Bail Permittee ($5,000) Bond - Statewide in California

Brief Summary

A bail permittee answers for the money its solicitors and employees take in, not only its own. This $5,000 bond is the guarantee behind that, and the Department of Insurance will not issue the license until it is on file. It is the smallest piece of the application and the one item that stops issuance cold if it is missing.

California Insurance Code 1802.5 bars the Insurance Commissioner from issuing a bail permittee license until a $5,000 bond from an admitted surety insurer is filed with the commissioner. The bond runs in favor of the People of the State of California and is conditioned on the proper application and disposal of all money collected or received by the permittee, the solicitors licensed under its appointment and its employees. It must be on CDI form LIC 437-10.

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How to Apply for a Bail Permittee ($5,000) Bond:

• Complete 20 hours of approved prelicensing classroom study and pass the CDI written exam.
• File application form LIC 431-1 with the action notice statement LIC 438 and fingerprints.
• Have an admitted surety execute the $5,000 bond on CDI form LIC 437-10 (Rev. 4/2017).
• File the bond with the Insurance Commissioner. The license is not issued until it is on file.
• Pay the $1,248 license fee and $62 exam fee.
• Complete 12 hours of continuing education and pay the $788 fee to renew every two years, keeping the bond in force.

Detailed Information About the California Bail Permittee ($5,000) Bond:

What a bail permittee is

Under Insurance Code 1802.5, a bail permittee license permits the holder to solicit, negotiate, issue and deliver bail bonds. The California Department of Insurance (CDI) issues it to individuals only, on a two year term.

The bond covers your whole operation

The common misreading is that the bond covers only the permittee's own handling of money. The statute is broader. The $5,000 bond is conditioned on the proper application and disposal of all money collected or received by the bail permittee, by the solicitors licensed under the permittee's appointment and by the permittee's employees. The obligee is the People of the State of California, and the surety must be an admitted surety insurer.

Use the current form

CDI form LIC 437-10, Bond of Permittee Engaged in the Bail Bond Business, carries a revision date of 4/2017. A CDI notice on the form records the adoption of section 50.16 of Title 11 of the California Code of Regulations effective May 15, 2017, replacing the earlier bond form, and the form points to 11 CCR 50.20 for execution instructions. The bond stays in force until cancelled or replaced by a new bond. The surety may cancel on 30 days written notice to the Insurance Commissioner, and that notice does not relieve it of liability for claims arising during the notice period.

Licensing steps around the bond

CDI lists these requirements for a new bail permittee: at least 18 years old, a California resident, 20 hours of approved prelicensing classroom study, and a passing score on the written exam. The application is form LIC 431-1, with the LIC 437-10 bond, the LIC 438 action notice statement and fingerprints for applicants not already licensed. CDI lists the initial license fee at $1,248 plus a $62 exam fee, and the renewal fee at $788, all nonrefundable. Renewal requires at least 12 hours of approved continuing education classroom study.

Eligibility and Requirements for a California Bail Permittee ($5,000) Bond:

• Penal sum of $5,000 under Insurance Code 1802.5.
• Admitted surety insurer.
• Obligee is the People of the State of California.
• Conditioned on proper application and disposal of money received by the permittee, its appointed solicitors and its employees.
• Thirty days written notice to the Insurance Commissioner before cancellation.
• Applicant must be an individual California resident at least 18 years old.

California Bail Permittee ($5,000) Bond FAQs:

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