W. Va. Code R. § 114-103-8

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 114-103-8 - Financial Responsibility of Professional Bondsmen

8.1. Each professional bondsman acting as surety on bail bonds in this State shall, unless real estate is used as security, maintain a deposit of approved securities with and satisfactory to the Commissioner of a value of at least one-tenth the amount of all bonds or undertakings written in this State on which he or she is absolutely or conditionally liable as of the first day of the current month. The amount of this deposit must be reconciled with the bondsman's liabilities as of the first day of each month, but the value of said deposit shall in no event be less than $10,000. The Commissioner shall not be liable for any of the incurred liabilities of the professional bondsman in excess of the pledged security.

8.2. If a professional bondsman secures criminal bonds with real estate, the aggregate amount of the bonds written thereunder cannot exceed an amount equal to five times the unencumbered, current assessed value of the real estate listed (as determined by the county assessor). The Commissioner shall not be liable for any of the incurred liabilities of the professional bondsman in excess of the unencumbered, current assessed value of the real estate.

8.3. A professional bondsman may apply to the Commissioner to increase the limit of his or her aggregate authority in regard to the writing of bonds in this State above the limits set forth in subsections 8.1 and 8.2 of this rule without the need for maintaining additional security. The Commissioner will evaluate those requests on a case-by-case basis with consideration given to any special circumstances that apply, as well as the license history and financial responsibility of the bondsman making the request. A request may be granted on a temporary or permanent basis. Additionally, the Commissioner may, temporarily or permanently, decrease the limit of a professional bondsman's aggregate authority to write bonds below the limits set forth in subsections 8.1 and 8.2 of this rule if the bondsman has shown financial irresponsibility in the conduct of bonding business in this State. A professional bondsman may request a hearing pursuant to W. Va. Code §§ 33-2-12 and 33-2-13 upon any decision of the Commissioner to deny a request to increase the bondsman's aggregate authority or decrease the bondman's aggregate authority in regard to the writing of bonds in this State.

8.4. If two or more bondsmen join in the writing of a single bond, the penalty of the bond shall be prorated between the several bondsmen, either equally or on the same proportionate basis as the bondsmen participated in the writing of the bond.

8.5. With the approved securities deposited with the Commissioner, the professional bondsman shall at the same time deliver to the Commissioner a power of attorney or assignment on an approved form, as located at www.wvinsurance.gov, executed and acknowledged by the professional bondsman authorizing the sale or transfer of said securities or any part thereof.

8.6. Any professional bondsman, whose security deposits with the Commissioner are, for any reason, reduced in value below the requirements of this rule shall, within 10 working days, deposit such additional securities as are necessary to comply with the provisions of this rule or reduce the excess bond liability. No professional bondsman shall sign, endorse, execute, or become surety on any additional bail bonds, or pledge or deposit any cash, check, or other security of any nature in lieu of a bail bond in this State until the professional bondsman has cured the deficiency. If a bondsman does not cure the deficiency within 10 working days, the license of the bondsman shall be suspended pending a hearing on the matter.

8.7. The Commissioner may deny the renewal of any license held by a professional bondsman if, at the time of the renewal application, the professional bondsman has not complied with or cured a deficiency.

8.8. The deposit provided for in subsection 8.1 of this rule shall constitute a reserve available to meet sums due on forfeiture of any bonds executed by the bondsman. The deposit shall be held in safekeeping by the Commissioner and shall only be used if a bondsman fails to pay an order and judgment of forfeiture after being properly notified, or shall be used if the license of a professional bondsman has been revoked.

8.9. A pro rata portion of the securities shall be returned to the bondsman when the Commissioner is satisfied that the deposit of securities is in excess of the amount required to be maintained with the Commissioner by said bondsman, and all the securities shall be returned if the Commissioner is satisfied that the bondsman has satisfied, or satisfactory arrangements have been made to satisfy, the obligations of the bondsman on all the bondsman's bail bonds written in this State.

8.10. If a bondsman discontinues writing bonds due to death, permanent incapacitation, or some other circumstance that results in the bondsman returning the license issued, and the Commissioner is satisfied that no more bonds can be written against the bondsman's security deposit, the Commissioner shall return the portion of the security deposit in excess of that required to secure the bondsman's outstanding bond liability.

W. Va. Code R. § 114-103-8