The 1:00 P.M. Arraignment and the Two Prior FTAs
At 7:30 a.m., agent Priya receives a call from a defense attorney. His client Devon, 23, is in custody on a $100,000 surety bond for felony assault. Devon has two prior failures to appear on traffic matters, both within the last three years. He lives with his mother, who owns a home with about $40,000 equity but also a $12,000 credit-card judgment lien. Devon's girlfriend lives in Philadelphia; he says he will stay with her after release. He has a verified job offer starting in two weeks at a warehouse, no passport, and no prior felonies. The arraignment is at 1:00 p.m. Priya's surety has a rule against writing bonds for anyone with an FTA in the past 24 months without home-office approval. Priya has four hours, and the jail will not release Devon without a posted bond.
1. Identify the underwriting risk factors and explain how the surety's FTA rule applies.
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The two prior failures to appear are the central risk. Even though they were traffic matters, they show a pattern of missing court dates, and at least one appears to fall within the 24-month lookback in the surety's rule. That triggers mandatory home-office approval before Priya may post the bond. The planned move to Philadelphia with the girlfriend adds an out-of-state residence and monitoring problem. The felony assault charge increases the incentive to flee. The mother's $40,000 equity is partly offset by a $12,000 judgment lien, so the real collateral value is closer to $28,000 before costs. Positive factors are the verified job offer, no passport, no prior felonies, and a family residence. Priya should neither ignore the FTA rule nor treat these factors as an automatic decline; she should escalate for a documented decision.
2. What verifications and conditions should Priya require before posting?
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Priya should verify the dates and dispositions of both FTAs, confirm the warehouse job offer in writing, and verify the mother's deed, mortgage, and judgment lien. She should obtain a signed indemnity agreement from the mother and confirm that the mother understands she may owe the full bond amount if Devon fails to appear. If the surety approves, Priya should require Devon to live at his mother's address rather than with the girlfriend, report in person or by phone on a schedule, avoid out-of-state travel without written permission, and surrender any passport or travel documents. Collateral should reflect the equity after the lien, not the gross home value. Priya should document the approval, the conditions, and the premium and collateral receipts before posting.
3. If Priya declines, what should she do, and what should she avoid?
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Priya may decline if the surety does not approve or if the risk cannot be adequately secured. She should document the objective reasons, such as the recent FTA history, the out-of-state residence plan, and the insufficient unencumbered collateral, and notify the attorney promptly so the defense can seek another bond or a cash alternative. She should avoid basing the decision on any protected characteristic or on a vague statement that Devon 'seems like a flight risk.' She should also avoid posting the bond and then trying to withdraw unilaterally; once posted, the surety's obligations are governed by the bond and court rules. If any premium was collected but the bond was never posted, she should return it under the contract and insurer rules.