Collateral, Premiums, Fees, and Fiduciary Handling of Funds
What this domain tests
Collateral, premiums, fees, and fiduciary duties: how much an agent may charge, how money and collateral are held, and when they must be returned.
Core rules
- Nevada caps bail bond premium at 15% of the bond amount. An agent may not charge more, and may not rebate premium or share it unlawfully to induce business.
- Additional fees must be disclosed and tied to actual services; undisclosed or inflated fees are a violation.
- Collateral must be receipted, described, and held in trust. The agent may not commingle collateral or premium funds with personal or operating funds.
- Upon exoneration, collateral must be returned within the statutory period-generally 30 days after final termination of liability-with an accounting. If collateral is sold or applied, the agent must document the disposition.
- Records of premiums, fees, collateral, and returns must be maintained and produced to the Commissioner on examination.
Worked example
A $10,000 bond at 15% yields a $1,500 premium. The agent adds a $150 “paperwork” fee and a $200 “court appearance” fee. If both are disclosed in writing and reflect actual services, they may be permissible; if they are simply extra compensation, they are unlawful. The agent must receipt $2,000 collateral, hold it in trust, and return it within 30 days after exoneration. Charging a 20% premium would be a clear violation regardless of disclosure.
Traps
Charging a “flat” 20% because the market does it; commingling collateral with premium; keeping collateral as a “service fee”; failing to return collateral after exoneration; not documenting partial returns; rebating to an indemnitor.