A concern faced by many clients is the dreaded bail bond renewal premium. Our office is always receiving phone calls from clients regarding the one year anniversary of their issued bail bond. The client's criminal court case has not settled for some reason or another and they are worried about a possible renewal premium in the near future.
It is a common practice in the commercial bail bond industry to charge a renewal premium to a client. Just like many other forms of insurance, this is paid yearly. The bail bond renewal premium is also disclosed in the surety bail bond agreement, the contract used to secure the defendant's release from custody. The section of the contract specifying the bail bond renewal premium may read something like this:
"To pay Second Party ( Bail Bond Company) $ premium amount per annum for this bail bond. The premium is fully earned upon the release of Principle (Defendant). The fact the Defendant may have been improperly arrested, or his bail reduced or his case dismissed, shall not obligate the return if any portion of said premium. This bond is renewal each year. First Party (co-signer) agrees to pay Second Party (Bail Bond Company) a renewal premium in the amount stated above, twelve months after the date on which this Bond was executed. If said renewal premium is not paid upon written demand therefor. Second Party (Bail Bond Company) or Surety has the right to surrender Principal (Defendant), as provided in the California Penal Code, Section 1300, and exonerate the Bond."
The surety bail bond agreement and state law clearly indicate that a bail bond renewal premium may or will be charged to the client. However, the bail bond renewal premium is charged by the bail bond company (Second Party), not the surety insurer as indicated above. Thus, the surety insurer can care less if the bail bond company charges the client the renewal premium or not! This is where most clients and criminal defense attorneys have been mislead or misinformed by some bail bond company they have dealt with in the past.
For example, Fastrak Bail Bonds, finds it an unfair business practice to charge a client a renewal premium because the case has been delayed or continued due to unforeseen circumstances. Thus, we don't charge a renewal premium to our clients. The criminal court system is very busy, cases can be complex, why should the client have to be penalized again? This also provides relief for the retained criminal defense attorney, allowing them to focus on their client's best interests and not having to worry about the bail bond company.
Please contact us for further information regarding our SmartBail worry-free service. Thank you.
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