NH 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 contract parties
- The defendant (principal) promises appearance, the surety guarantees the penal sum, and the court is the obligee entitled to enforce the bond.
- Penal sum
- The maximum amount the surety may owe the court if the defendant fails to appear; it is set by the court or bond schedule.
- Premium earning
- The bail premium is generally fully earned when the bond is executed and is not refunded if the defendant is later released or exonerated.
- Indemnity agreement
- A contract in which the indemnitor agrees to reimburse the surety for the full bond amount and recovery costs if the defendant fails to appear.
- Exoneration
- The court's discharge of the surety from liability on the bond, typically after acquittal, dismissal, sentencing, or surrender of the principal.
- Forfeiture
- A court declaration that the bond is forfeited because the principal failed to appear, creating liability for the penal sum unless set aside.
- Motion to set aside
- A request asking the court to vacate a forfeiture for good cause, such as incarceration, illness, or lack of proper notice.
- Surrender of principal
- Delivery of the defendant to the court or jail with written notice, which discharges the surety's liability on the bond.
- Bond revocation
- The surety's written request to the court to cancel the bond and return the principal to custody, usually for changed risk conditions.
- Power of attorney
- The written authority from the surety permitting the agent to execute bonds up to a stated limit and class.
- Fiduciary duty
- The agent's obligation to act loyally and honestly for the surety and clients, accounting for all premiums and collateral.
- Premium trust account
- A segregated account holding premium and collateral funds belonging to others; commingling with operating funds is prohibited.
- Collateral register
- A written record listing each item of collateral, its value, the bond secured, and the conditions for its return.
- Record retention
- Bond records, premium reports, and collateral documents must be kept for the statutory period, generally at least five years.
- NHID
- The New Hampshire Insurance Department, which licenses bail bond producers, examines records, and imposes discipline for violations.
- Limited lines license
- A producer license restricted to specific insurance lines, such as bail bonds, requiring insurer appointment before writing business.
- Continuing education
- Required credit hours completed before license renewal to maintain competence and keep the bail bond license active.
- Unlicensed practice
- Executing bonds, soliciting bail business, or receiving compensation without a valid license, which is a criminal offense.
- Appointment
- The surety's formal notification to the insurance department authorizing the agent to act on its behalf.
- Underwriting factors
- Charge severity, prior failures to appear, community ties, employment, substance abuse history, and indemnitor capacity.
- Failure to appear risk
- The likelihood the defendant misses a court date; prior FTAs and out-of-state ties are strong predictors.
- Collateral valuation
- The process of establishing the market value of pledged assets, such as real property or vehicles, before acceptance.
- Indemnitor capacity
- An assessment of the indemnitor's income, assets, and credit to confirm they can cover the penal sum if forfeiture occurs.
- Re-underwriting trigger
- Events such as missed check-ins, new charges, or address changes that require the agent to reassess and document risk.
- Disclosure requirement
- Before signing, the agent must explain in writing the premium, fees, collateral terms, and consequences of nonappearance.
- Prohibited recovery tactics
- Threats, coercion, physical force, or impersonating law enforcement to recover a principal are prohibited and may be criminal.
- Collateral conversion
- Wrongfully withholding or using a client's collateral after exoneration, which exposes the agent to civil and licensing liability.
- Discrimination prohibition
- Bail services may not be denied or priced differently based on race, religion, sex, disability, or other protected characteristics.
- Bond filing
- Submission of the executed bond to the court; the surety becomes bound when the court accepts the bond.
- Appearance obligation
- The defendant's duty to appear at every scheduled court date and remain law-abiding while the bond is in force.
- Agency agreement
- The contract between agent and surety setting commission, remittance timing, bond limits, and indemnification terms.
- Periodic reporting
- Required submissions to the surety and insurance department documenting bond activity, premiums, and outstanding liability.