MI 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 Act citation
- Michigan's Bail Bond Act is Public Act 199 of 1973, codified in MCL 750.167b and related sections, governing bail bond agents and prohibited practices.
- Surety bond defined
- A three-party written undertaking in which the surety guarantees the defendant's appearance in court, with liability capped at the bond's face amount.
- Failure to appear
- When the defendant does not appear as required, the court may enter an order of forfeiture under MCL 765.26, making the surety liable for the bond amount.
- Surrender of principal
- Under MCL 765.28, the surety may arrest or surrender the defendant to the court before forfeiture to discharge its liability on the bond.
- Solicitation prohibition
- MCL 750.167b prohibits bail bond agents from soliciting business in or near a jail, courthouse, or police station; violation is a misdemeanor.
- DIFS authority
- The Michigan Department of Insurance and Financial Services licenses and regulates surety bail agents under the Insurance Code, MCL 500.1201 et seq.
- Producer license requirement
- A bail agent must hold a Michigan property and casualty producer license and be appointed by an authorized surety insurer before writing bonds.
- Continuing education hours
- Michigan resident producers must complete 24 credit hours every two years, including at least 3 hours of ethics, from DIFS-approved courses.
- License renewal cycle
- Michigan producer licenses renew every two years on the licensee's birth month; late renewal within 90 days incurs a penalty before lapse.
- Appointment filing
- An insurer must file a producer's appointment with DIFS; the producer may not act for the insurer until the appointment is effective.
- Contract required elements
- A bail bond contract must identify the defendant, court, case number, bond amount, premium, collateral, and consequences of failure to appear.
- Premium non-refundable
- The bail premium is earned when the bond is executed and is not refunded if the defendant appears, unless filed rates provide otherwise.
- Disclosure of surrender right
- The contract must disclose the surety's right to surrender the defendant and the conditions under which pledged collateral will be returned.
- Copy of bond required
- The agent must give the defendant or indemnitor a copy of the executed bond and a receipt at the time of signing.
- Indemnity agreement
- A contract in which the indemnitor agrees to reimburse the surety for losses, including forfeiture and costs of apprehending the defendant.
- Collateral types
- Acceptable collateral includes cash, real property, vehicles, and surety funds; real property requires a title search and lien recording.
- Collateral trust account
- Pledged collateral must be held in a segregated trust account and returned within a reasonable time after the bond is exonerated.
- Underwriting flight risk
- Underwriting assesses community ties, employment, residence, criminal history, and charge seriousness to estimate the defendant's risk of flight.
- Three-party surety contract
- A surety bond involves the surety (insurer), the obligee (court), and the principal (defendant), with the surety guaranteeing appearance.
- Exoneration defined
- Exoneration discharges the surety when the defendant appears as required, the case is dismissed, or the court releases the bond.
- Penal sum limit
- The surety's liability is limited to the bond's penal sum; fines and restitution are covered only if the bond expressly includes them.
- Co-surety arrangement
- When multiple insurers share a bond, risk is allocated among them; the agent must disclose the co-surety arrangement to the court.
- Intake verification
- Intake confirms the defendant's legal name, date of birth, address, charge, court, and case number before any bond is posted.
- Screening checks
- Screening includes criminal history, employment and residence verification, and identification of indemnitors who will pledge collateral.
- Posting confirmation
- The agent must confirm the court's bond amount and conditions before posting and file the bond with the clerk to obtain a receipt.
- Record retention
- The agent must keep intake, screening, posting, and remittance records for the period required by DIFS and the insurer.
- Forfeiture notice
- After a failure to appear, the court enters an order of forfeiture and gives the surety notice and an opportunity to contest.
- Motion to set aside
- The surety may move to set aside a forfeiture within the time set by the court, typically 28 days, by showing good cause.
- Remission of forfeiture
- Under MCL 765.28, the court may remit all or part of a forfeiture if the defendant is later produced or justice requires.
- Remittance to court
- If forfeiture stands, the surety must pay the penal sum plus statutory costs to the court clerk in the form the court requires.
- Kickback prohibition
- Bail agents may not pay or receive rebates, kickbacks, or referral fees for bail bond business; such payments violate Michigan insurance law.
- DIFS discipline
- DIFS may investigate and impose license suspension, revocation, or fines on agents who violate bail bond or insurance statutes.