SENECA INSURANCE COMPANY

COLORADO BAIL UNDERWRITING GUIDELINES

A.Premium Rate Limitations

Bail bonding agents(“producers”) writing appearance bonds under appointment from SENECA INSURANCE COMPANY using powers of attorneys supplied by SENECA INSURANCE COMPANY, shall fully comply with § 10-2-706, C.R.S..

B.Non-discrimination policy

No producer may discriminate on the basis of gender, race, religion, national origin or disability.

C.Underwriting Factor Guidelines

Every bail risk is unique and must be underwritten and evaluated with great care. SENECA INSURANCE COMPANY producers are expected to obtain complete defendant/indemnitor/co-signer information and to fully document this information in their file.

1.Primary factors that may be considered by bail insurance producers inassessing risk of loss, likelihood of bond forfeiture and establishing a rate for an appearance bond, documentation of which will be noted in the standard bond application underwriting documents, bond and collateral agreements, include the following:

  1. amount of bail bond liability
  2. risk of forfeiture or failure to appear
  3. bond conditions and terms
  4. nature and severity of charges
  5. prior criminal record
  6. mental and physical condition, including impairments that could affect flight risk
  7. ties to local family, and community
  8. ties to third party indemnitors, co-signers and guarantors
  9. professional skills, employment and employability
  10. ties to local and regional employment, employers and job market
  11. residential history
  12. historical use of changed names, assumed names or alternate identities
  13. record of incarceration
  14. involvement with drugs, alcohol
  15. parental and marital circumstances
  16. enforceability of agreements to indemnify the surety from loss and expense with respect to indemnitors, co-signers and the likely cost-effectiveness of such enforcement proceedings
  17. value of collateral tendered and cost-effectiveness of collateral enforcement proceedings

2.Supplemental factors that may be considered by bail insurance producers. If these factors are used by a producer to assess risk of loss, likelihood of bond forfeiture and establishing a rate for an appearance bond, they must be documentedin the underwriting file by supplementalproducer notationsand suitable documentation:

  1. personal knowledge of defendant
  2. defendant’s character
  3. prior failures to appear, forfeitures and warrants related to bail
  4. prior instances of violations or non-compliance with conditions of pre-trial release, probation and/or parole
  5. other legal problems, includingcivil, domestic, child support, tax, and administrative
  6. risk of conviction
  7. capacity to defend or lack thereof
  8. costs and expenses associated with risk management, loss prevention, bail recovery expense, exoneration and discharge in the locality where the charges are pending.
  1. Documentation Requirements

1.Information substantiating rates charged, the basis of underwriting decisions and risks of financial loss, cost and expense shall be documented and retained in the file.

2.The underwriting file must be available for inspection by SENECA INSURANCE COMPANY upon reasonable notice, until the expiration of three (3) years immediately after the release or exoneration of the bond, or if collateral and/or promissory note is taken, three years after the return of collateral or notice to the defendant or third party indemnitor that the terms of the promissory note have been satisfied.

3.The underwriting file for each bond includes: bond applications, disclosures given to defendants and indemnitors, premium receipts, collateral receipts, indemnity agreements, promissory notes taken, and all documentation concerning the acceptance, retention of and disposition of promissory notes and collateral.

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