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FL
237123
5-Hour Law and Ethics Update - Bail Bonds - CE5-237
Section
1
REGULATORY AWARENESS
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[<p id="1" />] It is typically not required to seek the Department’s approval of your agency name. However, the use of a name that would be misleading or deceptive in any way should be avoided. Names chosen should not imply that the agency is an insurance company (including bail bond and surety companies), governmental agency, or any other national or state organization. They should also not imply a reduced rate of premium or have the word "free" in it. Any bail bond agent who intends to conduct business under any business name, other than his or her own individual name, is required to file form DFS-H2-1541 with the Department before they may operate or advertise. A bail bond agent must be aware of the applicable statutes in connection with advertising. A bail bond agent may not use any verbiage that could be interpreted as a reduced premium rate in any advertisement. The business name and address that is filed with the department must be included in any type of advertisement (billboard, telephone book, flyers, etc.). [<p />] [<font face = "Times New Roman" size = "3">] [<i>] [<b>]§648.295 Reporting and accounting of funds.—[</b>] (1) All premiums, return premiums, or other funds belonging to insurers or others received by a person licensed pursuant to this chapter in transactions under her or his license are trust funds received by the licensee in a fiduciary capacity, and the licensee must account for and pay the same to the insurer, insured, or other person entitled to such funds. [<p />] (2) A licensee shall keep and make available to the department books, accounts, and records as necessary to enable the department to determine whether such licensee is complying with this chapter. A licensee shall preserve the books, accounts, and records pertaining to a premium payment for at least 3 years after making such payment. Records that are preserved by computer or photographic reproduction or records that are in photographic form constitute compliance with this requirement. [<p />] (3) Any licensee who unlawfully diverts or appropriates such funds or any portion thereof to her or his own use commits larceny by embezzlement, punishable as provided by law. [<p />] [<b>]§648.365 Statistical reporting requirements; penalty for failure to comply.—[</b>] (1) Each insurer and each bail bond agent who writes bail bonds in this state, shall maintain and transmit the following information, based on their Florida bail bond business, to the department or office when requested and shall report the information separately for each company represented but only insurers shall report the information specified in paragraphs (a), (l), and (m): [<p />] (a) Commissions paid. [<p />] (b) The number of, and the total dollar amount of, bonds executed. [<p />] (c) The number of, and the total dollar amount of, bonds declared forfeited. [<p />] (d) The number of, and the total dollar amount of, forfeitures discharged, remitted, or otherwise recovered prior to payment for any reason. [<p />] (e) The number of, and the total dollar amount of, forfeitures discharged, remitted, or otherwise recovered prior to payment due to the apprehension of the defendant by the bail bond agent. [<p />] (f) The number of, and the total dollar amount of, judgments entered. [<p />] (g) The number of, and the total dollar amount of, forfeitures paid and subsequently recovered from the court by discharge or remission or otherwise. [<p />] (h) A list of every outstanding or unpaid forfeiture, estreature, and judgment, with the case number and the name of the court in which such forfeiture, estreature, or judgment is recorded and the name of each agency or firm that employs the bail bond agent. [<p />] (i) The number of, and the total dollar amount of, bonds for which collateral was accepted. [<p />] (j) The actual realized value of collateral converted, excluding the cost of converting the collateral. [<p />] (k) The cost of converting collateral. [<p />] (l) The underwriting gain or loss. [<p />] (m) The net investment gain or loss allocated to the flow of funds associated with Florida business. [<p />] (n) Such additional information as the department or office may require in order to: [<p />] [<b>]§648.50 Effect of suspension, revocation upon associated licenses and licensees.—[</b>] (1) Upon the suspension, revocation, or refusal to renew or continue any license or appointment or the eligibility to hold a license or appointment of a bail bond agent or temporary bail bond agent, the department shall at the same time likewise suspend or revoke all other licenses or appointments and the eligibility to hold any other such licenses or appointments which may be held by the licensee under the Florida Insurance Code. [<p />] (2) In case of the suspension or revocation of the license or appointment, or the eligibility to hold a license or appointment, of any bail bond agent, the license, appointment, or eligibility of any and all bail bond agents who are members of a bail bond agency, whether incorporated or unincorporated, and any and all temporary bail bond agents employed by such bail bond agency, who knowingly are parties to the act which formed the ground for the suspension or revocation may likewise be suspended or revoked. [<p />] [<b>]Florida Administrative Code 69B-221.005 Currently Revoked, Suspended or Denied License[</b>] Any licensed bail bond agent or managing general agent engaged in the bail bond business who knowingly has in his employ a person whose license is currently revoked, suspended or denied in this or any other state shall be deemed to be conducting his affairs under the license in such a way as to render said licensee unfit to carry on the bail bond business. [<p />] [<b>]Florida Administrative Code 69B-221.051 Actively Engaged in Business; Place Suitably Designated; Accessible to Public[</b>] Every bail bond agent must be actively engaged in the bail bond business; in a building suitably designated as a bail bond agency, which must be maintained open and accessible to the public to render service during reasonable business hours. [<p />] (1) Each bail bond agency, and each branch office, shall be in the active full-time charge of a licensed and appointed primary bail bond agent as required by Section 648.387, F.S., and shall be designated on form DFS-H2-1541, (Revised: 7/13) “Filing of Bail Bond Agency Business Name and Designation/Deletion of Primary Bail Bond Agent”, which is adopted and incorporated herein by reference. This form is available from the Division of Agents and Agency Services, Department of Financial Services at http:/www.myfloridacfo.com/Division/Agents. [<p />] (2) Each bail bond agency and each branch office shall have an entrance easily accessible to the public and used by the bail bond agent in the regular course of their business dealings with the public. As used in this rule, “accessible to the public means the entrance shall be suitably designated by a sign or other display, readable from a reasonable distance, which provides at a minimum the agency name. Additionally, if a bail bond agency is located in a building which maintains a uniform office directory on its premises, the directory shall provide at a minimum the current name of that bail bond agency. [<p id="26" />] (3) As used in this rule, the term “reasonable business hours” means at least eight hours daily between the hours of 8:00 a.m. and 6:00 p.m., Monday through Friday, except for legal holidays. [<p />] (4)(a) A temporary bail bond agent must be employed full-time and shall be physically accompanied by the supervising bail bond agent or bail bond agent from the same agency as required by Sections 648.25(8) and 648.355(8), F.S. As used in this rule, the term “full-time” means that the temporary bail bond agent must work at least 1,540 hours during 12 months of employment as a temporary bail bond agent. This will result in an average of slightly less than 30 hours per week. Each employer of a temporary bail bond agent must provide the temporary bail bond agent the opportunity to work at least 30 hours a week during the period of employment and may allow the temporary bail bond agent to work more than 30 hours per week.