§ 59-1306. Cash bondsman - Professional bondsman.

A.  1.  An applicant for a cash bondsman license shall meet all requirements set forth in Section 1305 of this title with exception of the one-year residence requirement.  An applicant for a cash bondsman license shall affirmatively show that the applicant has been a bona fide resident of the state for six (6) months.

2.  In addition to the requirements prescribed in Section 1305 of this title, an applicant for a professional bondsman license shall submit to the Insurance Commissioner financial statements prepared by an accounting firm or individual holding a permit to practice public accounting in this state in accordance with generally accepted principles of accounting procedures setting forth the total assets of the bondsman less liabilities and debts as follows:  For all applications made prior to November 1, 2006, and the subsequent renewals of a license issued upon the application when continuously maintained in effect as required by law, the statement shall show a net worth of at least Fifty Thousand Dollars ($50,000.00).  For all applications made on and after November 1, 2006, and the subsequent renewals of a license issued upon the application when continuously maintained in effect as required by law, or for the renewal or reinstatement of any license that is expired pursuant to subsection D of Section 1309 of this title, suspended or revoked, the statement shall show a net worth of at least One Hundred Fifty Thousand Dollars ($150,000.00), the statements to be current as of a date not earlier than ninety (90) days prior to submission of the application and the statement shall be attested to by an unqualified opinion of the accountant.

3.  Professional bondsman applicants shall make a deposit with the Insurance Commissioner in the same manner as required of domestic insurance companies of an amount to be determined by the Commissioner.  For all applications made prior to November 1, 2006, and the subsequent renewals of a license issued upon the application when continuously maintained in effect as required by law, the deposit shall not be less than Twenty Thousand Dollars ($20,000.00).  For all applications made on and after November 1, 2006, and the subsequent renewals of a license issued upon the application when continuously maintained in effect as required by law, or for the renewal or reinstatement of any license that is expired pursuant to subsection D of Section 1309 of this title, suspended or revoked, the deposit shall not be less than Fifty Thousand Dollars ($50,000.00).  The deposits shall be subject to all laws, rules and regulations as deposits by domestic insurance companies but in no instance shall a professional bondsman write bonds which equal more than ten times the amount of the deposit which the bondsman has submitted to the Commissioner.  Such deposit shall require the review and approval of the Insurance Commissioner prior to exceeding the maximum amount of Federal Deposit Insurance Corporation basic deposit coverage for any one bank or financial institution.  In addition, a professional bondsman may make the deposit by purchasing an annuity through a licensed domestic insurance company in the State of Oklahoma.  The annuity shall be in the name of the bondsman as owner with legal assignment to the Insurance Commissioner.  The assignment form shall be approved by the Commissioner.  If a bondsman exceeds the above limitation, the bondsman shall be notified by the Commissioner that the excess shall be reduced or the deposit increased within ten (10) days of notification, or the license of the bondsman shall be suspended immediately after the ten-day period, pending a hearing on the matter.

4.  The deposit provided for in this section shall constitute a reserve available to meet sums due on forfeiture of any bonds or recognizance executed by the bondsman.

5.  Any deposit made by a professional bondsman pursuant to this section shall be released and returned by the Commissioner to the professional bondsman only upon extinguishment of all liability on outstanding bonds.  Provided, however, the Commissioner shall have the authority to review specific financial circumstances and history of a professional bondsman, on a case-by-case basis, and may release a portion of the deposit if warranted.  The Commissioner may promulgate rules to effectuate the provisions of this paragraph.

6.  No release of deposits to a professional bondsman shall be made by the Commissioner except upon written application and the written order of the Commissioner.  The Commissioner shall have no liability for any such release to a professional bondsman provided the release was made in good faith.

B.  The deposit provided in this section shall be held in safekeeping by the Insurance Commissioner and shall only be used if a bondsman fails to pay an order and judgment of forfeiture after being properly notified or shall be used if the license of a professional bondsman has been revoked.  The deposit shall be held in the name of the Insurance Commissioner and the bondsman.  The bondsman shall execute an assignment or pledge of the deposit to the Insurance Commissioner for the payment of unpaid bond forfeitures.

C.  Currently licensed professional bondsmen may maintain their aggregate liability limits upon presentation of documented proof that they have previously been granted a limitation greater than the requirements of subsection A of this section.

D.  Notwithstanding any other provision of Sections 1301 through 1340 of this title, the license of a professional bondsman is transferable upon the death or legal or physical incapacitation of the bondsman to the spouse of the bondsman, or to such other transferee as the professional bondsman may designate in writing, and the transferee may elect to act as a professional bondsman for a period of one hundred eighty (180) days if the following conditions are met:

1.  The transferee shall hold a valid license as a surety bondsman in this state; and

2.  The asset and deposit requirements set forth in this section continue to be met.

Added by Laws 1965, c. 184, § 6, eff. Jan. 1, 1966.  Amended by Laws 1984, c. 225, § 6, emerg. eff. May 23, 1984; Laws 1987, c. 211, § 8, eff. Nov. 1, 1987; Laws 1988, c. 177, § 1, emerg. eff. May 26, 1988; Laws 1995, c. 120, § 1, emerg. eff. April 21, 1995; Laws 1997, c. 251, § 2, eff. Nov. 1, 1997; Laws 2000, c. 103, § 1, eff. Nov. 1, 2000; Laws 2002, c. 307, § 35, eff. Nov. 1, 2002; Laws 2006, c. 135, § 1, eff. Nov. 1, 2006; Laws 2009, c. 176, § 57, eff. Nov. 1, 2009; Laws 2010, c. 2, § 30, emerg. eff. March 3, 2010; Laws 2010, c. 222, § 56, eff. Nov. 1, 2010; Laws 2013, c. 150, § 2, eff. Nov. 1, 2013.

Note

NOTE:  Laws 2009, c. 196, § 1 repealed by Laws 2010, c. 2, § 31, emerg. eff. March 3, 2010.