AK Bail Bond flashcards
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32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Bail bond defined
- A three-party surety undertaking in which the insurer guarantees the defendant's appearance in court and becomes liable for the penal sum if the defendant fails to appear.
- Penal sum
- The maximum amount the surety can be required to pay under a bail bond, typically the full bond amount set by the court.
- Exoneration
- The discharge of the surety's obligation on a bail bond, occurring on performance, surrender, or court order, ending further liability.
- Bond forfeiture
- A court declaration that the surety owes the bond amount because the defendant failed to appear, subject to statutory cure periods and possible remission.
- Limited lines license
- A producer license authorizing only a restricted category of insurance, such as bail bonds, without full property and casualty authority.
- Insurer appointment
- The insurer's filed authorization for a licensed producer to act on its behalf; the agent may transact business for that insurer only while appointed.
- Continuing education
- Required periodic coursework in bail bond or insurance topics that a licensee must complete to renew an active license.
- Unlicensed activity
- Soliciting, negotiating, or transacting bail bond business without an active license and appointment, which is prohibited and subject to penalties.
- Indemnity agreement
- A contract in which the defendant and indemnitor agree to reimburse the surety for losses, costs, and expenses arising from the bond.
- Collateral receipt
- A written acknowledgment identifying the collateral deposited, the bond secured, the depositor, and the conditions under which it will be returned.
- Bond premium
- The nonrefundable charge for issuing the bond, set by filed rate, compensating the surety for assuming appearance risk.
- Real property collateral
- Land or buildings pledged to secure a bond, requiring title review, valuation, and a recorded lien or deed of trust to perfect the interest.
- Surety vs. insurance
- Surety involves a three-party guarantee of another's performance, while ordinary insurance is a two-party transfer of the insured's own loss risk.
- Right of indemnity
- The surety's legal right to recover from the defendant and indemnitor amounts paid on the bond plus related costs and expenses.
- Underwriting risk factors
- Characteristics such as prior failures to appear, charge severity, residence stability, and employment that predict the likelihood of nonappearance.
- Surrender of defendant
- Returning the defendant to court custody by the surety to limit exposure and seek release from liability on the bond.
- Failure to appear risk
- The probability a defendant will miss a required court date, assessed from prior FTAs, community ties, and charge severity.
- Indemnitor screening
- Evaluation of a proposed indemnitor's income, assets, debts, and willingness to sign, confirming capacity to back the bond.
- Intake documentation
- The collected identity, contact, employment, charge, and court information recorded at application and used to support the underwriting decision.
- Protective factors
- Stable local residence, steady employment, family ties, and prior court compliance that reduce a defendant's assessed flight risk.
- Notice of forfeiture
- The court's notice that the bond is forfeited, starting the statutory period for the surety to produce the defendant or move to set aside.
- Motion to set aside
- A request asking the court to vacate a forfeiture, typically on grounds of the defendant's appearance or lack of fault by the surety.
- Remission
- The court's reduction or cancellation of a forfeited bond amount, which may be full or partial based on the surety's showing.
- Bond discharge on performance
- When the defendant appears as required and the case concludes, the court exonerates the bond and the surety's liability ends.
- Fiduciary duty
- The obligation to hold premium and collateral in trust, account for them accurately, and never commingle or convert those funds.
- Rebating
- Returning part of the premium or giving value to induce a bond purchase, a prohibited inducement practice under insurance regulation.
- Commingling
- Mixing trust funds such as collateral or premium with the agent's personal or business funds, which is prohibited.
- Unauthorized fees
- Charges beyond the filed premium rate or approved fees, which constitute a prohibited practice and grounds for discipline.
- Bond register
- A log recording each bond's number, defendant, court, penal sum, premium, collateral, posting date, and final disposition.
- Trust account reconciliation
- The periodic process of matching trust account balances to amounts owed to defendants, indemnitors, and sureties, documenting any differences.
- Record retention period
- The length of time Alaska regulation and court rules require bond, premium, and collateral records to be kept and produced on request.
- Material event reporting
- The licensee's duty to notify the Division of Insurance of significant changes such as address changes, administrative actions, or appointment terminations.