Insolvent Bail Bond Company

[nojail4you]

Two weeks ago the owner of the bail bond company I work for passed away. The family has not identified anyone as Administrator for the estate, nor indicated any type of will. Obviously, cash flow is non-existent. The Surety Company has discontinued issuing us new bonds.

First of all, regarding the liability for forfeitures; does the owners licensee bond cover it when death occurs? Also, do individual agents, like myself, become responsible for the bonds they personally signed?

I am trying to find out how to return cash collateral to the indemnitors. I would also like to know what are the agents responsibilities to maintaining records and files for these bonds. Is there a particular procedure for instances like this?

I would truly appreciate some information on this since I have never worked for someone who dies and left their business in such a confused situation. Incidentally, we are already behind on returning collateral and the indemnitors are threatening legal action of both the business and agents. Any reference or referral is appreciated.

[Admin]

Two weeks ago the owner of the bail bond company I work for passed away. The family has not identified anyone as Administrator for the estate, nor indicated any type of will. Obviously, cash flow is non-existent. The Surety Company has discontinued issuing us new bonds.

First of all, regarding the liability for forfeitures; does the owners licensee bond cover it when death occurs? Also, do individual agents, like myself, become responsible for the bonds they personally signed?

Most likely the bond is in the company's name, not the owner personally. Therefore, the bonding company is still on the hook. They have the right to cancel the bond, but likely they have to give 30-90 days notice prior to it taking effect. If you personally indemnified then you are responsible in the event of a valid claim.

I am trying to find out how to return cash collateral to the indemnitors. I would also like to know what are the agents responsibilities to maintaining records and files for these bonds. Is there a particular procedure for instances like this?

You will have to clarify this question. Are you referring to the surety bond agent that wrote your bond or the bail bond agency you work for?

I would truly appreciate some information on this since I have never worked for someone who dies and left their business in such a confused situation. Incidentally, we are already behind on returning collateral and the indemnitors are threatening legal action of both the business and agents. Any reference or referral is appreciated.

Let me know if you have additional questions, we are always happy to help.