Citations Affected: IC 27-10-3.
Synopsis: Bail agent and recovery agent licensing. Establishes
procedures for the reinstatement of an expired bail agent or recovery
agent license. Requires an applicant for a bail agent license to complete
certain courses before issuance of a license. Establishes: (1) continuing
education requirements for the renewal of a bail agent license; and (2)
procedures for bail agent instruction or continuing education. Requires
an insurer that terminates the appointment of a surety bail agent to
report to the insurance commissioner concerning certain activities of
the surety bail agent. Prohibits an insurer from appointing a person as
a surety bail agent under certain circumstances.
Effective: July 1, 2002.
December 7, 2001, read first time and referred to Committee on Judiciary.
A BILL FOR AN ACT to amend the Indiana Code concerning
IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 2. (a) All licenses
issued expire two (2) years after the end of the month of issue based on
the schedule set forth in subsection (b) unless the licensee is on
probation or the licensee's license was revoked or suspended before
that date by the commissioner or upon notice served upon the
commissioner that the insurer or employer of any recovery agent has
canceled the licensee's authority to act for the insurer or employer.
(b) A license must be renewed under this article according to the following schedule:
(1) A licensee whose last name commences with the letters A through H shall renew a license before the last day of August every other calendar year beginning August 1993.
(2) A licensee whose last name commences with the letters I through R shall renew a license before the last day of September every other calendar year beginning September 1993.
(3) A licensee whose last name commences with the letters S
through Z shall renew a license before the last day of October
every other calendar year beginning October 1993.
(c) A licensee who is issued a new license with not more than one (1) year remaining shall pay fifty percent (50%) of the fee set forth in section 4 of this chapter.
(d) A licensee whose license has expired may have the license reinstated if:
(1) the licensee applies for reinstatement not more than ninety (90) days after the date the license expired;
(2) the licensee:
(A) is not on probation; or
(B) has not previously been denied a license;
(3) the license was not revoked or suspended when the license expired;
(4) the licensee pays:
(A) a pro rata portion of the license fee required under section 7 of this chapter based on the appropriate renewal schedule for the licensee as described in subsection (b); and
(B) a license reinstatement fee of two hundred dollars ($200) to the commissioner; and
(5) the licensee meets all other appropriate qualifications and criteria.
SECTION 2. IC 27-10-3-3 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. (a) The application for license, in addition to the matters set out in section 1 of this chapter, to serve as a bail agent must affirmatively show that:
(1) the applicant is at least eighteen (18) years of age and is of good moral character;
(2) the applicant has never been convicted of a disqualifying offense, notwithstanding IC 25-1-1.1 , or:
(A) in the case of a felony conviction, at least ten (10) years have passed since the date of the applicant's conviction or release from imprisonment, parole, or probation, whichever is later; or
(B) in the case of a misdemeanor disqualifying offense, at least five (5) years have passed since the date of the applicant's conviction or release from imprisonment, parole, or probation, whichever is later;
(3) the applicant has knowledge or experience
or instruction in
the bail bond business, or has held a valid all lines fire and
casualty agent's license for one (1) year within the last five (5)
years, or has been employed by a company engaged in writing
bail bonds in which field the applicant has actively engaged for at
least one (1) year of the last five (5) years; and
(4) the applicant has completed at least sixteen (16) hours of instruction in courses approved by the commissioner concerning the duties and responsibilities of a bail agent, including instruction in the laws that relate to the conduct of bail agents.
(b) The application must affirmatively show that the applicant has been a bona fide resident of the state for one (1) year immediately preceding the date of application. However, the commissioner may waive this requirement.
SECTION 3. IC 27-10-3-7 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7. (a) A renewal license shall be issued by the commissioner to a licensee who:
(1) has continuously maintained a license in effect;
further examination, unless deemed necessary by the
commissioner, upon the payment of
(2) pays a renewal fee of:
(A) six hundred fifty dollars ($650) for bail agents; and
(B) three hundred dollars ($300) for recovery agents;
(3) if the licensee is renewing a bail agent's license, has fulfilled the continuing education requirement described in subsection (b); and
(4) has in all other respects complied with and been subject to this article.
The commissioner may also require a licensee to take an examination before the commissioner issues a renewal license to the licensee.
(b) This subsection does not apply to a licensee who, on the date the licensee applies for renewal of a bail agent's license:
(1) is at least sixty (60) years of age; and
(2) has been a licensed bail agent for at least fifteen (15) years.
A licensee who wishes to renew a bail agent's license must complete at least eight (8) hours of continuing education courses approved by the commissioner concerning the duties and responsibilities of a bail agent, including instruction in the laws that relate to the conduct of bail agents, during each license period. A course used to fulfill continuing education requirements for licensed insurance producers under IC 27-1-15.7 may not be used to satisfy continuing education requirements under this section.
(c) After the receipt of the licensee's application for renewal, the
current license continues in effect until the renewal license is issued or
denied for cause.
SECTION 4. IC 27-10-3-7.1 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 7.1. (a) A person that wishes to offer courses of instruction that are needed to obtain or renew a bail agent's license as required under sections 3(a)(4) and 7 of this chapter must:
(1) be a professional organization that has an interest in the work of bail agents;
(2) obtain approval of the courses from the commissioner before conducting the courses;
(3) pay an annual fee of five hundred dollars ($500) to the commissioner; and
(4) comply with any other requirements established by the commissioner.
(b) A professional organization that conducts courses of instruction approved by the commissioner under subsection (a) may charge:
(1) persons who attend the courses a reasonable fee; and
(2) members of the professional organization a lower fee than persons who are not members of the professional organization.
(c) Fees paid to the commissioner under subsection (a)(3) shall be:
(1) deposited in the bail bond enforcement and administration fund established by IC 27-10-5-1 ; and
(2) used to implement this section.
SECTION 5. IC 27-10-3-11 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 11. (a) An insurer who appoints a surety bail agent in Indiana shall give notice of the appointment to the commissioner along with a written application for license for the bail agent. All appointments are subject to the issuance of a license to the surety bail agent.
(b) An insurer that terminates the appointment of a surety bail agent shall:
(1) file written notice of the termination with the commissioner together with a statement that the insurer has given or mailed notice to the surety bail agent; and
(2) not more than thirty (30) days after the date the insurer terminates the appointment, submit a written report to the commissioner concerning the surety bail agent's:
(A) unpaid premiums;
(B) unsatisfied judgments; and
(C) willful failure and refusal to fulfill other contractual obligations.
The notice filed with the commissioner must state the reasons, if any, for the termination. Information furnished to the commissioner is confidential and may not be used as evidence in or a basis for any action against the insurer or any of the insurer's representatives.
(c) An insurer may not appoint a person as a surety bail agent if the person has:
(1) unpaid premiums;
(2) unsatisfied judgments; or
(3) willfully failed and refused to fulfill other contractual obligations;
to another insurer or bail agent.