The 12% Discount
Dario holds a Maryland bail bondsman license and a $100,000 power of attorney from a surety insurer. He has $85,000 in outstanding bail bonds. The family of a defendant held in Prince George's County on $40,000 bail offers him $4,800-12%-and asks him to give $300 back 'for gas' if they send him three more clients. Dario's cousin, who is not licensed, has been answering Dario's business phone, quoting premiums, and scheduling appointments; Dario promised him $50 for each signed indemnitor agreement. The family has $2,000 cash and a paid-off motorcycle worth about $5,000. Dario wants to write the bond today because the defendant has been in custody four days and has a job waiting. The surety's underwriting guide requires two years of employment history and no more than one prior failure to appear; the defendant has one prior FTA from 2022.
1. Identify each licensing or premium-law problem in Dario's plan and state the compliant premium.
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The premium cap is the first issue. Maryland limits the bail bond premium to 10% of the bail amount, so the lawful premium on a $40,000 bond is $4,000. The quoted $4,800 is $800 over the cap and cannot be justified as a filing or service fee unless a specific authorized charge applies and is disclosed in writing. The proposed $300 return is a rebate: it illegally gives back part of the premium to induce the purchase. Promising the cousin $50 per signed agreement is compensation to an unlicensed person for bail bond activity. Having the cousin quote premiums and schedule appointments may also constitute unlicensed bail bond business. Dario should quote $4,000, provide a written contract and receipt, and stop using the cousin unless the cousin is licensed and properly appointed.
2. Can Dario lawfully post the $40,000 bond under his current authority? Show the calculation and explain his options.
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No. His outstanding exposure plus the new bond would be $85,000 + $40,000 = $125,000, which exceeds his $100,000 power of attorney by $25,000. Posting over the power of attorney would bind the surety beyond the authority Dario actually holds and could expose Dario personally, trigger regulatory discipline, and give the court a defective bond. His options are to seek a written increase in the power of attorney from the surety, arrange a proper co-write with another licensed bondsman under an approved agreement, or decline the bond. Separately, the surety guide is exceeded because the defendant has one prior FTA and the guide allows no more than one, while the employment history is not verified. Dario needs an underwriting exception before posting, not after.
3. What should Dario do about the cousin and the family's collateral before any bond is written?
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Dario should immediately stop the cousin from quoting premiums, scheduling appointments, or otherwise transacting bail bond business. He should not pay the $50 referral fees, because compensation to an unlicensed person for producing bail bond business is prohibited. If the cousin is to have any role, Dario must first confirm licensing and appointment requirements with the Maryland Insurance Administration and the surety. For collateral, Dario should provide an itemized written receipt, verify the motorcycle's ownership and lien status, obtain a realistic valuation rather than accepting the family's estimate, and explain in writing how and when collateral will be returned. He should also give the indemnitor a copy of the premium agreement showing the $4,000 premium and the fact that it is earned when the bond is posted, then document the underwriting decision.