(a) This subchapter governs the qualifications and procedures for the licensing of bail agents. This subchapter shall establish
the qualifications for granting licenses to professional bail agents, establish the procedures to be followed in determining
the initial and continuing qualifications for such persons, and provide standards for such persons' authorities, duties, responsibilities
and prohibitions in a manner that will provide guidance to such personnel and control over such personnel by the Commissioner
for the benefit and protection of the citizens of the State.
(b) Producer licensing is primarily governed by Chapter 17 of this title. In the event of a conflict between the provisions
of this subchapter and Chapter 17 of this title, the provisions of this subchapter shall govern unless expressly provided
otherwise.
76 Del. Laws, c. 394, § 2.;
§ 4332. Definitions.
(a) "Bail agent" or "licensee" means a person required to be licensed under the laws of this State to sell, solicit or negotiate
contracts of surety bail bond insurance and appointed by a surety insurer that is authorized to transact business in this
State to sell, solicit or negotiate contracts of surety bail bond insurance. The term "bail agent" shall also be deemed to
include the terms "bail bondsman", "bail bond agent", "bail bonding agent" or any other similar term or phrase intended to
mean a person or entity performing the function of issuing bail bonds in the State of Delaware. The term bail agent does not
include the term "bail enforcement agent" as the same is used in Chapter 55 of Title 24. A bail agent may also act as a property
bail agent.
(b) "Business entity" shall have the meaning ascribed to it in § 1702 of this title.
(c) "Commissioner" shall have the meaning ascribed to it in § 102 of this title.
(d) "Court" means any court of this State that has the power to set bail to enforce the appearance of a defendant in a criminal
proceeding.
(e) "Department" shall have the meaning ascribed to it in § 102 of this title.
(f) "Designated bail agent" means the licensed bail agent who is the head or manager of a bail agent business entity that
employs 1 or more licensed bail agents.
(g) "Home state" means the District of Columbia or any state or territory of the United States in which a bail agent maintains
that bail agent's principal place of residence or principal place of business and is licensed to act as a bail agent.
(h) "License" shall have the meaning ascribed to it in § 1702 of this title.
(i) "Negotiate" shall have the meaning ascribed to it in § 1702 of this title.
(j) "Nonresident bail agent" means any licensed bail agent whose principal place of business or residence is located in any
state or territory other than Delaware.
(k) "Person" shall have the meaning ascribed to it in § 1702 of this title.
(l) "Property bail agent" means any person who pledges United States currency, United States postal money orders or cashier's
checks or other property as security or surety for a bail bond in connection with a judicial proceeding and receives or is
promised therefor money or other things of value. Unless otherwise prohibited by this chapter, a bail agent or licensee under
this subchapter may also act as a property bail agent. A property bail agent who is not a licensee appointed by an insurer
under this chapter shall be obligated to pay any and all taxes, fees or the like for which any insurer would be obligated
under this title. A property bail agent who is not licensed as an insurance producer shall be subject to the jurisdiction
of the Department of Insurance and be obligated to meet all of the requirements of this subchapter and Chapter 17 of this
title insofar as they apply to bail agents.
(m) "Revocation" shall have the meaning ascribed to it in § 1702 of this title.
(n) "Sell" shall have the meaning ascribed to it in § 1702 of this title.
(o) "Solicit" shall have the meaning ascribed to it in § 1702 of this title.
(p) "Surety insurer" shall mean an insurer having a certificate of authority from the Department to issue surety contracts
or bonds to guarantee the performance of any person licensed under this subchapter.
(q) "Suspension" shall have the meaning ascribed to it in § 1702 of this title.
(r) "Termination" shall have the meaning ascribed to it in § 1702 of this title.
(s) "Uniform Application" shall have the meaning ascribed to it in § 1702 of this title.
(t) "Uniform Business Entity Application" shall have the meaning ascribed to it in § 1702 of this title.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, c. § 1; 77 Del. Laws, c. 2, §§ 1, 2.;
§ 4333. Application for license as bail agent and licensure; nonresident bail agent.
(a) A person applying for a bail agent producer license shall make application to the Commissioner on the Uniform Application
or on forms prescribed by the Commissioner for license types and lines of authority not available on the Uniform Application
and shall declare under penalty of denial, suspension or revocation of the license that the statements made in the application
are true, correct and complete to the best of the individual's knowledge and belief.
(b) Before approving the application, the Commissioner shall find that the individual:
(1) Is at least 18 years of age;
(2) Has not committed any act that is a ground for denial, suspension or revocation set forth in this chapter and § 1721 of
this title;
(3) Has paid the fees set forth in Chapter 7 of this title;
(4) Has successfully passed the examinations for the lines of authority for which the person has applied, unless specifically
exempted from such examination by this subchapter;
(5) Has identified a home state as a principal place of business;
(6) Has not been suspended or prohibited from acting as a bail agent by any court; and
(7) Has, in the case of a property bail agent, established that the individual is financially responsible pursuant to such
rules and regulations as may be established by the Commissioner and provided such surety bond or deposit in lieu thereof as
required by § 4336 of this title hereof.
(c) Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed
to have appointed the Commissioner as the agent for service of process on the applicant in any action or proceeding arising
in this State out of or in connection with the exercise of the license. Such appointment of the Commissioner as agent for
service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out
of transactions with respect to subjects of insurance in this State. Process shall be served upon the Commissioner or such
other person or persons as the Commissioner shall designate by rule or regulation.
(d) Each application shall further contain a statement of the applicant's criminal history, dated within 45 days of the application,
which the applicant shall obtain from the Delaware State Bureau of Identification pursuant to § 8513(a)(2) of Title 11.
(e) All premiums, return premiums or other funds received in any manner by a bail agent shall be held in a fiduciary capacity
and shall be accounted for by such bail agent.
(f) A nonresident person shall receive a nonresident bail agent license if:
(1) The person is currently licensed as a bail agent and in good standing in that person's home state;
(2) The person has submitted the proper request for licensure and has paid the fees required by Chapter 7 of this title;
(3) The person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to
that person's home state, or in lieu of the same, a completed Uniform Application or forms prescribed by the Commissioner
for license types and lines of authority not available on the Uniform Application; and
(4) The person's home state awards nonresident bail agent licenses to residents of this State on the same basis as this State.
(5) Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed
to have appointed the Commissioner as the agent for service of process on the applicant in any action or proceeding arising
in this State out of or in connection with the exercise of the license. Such appointment of the Commissioner as agent for
service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out
of transactions with respect to subjects of insurance in this State. Process shall be served upon the Commissioner or such
other person or persons as the Commissioner shall designate by rule or regulation.
(6) The Commissioner may verify the nonresident's licensing status through the Producer Database maintained by the National
Association of Insurance Commissioners, its affiliates or subsidiaries.
(7) A nonresident bail agent who moves from one state to another state or a resident bail agent who moves from this State
to another state shall file a change of address and provide certification from the new resident state within 30 days of the
change of legal residence for which no license fee or license application is required.
(8) As a condition to continuation of a nonresident bail agent license issued under this section, the licensee shall maintain
a resident bail agent license in that licensee's home state. The nonresident bail agent license issued under this section
shall terminate and be surrendered immediately to the Department if the home state bail agent license terminates for any reason,
unless the bail agent has been issued a license as a resident bail agent in that bail agent's new home state. Notification
of such change, including both the old and new address, to the Department must be made as soon as possible, but no later than
30 days after obtaining a new state resident license. A new state resident license is required for a nonresident license issued
by the Department to remain valid. The new state resident license must have reciprocity with this State in order for the nonresident
license not to terminate.
(g) Nothing contained in this subchapter or Chapter 17 of this title shall apply to any person who may pledge money or property
for no fee or remuneration directly with a court on behalf of a defendant under such rules or procedures as may be approved
by the court.
(h) The applicant for a bail agent license shall bear all costs associated with the application or any reapplication.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4334. Application for license as a business entity.
(a) A business entity advertising and acting as a bail agent is required to obtain a business entity insurance license. All
surety bail bond contract transactions under the business entity license must be completed by a licensed bail agent of this
State.
(b) Application for a business entity license shall be made using the Uniform Business Entity Application or on forms prescribed
by the Commissioner for license types and lines of authority not available on the Uniform Business Entity Application.
(c) Before approving the application, the Commissioner shall find that:
(1) The business entity has paid the fees set forth in Chapter 7 of this title; and
(2) The business entity has designated a licensed bail agent or producer licensed under Chapter 17 of this title responsible
for the business entity's compliance with the insurance laws, rules and regulations of this State.
(d) The Commissioner may require any documents reasonably necessary to verify the information contained in an application.
76 Del. Laws, c. 394, § 2.;
§ 4335. License renewal.
A person who is licensed as a bail agent shall renew the license in accordance with the same requirements established for
insurance producers under Chapters 7 and 17 of this title. In addition, such person shall be required to show that the person
has not been suspended or prohibited from acting as a bail agent by any court at the time of renewal.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4336. Bonds.
(a) At the time of the application for license as a bail agent, the applicant shall file with the Department a bond executed
and issued by a surety insurer authorized to transact business in the State in the minimum amount of $20,000, which bond shall
secure the faithful performance of the applicant's duties as a bail agent. A bail agent license shall be automatically suspended
if the bond is not in force or if the security referred to in subsection (c) of this section is impaired or unavailable to
the Department.
(b) The bond shall have the following characteristics:
(1) The bond must be conditioned upon a full accounting and payment to the person entitled thereto of money, property or other
matters coming into the licensee's possession through bail bond transactions under the license.
(2) The bond shall be in favor of the State and shall specifically authorize recovery by the Commissioner of the damages sustained
if the licensee violates any of the terms of the license or the applicable laws and regulations of this State.
(3) The aggregate liability of the surety for all damages shall not exceed the amount of the bond.
(4) The bond must remain in force until released by the Commissioner, or cancelled by the surety. The surety may cancel the
bond upon 30-days' written notice to the licensee and the Commissioner provided that the surety shall remain liable for any
obligation arising under the bond prior to the effective date of cancellation or termination.
(c) In lieu of a surety bond, an applicant for licensure or a licensee may assign or post cash, negotiable securities, irrevocable
letter or letters of credit or similar instruments under such terms as may be approved by the Department.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4337. Examination for license as bail agent.
(a) Any natural person who intends to apply for a license as a bail agent, must personally take and pass a written examination
of that person's competence to act as such. After passing the examination, the person may apply to the Commissioner for a
bail agent license.
(b) The scope of the examination shall encompass all aspects of the bail bond business as shall be determined by the Department.
(c) The Department may make arrangements for administration and grading by an independent testing service.
(d) Any individual who fails to appear for the examination as scheduled or fails to pass the examination may reapply for a
reexamination and remit all required fees and forms before being permitted to take the reexamination.
(e) All examination score reports are valid for a period of 12 months from the date of examination.
(f) A bail agent, whose license lapses and whose license is not suspended or revoked is exempt from retaking the examination
required by this section if the bail agent applies for and is reinstated within 12 months after the date of lapse. All fees
and fines associated with the lapsed and reinstated license must be paid in full prior to the Department's approval of the
request for reinstatement. However, a penalty of double the regular license fee shall be required for any renewal fee received
after the due date and within the first 6 months from the due date of the renewal fee. A licensee who does not pay within
6 months of the due date but pays prior to the expiration of 12 months from the due date shall be subject to a fine of not
less than $200 and not more than $1,000 prior to the reinstatement of the license.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4338. Issuance of license; notice of refusal to issue license; fees not refundable.
(a) Upon the Department's determination that the application is complete, the applicant has passed all required examinations
and is otherwise qualified for the license applied for, the Department shall thereupon issue the license.
(b) A bail agent license shall remain in effect:
(1) Unless revoked or suspended;
(2) As long as the fee set forth in Chapter 7 of this title is paid and educational requirements as established by law or
regulation for bail agents are met by the due date; and/or
(3) Unless the bail agent fails to procure or maintain in full force and effect a bond required by § 4336 of this title herein.
(c) If a bail agent fails to comply with subsection (b) of this section above, the Department shall, without a hearing, deem
the bail agent's license administratively lapsed until the requirements of subsection (b) of this section are met and the
bail agent has satisfied all monetary and/or educational obligations and costs necessary under § 1707(g) of this title to
restore the license, provided that such action is taken within 1 year of the date the license is administratively suspended.
After 1 year, the bail agent's license shall be deemed revoked and the bail agent would be required to reapply for licensure
under § 4333 of this title as a new applicant.
(d) If the applicant for a bail agent license fails to meet the requirements of this subchapter or any applicable regulation,
the Department shall refuse to issue the license and shall notify the applicant of such refusal stating the grounds for the
refusal. The notice of refusal shall constitute an order of the Commissioner as provided for in § 323 of this title.
(e) Any fees required to be paid pursuant to this subchapter are nonrefundable.
(f) The license shall contain the licensee's name, address, and personal identification number, and the date of issuance,
the lines of authority, the expiration date and any other information the Department deems necessary.
(g) Licensees shall inform the Department by any means approved by the Department of a change of address within 30 days of
the change. Failure to timely inform the Department of a change in legal name or address shall result in a penalty pursuant
to § 1712(d) of this title.
(h) The Commissioner may issue a new license for any lost, stolen or destroyed license issued pursuant to this chapter upon
written request from the licensee and payment of appropriate fees for such duplicate license.
76 Del. Laws, c. 394, § 2.;
§ 4339. Waiver of license fee.
A licensed bail agent who is unable to comply with license renewal procedures due to military service or some other extenuating
circumstance approved by the Commissioner may request a waiver of license fees and/or the extension of time to reinstate a
license under such procedures as may be established by the Department. The bail agent may also request a waiver of any examination
requirement or any other fine or sanction imposed for failure to comply with renewal procedures as a result of such military
service or approved extenuating circumstance.
76 Del. Laws, c. 394, § 2.;
§ 4340. Contractual services.
(a) In order to assist in the performance of the Department's duties, the Commissioner may contract with nongovernmental entities,
including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees,
to perform any ministerial functions, including the collection of fees, related to producer licensing that the Commissioner
and the nongovernmental entity may deem appropriate.
(b) The Commissioner may participate, in whole or in part, with the NAIC, or any affiliates or subsidiaries the NAIC oversees,
in a centralized producer license registry where bail agent licenses and appointments may be centrally or simultaneously affected
for all states that require a bail agent license and participate in such centralized producer license registry. If the Commissioner
finds that participation in such a centralized producer license registry is in the public interest, the Commissioner may adopt
by rule any uniform standards and procedures as necessary to participate in the registry including the central collection
of all fees for licenses or appointments that are processed through the registry.
76 Del. Laws, c. 394, § 2.;
§ 4341. Records.
The bail agent shall maintain at that bail agent's principal place of business the license issued by the Department, together
with such records as may be reasonably required by the Department. Such records shall show, for each policy or contract placed
or countersigned by or through the licensee, names of the insurers, insureds, policy number, expiration date thereof, premium
payable under the terms of the policy or contract, and such other information as the Department may, from time to time, require.
Records shall be retained and available for inspection by the Commissioner for a period of 3 years. The records shall be open
to examination by the Department at all times as provided for in Chapter 3 of this title.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4342. Appointment of bail agents.
(a) Each insurer appointing a bail agent shall file an appointment with the Department and pay the same appointment fee as
for producers under Chapter 17 of this title.
(b) Each appointment shall remain in effect until the bail agent's license is revoked or terminated, or the appointment is
terminated by the insurer.
76 Del. Laws, c. 394, § 2.;
§ 4343. Termination of appointment.
(a) An insurer may terminate an appointment at any time. The insurer shall promptly give written notice of termination and
the effective date thereof to the Department, on forms approved by the Department and to the bail agent if reasonably possible.
The Department may require the insurer to provide reasonable proof that the insurer has also given such a notice to the agent
unless there are valid reasons why such notice can or should not be given by the insurer.
(b) Accompanying each notice of termination given to the Department, the insurer shall file a statement of the cause, if any,
for the termination. Any information or documents so disclosed to the Department shall be deemed a confidential document,
disclosure of which shall be governed by the provisions of § 1716(f) of this title.
(c) No agreement between an insurer and a bail agent or between an employing bail agent and a licensed bail agent shall affect
the Department's termination of the appointment or license if the termination is requested by the insurer or the employing
bail agent.
(d) The Department shall notify the courts upon the termination, suspension or revocation of a bail license.
(e) A bail agent's license that is otherwise in good standing with the Department shall be immediately suspended and be subject
to revocation by the Department upon notice from a court that the bail agent has been struck from the list of approved bail
agents by the court or courts.
76 Del. Laws, c. 394, § 2.;
§ 4344. Bail agents and designated responsible bail agents: special requirements.
(a) A bail agent shall not concurrently be employed or licensed by more than 1 bail agent or bail agent business entity.
(b) The designated bail agent is responsible for the acts or omissions of the bail agents employed or operating under the
designated bail agent's authority only insofar as the bail agent is acting within the scope of that bail agent's employment
or authority.
(c) The bail agent shall maintain that bail agent's office with that of the designated bail agent by whom he or she is employed.
(d) The bail agent's license must remain in the custody of the designated bail agent by whom he or she is employed. Upon termination
of such employment as a bail agent, the designated bail agent shall give written notice of the reasons thereof to the Department.
(e), (f) [Repealed.]
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 2, § 3.;
§ 4345. Registration with the courts.
No bail agent may operate under a license from the Department unless the bail agent has registered with and been approved
by the courts of this State according to such rules and procedures as the courts shall have established. Nothing in this subchapter
shall limit the authority of the various courts of the State to regulate the manner in which bail agents conduct business
within the courts of the State, including, but not limited to, imposing sanctions for violations of any laws or administrative
rules established by the courts notwithstanding the fact that such bail agent may be duly licensed by the Department of Insurance.
76 Del. Laws, c. 394, § 2.;
§ 4346. Bail agent: place of business; display of licenses and fees charged; retention of records at place of business.
(a) Every resident bail agent shall have and maintain in this State a principal place of business accessible to the public.
The address of this principal place of business must appear upon the application for a license and upon the license, when
issued, and the licensee shall promptly notify the Department of any change in that address. This subsection does not prohibit
a licensee from conducting business from a residence in this State.
(b) The licenses of the designated bail agent, and of those bail agents employed or authorized by the designated bail agent,
and the fees charged for services rendered, must be conspicuously displayed in the principal place of business in a place
or area customarily open to the public.
(c) All records of the designated bail agent and those bail agents employed or authorized to operate under the designated
bail agent's auspices shall maintain all of their business records at the principal place of business identified in the license
issued by the Department.
(d) A nonresident bail agent is not required to maintain a place of business in this State but is otherwise subject to all
of the requirements and obligations imposed on resident bail agents under this subchapter with respect to the bail agent's
activities in this State.
76 Del. Laws, c. 394, § 2.;
§ 4347. Collections and charges permitted.
(a) Bail bond rates are subject to the provisions of Chapter 25 of this title.
(b) It is unlawful for a bail bond agent to execute a bail bond without charging a premium therefor, and the premium rate
may not exceed or be less than the premium rate as filed with and approved by the Department.
(c) It is unlawful for any bail agent to charge any administrative fee, service charge, company or agent fee or the like not
filed and approved pursuant to Chapter 25 of this title.
(d) The bond may contain provisions to reimburse the bail agent personally, or permit the bail agent to have a right of action
against the defendant or any indemnitor, for actual expenses incurred in good faith, by reason of breach by the defendant
of any of the terms of the written agreement under which and pursuant to which the undertaking of bail or bail bond was written.
If there is no written agreement, or an incomplete writing, the bail agent may seek enforcement of such legal or equitable
rights against the defendant and any of the defendant's indemnitors as may be permitted by law. Such reimbursement or right
of action may not exceed the principal sum of the bond or undertaking, plus any reasonable expenses that may be verified by
receipt in a total amount of not more than the principal sum of the bond or undertaking, incurred in good faith by the bail
agent, its agents, licensees and employees by reason of the defendant's breach.
(e) Property bail agents, in addition to the requirements set forth in this section, shall not be permitted to issue a bond
without first obtaining the approval of their charge or commission schedule from the Department. Likewise, any change or modification
to the approved charge or commission shall be submitted to the Department for approval prior to any use thereof. Property
bail agents shall be required to maintain a written disclosure statement approved by the Department, of their approved charges
or commissions and shall provide a copy of said written disclosure to every prospective client prior to accepting the payment
for the bond from the prospective client.
76 Del. Laws, c. 394, § 2.;
§ 4348. Collateral; limitations on transfer of collateral; fiduciary capacity; requirements for receiving title to real property
as collateral; written receipt for collateral.
(a) A bail agent may accept collateral or security in connection with a bail transaction if the collateral or security is
reasonable in relation to the face amount of the bond. The bail agent shall not transfer the collateral or security to any
person other than a bail agent licensed pursuant to this subchapter or to a surety insurer holding a valid certificate of
authority issued by the Department. The collateral shall not be transported or otherwise removed from this State.
(b) Any person who receives the collateral:
(1) Shall be deemed to hold the collateral in a fiduciary capacity to the same extent as a bail agent; and
(2) Shall retain, return and otherwise possess the collateral in accordance with the provisions of this subchapter.
(c) The collateral or security shall be received by the bail agent in a fiduciary capacity, and, until such time as there
is a default of appearance by the defendant and demand for a forfeiture of the bail, the collateral or security shall be kept
separate and apart from any other funds or assets of the licensee. Any collateral or security received by the bail agent shall
be returned to the person, or that person's assignee or designated representative, who deposited it with the bail agent as
soon as the obligation which was secured by the collateral or security, is discharged and all fees owed to the bail agent
have been paid. The bail agent or any surety insurer having custody of the collateral or security shall, immediately after
the bail agent or surety insurer receives a request for return of the collateral or security from the person who deposited
the collateral or security, determine whether the bail agent or surety insurer has received notice that the obligation is
discharged. If the collateral or security is deposited to secure the obligation of a bond, it must be returned immediately
after receipt of the request for return of the collateral or security and notice of the entry of any order by an authorized
official by virtue of which liability under the bond is terminated or upon payment of all fees owed to the bail agent, whichever
is later. A certified copy of the order from the court wherein the bail or undertaking was ordered exonerated shall be deemed
prima facie evidence of exoneration or termination of liability.
(d) When accepting real property as collateral for a bond, it shall be unlawful for a bail agent to require a transfer of
title to the real property as a condition of issuing a bail bond. The bail agent may require the defendant, or anyone agreeing
to post real property on the defendant's behalf, to provide such certifications as may be necessary to establish title and
unencumbered value, at the defendant's expense, together with the appropriate security documents that may be necessary to
establish a lien interest in the real property by the bail agent. It shall be unlawful for the bail agent to provide, directly
or indirectly, title or lien services to the defendant for a fee or to receive money or anything of value for a referral to
an independent person or entity for such service.
(e) When accepting personal property as collateral for a bond, a bail agent may not require a transfer of title to the personal
property as a condition of issuing a bail bond. The bail agent may require the defendant, or anyone agreeing to post personal
property on the defendant's behalf, at their expense, to provide such financing statements, motor vehicle titles with a lien
stamp or the like that may be necessary to establish a lien interest in the personal property by the bail agent. It shall
be unlawful for the bail agent to provide, directly or indirectly, title or lien services to the defendant for a fee or to
receive money or anything of value for a referral to an independent person or entity for such service.
(f) Upon release or exoneration of the bail obligation, the bail agent shall be required to provide such release documents
as may be required to discharge any lien of record obtained under subsections (d) and (e) of this section above. The bail
agent shall not charge any fee for such service but may require that the defendant pay any direct costs of document preparation
and filing fees.
(g) If the amount of any collateral received in a bail transaction exceeds the amount of any bail forfeited by the defendant
for whom the collateral was accepted, the bail agent or any surety insurer having custody of the collateral shall, immediately
after the bail is forfeited, return to the person who deposited the collateral the amount by which the collateral exceeds
the amount of the bail forfeited. Any collateral returned to a person pursuant to this subsection is subject to a claim for
fees, if any, owed to the bail agent returning the collateral.
(h) If a bail agent accepts collateral, that bail agent shall give a written numbered receipt for the collateral. The receipt
must include in detail a full account of the collateral received and a copy thereof provided to the principal and any indemnitor.
(i) When collateral security in excess of $5,000 cash or its equivalent is received by a bail bond agent, the entire amount
shall be immediately forwarded to the insurer. Such collateral security may be placed in an interest-bearing account to accrue
to the benefit of the person giving the collateral security, and the bail bond agent or insurer may not make any pecuniary
gain on the collateral security deposited. Any such account shall be in a depository office of a financial institution located
in this State. The insurer shall be liable for all collateral received. If the bail bond agent fails to return the collateral
to the indemnitor upon final termination of liability on the bond, the surety shall be liable for the collateral and shall
return the actual collateral to the indemnitor or, in the event that the surety cannot locate the collateral, the surety shall
pay the indemnitor pursuant to the provisions of this section.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4349. Notice to law-enforcement; bail enforcement agents.
(a) After a warrant has been issued for a defendant's failure to appear, a bail agent having knowledge of the whereabouts
of the defendant shall immediately notify the law-enforcement agency closest to the defendant's location of:
(1) The identity of the defendant;
(2) The identity of the bail agent;
(3) The location of the defendant where law-enforcement officers might be able to obtain custody of the defendant; and
(4) Whether the bail agent has retained a bail enforcement agent and/or notified a bail enforcement agent of the defendant's
location.
(b) A bail agent may employ the services of a bail enforcement agent or similar person under such terms as may be permissible
by law, regulation and/or court rule, the costs of which may be assessed to the indemnitor.
76 Del. Laws, c. 394, § 2.;
§ 4350. Prohibited acts; persons who may not be bail agents.
(a) A bail agent shall not:
(1) Suggest or advise the employment of or name for employment any particular attorney to represent the defendant.
(2) Solicit business in or about any place where prisoners are confined or in or about any court.
(3) Pay a fee or rebate or give or promise anything of value to any person in order to secure a settlement, compromise, remission
or reduction of the amount of any undertaking or bail bond.
(4) Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except for legal services actually
rendered.
(5) Pay a fee or rebate or give or promise anything of value to the defendant or anyone in the defendant's behalf.
(6) Participate in the capacity of an attorney at a trial or hearing of a person on whose bond that bail agent is surety,
except for the purposes of surrendering the defendant, making motions to set aside orders of bail forfeitures and motions
to exonerate bails and protecting that bail agent's financial interest in such a bond.
(b) The following persons may not be bail agents, and shall not, directly or indirectly, receive any benefits from the execution
of any bail bond:
(1) Jailers;
(2) Police officers;
(3) Any person acting in a judicial capacity, including but not limited to justices, judges, alderman, commissioners, clerks,
etc.;
(4) Sheriffs, deputy sheriffs and constables;
(5) Attorneys or persons employed in an attorney's office;
(6) Any person having the power to arrest or having anything to do with the control of federal, state, county or municipal
prisoners; and
(7) Prisoners incarcerated in any jail, prison or any other place used for the incarceration of persons.
(c) A bail agent shall not sign or countersign in blank any bond, or give the power of attorney to, or otherwise authorize,
anyone to countersign that bail agent's name to bonds unless the person so authorized is a licensed bail agent directly employed
by the agent giving the power of attorney.
(d) A bail agent, shall not advertise or hold himself or herself out to be a surety insurance company.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4351. Justification of suretyship.
A bail agent shall justify that bail agent's suretyship by attaching a copy of the power of attorney issued to that bail agent
by the surety insurer to each bond.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4352. Reporting of actions.
(a) A bail agent shall report to the Department any administrative action taken against the bail agent in another jurisdiction
or by another governmental agency in this State within 30 days of the final disposition of the matter. This report shall include
a copy of the order, consent to order or other relevant legal documents.
(b) Within 30 days of the initial pretrial hearing date, a bail agent shall report to the Department any criminal prosecution
of the bail agent taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting
from the hearing, and any other relevant legal documents.
76 Del. Laws, c. 394, § 2.;
§ 4353. Regulations.
The Commissioner may promulgate such regulations as are necessary or proper to carry out the purposes of this subchapter.
76 Del. Laws, c. 394, § 2.;
§ 4354. Enforcement after license lapses or is surrendered.
The Commissioner shall retain authority to enforce the provisions of, and impose any penalty or remedy authorized by, this
subchapter and title against any person who is under investigation for, or charged with, a violation of this chapter and title
even if, while the investigation or charges are pending, such person's license or registration is surrendered or lapses by
operation of law.
(a) This subchapter governs the qualifications and procedures for the licensing of bail agents. This subchapter shall establish
the qualifications for granting licenses to professional bail agents, establish the procedures to be followed in determining
the initial and continuing qualifications for such persons, and provide standards for such persons' authorities, duties, responsibilities
and prohibitions in a manner that will provide guidance to such personnel and control over such personnel by the Commissioner
for the benefit and protection of the citizens of the State.
(b) Producer licensing is primarily governed by Chapter 17 of this title. In the event of a conflict between the provisions
of this subchapter and Chapter 17 of this title, the provisions of this subchapter shall govern unless expressly provided
otherwise.
76 Del. Laws, c. 394, § 2.;
§ 4332. Definitions.
(a) "Bail agent" or "licensee" means a person required to be licensed under the laws of this State to sell, solicit or negotiate
contracts of surety bail bond insurance and appointed by a surety insurer that is authorized to transact business in this
State to sell, solicit or negotiate contracts of surety bail bond insurance. The term "bail agent" shall also be deemed to
include the terms "bail bondsman", "bail bond agent", "bail bonding agent" or any other similar term or phrase intended to
mean a person or entity performing the function of issuing bail bonds in the State of Delaware. The term bail agent does not
include the term "bail enforcement agent" as the same is used in Chapter 55 of Title 24. A bail agent may also act as a property
bail agent.
(b) "Business entity" shall have the meaning ascribed to it in § 1702 of this title.
(c) "Commissioner" shall have the meaning ascribed to it in § 102 of this title.
(d) "Court" means any court of this State that has the power to set bail to enforce the appearance of a defendant in a criminal
proceeding.
(e) "Department" shall have the meaning ascribed to it in § 102 of this title.
(f) "Designated bail agent" means the licensed bail agent who is the head or manager of a bail agent business entity that
employs 1 or more licensed bail agents.
(g) "Home state" means the District of Columbia or any state or territory of the United States in which a bail agent maintains
that bail agent's principal place of residence or principal place of business and is licensed to act as a bail agent.
(h) "License" shall have the meaning ascribed to it in § 1702 of this title.
(i) "Negotiate" shall have the meaning ascribed to it in § 1702 of this title.
(j) "Nonresident bail agent" means any licensed bail agent whose principal place of business or residence is located in any
state or territory other than Delaware.
(k) "Person" shall have the meaning ascribed to it in § 1702 of this title.
(l) "Property bail agent" means any person who pledges United States currency, United States postal money orders or cashier's
checks or other property as security or surety for a bail bond in connection with a judicial proceeding and receives or is
promised therefor money or other things of value. Unless otherwise prohibited by this chapter, a bail agent or licensee under
this subchapter may also act as a property bail agent. A property bail agent who is not a licensee appointed by an insurer
under this chapter shall be obligated to pay any and all taxes, fees or the like for which any insurer would be obligated
under this title. A property bail agent who is not licensed as an insurance producer shall be subject to the jurisdiction
of the Department of Insurance and be obligated to meet all of the requirements of this subchapter and Chapter 17 of this
title insofar as they apply to bail agents.
(m) "Revocation" shall have the meaning ascribed to it in § 1702 of this title.
(n) "Sell" shall have the meaning ascribed to it in § 1702 of this title.
(o) "Solicit" shall have the meaning ascribed to it in § 1702 of this title.
(p) "Surety insurer" shall mean an insurer having a certificate of authority from the Department to issue surety contracts
or bonds to guarantee the performance of any person licensed under this subchapter.
(q) "Suspension" shall have the meaning ascribed to it in § 1702 of this title.
(r) "Termination" shall have the meaning ascribed to it in § 1702 of this title.
(s) "Uniform Application" shall have the meaning ascribed to it in § 1702 of this title.
(t) "Uniform Business Entity Application" shall have the meaning ascribed to it in § 1702 of this title.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, c. § 1; 77 Del. Laws, c. 2, §§ 1, 2.;
§ 4333. Application for license as bail agent and licensure; nonresident bail agent.
(a) A person applying for a bail agent producer license shall make application to the Commissioner on the Uniform Application
or on forms prescribed by the Commissioner for license types and lines of authority not available on the Uniform Application
and shall declare under penalty of denial, suspension or revocation of the license that the statements made in the application
are true, correct and complete to the best of the individual's knowledge and belief.
(b) Before approving the application, the Commissioner shall find that the individual:
(1) Is at least 18 years of age;
(2) Has not committed any act that is a ground for denial, suspension or revocation set forth in this chapter and § 1721 of
this title;
(3) Has paid the fees set forth in Chapter 7 of this title;
(4) Has successfully passed the examinations for the lines of authority for which the person has applied, unless specifically
exempted from such examination by this subchapter;
(5) Has identified a home state as a principal place of business;
(6) Has not been suspended or prohibited from acting as a bail agent by any court; and
(7) Has, in the case of a property bail agent, established that the individual is financially responsible pursuant to such
rules and regulations as may be established by the Commissioner and provided such surety bond or deposit in lieu thereof as
required by § 4336 of this title hereof.
(c) Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed
to have appointed the Commissioner as the agent for service of process on the applicant in any action or proceeding arising
in this State out of or in connection with the exercise of the license. Such appointment of the Commissioner as agent for
service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out
of transactions with respect to subjects of insurance in this State. Process shall be served upon the Commissioner or such
other person or persons as the Commissioner shall designate by rule or regulation.
(d) Each application shall further contain a statement of the applicant's criminal history, dated within 45 days of the application,
which the applicant shall obtain from the Delaware State Bureau of Identification pursuant to § 8513(a)(2) of Title 11.
(e) All premiums, return premiums or other funds received in any manner by a bail agent shall be held in a fiduciary capacity
and shall be accounted for by such bail agent.
(f) A nonresident person shall receive a nonresident bail agent license if:
(1) The person is currently licensed as a bail agent and in good standing in that person's home state;
(2) The person has submitted the proper request for licensure and has paid the fees required by Chapter 7 of this title;
(3) The person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to
that person's home state, or in lieu of the same, a completed Uniform Application or forms prescribed by the Commissioner
for license types and lines of authority not available on the Uniform Application; and
(4) The person's home state awards nonresident bail agent licenses to residents of this State on the same basis as this State.
(5) Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed
to have appointed the Commissioner as the agent for service of process on the applicant in any action or proceeding arising
in this State out of or in connection with the exercise of the license. Such appointment of the Commissioner as agent for
service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out
of transactions with respect to subjects of insurance in this State. Process shall be served upon the Commissioner or such
other person or persons as the Commissioner shall designate by rule or regulation.
(6) The Commissioner may verify the nonresident's licensing status through the Producer Database maintained by the National
Association of Insurance Commissioners, its affiliates or subsidiaries.
(7) A nonresident bail agent who moves from one state to another state or a resident bail agent who moves from this State
to another state shall file a change of address and provide certification from the new resident state within 30 days of the
change of legal residence for which no license fee or license application is required.
(8) As a condition to continuation of a nonresident bail agent license issued under this section, the licensee shall maintain
a resident bail agent license in that licensee's home state. The nonresident bail agent license issued under this section
shall terminate and be surrendered immediately to the Department if the home state bail agent license terminates for any reason,
unless the bail agent has been issued a license as a resident bail agent in that bail agent's new home state. Notification
of such change, including both the old and new address, to the Department must be made as soon as possible, but no later than
30 days after obtaining a new state resident license. A new state resident license is required for a nonresident license issued
by the Department to remain valid. The new state resident license must have reciprocity with this State in order for the nonresident
license not to terminate.
(g) Nothing contained in this subchapter or Chapter 17 of this title shall apply to any person who may pledge money or property
for no fee or remuneration directly with a court on behalf of a defendant under such rules or procedures as may be approved
by the court.
(h) The applicant for a bail agent license shall bear all costs associated with the application or any reapplication.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4334. Application for license as a business entity.
(a) A business entity advertising and acting as a bail agent is required to obtain a business entity insurance license. All
surety bail bond contract transactions under the business entity license must be completed by a licensed bail agent of this
State.
(b) Application for a business entity license shall be made using the Uniform Business Entity Application or on forms prescribed
by the Commissioner for license types and lines of authority not available on the Uniform Business Entity Application.
(c) Before approving the application, the Commissioner shall find that:
(1) The business entity has paid the fees set forth in Chapter 7 of this title; and
(2) The business entity has designated a licensed bail agent or producer licensed under Chapter 17 of this title responsible
for the business entity's compliance with the insurance laws, rules and regulations of this State.
(d) The Commissioner may require any documents reasonably necessary to verify the information contained in an application.
76 Del. Laws, c. 394, § 2.;
§ 4335. License renewal.
A person who is licensed as a bail agent shall renew the license in accordance with the same requirements established for
insurance producers under Chapters 7 and 17 of this title. In addition, such person shall be required to show that the person
has not been suspended or prohibited from acting as a bail agent by any court at the time of renewal.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4336. Bonds.
(a) At the time of the application for license as a bail agent, the applicant shall file with the Department a bond executed
and issued by a surety insurer authorized to transact business in the State in the minimum amount of $20,000, which bond shall
secure the faithful performance of the applicant's duties as a bail agent. A bail agent license shall be automatically suspended
if the bond is not in force or if the security referred to in subsection (c) of this section is impaired or unavailable to
the Department.
(b) The bond shall have the following characteristics:
(1) The bond must be conditioned upon a full accounting and payment to the person entitled thereto of money, property or other
matters coming into the licensee's possession through bail bond transactions under the license.
(2) The bond shall be in favor of the State and shall specifically authorize recovery by the Commissioner of the damages sustained
if the licensee violates any of the terms of the license or the applicable laws and regulations of this State.
(3) The aggregate liability of the surety for all damages shall not exceed the amount of the bond.
(4) The bond must remain in force until released by the Commissioner, or cancelled by the surety. The surety may cancel the
bond upon 30-days' written notice to the licensee and the Commissioner provided that the surety shall remain liable for any
obligation arising under the bond prior to the effective date of cancellation or termination.
(c) In lieu of a surety bond, an applicant for licensure or a licensee may assign or post cash, negotiable securities, irrevocable
letter or letters of credit or similar instruments under such terms as may be approved by the Department.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4337. Examination for license as bail agent.
(a) Any natural person who intends to apply for a license as a bail agent, must personally take and pass a written examination
of that person's competence to act as such. After passing the examination, the person may apply to the Commissioner for a
bail agent license.
(b) The scope of the examination shall encompass all aspects of the bail bond business as shall be determined by the Department.
(c) The Department may make arrangements for administration and grading by an independent testing service.
(d) Any individual who fails to appear for the examination as scheduled or fails to pass the examination may reapply for a
reexamination and remit all required fees and forms before being permitted to take the reexamination.
(e) All examination score reports are valid for a period of 12 months from the date of examination.
(f) A bail agent, whose license lapses and whose license is not suspended or revoked is exempt from retaking the examination
required by this section if the bail agent applies for and is reinstated within 12 months after the date of lapse. All fees
and fines associated with the lapsed and reinstated license must be paid in full prior to the Department's approval of the
request for reinstatement. However, a penalty of double the regular license fee shall be required for any renewal fee received
after the due date and within the first 6 months from the due date of the renewal fee. A licensee who does not pay within
6 months of the due date but pays prior to the expiration of 12 months from the due date shall be subject to a fine of not
less than $200 and not more than $1,000 prior to the reinstatement of the license.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4338. Issuance of license; notice of refusal to issue license; fees not refundable.
(a) Upon the Department's determination that the application is complete, the applicant has passed all required examinations
and is otherwise qualified for the license applied for, the Department shall thereupon issue the license.
(b) A bail agent license shall remain in effect:
(1) Unless revoked or suspended;
(2) As long as the fee set forth in Chapter 7 of this title is paid and educational requirements as established by law or
regulation for bail agents are met by the due date; and/or
(3) Unless the bail agent fails to procure or maintain in full force and effect a bond required by § 4336 of this title herein.
(c) If a bail agent fails to comply with subsection (b) of this section above, the Department shall, without a hearing, deem
the bail agent's license administratively lapsed until the requirements of subsection (b) of this section are met and the
bail agent has satisfied all monetary and/or educational obligations and costs necessary under § 1707(g) of this title to
restore the license, provided that such action is taken within 1 year of the date the license is administratively suspended.
After 1 year, the bail agent's license shall be deemed revoked and the bail agent would be required to reapply for licensure
under § 4333 of this title as a new applicant.
(d) If the applicant for a bail agent license fails to meet the requirements of this subchapter or any applicable regulation,
the Department shall refuse to issue the license and shall notify the applicant of such refusal stating the grounds for the
refusal. The notice of refusal shall constitute an order of the Commissioner as provided for in § 323 of this title.
(e) Any fees required to be paid pursuant to this subchapter are nonrefundable.
(f) The license shall contain the licensee's name, address, and personal identification number, and the date of issuance,
the lines of authority, the expiration date and any other information the Department deems necessary.
(g) Licensees shall inform the Department by any means approved by the Department of a change of address within 30 days of
the change. Failure to timely inform the Department of a change in legal name or address shall result in a penalty pursuant
to § 1712(d) of this title.
(h) The Commissioner may issue a new license for any lost, stolen or destroyed license issued pursuant to this chapter upon
written request from the licensee and payment of appropriate fees for such duplicate license.
76 Del. Laws, c. 394, § 2.;
§ 4339. Waiver of license fee.
A licensed bail agent who is unable to comply with license renewal procedures due to military service or some other extenuating
circumstance approved by the Commissioner may request a waiver of license fees and/or the extension of time to reinstate a
license under such procedures as may be established by the Department. The bail agent may also request a waiver of any examination
requirement or any other fine or sanction imposed for failure to comply with renewal procedures as a result of such military
service or approved extenuating circumstance.
76 Del. Laws, c. 394, § 2.;
§ 4340. Contractual services.
(a) In order to assist in the performance of the Department's duties, the Commissioner may contract with nongovernmental entities,
including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees,
to perform any ministerial functions, including the collection of fees, related to producer licensing that the Commissioner
and the nongovernmental entity may deem appropriate.
(b) The Commissioner may participate, in whole or in part, with the NAIC, or any affiliates or subsidiaries the NAIC oversees,
in a centralized producer license registry where bail agent licenses and appointments may be centrally or simultaneously affected
for all states that require a bail agent license and participate in such centralized producer license registry. If the Commissioner
finds that participation in such a centralized producer license registry is in the public interest, the Commissioner may adopt
by rule any uniform standards and procedures as necessary to participate in the registry including the central collection
of all fees for licenses or appointments that are processed through the registry.
76 Del. Laws, c. 394, § 2.;
§ 4341. Records.
The bail agent shall maintain at that bail agent's principal place of business the license issued by the Department, together
with such records as may be reasonably required by the Department. Such records shall show, for each policy or contract placed
or countersigned by or through the licensee, names of the insurers, insureds, policy number, expiration date thereof, premium
payable under the terms of the policy or contract, and such other information as the Department may, from time to time, require.
Records shall be retained and available for inspection by the Commissioner for a period of 3 years. The records shall be open
to examination by the Department at all times as provided for in Chapter 3 of this title.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4342. Appointment of bail agents.
(a) Each insurer appointing a bail agent shall file an appointment with the Department and pay the same appointment fee as
for producers under Chapter 17 of this title.
(b) Each appointment shall remain in effect until the bail agent's license is revoked or terminated, or the appointment is
terminated by the insurer.
76 Del. Laws, c. 394, § 2.;
§ 4343. Termination of appointment.
(a) An insurer may terminate an appointment at any time. The insurer shall promptly give written notice of termination and
the effective date thereof to the Department, on forms approved by the Department and to the bail agent if reasonably possible.
The Department may require the insurer to provide reasonable proof that the insurer has also given such a notice to the agent
unless there are valid reasons why such notice can or should not be given by the insurer.
(b) Accompanying each notice of termination given to the Department, the insurer shall file a statement of the cause, if any,
for the termination. Any information or documents so disclosed to the Department shall be deemed a confidential document,
disclosure of which shall be governed by the provisions of § 1716(f) of this title.
(c) No agreement between an insurer and a bail agent or between an employing bail agent and a licensed bail agent shall affect
the Department's termination of the appointment or license if the termination is requested by the insurer or the employing
bail agent.
(d) The Department shall notify the courts upon the termination, suspension or revocation of a bail license.
(e) A bail agent's license that is otherwise in good standing with the Department shall be immediately suspended and be subject
to revocation by the Department upon notice from a court that the bail agent has been struck from the list of approved bail
agents by the court or courts.
76 Del. Laws, c. 394, § 2.;
§ 4344. Bail agents and designated responsible bail agents: special requirements.
(a) A bail agent shall not concurrently be employed or licensed by more than 1 bail agent or bail agent business entity.
(b) The designated bail agent is responsible for the acts or omissions of the bail agents employed or operating under the
designated bail agent's authority only insofar as the bail agent is acting within the scope of that bail agent's employment
or authority.
(c) The bail agent shall maintain that bail agent's office with that of the designated bail agent by whom he or she is employed.
(d) The bail agent's license must remain in the custody of the designated bail agent by whom he or she is employed. Upon termination
of such employment as a bail agent, the designated bail agent shall give written notice of the reasons thereof to the Department.
(e), (f) [Repealed.]
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 2, § 3.;
§ 4345. Registration with the courts.
No bail agent may operate under a license from the Department unless the bail agent has registered with and been approved
by the courts of this State according to such rules and procedures as the courts shall have established. Nothing in this subchapter
shall limit the authority of the various courts of the State to regulate the manner in which bail agents conduct business
within the courts of the State, including, but not limited to, imposing sanctions for violations of any laws or administrative
rules established by the courts notwithstanding the fact that such bail agent may be duly licensed by the Department of Insurance.
76 Del. Laws, c. 394, § 2.;
§ 4346. Bail agent: place of business; display of licenses and fees charged; retention of records at place of business.
(a) Every resident bail agent shall have and maintain in this State a principal place of business accessible to the public.
The address of this principal place of business must appear upon the application for a license and upon the license, when
issued, and the licensee shall promptly notify the Department of any change in that address. This subsection does not prohibit
a licensee from conducting business from a residence in this State.
(b) The licenses of the designated bail agent, and of those bail agents employed or authorized by the designated bail agent,
and the fees charged for services rendered, must be conspicuously displayed in the principal place of business in a place
or area customarily open to the public.
(c) All records of the designated bail agent and those bail agents employed or authorized to operate under the designated
bail agent's auspices shall maintain all of their business records at the principal place of business identified in the license
issued by the Department.
(d) A nonresident bail agent is not required to maintain a place of business in this State but is otherwise subject to all
of the requirements and obligations imposed on resident bail agents under this subchapter with respect to the bail agent's
activities in this State.
76 Del. Laws, c. 394, § 2.;
§ 4347. Collections and charges permitted.
(a) Bail bond rates are subject to the provisions of Chapter 25 of this title.
(b) It is unlawful for a bail bond agent to execute a bail bond without charging a premium therefor, and the premium rate
may not exceed or be less than the premium rate as filed with and approved by the Department.
(c) It is unlawful for any bail agent to charge any administrative fee, service charge, company or agent fee or the like not
filed and approved pursuant to Chapter 25 of this title.
(d) The bond may contain provisions to reimburse the bail agent personally, or permit the bail agent to have a right of action
against the defendant or any indemnitor, for actual expenses incurred in good faith, by reason of breach by the defendant
of any of the terms of the written agreement under which and pursuant to which the undertaking of bail or bail bond was written.
If there is no written agreement, or an incomplete writing, the bail agent may seek enforcement of such legal or equitable
rights against the defendant and any of the defendant's indemnitors as may be permitted by law. Such reimbursement or right
of action may not exceed the principal sum of the bond or undertaking, plus any reasonable expenses that may be verified by
receipt in a total amount of not more than the principal sum of the bond or undertaking, incurred in good faith by the bail
agent, its agents, licensees and employees by reason of the defendant's breach.
(e) Property bail agents, in addition to the requirements set forth in this section, shall not be permitted to issue a bond
without first obtaining the approval of their charge or commission schedule from the Department. Likewise, any change or modification
to the approved charge or commission shall be submitted to the Department for approval prior to any use thereof. Property
bail agents shall be required to maintain a written disclosure statement approved by the Department, of their approved charges
or commissions and shall provide a copy of said written disclosure to every prospective client prior to accepting the payment
for the bond from the prospective client.
76 Del. Laws, c. 394, § 2.;
§ 4348. Collateral; limitations on transfer of collateral; fiduciary capacity; requirements for receiving title to real property
as collateral; written receipt for collateral.
(a) A bail agent may accept collateral or security in connection with a bail transaction if the collateral or security is
reasonable in relation to the face amount of the bond. The bail agent shall not transfer the collateral or security to any
person other than a bail agent licensed pursuant to this subchapter or to a surety insurer holding a valid certificate of
authority issued by the Department. The collateral shall not be transported or otherwise removed from this State.
(b) Any person who receives the collateral:
(1) Shall be deemed to hold the collateral in a fiduciary capacity to the same extent as a bail agent; and
(2) Shall retain, return and otherwise possess the collateral in accordance with the provisions of this subchapter.
(c) The collateral or security shall be received by the bail agent in a fiduciary capacity, and, until such time as there
is a default of appearance by the defendant and demand for a forfeiture of the bail, the collateral or security shall be kept
separate and apart from any other funds or assets of the licensee. Any collateral or security received by the bail agent shall
be returned to the person, or that person's assignee or designated representative, who deposited it with the bail agent as
soon as the obligation which was secured by the collateral or security, is discharged and all fees owed to the bail agent
have been paid. The bail agent or any surety insurer having custody of the collateral or security shall, immediately after
the bail agent or surety insurer receives a request for return of the collateral or security from the person who deposited
the collateral or security, determine whether the bail agent or surety insurer has received notice that the obligation is
discharged. If the collateral or security is deposited to secure the obligation of a bond, it must be returned immediately
after receipt of the request for return of the collateral or security and notice of the entry of any order by an authorized
official by virtue of which liability under the bond is terminated or upon payment of all fees owed to the bail agent, whichever
is later. A certified copy of the order from the court wherein the bail or undertaking was ordered exonerated shall be deemed
prima facie evidence of exoneration or termination of liability.
(d) When accepting real property as collateral for a bond, it shall be unlawful for a bail agent to require a transfer of
title to the real property as a condition of issuing a bail bond. The bail agent may require the defendant, or anyone agreeing
to post real property on the defendant's behalf, to provide such certifications as may be necessary to establish title and
unencumbered value, at the defendant's expense, together with the appropriate security documents that may be necessary to
establish a lien interest in the real property by the bail agent. It shall be unlawful for the bail agent to provide, directly
or indirectly, title or lien services to the defendant for a fee or to receive money or anything of value for a referral to
an independent person or entity for such service.
(e) When accepting personal property as collateral for a bond, a bail agent may not require a transfer of title to the personal
property as a condition of issuing a bail bond. The bail agent may require the defendant, or anyone agreeing to post personal
property on the defendant's behalf, at their expense, to provide such financing statements, motor vehicle titles with a lien
stamp or the like that may be necessary to establish a lien interest in the personal property by the bail agent. It shall
be unlawful for the bail agent to provide, directly or indirectly, title or lien services to the defendant for a fee or to
receive money or anything of value for a referral to an independent person or entity for such service.
(f) Upon release or exoneration of the bail obligation, the bail agent shall be required to provide such release documents
as may be required to discharge any lien of record obtained under subsections (d) and (e) of this section above. The bail
agent shall not charge any fee for such service but may require that the defendant pay any direct costs of document preparation
and filing fees.
(g) If the amount of any collateral received in a bail transaction exceeds the amount of any bail forfeited by the defendant
for whom the collateral was accepted, the bail agent or any surety insurer having custody of the collateral shall, immediately
after the bail is forfeited, return to the person who deposited the collateral the amount by which the collateral exceeds
the amount of the bail forfeited. Any collateral returned to a person pursuant to this subsection is subject to a claim for
fees, if any, owed to the bail agent returning the collateral.
(h) If a bail agent accepts collateral, that bail agent shall give a written numbered receipt for the collateral. The receipt
must include in detail a full account of the collateral received and a copy thereof provided to the principal and any indemnitor.
(i) When collateral security in excess of $5,000 cash or its equivalent is received by a bail bond agent, the entire amount
shall be immediately forwarded to the insurer. Such collateral security may be placed in an interest-bearing account to accrue
to the benefit of the person giving the collateral security, and the bail bond agent or insurer may not make any pecuniary
gain on the collateral security deposited. Any such account shall be in a depository office of a financial institution located
in this State. The insurer shall be liable for all collateral received. If the bail bond agent fails to return the collateral
to the indemnitor upon final termination of liability on the bond, the surety shall be liable for the collateral and shall
return the actual collateral to the indemnitor or, in the event that the surety cannot locate the collateral, the surety shall
pay the indemnitor pursuant to the provisions of this section.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4349. Notice to law-enforcement; bail enforcement agents.
(a) After a warrant has been issued for a defendant's failure to appear, a bail agent having knowledge of the whereabouts
of the defendant shall immediately notify the law-enforcement agency closest to the defendant's location of:
(1) The identity of the defendant;
(2) The identity of the bail agent;
(3) The location of the defendant where law-enforcement officers might be able to obtain custody of the defendant; and
(4) Whether the bail agent has retained a bail enforcement agent and/or notified a bail enforcement agent of the defendant's
location.
(b) A bail agent may employ the services of a bail enforcement agent or similar person under such terms as may be permissible
by law, regulation and/or court rule, the costs of which may be assessed to the indemnitor.
76 Del. Laws, c. 394, § 2.;
§ 4350. Prohibited acts; persons who may not be bail agents.
(a) A bail agent shall not:
(1) Suggest or advise the employment of or name for employment any particular attorney to represent the defendant.
(2) Solicit business in or about any place where prisoners are confined or in or about any court.
(3) Pay a fee or rebate or give or promise anything of value to any person in order to secure a settlement, compromise, remission
or reduction of the amount of any undertaking or bail bond.
(4) Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except for legal services actually
rendered.
(5) Pay a fee or rebate or give or promise anything of value to the defendant or anyone in the defendant's behalf.
(6) Participate in the capacity of an attorney at a trial or hearing of a person on whose bond that bail agent is surety,
except for the purposes of surrendering the defendant, making motions to set aside orders of bail forfeitures and motions
to exonerate bails and protecting that bail agent's financial interest in such a bond.
(b) The following persons may not be bail agents, and shall not, directly or indirectly, receive any benefits from the execution
of any bail bond:
(1) Jailers;
(2) Police officers;
(3) Any person acting in a judicial capacity, including but not limited to justices, judges, alderman, commissioners, clerks,
etc.;
(4) Sheriffs, deputy sheriffs and constables;
(5) Attorneys or persons employed in an attorney's office;
(6) Any person having the power to arrest or having anything to do with the control of federal, state, county or municipal
prisoners; and
(7) Prisoners incarcerated in any jail, prison or any other place used for the incarceration of persons.
(c) A bail agent shall not sign or countersign in blank any bond, or give the power of attorney to, or otherwise authorize,
anyone to countersign that bail agent's name to bonds unless the person so authorized is a licensed bail agent directly employed
by the agent giving the power of attorney.
(d) A bail agent, shall not advertise or hold himself or herself out to be a surety insurance company.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4351. Justification of suretyship.
A bail agent shall justify that bail agent's suretyship by attaching a copy of the power of attorney issued to that bail agent
by the surety insurer to each bond.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4352. Reporting of actions.
(a) A bail agent shall report to the Department any administrative action taken against the bail agent in another jurisdiction
or by another governmental agency in this State within 30 days of the final disposition of the matter. This report shall include
a copy of the order, consent to order or other relevant legal documents.
(b) Within 30 days of the initial pretrial hearing date, a bail agent shall report to the Department any criminal prosecution
of the bail agent taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting
from the hearing, and any other relevant legal documents.
76 Del. Laws, c. 394, § 2.;
§ 4353. Regulations.
The Commissioner may promulgate such regulations as are necessary or proper to carry out the purposes of this subchapter.
76 Del. Laws, c. 394, § 2.;
§ 4354. Enforcement after license lapses or is surrendered.
The Commissioner shall retain authority to enforce the provisions of, and impose any penalty or remedy authorized by, this
subchapter and title against any person who is under investigation for, or charged with, a violation of this chapter and title
even if, while the investigation or charges are pending, such person's license or registration is surrendered or lapses by
operation of law.
(a) This subchapter governs the qualifications and procedures for the licensing of bail agents. This subchapter shall establish
the qualifications for granting licenses to professional bail agents, establish the procedures to be followed in determining
the initial and continuing qualifications for such persons, and provide standards for such persons' authorities, duties, responsibilities
and prohibitions in a manner that will provide guidance to such personnel and control over such personnel by the Commissioner
for the benefit and protection of the citizens of the State.
(b) Producer licensing is primarily governed by Chapter 17 of this title. In the event of a conflict between the provisions
of this subchapter and Chapter 17 of this title, the provisions of this subchapter shall govern unless expressly provided
otherwise.
76 Del. Laws, c. 394, § 2.;
§ 4332. Definitions.
(a) "Bail agent" or "licensee" means a person required to be licensed under the laws of this State to sell, solicit or negotiate
contracts of surety bail bond insurance and appointed by a surety insurer that is authorized to transact business in this
State to sell, solicit or negotiate contracts of surety bail bond insurance. The term "bail agent" shall also be deemed to
include the terms "bail bondsman", "bail bond agent", "bail bonding agent" or any other similar term or phrase intended to
mean a person or entity performing the function of issuing bail bonds in the State of Delaware. The term bail agent does not
include the term "bail enforcement agent" as the same is used in Chapter 55 of Title 24. A bail agent may also act as a property
bail agent.
(b) "Business entity" shall have the meaning ascribed to it in § 1702 of this title.
(c) "Commissioner" shall have the meaning ascribed to it in § 102 of this title.
(d) "Court" means any court of this State that has the power to set bail to enforce the appearance of a defendant in a criminal
proceeding.
(e) "Department" shall have the meaning ascribed to it in § 102 of this title.
(f) "Designated bail agent" means the licensed bail agent who is the head or manager of a bail agent business entity that
employs 1 or more licensed bail agents.
(g) "Home state" means the District of Columbia or any state or territory of the United States in which a bail agent maintains
that bail agent's principal place of residence or principal place of business and is licensed to act as a bail agent.
(h) "License" shall have the meaning ascribed to it in § 1702 of this title.
(i) "Negotiate" shall have the meaning ascribed to it in § 1702 of this title.
(j) "Nonresident bail agent" means any licensed bail agent whose principal place of business or residence is located in any
state or territory other than Delaware.
(k) "Person" shall have the meaning ascribed to it in § 1702 of this title.
(l) "Property bail agent" means any person who pledges United States currency, United States postal money orders or cashier's
checks or other property as security or surety for a bail bond in connection with a judicial proceeding and receives or is
promised therefor money or other things of value. Unless otherwise prohibited by this chapter, a bail agent or licensee under
this subchapter may also act as a property bail agent. A property bail agent who is not a licensee appointed by an insurer
under this chapter shall be obligated to pay any and all taxes, fees or the like for which any insurer would be obligated
under this title. A property bail agent who is not licensed as an insurance producer shall be subject to the jurisdiction
of the Department of Insurance and be obligated to meet all of the requirements of this subchapter and Chapter 17 of this
title insofar as they apply to bail agents.
(m) "Revocation" shall have the meaning ascribed to it in § 1702 of this title.
(n) "Sell" shall have the meaning ascribed to it in § 1702 of this title.
(o) "Solicit" shall have the meaning ascribed to it in § 1702 of this title.
(p) "Surety insurer" shall mean an insurer having a certificate of authority from the Department to issue surety contracts
or bonds to guarantee the performance of any person licensed under this subchapter.
(q) "Suspension" shall have the meaning ascribed to it in § 1702 of this title.
(r) "Termination" shall have the meaning ascribed to it in § 1702 of this title.
(s) "Uniform Application" shall have the meaning ascribed to it in § 1702 of this title.
(t) "Uniform Business Entity Application" shall have the meaning ascribed to it in § 1702 of this title.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, c. § 1; 77 Del. Laws, c. 2, §§ 1, 2.;
§ 4333. Application for license as bail agent and licensure; nonresident bail agent.
(a) A person applying for a bail agent producer license shall make application to the Commissioner on the Uniform Application
or on forms prescribed by the Commissioner for license types and lines of authority not available on the Uniform Application
and shall declare under penalty of denial, suspension or revocation of the license that the statements made in the application
are true, correct and complete to the best of the individual's knowledge and belief.
(b) Before approving the application, the Commissioner shall find that the individual:
(1) Is at least 18 years of age;
(2) Has not committed any act that is a ground for denial, suspension or revocation set forth in this chapter and § 1721 of
this title;
(3) Has paid the fees set forth in Chapter 7 of this title;
(4) Has successfully passed the examinations for the lines of authority for which the person has applied, unless specifically
exempted from such examination by this subchapter;
(5) Has identified a home state as a principal place of business;
(6) Has not been suspended or prohibited from acting as a bail agent by any court; and
(7) Has, in the case of a property bail agent, established that the individual is financially responsible pursuant to such
rules and regulations as may be established by the Commissioner and provided such surety bond or deposit in lieu thereof as
required by § 4336 of this title hereof.
(c) Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed
to have appointed the Commissioner as the agent for service of process on the applicant in any action or proceeding arising
in this State out of or in connection with the exercise of the license. Such appointment of the Commissioner as agent for
service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out
of transactions with respect to subjects of insurance in this State. Process shall be served upon the Commissioner or such
other person or persons as the Commissioner shall designate by rule or regulation.
(d) Each application shall further contain a statement of the applicant's criminal history, dated within 45 days of the application,
which the applicant shall obtain from the Delaware State Bureau of Identification pursuant to § 8513(a)(2) of Title 11.
(e) All premiums, return premiums or other funds received in any manner by a bail agent shall be held in a fiduciary capacity
and shall be accounted for by such bail agent.
(f) A nonresident person shall receive a nonresident bail agent license if:
(1) The person is currently licensed as a bail agent and in good standing in that person's home state;
(2) The person has submitted the proper request for licensure and has paid the fees required by Chapter 7 of this title;
(3) The person has submitted or transmitted to the Commissioner the application for licensure that the person submitted to
that person's home state, or in lieu of the same, a completed Uniform Application or forms prescribed by the Commissioner
for license types and lines of authority not available on the Uniform Application; and
(4) The person's home state awards nonresident bail agent licenses to residents of this State on the same basis as this State.
(5) Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed
to have appointed the Commissioner as the agent for service of process on the applicant in any action or proceeding arising
in this State out of or in connection with the exercise of the license. Such appointment of the Commissioner as agent for
service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out
of transactions with respect to subjects of insurance in this State. Process shall be served upon the Commissioner or such
other person or persons as the Commissioner shall designate by rule or regulation.
(6) The Commissioner may verify the nonresident's licensing status through the Producer Database maintained by the National
Association of Insurance Commissioners, its affiliates or subsidiaries.
(7) A nonresident bail agent who moves from one state to another state or a resident bail agent who moves from this State
to another state shall file a change of address and provide certification from the new resident state within 30 days of the
change of legal residence for which no license fee or license application is required.
(8) As a condition to continuation of a nonresident bail agent license issued under this section, the licensee shall maintain
a resident bail agent license in that licensee's home state. The nonresident bail agent license issued under this section
shall terminate and be surrendered immediately to the Department if the home state bail agent license terminates for any reason,
unless the bail agent has been issued a license as a resident bail agent in that bail agent's new home state. Notification
of such change, including both the old and new address, to the Department must be made as soon as possible, but no later than
30 days after obtaining a new state resident license. A new state resident license is required for a nonresident license issued
by the Department to remain valid. The new state resident license must have reciprocity with this State in order for the nonresident
license not to terminate.
(g) Nothing contained in this subchapter or Chapter 17 of this title shall apply to any person who may pledge money or property
for no fee or remuneration directly with a court on behalf of a defendant under such rules or procedures as may be approved
by the court.
(h) The applicant for a bail agent license shall bear all costs associated with the application or any reapplication.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4334. Application for license as a business entity.
(a) A business entity advertising and acting as a bail agent is required to obtain a business entity insurance license. All
surety bail bond contract transactions under the business entity license must be completed by a licensed bail agent of this
State.
(b) Application for a business entity license shall be made using the Uniform Business Entity Application or on forms prescribed
by the Commissioner for license types and lines of authority not available on the Uniform Business Entity Application.
(c) Before approving the application, the Commissioner shall find that:
(1) The business entity has paid the fees set forth in Chapter 7 of this title; and
(2) The business entity has designated a licensed bail agent or producer licensed under Chapter 17 of this title responsible
for the business entity's compliance with the insurance laws, rules and regulations of this State.
(d) The Commissioner may require any documents reasonably necessary to verify the information contained in an application.
76 Del. Laws, c. 394, § 2.;
§ 4335. License renewal.
A person who is licensed as a bail agent shall renew the license in accordance with the same requirements established for
insurance producers under Chapters 7 and 17 of this title. In addition, such person shall be required to show that the person
has not been suspended or prohibited from acting as a bail agent by any court at the time of renewal.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4336. Bonds.
(a) At the time of the application for license as a bail agent, the applicant shall file with the Department a bond executed
and issued by a surety insurer authorized to transact business in the State in the minimum amount of $20,000, which bond shall
secure the faithful performance of the applicant's duties as a bail agent. A bail agent license shall be automatically suspended
if the bond is not in force or if the security referred to in subsection (c) of this section is impaired or unavailable to
the Department.
(b) The bond shall have the following characteristics:
(1) The bond must be conditioned upon a full accounting and payment to the person entitled thereto of money, property or other
matters coming into the licensee's possession through bail bond transactions under the license.
(2) The bond shall be in favor of the State and shall specifically authorize recovery by the Commissioner of the damages sustained
if the licensee violates any of the terms of the license or the applicable laws and regulations of this State.
(3) The aggregate liability of the surety for all damages shall not exceed the amount of the bond.
(4) The bond must remain in force until released by the Commissioner, or cancelled by the surety. The surety may cancel the
bond upon 30-days' written notice to the licensee and the Commissioner provided that the surety shall remain liable for any
obligation arising under the bond prior to the effective date of cancellation or termination.
(c) In lieu of a surety bond, an applicant for licensure or a licensee may assign or post cash, negotiable securities, irrevocable
letter or letters of credit or similar instruments under such terms as may be approved by the Department.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4337. Examination for license as bail agent.
(a) Any natural person who intends to apply for a license as a bail agent, must personally take and pass a written examination
of that person's competence to act as such. After passing the examination, the person may apply to the Commissioner for a
bail agent license.
(b) The scope of the examination shall encompass all aspects of the bail bond business as shall be determined by the Department.
(c) The Department may make arrangements for administration and grading by an independent testing service.
(d) Any individual who fails to appear for the examination as scheduled or fails to pass the examination may reapply for a
reexamination and remit all required fees and forms before being permitted to take the reexamination.
(e) All examination score reports are valid for a period of 12 months from the date of examination.
(f) A bail agent, whose license lapses and whose license is not suspended or revoked is exempt from retaking the examination
required by this section if the bail agent applies for and is reinstated within 12 months after the date of lapse. All fees
and fines associated with the lapsed and reinstated license must be paid in full prior to the Department's approval of the
request for reinstatement. However, a penalty of double the regular license fee shall be required for any renewal fee received
after the due date and within the first 6 months from the due date of the renewal fee. A licensee who does not pay within
6 months of the due date but pays prior to the expiration of 12 months from the due date shall be subject to a fine of not
less than $200 and not more than $1,000 prior to the reinstatement of the license.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4338. Issuance of license; notice of refusal to issue license; fees not refundable.
(a) Upon the Department's determination that the application is complete, the applicant has passed all required examinations
and is otherwise qualified for the license applied for, the Department shall thereupon issue the license.
(b) A bail agent license shall remain in effect:
(1) Unless revoked or suspended;
(2) As long as the fee set forth in Chapter 7 of this title is paid and educational requirements as established by law or
regulation for bail agents are met by the due date; and/or
(3) Unless the bail agent fails to procure or maintain in full force and effect a bond required by § 4336 of this title herein.
(c) If a bail agent fails to comply with subsection (b) of this section above, the Department shall, without a hearing, deem
the bail agent's license administratively lapsed until the requirements of subsection (b) of this section are met and the
bail agent has satisfied all monetary and/or educational obligations and costs necessary under § 1707(g) of this title to
restore the license, provided that such action is taken within 1 year of the date the license is administratively suspended.
After 1 year, the bail agent's license shall be deemed revoked and the bail agent would be required to reapply for licensure
under § 4333 of this title as a new applicant.
(d) If the applicant for a bail agent license fails to meet the requirements of this subchapter or any applicable regulation,
the Department shall refuse to issue the license and shall notify the applicant of such refusal stating the grounds for the
refusal. The notice of refusal shall constitute an order of the Commissioner as provided for in § 323 of this title.
(e) Any fees required to be paid pursuant to this subchapter are nonrefundable.
(f) The license shall contain the licensee's name, address, and personal identification number, and the date of issuance,
the lines of authority, the expiration date and any other information the Department deems necessary.
(g) Licensees shall inform the Department by any means approved by the Department of a change of address within 30 days of
the change. Failure to timely inform the Department of a change in legal name or address shall result in a penalty pursuant
to § 1712(d) of this title.
(h) The Commissioner may issue a new license for any lost, stolen or destroyed license issued pursuant to this chapter upon
written request from the licensee and payment of appropriate fees for such duplicate license.
76 Del. Laws, c. 394, § 2.;
§ 4339. Waiver of license fee.
A licensed bail agent who is unable to comply with license renewal procedures due to military service or some other extenuating
circumstance approved by the Commissioner may request a waiver of license fees and/or the extension of time to reinstate a
license under such procedures as may be established by the Department. The bail agent may also request a waiver of any examination
requirement or any other fine or sanction imposed for failure to comply with renewal procedures as a result of such military
service or approved extenuating circumstance.
76 Del. Laws, c. 394, § 2.;
§ 4340. Contractual services.
(a) In order to assist in the performance of the Department's duties, the Commissioner may contract with nongovernmental entities,
including the National Association of Insurance Commissioners (NAIC) or any affiliates or subsidiaries that the NAIC oversees,
to perform any ministerial functions, including the collection of fees, related to producer licensing that the Commissioner
and the nongovernmental entity may deem appropriate.
(b) The Commissioner may participate, in whole or in part, with the NAIC, or any affiliates or subsidiaries the NAIC oversees,
in a centralized producer license registry where bail agent licenses and appointments may be centrally or simultaneously affected
for all states that require a bail agent license and participate in such centralized producer license registry. If the Commissioner
finds that participation in such a centralized producer license registry is in the public interest, the Commissioner may adopt
by rule any uniform standards and procedures as necessary to participate in the registry including the central collection
of all fees for licenses or appointments that are processed through the registry.
76 Del. Laws, c. 394, § 2.;
§ 4341. Records.
The bail agent shall maintain at that bail agent's principal place of business the license issued by the Department, together
with such records as may be reasonably required by the Department. Such records shall show, for each policy or contract placed
or countersigned by or through the licensee, names of the insurers, insureds, policy number, expiration date thereof, premium
payable under the terms of the policy or contract, and such other information as the Department may, from time to time, require.
Records shall be retained and available for inspection by the Commissioner for a period of 3 years. The records shall be open
to examination by the Department at all times as provided for in Chapter 3 of this title.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4342. Appointment of bail agents.
(a) Each insurer appointing a bail agent shall file an appointment with the Department and pay the same appointment fee as
for producers under Chapter 17 of this title.
(b) Each appointment shall remain in effect until the bail agent's license is revoked or terminated, or the appointment is
terminated by the insurer.
76 Del. Laws, c. 394, § 2.;
§ 4343. Termination of appointment.
(a) An insurer may terminate an appointment at any time. The insurer shall promptly give written notice of termination and
the effective date thereof to the Department, on forms approved by the Department and to the bail agent if reasonably possible.
The Department may require the insurer to provide reasonable proof that the insurer has also given such a notice to the agent
unless there are valid reasons why such notice can or should not be given by the insurer.
(b) Accompanying each notice of termination given to the Department, the insurer shall file a statement of the cause, if any,
for the termination. Any information or documents so disclosed to the Department shall be deemed a confidential document,
disclosure of which shall be governed by the provisions of § 1716(f) of this title.
(c) No agreement between an insurer and a bail agent or between an employing bail agent and a licensed bail agent shall affect
the Department's termination of the appointment or license if the termination is requested by the insurer or the employing
bail agent.
(d) The Department shall notify the courts upon the termination, suspension or revocation of a bail license.
(e) A bail agent's license that is otherwise in good standing with the Department shall be immediately suspended and be subject
to revocation by the Department upon notice from a court that the bail agent has been struck from the list of approved bail
agents by the court or courts.
76 Del. Laws, c. 394, § 2.;
§ 4344. Bail agents and designated responsible bail agents: special requirements.
(a) A bail agent shall not concurrently be employed or licensed by more than 1 bail agent or bail agent business entity.
(b) The designated bail agent is responsible for the acts or omissions of the bail agents employed or operating under the
designated bail agent's authority only insofar as the bail agent is acting within the scope of that bail agent's employment
or authority.
(c) The bail agent shall maintain that bail agent's office with that of the designated bail agent by whom he or she is employed.
(d) The bail agent's license must remain in the custody of the designated bail agent by whom he or she is employed. Upon termination
of such employment as a bail agent, the designated bail agent shall give written notice of the reasons thereof to the Department.
(e), (f) [Repealed.]
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1; 77 Del. Laws, c. 2, § 3.;
§ 4345. Registration with the courts.
No bail agent may operate under a license from the Department unless the bail agent has registered with and been approved
by the courts of this State according to such rules and procedures as the courts shall have established. Nothing in this subchapter
shall limit the authority of the various courts of the State to regulate the manner in which bail agents conduct business
within the courts of the State, including, but not limited to, imposing sanctions for violations of any laws or administrative
rules established by the courts notwithstanding the fact that such bail agent may be duly licensed by the Department of Insurance.
76 Del. Laws, c. 394, § 2.;
§ 4346. Bail agent: place of business; display of licenses and fees charged; retention of records at place of business.
(a) Every resident bail agent shall have and maintain in this State a principal place of business accessible to the public.
The address of this principal place of business must appear upon the application for a license and upon the license, when
issued, and the licensee shall promptly notify the Department of any change in that address. This subsection does not prohibit
a licensee from conducting business from a residence in this State.
(b) The licenses of the designated bail agent, and of those bail agents employed or authorized by the designated bail agent,
and the fees charged for services rendered, must be conspicuously displayed in the principal place of business in a place
or area customarily open to the public.
(c) All records of the designated bail agent and those bail agents employed or authorized to operate under the designated
bail agent's auspices shall maintain all of their business records at the principal place of business identified in the license
issued by the Department.
(d) A nonresident bail agent is not required to maintain a place of business in this State but is otherwise subject to all
of the requirements and obligations imposed on resident bail agents under this subchapter with respect to the bail agent's
activities in this State.
76 Del. Laws, c. 394, § 2.;
§ 4347. Collections and charges permitted.
(a) Bail bond rates are subject to the provisions of Chapter 25 of this title.
(b) It is unlawful for a bail bond agent to execute a bail bond without charging a premium therefor, and the premium rate
may not exceed or be less than the premium rate as filed with and approved by the Department.
(c) It is unlawful for any bail agent to charge any administrative fee, service charge, company or agent fee or the like not
filed and approved pursuant to Chapter 25 of this title.
(d) The bond may contain provisions to reimburse the bail agent personally, or permit the bail agent to have a right of action
against the defendant or any indemnitor, for actual expenses incurred in good faith, by reason of breach by the defendant
of any of the terms of the written agreement under which and pursuant to which the undertaking of bail or bail bond was written.
If there is no written agreement, or an incomplete writing, the bail agent may seek enforcement of such legal or equitable
rights against the defendant and any of the defendant's indemnitors as may be permitted by law. Such reimbursement or right
of action may not exceed the principal sum of the bond or undertaking, plus any reasonable expenses that may be verified by
receipt in a total amount of not more than the principal sum of the bond or undertaking, incurred in good faith by the bail
agent, its agents, licensees and employees by reason of the defendant's breach.
(e) Property bail agents, in addition to the requirements set forth in this section, shall not be permitted to issue a bond
without first obtaining the approval of their charge or commission schedule from the Department. Likewise, any change or modification
to the approved charge or commission shall be submitted to the Department for approval prior to any use thereof. Property
bail agents shall be required to maintain a written disclosure statement approved by the Department, of their approved charges
or commissions and shall provide a copy of said written disclosure to every prospective client prior to accepting the payment
for the bond from the prospective client.
76 Del. Laws, c. 394, § 2.;
§ 4348. Collateral; limitations on transfer of collateral; fiduciary capacity; requirements for receiving title to real property
as collateral; written receipt for collateral.
(a) A bail agent may accept collateral or security in connection with a bail transaction if the collateral or security is
reasonable in relation to the face amount of the bond. The bail agent shall not transfer the collateral or security to any
person other than a bail agent licensed pursuant to this subchapter or to a surety insurer holding a valid certificate of
authority issued by the Department. The collateral shall not be transported or otherwise removed from this State.
(b) Any person who receives the collateral:
(1) Shall be deemed to hold the collateral in a fiduciary capacity to the same extent as a bail agent; and
(2) Shall retain, return and otherwise possess the collateral in accordance with the provisions of this subchapter.
(c) The collateral or security shall be received by the bail agent in a fiduciary capacity, and, until such time as there
is a default of appearance by the defendant and demand for a forfeiture of the bail, the collateral or security shall be kept
separate and apart from any other funds or assets of the licensee. Any collateral or security received by the bail agent shall
be returned to the person, or that person's assignee or designated representative, who deposited it with the bail agent as
soon as the obligation which was secured by the collateral or security, is discharged and all fees owed to the bail agent
have been paid. The bail agent or any surety insurer having custody of the collateral or security shall, immediately after
the bail agent or surety insurer receives a request for return of the collateral or security from the person who deposited
the collateral or security, determine whether the bail agent or surety insurer has received notice that the obligation is
discharged. If the collateral or security is deposited to secure the obligation of a bond, it must be returned immediately
after receipt of the request for return of the collateral or security and notice of the entry of any order by an authorized
official by virtue of which liability under the bond is terminated or upon payment of all fees owed to the bail agent, whichever
is later. A certified copy of the order from the court wherein the bail or undertaking was ordered exonerated shall be deemed
prima facie evidence of exoneration or termination of liability.
(d) When accepting real property as collateral for a bond, it shall be unlawful for a bail agent to require a transfer of
title to the real property as a condition of issuing a bail bond. The bail agent may require the defendant, or anyone agreeing
to post real property on the defendant's behalf, to provide such certifications as may be necessary to establish title and
unencumbered value, at the defendant's expense, together with the appropriate security documents that may be necessary to
establish a lien interest in the real property by the bail agent. It shall be unlawful for the bail agent to provide, directly
or indirectly, title or lien services to the defendant for a fee or to receive money or anything of value for a referral to
an independent person or entity for such service.
(e) When accepting personal property as collateral for a bond, a bail agent may not require a transfer of title to the personal
property as a condition of issuing a bail bond. The bail agent may require the defendant, or anyone agreeing to post personal
property on the defendant's behalf, at their expense, to provide such financing statements, motor vehicle titles with a lien
stamp or the like that may be necessary to establish a lien interest in the personal property by the bail agent. It shall
be unlawful for the bail agent to provide, directly or indirectly, title or lien services to the defendant for a fee or to
receive money or anything of value for a referral to an independent person or entity for such service.
(f) Upon release or exoneration of the bail obligation, the bail agent shall be required to provide such release documents
as may be required to discharge any lien of record obtained under subsections (d) and (e) of this section above. The bail
agent shall not charge any fee for such service but may require that the defendant pay any direct costs of document preparation
and filing fees.
(g) If the amount of any collateral received in a bail transaction exceeds the amount of any bail forfeited by the defendant
for whom the collateral was accepted, the bail agent or any surety insurer having custody of the collateral shall, immediately
after the bail is forfeited, return to the person who deposited the collateral the amount by which the collateral exceeds
the amount of the bail forfeited. Any collateral returned to a person pursuant to this subsection is subject to a claim for
fees, if any, owed to the bail agent returning the collateral.
(h) If a bail agent accepts collateral, that bail agent shall give a written numbered receipt for the collateral. The receipt
must include in detail a full account of the collateral received and a copy thereof provided to the principal and any indemnitor.
(i) When collateral security in excess of $5,000 cash or its equivalent is received by a bail bond agent, the entire amount
shall be immediately forwarded to the insurer. Such collateral security may be placed in an interest-bearing account to accrue
to the benefit of the person giving the collateral security, and the bail bond agent or insurer may not make any pecuniary
gain on the collateral security deposited. Any such account shall be in a depository office of a financial institution located
in this State. The insurer shall be liable for all collateral received. If the bail bond agent fails to return the collateral
to the indemnitor upon final termination of liability on the bond, the surety shall be liable for the collateral and shall
return the actual collateral to the indemnitor or, in the event that the surety cannot locate the collateral, the surety shall
pay the indemnitor pursuant to the provisions of this section.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4349. Notice to law-enforcement; bail enforcement agents.
(a) After a warrant has been issued for a defendant's failure to appear, a bail agent having knowledge of the whereabouts
of the defendant shall immediately notify the law-enforcement agency closest to the defendant's location of:
(1) The identity of the defendant;
(2) The identity of the bail agent;
(3) The location of the defendant where law-enforcement officers might be able to obtain custody of the defendant; and
(4) Whether the bail agent has retained a bail enforcement agent and/or notified a bail enforcement agent of the defendant's
location.
(b) A bail agent may employ the services of a bail enforcement agent or similar person under such terms as may be permissible
by law, regulation and/or court rule, the costs of which may be assessed to the indemnitor.
76 Del. Laws, c. 394, § 2.;
§ 4350. Prohibited acts; persons who may not be bail agents.
(a) A bail agent shall not:
(1) Suggest or advise the employment of or name for employment any particular attorney to represent the defendant.
(2) Solicit business in or about any place where prisoners are confined or in or about any court.
(3) Pay a fee or rebate or give or promise anything of value to any person in order to secure a settlement, compromise, remission
or reduction of the amount of any undertaking or bail bond.
(4) Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except for legal services actually
rendered.
(5) Pay a fee or rebate or give or promise anything of value to the defendant or anyone in the defendant's behalf.
(6) Participate in the capacity of an attorney at a trial or hearing of a person on whose bond that bail agent is surety,
except for the purposes of surrendering the defendant, making motions to set aside orders of bail forfeitures and motions
to exonerate bails and protecting that bail agent's financial interest in such a bond.
(b) The following persons may not be bail agents, and shall not, directly or indirectly, receive any benefits from the execution
of any bail bond:
(1) Jailers;
(2) Police officers;
(3) Any person acting in a judicial capacity, including but not limited to justices, judges, alderman, commissioners, clerks,
etc.;
(4) Sheriffs, deputy sheriffs and constables;
(5) Attorneys or persons employed in an attorney's office;
(6) Any person having the power to arrest or having anything to do with the control of federal, state, county or municipal
prisoners; and
(7) Prisoners incarcerated in any jail, prison or any other place used for the incarceration of persons.
(c) A bail agent shall not sign or countersign in blank any bond, or give the power of attorney to, or otherwise authorize,
anyone to countersign that bail agent's name to bonds unless the person so authorized is a licensed bail agent directly employed
by the agent giving the power of attorney.
(d) A bail agent, shall not advertise or hold himself or herself out to be a surety insurance company.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4351. Justification of suretyship.
A bail agent shall justify that bail agent's suretyship by attaching a copy of the power of attorney issued to that bail agent
by the surety insurer to each bond.
76 Del. Laws, c. 394, § 2; 70 Del. Laws, c. 186, § 1.;
§ 4352. Reporting of actions.
(a) A bail agent shall report to the Department any administrative action taken against the bail agent in another jurisdiction
or by another governmental agency in this State within 30 days of the final disposition of the matter. This report shall include
a copy of the order, consent to order or other relevant legal documents.
(b) Within 30 days of the initial pretrial hearing date, a bail agent shall report to the Department any criminal prosecution
of the bail agent taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting
from the hearing, and any other relevant legal documents.
76 Del. Laws, c. 394, § 2.;
§ 4353. Regulations.
The Commissioner may promulgate such regulations as are necessary or proper to carry out the purposes of this subchapter.
76 Del. Laws, c. 394, § 2.;
§ 4354. Enforcement after license lapses or is surrendered.
The Commissioner shall retain authority to enforce the provisions of, and impose any penalty or remedy authorized by, this
subchapter and title against any person who is under investigation for, or charged with, a violation of this chapter and title
even if, while the investigation or charges are pending, such person's license or registration is surrendered or lapses by
operation of law.