No. 37840 (5-year Review): Rule R590-186. Bail Bond Surety Business

DAR File No.: 37840
Filed: 07/12/2013 10:38:22 AM

NOTICE OF REVIEW AND STATEMENT OF CONTINUATION

Concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require the rule:

Section 31A-35-104 requires the commissioner to adopt by rule specific licensure and certification guidelines and standards of conduct for the bail bond business; Subsection 31A-35-301(1) authorizes the commissioner to adopt rules necessary to administer Chapter 35 of Title 31A; Subsection 31A-35-401(1)(c) allows the commissioner to adopt rules governing the granting of licenses for bail bond surety companies; Subsection 31A-35-401(2) allows the commissioner to require by rule additional information from bail bond applicants applying for licensure; and Subsection 31A-35-406(1)(b) allows the commissioner to establish by rule the annual renewal date for the renewal of a license as a bail bond surety company. This rule establishes uniform criteria and procedures for the initial and renewal licensing of a bail bond surety company, and sets standards of conduct for those in the bail bond surety business in Utah.

Summary of written comments received during and since the last five-year review of the rule from interested persons supporting or opposing the rule:

One comment was received during the comment period on DAR No. 34259. The concern was with the change to Subsection R590-186-4(5) that set a 60-day limit for a judgment to be paid before the bail bond surety license would be suspended. This time limit was agreed upon by a coalition of representatives from the courts and bail bond industry. The comment received suggested that five days was plenty of time to pay a judgment before suspending the license. The department felt this was not enough time and decided to stay with what the coalition had agreed upon.

Reasoned justification for continuation of the rule, including reasons why the agency disagrees with comments in opposition to the rule, if any:

This rule requires the commissioner to adopt by rule specific licensure and certification guidelines and standards of conduct for the business of bail bond surety insurance. The rule also specifies certain conduct that is considered to be unprofessional and in violation of the insurance code. This is an important rule in training and regulating licensees in their conduct and licensure. Therefore, this rule should be continued.

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Administration
Room 3110 STATE OFFICE BLDG
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at [e-mail]

Authorized by:

Todd Kiser, Commissioner

Effective:

07/12/2013

---