Bail Bond Agent Conduct

COMMISSIONER OF SECURITIES & INSURANCE

MONICA J. LINDEEN

COMMISSIONER


OFFICE OF THE MONTANA

STATE AUDITOR

# ADVISORY MEMORANDUM

To: All Bail Bond Agents

From: MONICA J. LINDEEN – Commissioner of Securities and Insurance,

Montana State Auditor

Date: January 24, 2013

Monica J. Lindeen

# BAIL BOND AGENT CONDUCT

The Office of the Commissioner of Securities and Insurance, Montana State Auditor

(CSI), has received a significant number of complaints relating to bail bond agents in

recent months. Many of the complaints center around bail bond agent's direct

solicitation in and around courthouse or jail property, bond revocation, and arrests made

for failure to pay on payment agreements. Additionally, the CSI has received reports

that bail bond agents have obtained inmate information from jail websites and have

made misrepresentations to jail personnel relating to contact from prisoners or their

families. Further, complaints have been made alleging that bail bond agents have

required people to wear ankle bracelets when the same was not a condition of release.

Bail bond agents are licensed insurance producers and are expected by the CSI to

conduct themselves accordingly. Bail bond agents are expected to comply with the

Montana Insurance Code, Mont. Code Ann. § 33-1-101, et seq. (Code).

Defendants may only be surrendered by a surety as set forth in Mont. Code Ann. §§ 46-

9-503, 46-9-510.

Phone: 1-800-332-6148 / (406) 444-2040 / Main Fax: (406) 444-3497

Securities Fax: (406) 444-5558 / PHS Fax: (406) 444-1980 / Legal Fax: (406) 444-3499

840 Helena Ave., Helena MT 59601 Website: www.csi.mt.gov E-Mail: csi@mt.gov

The Code prohibits trade practices that are an unfair method of competition or deceptive act or practice in the business of insurance. Mont. Code Ann. § 33-18-102.

-510.

Phone: 1-800-332-6148 / (406) 444-2040 / Main Fax: (406) 444-3497

Securities Fax: (406) 444-5558 / PHS Fax: (406) 444-1980 / Legal Fax: (406) 444-3499

840 Helena Ave., Helena MT 59601 Website: www.csi.mt.gov E-Mail: csi@mt.gov

The Code prohibits trade practices that are an unfair method of competition or deceptive act or practice in the business of insurance. Mont. Code Ann. § 33-18-102.

Additionally, the Commissioner may suspend, revoke, refuse to renew, or refuse to issue an insurance producer's license and/or may levy a civil penalty up to $5,000 for each violation of the Code when an insurance producer "in the conduct of the affairs under the license, used fraudulent, coercive, or dishonest practices or . . . is incompetent, untrustworthy, financially irresponsible, or a source of injury and loss to the public." Mont. Code Ann. § 33-17-1001.

The CSI takes alleged violations of the Code very seriously and will take appropriate legal action when it determines that violations of the Code have occurred, including fining, suspending, or revoking the licenses of violators.

If you have any questions, please call the CSI Legal Bureau at (406) 444-2040.