Bond Writing, Surety Fundamentals, and Underwriting
The bond is a contract, and the number on it is your exposure
A bail bond is a three-party contract: the defendant (principal) promises to appear, the bondsman or insurer (surety) guarantees the promise, and the State (obligee) holds the guarantee. The face amount is the maximum the surety can be made to pay - not the fee, and not the amount the defendant owes the court.
Key mechanics: the premium is the agent's compensation, customarily 15% of the face amount in North Carolina, and it is earned when the bond is executed - it is not refunded because the case is dismissed, the defendant is acquitted, or the family changes its mind. The power of attorney defines the agent's authority: never write above the limit, never sign for an insurer you are not appointed by, and never alter a bond form.
Underwriting is the judgment call the exam loves to test. Before signing, evaluate the charge and its severity, community ties, employment and residence stability, prior failures to appear, substance-abuse history, and - critically - the quality of the indemnitor who will actually pay after a forfeiture. An indemnity agreement with someone who has no assets is worth nothing.
Traps: treating the fee as a refundable deposit; assuming the surety's liability ends automatically when the defendant is arrested on new charges; assuming the bond amount is the agent's profit.
Rule of thumb: if you would not lend the face amount to the indemnitor on a handshake, do not sign the bond.