SECTIONS 1800-1823 - California Statutes

INSURANCE CODE

SECTION 1800-1823

1800. (a) An insurer shall not execute an undertaking of bail
except by and through a person holding a bail license issued as
provided in this chapter. A person shall not in this state solicit or
negotiate in respect to execution or delivery of an undertaking of
bail or bail bond by an insurer, or execute or deliver such an
undertaking of bail or bail bond unless licensed as provided in this
chapter, but if so licensed, such person may so solicit, negotiate,
and effect such undertakings or bail bonds without holding or being
named in any license specified in Chapter 5 of this part.
(b) For purposes of this section, "solicit" shall include any
written or printed presentation or advertising made by mail or other
publication, or any oral presentation or advertising by means of
telephone, radio, or television which implies that an individual is
licensed under this chapter, and any activity in arranging for bail
which results in remuneration to the individual conducting that
activity.

1800.4. As used in this chapter, the term "bail bond" includes any
contract not executed by a surety insurer for or method of release of
person arrested or confined on account of any actual or alleged
violation of the provisions of any law of this or any other State or
of any municipality in the State of California, including any release
by means of cash or other property deposited in lieu of bail under
the provisions of sections 1295 and 1298 of the Penal Code whereby
the attendance in court when required by law and obedience to orders
and judgment of any court by the person released is guaranteed.

1800.5. This chapter shall not affect the negotiation through a
licensed broker or agent for, nor the execution or delivery of an
undertaking of bail, executed by an insurer for its insured under a
policy of automobile insurance or of liability insurance upon the
automobile of the insured, nor shall this chapter affect the
negotiation for, or the execution or delivery of an undertaking of
bail or bail bond which is authorized by Part 5, Division 2 of this
code.

1800.6. This chapter shall not limit the power of any city or
county to enact other and further regulations concerning, and not in
conflict with, the provisions of this chapter.

1800.7. Any individual person may execute or furnish a bail bond if
no consideration is paid or allowed, directly or indirectly, by any
person for the execution or furnishing thereof, provided such person
does not in connection with such execution or furnishing violate
Section 1800.75.

1800.75. No person shall advertise or hold himself out as engaging
in the business of executing, delivering, or furnishing bail bonds or
undertakings of bail whether or not for consideration without
holding at the time thereof all proper licenses required by this
chapter.

1800.8. The permits required by this chapter are in addition to any
and all other permits or licenses required by law.

1801. Bail licenses are:
(a) Bail agents' licenses;
(b) Bail permittees' licenses;
(c) Bail solicitors' licenses.

1802. A bail agent's license by its terms permits the licensee to
solicit, negotiate, and effect undertakings of bail on behalf of any
surety insurer while there is in effect an unrevoked notice of
appointment of such insurer filed pursuant to Section 1802.1. Such
license shall not be issued unless and until there is filed with the
commissioner a bond having an admitted surety insurer as surety
thereon in the penal sum of one thousand dollars ($1,000),
conditioned upon the proper application and disposal of all moneys
collected or received by the bail agent, his solicitors licensed
pursuant to his appointment, and his employees, in favor of the
people of the State of California.

1802.1. Every applicant for a license to act as a bail agent shall
file with the commissioner a notice of appointment executed by a
surety insurer or its authorized representative authorizing that
applicant to execute undertakings of bail and to solicit and
negotiate those undertakings on its behalf. Additional notices of
appointment may be filed by other surety insurers, upon the payment
for each additional notice of the fees specified in subdivision (a)
of Section 1811, before the license is issued and thereafter, as long
as the license remains in force. Each appointment shall, by its
terms, continue in force until any of the following occur:
(a) Termination of the bail agent's license.
(b) The end of the license term, if the fee provided in
subdivision (e) of Section 1811 for filing a renewal application is
not paid.
(c) The filing of a notice of termination by the insurer, its
representative, or by the bail agent.

1802.2. Any bail licensee who has purchased or succeeded to the
bona fide business of another bail licensee shall be entitled to use
a true or fictitious name used by his predecessor if the predecessor
has conducted the business for a period of two consecutive years or
more.

1802.5. A bail permittee's license, by its terms, permits the
licensee to solicit, negotiate, issue, and deliver bail bonds. The
license shall not be issued unless and until there is filed with the
commissioner
a bond having an admitted surety insurer as surety thereon in the
penal sum of five thousand dollars ($5,000), conditioned upon the
proper application and disposal of all moneys collected or received
by the bail permittee, his or her solicitors licensed pursuant to his
or her appointment, and his or her employees, in favor of the people
of the State of California.

1802.6. The holder of a bail permittee's license may, upon filing
of proper documents specified in Section 1802.1, receive a bail agent'
s license without procuring the additional bond specified in Section
1802.

1802.7. Any applicant may deposit with the commissioner, in lieu of
a bond required by this chapter, securities of the kind and
character set forth in sections 1170 to 1175, and 1179 to 1240, in a
sum not less than the required amount of the penal sum of said bond.
Such securities shall be held in trust by the commissioner for the
fulfillment of the same terms and conditions as in the case of a bond
required by section 1802.5.

1802.71. The holder, or former holder of a bail license, who has
deposited with the commissioner securities in lieu of a bond as
provided by Section 1802.7, may at any time substitute therefor a
bond complying with the requirements of Section 1802, 1802.5, or
1803, as the case may be. Such a bond must embrace all liability
theretofore existing or which may thereafter be incurred for the
fulfillment of which the securities have been held, whether reported
or unreported.
The substitution of such a bond for securities shall be
conditioned upon the approval of the commissioner. Upon receiving
such approval and the filing of the bond, the applicant shall be
permitted to withdraw the securities theretofore deposited on his
behalf.

1802.72. The former holder of any bail license, who has surrendered
any and all licenses to the commissioner, and who has on deposit
with the commissioner securities in lieu of bond as provided by
Section 1802.7, may, not sooner than three years after the surrender
of his last bail license apply to the commissioner for the return of
the securities.

1802.73. The application shall be in writing, verified, and shall
state:
(a) The nature of all bail licenses held by the applicant and the
period during which the applicant was authorized to transact bail
business under each;
(b) All of the counties in which the applicant transacted bail
under the authority of each license;
(c) That all bail transacted by applicant, and his solicitors and
employees, if any, has been exonerated by order of court, and that
his liability as surety on all bail transactions has been discharged;
(d) The date upon which the last liability of the applicant on a
bail transaction was fully exonerated and discharged;
(e) That all moneys collected or received by the applicant, and
his solicitors and employees, if any, have been paid to the person or
persons entitled thereto and have in all respects been fully and
properly accounted for.

1802.74. The commissioner shall publish daily for one week in a
newspaper of general circulation in each county in which the
applicant transacted bail under any license, a notice of the
application to withdraw the securities deposited with the
commissioner in lieu of bond. The expense of the publication shall be
borne by the applicant and the commissioner may require the
applicant to pay it in advance.

1802.75. The commissioner shall make an examination of the books
and records of the applicant. The costs and expenses of the
examination shall be paid by the commissioner out of funds
appropriated for support of the Department of Insurance.

1802.76. Upon failure of the applicant to pay the expense of
publication of notice within 30 days after the presentation of the
bill therefor, the commissioner shall collect the costs out of the
deposited securities.

1802.77. If the commissioner is satisfied from the application and
the examination of the books and records of the applicant that the
applicant has, in fact, complied with the representations made in his
application, the commissioner shall deliver to the applicant the
securities deposited; provided, however, the commissioner shall not
deliver the securities to the applicant prior to the expiration of
three years after the latest date on which a bond was issued or
written by the applicant.

1803. A bail solicitor's license, by its terms, permits the
licensee to transact bail on behalf of and as the employee of the
holder of the bail licenses therein designated while there is in
effect and on file with the commissioner an unrevoked appointment of
the solicitor by such license holder. In all matters respecting the
transaction of bail, it shall be conclusively presumed that such
solicitor acted on behalf of and pursuant to the instructions of the
appointing license holder. A bail solicitor's license shall not be
issued until there is filed with the commissioner an appointment of
such solicitor, effective upon issue of the license executed by the
holder of a bail agent's license or bail permittee's license, or both
such licenses. Such appointment shall state that the license holder
appoints the solicitor and will employ him in the transaction of
bail, until notice is filed with the commissioner revoking the
appointment. Such appointment and license shall permit the bail
solicitor to transact only the undertakings of bail or bail bonds
which the license or licenses of the appointing license holder
permits such license holder to transact.
Before the issuance of a bail solicitor's license, the applicant
shall file a bond in the penal sum of one thousand dollars ($1,000)
conditioned upon the proper application and disposal of all moneys
collected or received by the solicitor, in favor of the people of the
State of California.

1804. An applicant for bail license shall file with the
commissioner an application in such form and having such supporting
documents as the commissioner prescribes, except that the application
shall be verified in the manner provided for verification of
complaints in civil cases. The commissioner shall investigate the
licensees in such manner and in respect to such matters as he deems
advisable.

1805. The commissioner may decline to issue a bail license until he
is satisfied that:
(a) The applicant is of good business reputation and of good
general reputation.
(b) That the applicant has never been refused a license or had a
license revoked by any public authority for reasons which indicated
lack of honesty or integrity, or which show improper business
practice on the part of the applicant.
(c) That the applicant has an understanding of the obligations and
duties of bail.
(d) That the applicant has not participated in or been connected
with any business transaction which, in the opinion of the
commissioner tends to show unfitness to act in a fiduciary capacity
or to maintain the standards of fairness and honesty required of a
trustee or other fiduciary.
(e) That the applicant has not willfully misstated any material
fact in his application or procured a misstatement in the supporting
documents thereof.
(f) That there is no outstanding judgment against the applicant of
conviction of a misdemeanor or felony denounced by this code, or one
of the elements of which involves a misappropriation of money or
property.
(g) That the applicant has not committed an act forbidden by this
code.
(h) That the applicant is a fit and proper person to hold the
license applied for.
(i) The applicant has been a continuous resident of the State of
California for at least two years.

1806. The commissioner may suspend, revoke or refuse to issue any
license under this chapter whenever it is made to appear to him that
the holder of such permit is not a fit or proper person to be
permitted to continue to hold or receive such license.

1807. The commissioner may suspend or revoke any bail license for
any cause for which he could deny such license.

1807.5. Except as provided in Sections 1669 and 1738, the
commissioner shall not suspend or revoke any license, issued under
this article, without first granting a hearing, upon reasonable
notice to the applicant, except that he may temporarily suspend a
license for a period not exceeding 15 days pending the hearing. Where
a hearing is held under this section the proceedings shall be
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code, and
the commissioner shall have all the powers granted pursuant to that
chapter.

1807.7. Commencing on January 1, 2011, all licenses issued pursuant
to this article shall be for a license term of two years.

1807.8. "License term" as used in this chapter means all of that
two-year period beginning as described in subdivision (a) or (b) of
Section 1807.9, as applicable, and ending on the day two years after
the last calendar day of the month in which the initial license was
issued. Licenses issued prior to January 1, 2011, shall expire on
June 30 of each odd-numbered year.

1807.9. "License year" as used in this chapter shall be determined
for each individual and entity as follows:
(a) Upon initial licensing, the license year starts on the date
the license is issued.
(b) Subsequently, each license year starts the first day of the
month following the month in which the initial license was issued.
(c) A license year ends the following calendar year on the last
calendar day of the month in which the initial license was issued.
(d) A license year for licenses issued prior to January 1, 2011,
starts on July 1 and ends on June 30.

1808. (a) Applications for renewal of licenses may be filed on or
before the expiration date upon payment of the fees for filing
specified in Section 1811.
(b) Upon failure to file the application as provided in
subdivision (a), the license shall expire on the first day of the
next month, but the holder may file an application for a new license.
Until that same month and day of the next succeeding year the fee
shall be twice that specified in Section 1811 for the filing.
(c) No application shall be deemed filed within the meaning of
this section unless the document itself has been actually delivered
to, and the proper fee for its filing has been paid at, the office of
the commissioner during office hours, or unless both the document
and the fee have been filed and remitted pursuant to Sections 11002
and 11003 of the Government Code.

1809. The provisions of law relating to unlawful rebates shall not
apply to commissions or other consideration paid or exchanged between
licensees under this chapter, except that in such case the licensee
who executes the undertaking or executes or delivers the bail bond
shall, in all matters in respect thereto, be deemed the principal and
all licensees otherwise connected with the transaction shall be
deemed his agents in respect thereto.

1810. (a) Natural persons can be licensed under this chapter.
(b) A license may be held by a corporation, in which case all of
the following requirements shall be met:
(1) The application shall set forth the names of all officers and
employees of the licensee who will be authorized to exercise the
powers of the licensee under this chapter. Each of those persons
shall be required to meet the requirements for licensure under this
chapter, and disciplinary action may be taken against any of those
persons, and the licensee, if any of those persons does any act that
would be grounds for disciplinary action against a licensee.
(2) The corporation may solicit or negotiate the execution or
delivery of bail on behalf of surety insurers only through natural
persons who hold individual licenses as bail agents.
(3) One hundred percent of the shares of the corporation shall be
held by licensed bail agents.
(4) All shareholders, officers, and directors of the corporation
shall be licensed bail agents, and shall be disclosed to the
department.
(5) Any sale or transfer of stock or other interest in the
corporation shall require the prior approval of the department. The
department shall approve or disapprove a request for approval within
60 days of receiving the completed request.

1810.5. The commissioner shall not issue a bail license to any
person unless and until the applicant takes and passes an examination
given by the commissioner as provided in this chapter. This
prohibition shall not apply with respect to persons who were licensed
under this chapter during any part of the annual period terminating
on the July 1st preceding the time to be covered by the license
applied for.

1810.6. The commissioner shall conduct or arrange for written
examination to be given at least twice a year upon questions proposed
by the commssioner as to the qualifications of applicants to hold a
bail license. The examination shall be of sufficient scope to satisfy
the commissioner that the applicants have knowledge of, and are
reasonably familiar with, the laws of this State relating to the
giving of bail and the execution and delivery of undertakings of
bail, and have a general and fair understanding of the obligations
and duties of the holder of a bail license in respect to the conduct
of business under each type of bail license.

1810.7. (a) In order to be eligible to take the examination
required to be licensed under this chapter, the applicant shall have
completed not less than 12 hours of classroom education in subjects
pertinent to the duties and responsibilities of a bail licensee,
including, but not limited to, all related laws and regulations,
rights of the accused, ethics, and apprehension of bail fugitives.
Additionally, a licensee shall complete in each two-year license term
not less than 12 hours of continuing education in these subjects
prior to renewal of his or her license.
(b) The commissioner shall approve or disapprove an applicant to
provide education for licensure as required by this section within 90
days of receipt of the applicant's full and complete application.
However, this 90-day period shall be tolled during the pendency of
any investigation of the applicant by the commissioner for an alleged
violation that would, if proven, result in the suspension,
revocation, or denial of the provider's approval to provide
continuing education to bail agents as prescribed in Section 1813.
Failure to disapprove an applicant within this period shall result in
the automatic approval of the application. Approval shall be valid
for two years. The commissioner may, at any time, disapprove any
provider who is not qualified or whose course outlines are not
approved, who is not of good business reputation, or who is lacking
in integrity, honesty, or competency. A provider shall not provide
education for licensure following the expiration of the two-year
approval period unless the commissioner has renewed the provider's
approval. The commissioner shall, at the time of renewal, approve or
disapprove the course outlines and schedule of classes to be
provided.
(c) Providers responsible for providing education for licensure
under this chapter shall consult with the California State Sheriffs'
Association, the California District Attorneys Association, and the
County Counsels Association of California prior to submission of the
course outlines for approval by the commissioner, and these entities
may respond within 30 days of receipt of a request for consultation
from a provider. Providers shall maintain records of their requests
for consultation and any responses from these entities, and make
these records available to the department for review as requested.
The bail license fee shall be increased, the amount of which shall be
determined by the commissioner, which shall be deposited in the
Insurance Fund for the purposes of recovering the administrative
costs for meeting the conditions and purposes of this section.
Providers of education or continuing education shall offer courses to
all applicants at the same course fees.
(d) Any person who falsely represents to the commissioner that
compliance with this section has been met shall be subject, after
notice and hearing, to the penalties and fines set out in Section
1814.
(e) A licensee shall not be required to comply with the continuing
education requirements of this section if the licensee submits proof
satisfactory to the commissioner that he or she has been a licensee
in good standing for 30 continuous years in this state and is 70
years of age or older.
(f) The commissioner may make reasonable rules and regulations
necessary, advisable, and convenient for the administration and
enforcement of this chapter. The rules and regulations may include a
schedule establishing fees to be paid by an applicant seeking
approval to act as a provider and to deliver courses under this
section. Those fees shall be in an amount no greater than fees paid
by applicants providing similar courses to other insurance agents
licensed by the department, as specified in Section 1751.1.
(g) Nothing in this chapter shall preclude completion of the bail
agent continuing education requirements of this section through a
course of instruction offered via the Internet or correspondence.
However, this subdivision shall not be construed to allow completion
of the prelicensing education requirements of this section through a
course of instruction.
(h) Successful completion of the continuing education requirements
by means of an Internet or correspondence course shall require
obtaining a passing grade of at least 70 percent on a written final
examination. The final examination shall be open book and shall be
graded by the approved provider. The provider shall issue
certificates of completion only to those students who have passed the
final examination.

1810.8. The commissioner may issue a temporary license to the
executor or administrator of the estate of a deceased holder of a
bail agent's license or bail permittee's license, permitting such
party to act as such representative to exercise the rights and
privileges of such a license holder for the purpose of conducting the
business of the estate for a period of one year from and after the
date of the death, pending, but not after, the disposal of the
business.

1810.9. A renewal license shall be issued by the commissioner to a
licensee upon proof of current licensure, payment of a renewal fee,
and completion of the continuing education requirements as required
by subdivision (a) of Section 1810.7.

1811. For his services in connection with the filing of any
application or request for any license under this chapter, the
commissioner shall charge and collect the following fees:
(a) For filing an application or request for bail agent's license,
one hundred eighteen dollars ($118) per year.
(b) For filing an application or request for bail solicitor's
license, one hundred eighteen dollars ($118) per year.
(c) For filing an application or request for bail permittee's
license, two hundred thirty-six dollars ($236).
(d) For filing an application for examination, or reexamination,
twenty-four dollars ($24).
(e) For a renewal application, a fee of thirty-five dollars ($35)
per year. In the case of a bail agent with more than one valid notice
of appointment on file, the fee to be charged pursuant to this
subdivision shall be the fee provided herein multiplied by the number
of insurers whose valid appointments are on file at the date the
document is filed unless the bail agent in that document advises the
commissioner of his or her intent to terminate the appointment of one
or more of those insurers, in which event the fee shall be based
upon the number for insurers remaining.
(f) For a bail solicitor's renewal application, a fee of
thirty-five dollars ($35) per year.
(g) For a bail permittee's renewal application, a fee of one
hundred forty-eight dollars ($148) per year.
(h) At the time of filing an application for a license, if a
qualifying examination is required for issue or in connection with
the license, the fee for filing the first application to take the
qualifying examination shall be paid at the time of filing
application for the license.
(i) For filing application or request for approval of a true or
fictitious name pursuant to Section 1724.5, twelve dollars ($12),
except that there shall be no fee when the name is contained in an
original application.
(j) For filing a bond required by this chapter, except when the
bond constitutes part of an original application, ten dollars ($10).
(k) For filing a first amendment to an application, six dollars
($6).
(l) For filing a second and each subsequent amendment to an
application, twelve dollars ($12).

1812. The commissioner may make reasonable rules necessary,
advisable, or convenient for the administration and enforcement of
the provisions of this chapter.

1813. The commissioner, after notice and hearing, in accordance
with the procedure provided in Article 13 (commencing with Section
1737) of Chapter 5 may suspend, revoke, or deny any license or
certificate of authority issued pursuant to any provision of this
code whenever he or she finds that the holder thereof has violated
any provisions of this chapter.

1814. The violation of any foregoing provision of this chapter, or
of any rule of the commissioner made pursuant thereto, is a public
offense, punishable by fine not exceeding ten thousand dollars
($10,000), or by imprisonment in the state prison, or in the county
jail not exceeding one year, or by both such fine and imprisonment.

1815. The commissioner shall publish and maintain a list of the
names of holders of bail agents' and bail permittees' licenses and
their solicitors on the department's public Web site, together with
their license numbers and any other information in respect to the
persons as he or she considers advisable. He or she shall promptly
upon termination, for any cause, of any license, update the
department's public Web site.

1819. The certificate of the commissioner certifying any facts
found after hearing held under this chapter shall be prima facie
evidence of the facts set forth therein.

1820. Every bail license shall be prominently displayed in the
office of the licensee.

1821. A license shall not be refused by the commissioner without
proceedings in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code,
being initiated within 60 days from the date of filing the completed
application.
Sections 1724.5, 1733, 1734, 1735 and Articles 6 (commencing with
Section 1666) and 13 (commencing with Section 1737) of Chapter 5
apply to persons licensed under this chapter, and "insurance agent"
or "licensee", as used in those provisions, include persons licensed
under this chapter.

1822. A licensee or applicant for a license under this chapter
shall notify the commissioner, in writing, of any change in the
address from which he intends to conduct his business.

1823. All surety companies which execute undertakings of bail shall
keep any moneys collected from agents licensed pursuant to this code
as buildup or reserve funds in segregated trust accounts within the
state. These accounts shall be maintained as any of the following:
(a) A Federal Deposit Insurance Corporation (FDIC) insured
account.
(b) United States government bonds and treasury certificates or
other obligations for which the faith of the United States is pledged
for the payment of principal and interest.
(c) Repurchase agreements collateralized by securities issued by
the United States government.
(d) A money market fund that limits its portfolio to those
securities listed in subdivisions (a) and (b).
The accounts described in this section shall not be hypothecated
or offered as collateral.
The accounts described in this section shall be used to satisfy
the unfulfilled obligations of the undertakings of bail written by
the agents from whom the moneys have been collected and to otherwise
satisfy the unfulfilled obligations which may be owing to the surety
by those agents.