NY Bail Bond cheat sheet

New York Bail Bond Licensing, Application, and Regulatory Requirements (NY DFS)

• Bail bonds are written in New York by insurance companies and their licensed agents under Insurance Law Article 68; the superintendent of DFS regulates bail bond business through Regulation 27 (11 NYCRR Part 27) and related Insurance Law sections.

• A bail bond agent must hold a DFS-issued insurance agent license with the proper authority; an individual who solicits, negotiates, or executes bail bonds without a license commits a prohibited act and is subject to penalty under the Insurance Law.

• Insurers writing bail bonds must be authorized in New York, and the bond must be executed by a licensed agent acting under a company appointment; unappointed solicitation is a licensing violation.

• Licensing requires a completed application through DFS, fingerprinting/criminal history review, and satisfaction of the prelicensing education and examination requirements applicable to the license type; the exam is administered by DFS-approved testing vendors.

• Continuing education: licensed bail bond agents must complete DFS-approved CE hours each license term, including mandatory ethics and insurance law coursework; CE is not required for the license in the first term if the prelicensing course was completed within the preceding two years.

• License term is two years, expiring on the licensee's birthday; renewal must be filed with DFS with the required fee, and late renewal triggers a penalty and possible license lapse.

• Appointments: an insurer must file appointment of the agent with DFS; termination of appointment must be reported to DFS, and the agent may not continue to write bonds for that insurer after termination.

• Prohibited conduct includes rebating any part of the bond premium or fee, charging unauthorized fees, misrepresenting bond terms, and using a bail bond business to solicit legal referrals; violations may result in fines, license suspension or revocation, and referral for criminal prosecution.

• Recordkeeping: agents must maintain records of each bond executed, premiums and fees collected, and collateral held, and make them available to DFS examiners on request; collateral must be accounted for and returned as required by law.