So, without further fan fare, here are the necessary steps to becoming a licenced bail bondsman in California:

1. You must have lived in California for least 2 years and be prepared to provide proof.
2. You must be 18 years old or older.
3. You need a clean record. Kind of an obvious one since you are working within the legal system, but many people don’t realize that to be a bail bondsman, you must have no felony convictions on your record. (Unlike the NFL which employs many people without clean records.)
4. The California Department of Insurance regulates the bail industry. For someone interested in becoming a bail bondsman, you will spend a bit of time with this department. At the DOI, as it’s known, you will find all the necessary forms for becoming a bail agent. There’s quite a list of fees, forms, and applications, so be prepared to put a side a weekend to get through everything.
5. You must also get 12 hours of classroom study, called Pre Licensing Education. Usually available on weekends. Make sure they are approved providers.
6. After taking the class there is an exam that must be passed (that’s next up for me). Find an actual examination site through the DOI’s website. Online examinations are also available, fill out form Individual Application, Form LIC 441-9 and provide your email address and the DOI will email you an online examination schedule for you to choose from.
7. With the test passed, fingerprints are done (for another fee, of course), and all that’s left is finding a surety – an insurance company to underwrite your bonds. Then, filing the necessary applications and paying the fees to the Department of Insurance.

A final word about starting a bail bonds business: Writing bail is risky and at times can get very complicated. Sure, some of the smaller, $10K bonds, are quick and easy but you will learn in time that almost every bail bond is different. Obtaining the knowledge to make the right decisions can only come from working in the industry. It only takes one or two mistakes before you find yourself liable for a bail you shouldn’t have written and potentially out of business. So make sure you are mentored in to the bail bonds industry before you decide to go out on your own.

Good Luck!

When people hear that you’re a bail bondsman, they are always curious about the business. Last month, I blogged about what exactly is a bail bond. Once people understand that a bail bond is an insurance product, the next most obvious question is, “How is the underwriting of a bail bond different than the underwriting for typical insurance?” Comparing to an insurance you may have shopped for is probably the best way to understand the differences.

Let’s say, for example, you need fire insurance for your home, you might go to a fire insurance agent and apply. In most cases, your fire insurance agent will ask you questions such as, “What is the property worth?” or “Have you filed any previous claims?” or “Is your roof made of wood-shake or tile?” The premium you are charged on a fire insurance policy is simply a function of several standardized questions. The fire insurance agent simply puts this information into a computer / rate chart and out pops your premium. The fire insurance agent has extremely little flexibility in what they can ask. Furthermore, the customer could verbalize directly to the fire insurance salesman that they are a “three time convicted arsonist”. If arson is not a “filed” criteria with the determining insurance regulatory agency (and it probably isn’t), then a three time convicted arsonist may likely pay the same premium as an otherwise law abiding citizen who has the same history. Go figure.

However, a surety bond or bail bond is much different from typical insurance. Risk analysis and premium calculation are signficantly different in bail. A bail agent can use all available information to make an informed underwriting decision. A bail agent can ask whatever they like. They can use their intuition. Does the applicant seem trustworthy? Do they seem to be telling the truth? How long has the applicant been at their current job? Do they have kids that live in the area? What kind of work do they do? A bondsman can check the applicant’s credit history. Bondsmen can do all sorts of other seemingly arbitrary background checks. Furthermore, a bail agent can get a bad “gut feeling” and simply say, “I’m sorry Mr. Bail Applicant—we can’t help you.” If a fire insurance agent rejected fire insurance on a similar “gut feeling”, it would likely be illegal due to various “discrimination” laws.

Another major difference between a bail bond and other insurance is who is ultimately financially responsible. Again, let’s take a fire insurance policy: you pay your premium for the policy and in the unfortunate event you have a fire, you pay a deductible and the insurance company covers any additional loss. Contrast that with a bail bond. You pay your premium (10% of the full bond amount). In the unlikely event that the defendant doesn’t appear in court and cannot be located, you as the principal are responsible to pay the full bail amount to the court. If you cannot pay, the bondsman will. And, in the event that the bail bondsman cannot pay, his surety (an insurance company) would pay the court.

It’s really no wonder people have so many questions about bail. Besides the fact that so many people I talk to have never needed a bondsman, there really are a lot of details when it is such a simple process.

Photo Credit: © Irene Teesalu – Fotolia.com

Generally speaking, a surety bond is a contract whereby one party engages to be answerable for debt, default, or miscarriage of another. A surety bond involves three parties: the principal, the obligee, and the surety. The principal, or obligor, is required to perform in some way for the benefit of the oblige, or creditor. The surety guarantees to the obligee that the principal will fulfill the underlying obligations. Simple enough, right?

Many different types of surety bonds exist. There are those that guarantee the faithful performance of public officials or fiduciaries. Some surety bonds guarantee the performance of work contracts such as for construction. Others guarantee the payment of taxes upon demand of the government. The list goes on.

Despite the wide range of situations that surety bonds address, all surety bonds are similar in terms of their distinguishing general characteristics. These characteristics are:

1. 3 legal parties
   • Obligee – for a bail bond, this is the court
   • Principal -for a bail bond, this is the defendant or the one signing for the defendant. In general, it is the one who is required to perform
   • Surety – for a bail bond, this is the one who is ultimately liable to the court: bondsman or ultimately the bail bondsman’s insurance company
2. Principal is primarily liable to the obligee.
3. The Surety theoretically expects no losses.
4. The bond is indeterminate in length and non-cancelable.
5. The bond is often required and influenced greatly by regulation or statute.
6. The bond must be in writing.
7. The liability is strictly limited to that assumed by the terms of the surety agreement or “bond’.

A bail bond is simply one type of surety bond. In the case of a bail bond, the three parties are the court (obligee), the defendant or co-signer for the defendant (principal) and the bail agent (surety). The bail bondsman is guaranteeing the faithful performance of the defendant to the court. If the defendant does not faithfully perform (go to court), then the bail bondsman is responsible to get the defendant back to court or pay the court the full bail amount.

Now you know exactly  what a bail bond is.