Defending Bail Bondsman or Bail Agents Against Allegations before the North Carolina Department of Insurance

The Agent Services Division of the N.C. Department of Insurance is the division that oversees bail bondsmen or bail agents. The Insurance Commissioner, through the ASD, has the authority to place any licensee on probation, or suspend, revoke, or refuse to renew any license issued for any one or more of the causes listed:

• A conviction of any misdemeanor committed in the course of dealings under the license issued by the Commissioner;
• Making a material misstatement, misrepresentation, or fraud in obtaining the license;
• Misappropriating, converting, or unlawfully withholding moneys belonging to insurers or others and received in the conduct of business under the license; fraudulent, coercive, or dishonest practices in the conduct of business;
• Conviction of a crime involving dishonesty, breach of trust, or moral turpitude;
• Failure to comply with or violation of the provisions under Article 71 of the North Carolina General Statutes or of any order, subpoena, rule or regulation of the Commissioner or person with similar regulatory authority in another jurisdiction;
• When, in the judgment of the Commissioner, the licensee has (in the conduct of his affairs under the license) demonstrated incompetency, financial irresponsibility, or untrustworthiness; or that the licensee is no longer in good faith carrying on the bail bond business; or that the licensee is guilty of rebating, or offering to rebate, or offering to divide the premiums received for the bond.
• Failure to pay any judgment or decree rendered on any forfeited undertaking in any court of competent jurisdiction;
• Charging or receiving, as premium or compensation for the making of any deposit or bail bond, any sum in excess of that permitted by Article 71 of the North Carolina General Statutes;
• Requiring, as a condition of executing a bail bond, that the principal agree to engage the services of a specified attorney;
• Cheating on an examination for a license;
• Entering into any business association or agreement with any person who is at that time found by the Commissioner to be in violation of any of the bail bond laws of this State, or who has been in any manner disqualified under the bail bond laws of this State or any other state, whereby the person has any direct or indirect financial interest in the bail bond business of the licensee or applicant.
• Knowingly aiding or abetting others to evade or violate the provisions of Article 71 of the North Carolina General Statutes;
• Having any professional license denied, suspended, or revoked in this State or any other jurisdiction for causes substantially similar to those listed in this section;
• Violating any law governing bail bonding or insurance in this State or any other jurisdiction;
• Violation of any rule of the Financial Industry Regulatory Authority;
• Failing to comply with an administrative order or court order imposing a child support obligation after entry of a final judgment or order finding the violation to have been willful;
• Failing to pay State income tax or comply with any administrative or court order directing payment of State income tax after entry of a final judgment or order finding the violation to have been willful;
• Forging another’s name to any document related to a bail bond transaction;
• Any cause for which issuance of the license could have been refused had it then existed and been known to the Commissioner at the time of issuance.

A license WILL be denied for any one or more of the following:

• Conviction of a felony;
• Conviction of a misdemeanor drug violation (under Article 5 of Chapter 90 of the General Statutes) on or after October 1, 2009;
• Conviction of a misdemeanor drug violation (under Article 5 of Chapter 90 of the General Statutes) within the previous 24 months of the date of the application for the license;
• The person seeking to be licensed is a sheriff, deputy sheriff, other law enforcement officer, judicial official, attorney, parole officer, probation officer, jailer, assistant jailer, employee of the General Court of Justice, or any other public employee assigned to duties relating to the administration of criminal justice, or the spouse of any such person.

Impact of Decision of Whether to Retain an Experienced Law Firm

If you have received a letter from ASD or have a pending review conference or formal hearing, you should consider retaining a firm like ours that has experience representing licensees before the Department.  Regulatory action could have a significant and permanent impact on your license(s) in NC and other states, which also can substantially affect you financially and personally.  Hiring an experienced law firm can be an investment in your professional future.