.1. above. If information is not provided within sixty (60) days from the date of submission of the application for renewal, the application for renewal shall be denied on grounds the Cash Bonding Agent has not satisfied the requirements of licensure. Once information is on file with the Division of Insurance as satisfying the requirements of Section 7.A.1., the Cash Bonding Agent shall not be required to submit information on future renewal applications unless specifically requested by the Division of Insurance.

c. No release of an existing qualification bond shall be granted by the Division of Insurance in order to satisfy the requirements of Section 7.A.1 above, unless the procedures in Section 9 below are satisfied or upon a showing by the Cash Bonding Agent that the monies would not be released but merely transferred into a bank account, certificate of deposit, commercial instrument, or other security that complies with Section 7.A.1. above, as approved by the Commissioner of Insurance.

B. Qualification Bond Requirements for Professional Cash Bail Agents

1. The qualification bond deposited by a Professional Cash Bail Agent shall be held solely owned and in the name of the Professional Cash Bail Agent, the Commissioner of Insurance, and Colorado Division of Insurance, and shall meet the following requirements:

a. The Division of Insurance and Commissioner of Insurance must be designated as an authorized signatory with right of survivorship on the bank account, certificate of deposit, commercial instrument, or other security that funds the qualification bond. When designating the Commissioner of Insurance as an authorized signatory with right of survivorship, the office title shall only be used without reference to a particular Commissioner of Insurance.

b. The bank account, certificate of deposit, commercial instrument, or other security must be in the legal name of the Professional Cash Bail Agent and not a trade name or other business name.

c. The qualification bond must consist of assets that are solely owned and in the name of the Professional Cash Bail Agent, which may be immediately liquidated by the Commissioner of Insurance or the Division of Insurance.

d. The qualification bond must be worth no less than $50,000 net of any penalty for withdrawal or liquidation.

e. If the qualification bond does not comply with this Section 7.B.1., the Professional Cash Bail Agent will be required to substitute another qualification bond or to provide additional security.

f If the qualification bond is an interest bearing instrument, the Professional Cash Bail Agent may receive interest thereon, unless the principal amount of the qualification bond has fallen below the amount required to support the bond writing authority on the Professional Cash Bail Agent’s license.

g. If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, and financial arrangement must be submitted to the Division of Insurance. If the qualification bond consists of monies from a loan, promissory note or other financial arrangement, such must be an arms-length transaction in which the agreement terminates upon a fixed period of time and any rate of return is not tied to any bail bond business posted by the Professional Cash Bail Agent but to an annual percentage rate. “Any bail bond business” means the financial arrangement cannot be tied to any premium or collateral or any other direct function to which a Professional Cash Bail Agent conducts bail bond business.

2. Upon submission of the qualification bond to the Division of Insurance at the initial application for licensure as a Professional Cash Bail Agent, the following information must be provided:

a. The qualification bond form that is attached hereto as Appendix ID to this Regulation.

b. A copy of the bank account application, certificate of deposit, commercial instrument, or actual deposit of other security that evidences that the qualification bond is solely owned and in the name of the Professional Cash Bail Agent and the Division of Insurance and Commissioner of Insurance and the Division of Insurance and Commissioner of Insurance are authorized signatories on the bank account, certificate of deposit, commercial instrument, or other security with a right of survivorship.

c. A statement from the bank or other financial institution where the qualification bond is held that the bank or financial institution shall not release such funds unless upon prior written approval or order by the Division of Insurance or Commissioner of Insurance.

d. If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, and financial arrangement must be submitted to the Division of Insurance. If the qualification bond consists of monies from a loan, promissory note or other financial arrangement, such must be an arms-length transaction in which the agreement terminates upon a fixed period of time and any rate of return is not tied to any bail bond business posted by the Professional Cash Bail Agent but to an annual percentage rate. “Any bail bond business” means the financial arrangement cannot be tied to any premium or collateral or any other direct function to which a Professional Cash Bail Agent conducts business.

3. Professional Cash Bail Agents licensed with the Division of Insurance who have posted qualification bonds that complied with previous versions of Colorado Insurance Regulation 1-2-13 must provide verification that the qualification bond satisfies the new requirements of Section 7.B.1. above as follows:

a. At the first renewal of a Professional Cash Bail Agent’s license subsequent to the effective date of this Regulation, the Professional Cash Bail Agent must produce the following:

(1) The qualification bond form that is attached hereto as Appendix ID to this Regulation.

(2) A copy of the bank account application, certificate of deposit, commercial instrument, or other security that evidences that the qualification bond is solely owned and in the name of the Professional Cash Bail Agent, the Division of Insurance and Commissioner of Insurance and that the Division of Insurance and Commissioner of Insurance are authorized signatories on the bank account, certificate of deposit commercial instrument, or other security with a right of survivorship.

(3) A statement from the bank or other financial institution where the qualification bond is held that the bank or financial institution shall not release such funds unless upon prior written approval or order by the Division of Insurance or Commissioner of Insurance.

(4) If the monies that fund the qualification bond consist of proceeds from a loan, promissory note or other financial arrangement, the terms of the loan, promissory note, and financial arrangement must be submitted to the Division of Insurance. If the qualification bond consists of proceeds from a loan, promissory note or other financial arrangement, the monies from the loan itself must comply with the requirements of Section 7.B.1. above.

b. A Professional Cash Bail Agent shall have sixty (60) days from the date the application for renewal is submitted to alter the qualification bond in compliance with Section 7.B.1. above. If information is not provided within sixty (60) days from the date of submission of the application for renewal, the application for renewal shall be denied on grounds the Professional Cash Bail Agent has not satisfied the requirements of licensure. Once information is on file with the Division of Insurance as satisfying the requirements of Section 7.B.1, the Professional Cash Bail Agent shall not be required to submit information on future renewal applications.

c. No release of an existing qualification bond shall be granted by the Division of Insurance in order to satisfy the requirements of Section 7.B.1. above, unless the procedures in Section 9 below are satisfied or upon a showing by the Professional Cash Bail Agent that the monies would not be released but merely transferred into a bank account, certificate of deposit, commercial instrument or other security that complies with Section 7.B.1. above, as approved by the Commissioner of Insurance

Section 8 Qualifications for Licensure as a Professional Cash Bail Agent

A. The minimum requirements for licensure as a Professional Cash Bail Agent are set forth in §§ 12-7-102.5(6) and (7) and 12-7-103(8), C.R.S.

B. For purposes of § 12-7-102.5(7), C.R.S., an applicant for a Professional Cash Bail Agent license must be licensed in the State of Colorado as a bail bonding agent with a surety line of authority for four (4) consecutive years.

C. All applicants for licensure as a Professional Cash Bail Agent must take a registered bail recovery training course as required in §12-7-102.5(1)(b), C.R.S.

D. The Division of Insurance will review an applicant’s record to determine whether applicant has complied with the provisions of §§ 10-2-404(1) and 12-7-106, C.R.S., and the statutes referred to therein, in the conduct of applicant’s surety bail bond business. The Division of Insurance will also review whether applicant has timely paid state and federal taxes arising in the conduct of any business.

Section 9 Procedures for Increase, Decrease and Release of the Qualification Bond

A. Procedures for Release of Cash Bonding Agents Qualification Bonds.

If a Cash Bonding Agent requests release of the qualification bond, whether posted under Section 7.A.1., the following procedures must be satisfied:

1. The Cash Bonding Agent must submit in writing to the Division of Insurance a letter requesting that the qualification bond for said agent be released. The Cash Bonding Agent should submit with the letter of request the following information:

a. The date the Cash Bonding Agent’s license was no longer effective; and

b. Names of all Colorado courts, including district, county, or municipal, in which the Cash Bonding Agent posted bail bonds while licensed as a Cash Bonding Agent.

2. Upon receipt of the Cash Bonding Agent’s request for release, the Division of Insurance shall send to the Cash Bonding Agent the approved affidavit that the Cash Bonding Agent must have every court clerk in any district, county, or municipal court in which the Cash Bonding Agent posted bail bonds attest that there exists no bail bond liability in said court for that agent.

3. Upon receipt of all executed affidavits by the respective court clerks, the Division of Insurance shall send to the Cash Bonding Agent a settlement agreement, which the Cash Bonding Agent agrees that if any bail bond liability continues to exist notwithstanding the execution of the affidavits, that said Cash Bonding Agent shall be liable and satisfy any such bail bond liability should it arise.

4. The settlement agreement will also require the Cash Bonding Agent to attest that all collateral that had been taken for any and all bonds posted under the qualification bond to which the Cash bonding Agent seeks to release, has been returned to all rightful defendants or third party indemnitor.

5. Upon receipt of the signed settlement agreement, and upon confirmation that all such other procedures have been satisfied, the Commissioner of Insurance, in her sole discretion, may order a release on the hold of the qualification bond.

B. Procedures for Release of Professional Cash Bail Agent Qualification Bond

If a Professional Cash Bail Agent requests release of the qualification bond, whether posted under Section 7.B.1., the following procedures must be satisfied:

1. The Professional Cash Bail Agent must submit in writing to the Division of Insurance a letter requesting that the qualification bond for said agent be released. The Professional Cash Bail Agent should submit with the letter of request the following information:

a. The date the Professional Cash Bail Agent’s license was no longer effective; and

b. Names of all Colorado courts, including district, county, or municipal, in which the Professional Cash Bail Agent posted bail bonds while licensed as a Professional Cash Bail Agent.

2. Upon receipt of the Professional Cash Bail Agent’s request for release, the Division of Insurance shall send to the Professional Cash Bail Agent the approved affidavit that the Professional Cash Bail Agent must have every court clerk in any district, county, or municipal court in which bail bonds were posted by that Professional Cash Bail Agent attest that there exists no bail bond liability in said court for that agent.

3.. Upon receipt of all executed affidavits by the respective court clerks, the Division of Insurance shall send to the Professional Cash Bail Agent a settlement agreement, which the Professional Cash Bail Agent agrees that if any bail bond liability continues to exist notwithstanding the execution of the affidavits, that said Professional Cash Bail Agent shall be liable and satisfy any such bail bond liability should it arise.

4. The settlement agreement will also require the Professional Cash Bail Agent to attest that all collateral that had been taken for any and all bonds posted under the qualification bond to which the Professional Cash Bail Agent seeks to release, has been returned to all rightful defendants or third party indemnitor

5. Upon receipt of the signed settlement agreement, and upon confirmation that all such other procedures have been satisfied, the Commissioner of Insurance, in her sole discretion, may order release on the hold of the qualification bond.

C. Procedure for Increase and Decrease for Professional Cash Bail Agent Qualification Bond.

1. If a Professional Cash Bail Agent wishes to write bail bonds in excess of $100,000, the Professional Cash Bail Agent must first submit the form prescribed by the Division of Insurance and attached hereto as Appendix IE and post an appropriate qualification bond with the Division of Insurance with the same requirements set forth in Sections 7.B.1. above. The Division of Insurance will process applications to change bond writing authority but, except at license renewal, the Division of Insurance will require the surrender of the Professional Cash Bail Agent’s license to amend the bond writing authority and require the payment of a processing fee which shall be established in Colorado Insurance Regulation 1-2-10.

2. To reduce the qualification bond, the Professional Cash Bail Agent must submit the form prescribed by the Division of Insurance and attached hereto as Appendix IE and shall satisfy the requirements set forth in Section 9.B. and must submit an affidavit on a form approved by the Division of Insurance, except that the affidavits attesting that no liability exists shall only need to be obtained from the court clerks for any district, county or municipal courts in which the Professional Cash Bail Agent posted a bail bond in excess of $100,000 affirming that the Professional Cash Bail Agent has no bonds outstanding which are greater than twice the amount of the reduced qualification bond.

3. Except at license renewal, the Division of Insurance will require the surrender of the Professional Cash Bail Agent’s license to amend the bond writing authority and require the payment of a processing fee. During the time in which the Professional Cash Bail agent’s license is surrendered, such agent shall have no authority to act as a duly licensed bail bonding agent until said license is returned to the agent by the Division of Insurance. Any activity the Professional Cash Bail Agent engages in for which licensure as a bail bonding agent is required during the time in which the license is surrendered may subject the Professional Cash Bail Agent to discipline as authorized by law.

Section 10 Severability

If any provision of this regulation or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of this regulation shall not be affected.

Section 11 Enforcement

A. The Commissioner of Insurance may suspend or revoke the license of any Cash Bonding Agent or Professional Cash Bail Agent who fails to submit the required information involving a qualification bond, or who falsifies documents relating to the qualification bond, or may take any other action or impose any other penalty against said agent as authorized by law.

B. Penalties Related to Reports and Taxes.

1. Any Cash Bonding Agent or Professional Cash Bail Agent failing or refusing to file a semiannual bail bond report in accordance with this regulation, or to pay taxes as specified in this regulation and § 10-3-209, C.R.S. for more than thirty days after the time specified, shall be liable for a penalty of up to one hundred dollars for each additional day of delinquency.

2. If the tax paid is less than the full amount prescribed, interest at the rate of one percent per month or fraction thereof on the unpaid amount shall be charged from the date on which payment was due to the date on which full payment is made, and a penalty of up to twenty-five percent of the unpaid amount may be assessed by the Commissioner of Insurance.

3. The Commissioner of Insurance may suspend the license of a delinquent Cash Bonding Agent or Professional Cash Bail Agent until such taxes and any penalty imposed are fully paid.

C. Noncompliance of any other provision of regulation may result, after proper notice and hearing, of any sanction as provided by law.

Section 12 Effective Date

This emergency regulation shall become effective December 3, 2009.

Section 13 History

Original Regulation effective November 1, 1997

Amended Regulation effective November 1, 1999

Amended Regulation effective October 1, 2009

Emergency Regulation 09-E-05 effective December 3, 2009

|[pic] |AFFIDAVIT |

| | |

| |CASH BONDING AGENT |

| |PROFESSIONAL CASH BAIL AGENT |

State of Colorado

County of _____________________ ss.

I, ________________________________________, being first duly sworn, state that this report, is a complete, true and correct

(typewritten name of bail bonding agent)

statement of my activities as a Bail Bonding Agent for the stated six-month period.

I understand that any false, incomplete or deceptive representation herein constitutes good and sufficient cause for revocation of my producer license by the Colorado Division of Insurance.

I authorize any person to disclose to the Colorado Division of Insurance any information regarding bail bonds written by me and collateral accepted by me.

|_______________________________________________________ |

|SIGNATURE OF BAIL BONDING AGENT |

| |

|_______________________________________________________ |

| |

|DATE |

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| | |SUMMARY |

|Subscribed and sworn to before me this | | |

| | | |

|_________day of _______________ _______________ | |Total dollar amount of bail written $__________ |

|(Year) | | |

| | |Total DOLLAR amount of fees charged $_________ |

|My Commission Expires: _________________________ | | |

| | |Total dollar amount of PREMIUM tax due $_______ |

|______________________________________________ | | |

|NOTARY PUBLIC | | |

Appendix I

REPORT MUST BE TYPEWRITTEN

CASH BONDING AGENT'S – PROFESSIONAL CASH BAIL AGENTS SEMIANNUAL REPORT

Must be furnished to the Commissioner of Insurance prior to January 31, and July 31 of each year.

This report is for the period of: JANUARY 1 through JUNE 30 OR JULY 1 through DECEMBER 31

Circle or Highlight Only One

|Full name of person for whom such bail|The date and amount of bond posted |Name and location of Court in |Fee charged for each bond |Collateral or Security received from |

|bonding agent posted surety |by bonding agent |which bond was posted |posted |principal or persons acting on behalf|

| | | | |of such principal on each bond |

|Name |Date |Amount |Name |Location |Fee Charged |Collateral |

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Appendix IA

|Full name of person for whom such bail|The date and amount of bond posted |Name and location of Court in |Fee charged for each bond |Collateral or Security received from |

|bonding agent posted surety |by bonding agent |which bond was posted |posted |principal or persons acting on behalf|

| | | | |of such principal on each bond |

|Name |Date |Amount |Name |Location |Fee Charged |Collateral |

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Appendix IB

|Full name of person for whom such bail|The date and amount of bond posted |Name and location of Court in |Fee charged for each bond |Collateral or Security received from |

|bonding agent posted surety |by bonding agent |which bond was posted |posted |principal or persons acting on behalf|

| | | | |of such principal on each bond |

|Name |Date |Amount |Name |Location |Fee Charged |Collateral |

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Appendix IC

cash bonding agent

Professional cash bail agent

qualification bond

The condition of this special deposit (“qualification bond”) is to guarantee that ______________________________ (“Principal”) shall well and truly make full and prompt

(Typewritten name of Principal)

payment of any bail bond issued by the Principal to the court ordering such bond forfeited. It is understood that the qualification bond shall be comprised of assets solely owned and in the name of the Principal and held solely in the legal name of the Principal and the Colorado Division of Insurance (“Division”) and Colorado Commissioner of Insurance (“Commissioner”), with a right of survivorship for the Division and Commissioner. It is understood that the qualification bond upon written demand or order by the Commissioner, shall be immediately declared the property of the State of Colorado and subject to immediate withdrawal by the proper Commissioner as required by law. This qualification bond must consist of assets, which may be immediately liquidated by the Division or Commissioner.

It is further understood that this qualification bond cannot be withdrawn or transferred by the Principal unless authorized first in writing by the Commissioner.

This qualification bond in the amount of $ ____________________________________________

(no less than fifty thousand dollars)

is identified as Account Number __________________________________________________

It is further understood and agreed that interest shall be paid to the Principal pursuant to the terms of the deposit agreement, unless the money is withdrawn before any regular interest period. However, no interest shall be paid to the Principal if the qualification bond has fallen below the bond amount set forth above, unless prior to said interest payment, the Principal has deposited sufficient additional funds to return the qualification bond to the bond amount set forth above, as required by §§ 12-7-103(3)(a), (3)(b), (8)(a), and (8)(b), C.R.S., as amended. If the Principal fails to deposit such additional funds to the qualification bond, the amount of the remaining deposit plus any accumulated interest, the total of which does not exceed the bond amount above, shall be considered to be the property of the State of Colorado and subject to withdrawal by the Commissioner as set forth in the first paragraph herein.

| |_____________________________________________ |

| |Name of bank |

| |_____________________________________________ |

| |_____________________________________________ |

|(seAL) |Bank Address |

| |_____________________________________________ |

| |Phone Number |

| | |

| |_____________________________________________ |

| |Signature of OFFICER of the bank |

| |_____________________________________________ |

| |name and title Of officer |

subscribed and sworn to before me this ___________ day of _______________________,

________.

____________________________________ _____________________________________

MY commission expires notary public

| | |

| | |

| |_____________________________________________ |

| |signature of principal |

subscribed and sworn to before me this ___________ day of _______________________, _________.

_____________________________________ _____________________________________

MY commission expires notary public

Apendix ID

Bond Amount Change form

Professional Cash Bond WRITING authority

• Your current Insurance Producer Bail Bonding License must be surrendered at the time this form is presented with the new bond. It will take 8-10 days processing time.

• Bond amount changes must be in increments of $10,000 up to $1,000,000.

• Fee of $50 must be attached to this form. Make check made payable to PearsonVue/Division of Insurance.

• Mail Qualification Bond, Bond Amount Change Form and $50 fee to:

PearsonVue

3131 South Vaughn Way, Suite 205

aurora, Co 80014

Name ________________________________________________________

SOCIAL security # _________________________

license # _________________________

Current bond deposit $______________________________

new bond deposit $______________________________

BOND INCREASE

I understand that my new professional cash bond writing authority will be limited to twice the amount of my new deposit with the Division of Insurance.

I HAVE SUBMITTED ALL INFORMATION TO DEMONSTRATE THAT THE QUALIFICATION BOND INCREASE COMPLIES with the REQUIREMENTS OF COLORADO INSURANCE REGULATION 1-2-13, SECTION 7.B.1..

THE DIVISION of Insurance RESERVES THE RIGHT TO REJECT THE BOND INCREASE FORM AND DEPOSIT IF IT FAILS TO COMPLY WITH THE REQUIREMENTS OF COLORADO INSURANCE REGULATION 1-2-13, 7.B.1. OR THE PROFESSIONAL CASH BAIL AGENT HAS FAILED TO SUBMIT INFORMATION THAT ALLOWS THE DIVISION of insurance TO ADEQUATELY ASSESS WHETHER THE BOND DEPOSIT IS IN COMPLIANCE.

_______________________ __________________________________________________________

Date Signature

Bond DECREASE

I affirm there are no outstanding Professional Cash Bail bonds posted by me which exceed twice the amount of $______________________________________________.

(enter new deposit amount).

attached are certified copies of EXONERATION’S for all professional cash bail bonds posted by me which exceed twice the new deposit amount IN ACCORDANCE WITH THE REQUIREMENTS OF COLORADO INSURANCE REGULATION 1-2-13, SECTION 9.

I understand that my new professional cash bond writing authority will be limited to twice the amount of MY DECREASED deposit with the Division of Insurance, WHICH IS $____________________________________________

(eNTER EXISTING DEPOSIT AMOUNT)

_______________________ __________________________________________________________

Date Signature

Appendix IE

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