Oklahoma § 59-1306 - Cash bondsman - Professional bondsman

§ 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 have been continually licensed as a surety, cash or property

bondsman in the State of Oklahoma for a minimum of two (2) years

immediately prior to the date of application and shall submit to the

Insurance Commissioner an audited financial statement prepared by an

accounting firm or individual holding a permit to practice public

accounting in this state in accordance with the Statements on

Auditing Standards promulgated by the Auditing Standards Board of

the American Institute of Certified Public Accountants 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

Oklahoma Statutes - Title 59. Professions and Occupations

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. The limitation may

be exceeded with Commissioner approval when a state of emergency or

disaster is declared by the Governor, the Oklahoma Legislature or by

the United States Presidential Declaration of a Federal Emergency or

Major Disaster.

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

Oklahoma Statutes - Title 59. Professions and Occupations

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

1341 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;

Laws 2015, c. 110, § 1, eff. Nov. 1, 2015; Laws 2016, c. 203, § 3,

eff. Nov. 1, 2016; Laws 2021, c. 368, § 1, eff. Nov. 1, 2021.

NOTE: Laws 2009, c. 196, § 1 repealed by Laws 2010, c. 2, § 31,

emerg. eff. March 3, 2010.