MT 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 undertaking in which a surety or agent promises the court that the defendant will appear, or the penal sum will be paid.
- Penal sum
- The maximum amount the surety may be required to pay if the defendant fails to appear; it is the face amount of the bond.
- Indemnity agreement
- A separate contract between the agent and the indemnitor that requires reimbursement of the bond amount, costs, and fees if the defendant fails to appear.
- Power of attorney
- The insurer's written authority allowing an agent to bind the surety on bonds, stating the agent's per-bond and aggregate limits.
- Filed premium rate
- The rate set by statute or filed with the regulator and applied to the penal sum; agents may not exceed or discount it.
- Nonrefundable premium
- Premium is earned when the bond is executed and is not returned on exoneration, rearrest, or surrender, absent a statutory exception.
- Collateral receipt
- A written acknowledgment stating the collateral received, its value, the bond it secures, and the conditions for its return.
- Trust accounting
- A requirement that client collateral and insurer premium be held in a separate account with a ledger by bond and indemnitor.
- Forfeiture order
- The court's order that the surety owes the penal sum because the defendant failed to appear, starting the statutory clock to contest.
- Motion to remit
- A request that the court reduce or set aside a forfeiture based on production of the defendant, diligence, or lack of prejudice.
- Exoneration
- Release of the surety from liability on the bond after the defendant performs all conditions, such as appearance, dismissal, or acquittal.
- Reinstatement
- Restoring a forfeited bond on production of the defendant and payment of a fee within the statutory period.
- Failure to appear
- The defendant's nonappearance at a required court proceeding, which is the event that triggers forfeiture of the bond.
- Surrender of defendant
- Delivery of the defendant to custody by the agent, which discharges the surety's liability when the court is notified.
- Fugitive recovery
- Locating and apprehending a defendant who has fled, under statutory authority and subject to force and licensing limits.
- Bail enforcement license
- A separate state credential some jurisdictions require for agents who apprehend defendants, distinct from the bail bond license.
- Flight risk screening
- Assessment of community ties, prior FTAs, employment, and charge severity to decide whether to write a bond and what conditions to impose.
- Joint and several liability
- A rule making each indemnitor liable for the full obligation, not merely a proportional share, so the agent may collect from any one.
- Rebating prohibited
- Returning part of the premium or commission to a defendant or indemnitor as an inducement, which is an unfair trade practice.
- Unfair trade practice
- Deceptive or coercive conduct such as misstating cost, charging unauthorized fees, or threatening arrest to collect a debt.
- Required disclosures
- Written statements of premium, fees, collateral, bond conditions, and consequences of nonappearance given to the indemnitor at execution.
- License renewal
- Periodic re-licensing on a set cycle with continuing education, fees, and updated financial and background information.
- Appointment filing
- The insurer's notice to the regulator authorizing the agent to write bonds; the agent may not write until it is effective.
- Production report
- A periodic report to the insurer listing each bond, penal sum, premium, and status, used to reconcile remittances.
- Continuing education
- Required hours per renewal period set by statute or rule, often including ethics or bail-specific coursework.
- Grounds for discipline
- Statutory violations such as misrepresentation, conversion of collateral, unauthorized writing, and rate deviation that support fines, suspension, or revocation.
- Administrative hearing
- The proceeding before the licensing authority where the licensee may contest a denial, suspension, or revocation before sanctions take effect.
- Record retention
- The statutory period during which bond files, receipts, and accounting records must be kept and made available for inspection.
- Conflict of interest
- A dual role such as agent and indemnitor or recovery agent that must be disclosed and documented to avoid self-dealing.
- Cease-and-desist order
- A regulator's order stopping unlicensed or prohibited bond writing, enforceable in court without a full hearing in many states.
- Bond exoneration order
- The court's written release of the surety and the collateral after performance of the bond conditions, which the agent should obtain.
- Collateral conversion
- Using client collateral for business expenses or failing to return it, which is a crime in many states and grounds for revocation.