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Surety Bail Bondsmen

All rights reserved. This material or any parts thereof may not be reproduced without written permission.

Independent Insurance Agents of Virginia8600 Mayland Dr Richmond, Va. 23294

804-747-9300 or www.iiav.com

License Application Requirements

• 38.2-1865.6. (Effective September 1, 2003) Property and casualty insurance agents licensed as surety bail bondsmen.

• A. The Commission may issue a surety bail bondsman license to any individual or business entity actively licensed as a property and casualty insurance agent in this Commonwealth for the purposes set forth in § 38.2-1800. The license issued to a surety bail bondsman pursuant to this article shall terminate immediately upon the termination of the licensee's property and casualty insurance agent license, and may not be applied for again until the individual has been issued a new property and casualty insurance agent license.

• B. No person shall act as a surety bail bondsman in this Commonwealth unless such person has obtained a license as a surety bail bondsman pursuant to this article.

• C. The Commission shall maintain a database from which it may access pertinent information regarding surety bail bondsman licensees.

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+38.2-1800


• 38.2-1865.7. (Effective September 1, 2003) Applications for surety bail bondsman licenses.

• A. Every original applicant for a surety bail bondsman license shall apply for such license in a form and manner prescribed by the Commission, and containing any information the Commission requires.


• B. Prior to issuance of a license, the applicant shall: • 1. File with the Commission an application for such license on the form and in the manner

prescribed by the Commission; • 2. Pass a written prelicensing examination for the surety bail bondsman license as prescribed in

§ 38.2-1817; • 3. Submit to fingerprinting by any local or state law-enforcement agency and provide personal

descriptive information to be forwarded, along with the applicant's fingerprints, to the Department of State Police Central Criminal Records Exchange. The Central Criminal Records Exchange shall forward the applicant's fingerprints and personal descriptive information to the Federal Bureau of Investigation for the purpose of obtaining national criminal history record information regarding such applicant. The applicant shall pay for the cost of such fingerprinting and criminal records check. The Department of State Police shall forward to the Commissioner of the Bureau of Insurance of the Commission, or his designee, who must be a governmental entity, the results of the records search from the Central Criminal Records Exchange and the Federal Bureau of Investigation. The Commissioner of the Bureau of Insurance of the Commission, or his designee, who must be a governmental entity, shall review the record and if the report indicates a prior felony conviction, the individual shall be prohibited from pursuing the application process for issuance of a surety bail bondsman license unless the applicant is able to submit proof that his civil rights have been restored by the Governor or other appropriate authority;

• 4. Submit copies of each power of attorney that is required to be recorded pursuant to § 38.2-2416; and

• 5. Submit the appropriate nonrefundable application processing fee to the Commission, as provided in § 38.2-1865.9.



http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+38.2-1865.9


• C. A business entity acting as a surety bail bondsman is required to obtain a surety bail bondsman license. In addition to the other requirements in this section, and before approving the application, the Commission shall find that:

• 1. The business entity has paid the appropriate nonrefundable application processing fee to the Commission, as provided in § 38.2-1865.9;

• 2. The business entity has filed the appropriate documents, as follows: • a. A domestic corporation shall have filed its articles of incorporation with the clerk of

the Commission, and shall have been issued a charter by the Commission; • b. A domestic limited liability company shall have filed its articles of organization with

the clerk of the Commission, and shall have been issued a certificate of organization by the Commission;

• c. A domestic limited partnership shall have applied for and received a certificate of limited partnership from the clerk of the Commission; and

• d. A domestic partnership shall have filed its partnership agreement with the clerk of the appropriate court; and

• 3. The business entity has designated a licensed Virginia surety bail bondsman to be responsible for the business entity's compliance with the insurance laws, rules and regulations of this Commonwealth.

• D. The Commission may require any documents reasonably necessary to verify the information contained in an application.



• § 38.2-1865.9. (Effective September 1, 2003) Fees for surety bail bondsman license.

• A. The nonrefundable application processing fee and the biennial nonrefundable renewal processing fee for each surety bondsman license shall be $50, which shall be paid in a manner prescribed by the Commission.

• B. On or before June 1 of each renewal year, the licensee shall make application for license renewal and shall at that time pay a nonrefundable renewal application processing fee determined as provided in subsection A.

• C. All renewals shall take effect on July 1. Any license not renewed by June 30 of the renewal year shall terminate effective July 1 of that year.

• D. All fees shall be collected by the Commission and paid into the state treasury to the credit of the fund for the maintenance of the Bureau of Insurance as provided in subsection B of § 38.2-400.


• § 19.2-152.1:7. Application of article to surety bail bondsmen; certification required.

• A. Nothing in this article shall be construed to apply to guaranty, indemnity, fidelity and security companies doing business in this Commonwealth or their agents and attorneys-in-fact, under the provisions of Chapter 24 (§ 38.2-2400 et seq.) of Title 38.2; however, each surety bail bondsman of a guaranty, indemnity, fidelity and security company who enters into bonds for bail, appearances, costs or appeal in criminal cases shall be required to obtain a certificate from the judge of the circuit court in which he desires to carry on the business of a surety bail bondsman. Such a certificate shall not be issued unless the judge finds that the applicant is of good moral character, that his past conduct before the courts of said county or city has not been unsatisfactory, and that he has obtained a license as a surety bail bondsman if required pursuant to § 38.2-1865.6. Such certificate shall authorize such persons to enter into such bonds in any other county or city.




• B. Surety bail bondsmen shall be subject to any reasonable rules of conduct or procedure and discipline for the violation of same as may be ordered by the judge of the court in which they act for such companies. No person shall act as a surety bail bondsman when such person, such person's spouse, or a member of such person's immediate family holds any office as judge, magistrate, clerk or deputy clerk of any court.

• C. Each circuit court clerk shall maintain a copy of each certificate granted under this section.


• § 58.1-3724. Bondsmen. • A. As used in this section, "professional bondsman"

means a person who is a property bail bondsman, as such term is defined in § 19.2-152.1.

• B. The governing body of any county or city may by ordinance require that every person who shall, for compensation, enter into any bond or bonds for others, whether as a principal or surety, shall obtain a revenue license, the amount of which shall be prescribed in such ordinance. No professional bondsman or his agent shall enter into any such bond or bonds in any such county or city until he shall have obtained such license.


• C. With the exception of any bondsman or his agent who has heretofore obtained a certificate and license under this section and whose certificate, license and right to act as a bondsman continues to remain in full force and effect, no such license shall be issued by the authorities of any such county or city unless and until the applicant shall have first obtained a certificate from the judge of the circuit court of the county or city, in which he desires to carry on the business of professional bondsman as provided in Article 4 (§ 19.2-152.1) of Chapter 9 of Title 19.2. A license granted to a professional bondsman in any such county or city shall authorize such person to enter into such bonds in any other county or city.

• D. Any ordinance enacted pursuant to the provisions of this section may provide for revocation of licenses for failure to comply with the terms of such ordinance and may in addition prescribe penalties for violations thereof.

Surety Bail Bondsman

• Surety bail bondsman" means a person licensed pursuant to Article 6.2 (§ 38.2-1865.6 et seq.) of this chapter who sells, solicits, or negotiates surety insurance as defined in § 38.2-121 on behalf of insurers licensed in this Commonwealth, pursuant to which the insurer becomes surety on or guarantees a bond, as defined in § 19.2-119, that has been posted to assure performance of terms and conditions specified by order of an appropriate judicial officer as a condition of bail.



Nonresidents

• § 38.2-1865.13. (Effective September 1, 2003) Licensing nonresidents.

• A. All nonresident transfers and applicants must satisfy all pre-licensing requirements for Virginia residents.

• B. For the purposes of this chapter, any individual whose place of residence and place of business are in a city or town located partly within the Commonwealth and partly within another state may be considered as meeting the requirements as a resident of this Commonwealth, provided the other state has established by law or regulation similar requirements as to residence of such individuals.

Nonresidents• C. The Commission may enter into a reciprocal agreement with an

appropriate official of any other state or province of Canada if such an agreement is required in order for a Virginia resident to be similarly licensed as a nonresident in that state or province.

• D. A nonresident surety bail bondsman who moves from one state or province to another state or province shall file a change of address and provide a certification from the new home state or province within 30 calendar days of the change of legal residence. No fee or license application is required.

• E. Any licenses issued to nonresidents pursuant to this section shall be terminated at any time that the nonresident's equivalent authority in his home state is terminated, suspended, or revoked.

• F. Nonresident applicants that are corporations, limited liability companies, or limited partnerships must obtain from the clerk of the Commission the appropriate certificate of authority, certificate of registration, or certificate of limited partnership, respectively, as a prerequisite to applying for a license as a surety bail bondsman.

Fingerprinting Requirements• Submit to fingerprinting by any local or state law-enforcement agency and

provide personal descriptive information to be forwarded, along with the applicant's fingerprints, to the Department of State Police Central Criminal Records Exchange. The Central Criminal Records Exchange shall forward the applicant's fingerprints and personal descriptive information to the Federal Bureau of Investigation for the purpose of obtaining national criminal history record information regarding such applicant. The applicant shall pay for the cost of such fingerprinting and criminal records check. The Department of State Police shall forward to the Commissioner of the Bureau of Insurance of the Commission, or his designee, who must be a governmental entity, the results of the records search from the Central Criminal Records Exchange and the Federal Bureau of Investigation. The Commissioner of the Bureau of Insurance of the Commission, or his designee, who must be a governmental entity, shall review the record and if the report indicates a prior felony conviction, the individual shall be prohibited from pursuing the application process for issuance of a surety bail bondsman license unless the applicant is able to submit proof that his civil rights have been restored by the Governor or other appropriate authority;

Appointment• § 38.2-1825. Duration and termination of licenses and

appointments. • A. A license issued to: • 1. An individual agent shall authorize him to act as an agent until his

license is otherwise terminated, suspended or revoked. • 2. A business entity shall authorize such business entity to act as an

agent until such license is otherwise terminated, suspended, or revoked. The dissolution or discontinuance of a partnership, whether by intent or by operation of law, shall automatically terminate all licenses issued to such partnership. The Bureau shall automatically terminate all insurance licenses within ninety calendar days of receiving notification from the clerk of the Commission that the certificate of organization or charter of a domestic limited liability company or corporation, respectively, whether by intent or by operation of law, has been terminated or that the certificate of registration or certificate of authority of a foreign limited liability company or corporation, respectively, has been revoked.

Appointment

• B. An agent's license shall automatically terminate after a period of 183 calendar days during which no appointment of such agent under such license was in effect. The Commission may, upon a showing of good cause and upon payment of any prescribed fee, waive or extend this requirement. As used herein, the term "good cause" shall not include negligence, clerical error, or administrative oversight by the licensee or the appointing insurer.

Appointment

• F. An appointment issued to an agent by an insurer, unless terminated, suspended or revoked, shall authorize the appointee to act as an agent for that insurer and to be compensated therefor notwithstanding the provisions of §§ 38.2-1812 and 38.2-1823.

Appointment• § 38.2-1833. Appointments of agents. • A. Subject to the requirement of § 38.2-1801, every licensed agent

may sell policies and solicit applications for insurance for any one or more of the classes of insurance for which he is licensed on behalf of an insurer (i) also licensed in this Commonwealth for those classes of insurance and (ii) by which the licensed agent has not yet been validly appointed, subject to the following requirements:

• 1. The insurer shall, within 30 calendar days of the date of execution of the first insurance application or policy submitted by a licensed but not yet appointed agent, either reject such application or policy or file with the Commission a notice of appointment in a form acceptable to the Commission. The Commission shall provide a means whereby an insurer may elect to appoint an agent to represent all or some of the insurers within the insurer's holding company system or group by the submission of a single notice of appointment for each appointment type applicable.


Appointment

• 2. The insurer shall provide to the licensed agent, within the same 30-day period, a verification that the notice of appointment has been filed with the Commission.

• 3. Upon receipt of the notice of appointment, the Commission shall verify that the agent holds a valid license and that the notice has been properly completed and submitted. If the Commission determines that the appointment is invalid, it shall notify the appointing insurer within five business days of its receipt of the appointment notice. If the appointment is valid, the Commission shall issue an acknowledgement of appointment to the agent within five business days of its receipt of the appointment notice, and shall simultaneously notify the appointing insurer of the issuance of such acknowledgement of appointment.

Appointment• 4. If the licensed agent does not receive from the Commission an

acknowledgement of his appointment within 45 calendar days from the date of execution of the first insurance application or policy submitted to the insurer, then the agent shall immediately discontinue any selling or soliciting of insurance on behalf of that insurer until such acknowledgement is received. Any such further selling or solicitation after 45 calendar days but prior to receipt of such acknowledgement shall constitute a violation of this section and shall be subject to penalties as prescribed in §§ 38.2-218 and 38.2-1831.

• 5. An agent whose appointment by an insurer has been terminated by the insurer shall be prohibited from selling or soliciting applications or policies on behalf of that insurer unless and until reappointed by the insurer. Any such selling or solicitation on behalf of that insurer subsequent to such appointment termination and prior to such reappointment shall constitute a violation of this section by the agent and shall subject the agent to penalties as prescribed in §§ 38.2-218 and 38.2-1831.

Appointment• B. Each agent's appointment record shall be public information and shall be

available for public inspection during normal business hours of the Commission. The Commission may charge a reasonable fee to cover the costs incurred in providing this information.

• C. Each insurer shall pay a nonrefundable appointment processing fee, in an amount prescribed by the Commission, for each appointment notification submitted by the insurer to the Commission.

• D. The prescribed appointment fee shall not be less than $7 nor more than $25.

• E. Such fees shall be billed to the insurer by the Commission on a quarterly basis and shall be due and payable on August 10 for the quarter ending June 30, on November 10 for the quarter ending September 30, on February 10 for the quarter ending December 31, and on May 10 for the quarter ending March 31. In the event that a due date falls on a weekend or holiday, payment shall be due on the first business day following such due date.

• F. Such quarterly billing shall include all appointment notifications submitted by the insurer during the immediately preceding quarter, regardless of the current status of any such appointments.

Appointment• G. All appointment processing fees collected by the Commission, as

well as penalties collected pursuant to subsection H, shall be paid directly into the state treasury and placed to the credit of the fund for the maintenance of the Bureau of Insurance as provided in subsection B of § 38.2-400.

• H. Upon the failure of the insurer to pay amounts due under this section by the date due, the Commission:

• 1. Shall impose a penalty of $50 per day for each day between the date due and the date full payment is received by the Commission. The appointment fees described above shall not be considered paid in full unless and until the penalty described herein has been received by the Commission; and

• 2. May, in addition to the penalty imposed above, administratively terminate the appointment of each agent on whose behalf the appointment processing fee, including any penalty imposed pursuant to this section, was not received by the Commission by the date due and after the insurer has been given due notice and an opportunity to submit the overdue payment.


Duration of Appointment• § 38.2-1834. Duration of appointment; annual renewal of agent's

appointment. • A. A valid appointment of an agent shall authorize the agent to act for the

insurer during the time for which the appointing insurer is licensed to do business in this Commonwealth, unless such appointment is otherwise terminated, suspended, or revoked. No later than 10 calendar days after notice of the termination, suspension or revocation of an appointment has been sent to the agent or agency, the agent or agency shall immediately cease selling or soliciting on behalf of such insurer.

• B. Prior to August 10 of each year, or the first business day thereafter if August 10 falls on a weekend or holiday, every insurer shall remit in a manner prescribed by the Commission a renewal appointment fee, for each appointment for which notice of appointment termination was not received by the Commission on or before the preceding June 30, in an amount prescribed by the Commission, which shall be collected by the Commission and, along with any penalties collected pursuant to subsection C, paid directly into the state treasury and credited to the fund for the maintenance of the Bureau of Insurance as provided in subsection B of § 38.2-400.


Duration of Appointment• C. Upon the failure of the insurer to pay amounts due under this section by the

date due, the Commission: • 1. Shall impose a penalty of $50 per day for each calendar day between the date

due and the date full payment is received by the Commission. The renewal appointment fees described above shall not be considered paid in full unless and until the penalty described herein has been received by the Commission; and

• 2. May, in addition to the penalty imposed above, administratively terminate the appointment of each agent on whose behalf the appointment renewal fee, including any penalty imposed pursuant to this section, was not received by the Commission by the date due and after the insurer has been given due notice and an opportunity to submit the overdue payment.

• D. Except as provided in § 38.2-1834.1, upon the termination of the appointment of an agent by an insurer, the insurer shall notify the agent of such termination within five calendar days and the Commission, except as provided in subsection B of this section, within 30 calendar days in a manner acceptable to the Commission, whereupon termination of the agent's appointment to represent the insurer shall be recorded by the Commission.

• E. Any license in effect on January 1, 1986, shall be deemed to be an appointment for the unexpired term of that license. Certificates of qualifications issued prior to January 1, 1986, shall be deemed to be the license required by this chapter.


Termination of Appointment• § 38.2-1834.1. Notification to Commission of termination; notice to agent; immunities;

confidentiality; penalties. • A. An insurer or authorized representative of the insurer that

terminates the appointment, employment, contract or other insurance business relationship with an agent or other licensee under this chapter shall notify the Commission within thirty calendar days following the effective date of the termination, using a format prescribed by the Commission, if the reason for termination is one of the reasons set forth in § 38.2-1831 or the insurer has knowledge the agent was found by a court, government body, or legally authorized self-regulatory organization authorized by law to have engaged in any of the activities in §§ 38.2-1831, 38.2-1843, 38.2-1356 or § 38.2-1363. The propriety of any such termination for cause shall be certified in writing by an officer or authorized representative of the insurer or agent terminating the relationship. Upon the written request of the Commission, the insurer shall provide additional information, documents, records or other data pertaining to the termination or activity of the agent or other licensee.






Termination of Appointment

• B. The insurer or the authorized representative of the insurer shall promptly notify the Commission in a format acceptable to the Commission if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the Commission in accordance with subsection A had the insurer then known of its existence.

Termination of Appointment• C. 1. Within fifteen calendar days after making the notification

required by subsections A and B, the insurer shall mail a copy of the notification to the agent at his last known address pursuant to the insurer's records. If the agent is terminated for cause for any of the reasons listed in § 38.2-1831, the insurer shall provide a copy of the notification to the agent at his last known address by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.

• 2. Within thirty calendar days after the agent has received the original or additional notification, the agent may file written comments concerning the substance of the notification with the Commission in the form and manner required by the Commission. The agent shall, by the same means, simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the Commission's file and accompany every copy of a report distributed or disclosed for any reason about the agent as permitted under subsection D.

Termination of Appointment• D. 1. In the absence of actual malice, an insurer, the authorized representative of the

insurer, a producer, the Commission, authorized representatives of the Commission, the NAIC, its affiliates or subsidiaries, or state, federal, and international law-enforcement authorities shall not be subject to civil liability, and a civil cause of action of any nature shall not arise against these entities or their respective agents or employees, as a result of any statement or information required by or provided pursuant to this section or any information relating to any statement that may be requested in writing by the Commission, from an insurer or agent, or a statement by a terminating insurer or agent to an insurer or agent limited solely and exclusively to whether a termination for cause under subsection A was reported to the Commission, provided that the propriety of any termination for cause under subsection A is certified in writing, pursuant to subsection A of this section, by an officer or authorized representative of the insurer or agent terminating the relationship.

• 2. In any action brought against a person that may have immunity under subdivision 1 for making any statement required by this section or providing any information relating to any statement that may be requested by the Commission, the party bringing the action shall plead specifically in any allegation that subdivision 1 does not apply because the person making the statement or providing the information did so with actual malice.

• 3. Subdivision 1 or 2 shall not abrogate or modify any existing statutory or common law privileges or immunities.

Termination of Appointment• E. 1. Any documents, materials or other information in the control or

possession of the Commission that is furnished by an insurer, agent or an employee thereof acting on behalf of the insurer or agent, or obtained by the Commission in an investigation pursuant to this chapter shall be confidential by law and privileged, shall not be subject to inspection or review by the general public, shall not be subject to subpoena, and shall not be subject to discovery or admissible in evidence in any private civil action. However, the Commission is authorized to use the documents, materials or other information in the furtherance of any regulatory or legal action brought as a part of the Commission's duties.

• 2. Neither the Commission nor any person who received documents, materials or other information while acting under the authority of the Commission shall be permitted or required to testify in any private civil action concerning any confidential documents, materials, or information subject to subdivision 1.

Termination of Appointment• 3. In order to assist in the performance of the Commission's duties under this

chapter, the Commission: • a. May share documents, material or other information, including the

confidential and privileged documents, materials or information subject to subdivision 1, with other state, federal, and international regulatory agencies, with the NAIC, its affiliates or subsidiaries, and with state, federal, and international law enforcement authorities, provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material or other information.

• b. May receive documents, materials or information, including otherwise confidential and privileged documents, materials or information, from the NAIC, its affiliates or subsidiaries and from regulatory and law-enforcement officials of other foreign or domestic jurisdictions, and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information.

• 4. No waiver of any applicable privilege or claim of confidentiality in the documents, materials, or information shall occur as a result of disclosure to the Commission under this section or as a result of sharing as authorized in subdivision 3.

Termination of Appointment

• 5. Nothing in this chapter shall prohibit the Commission from releasing final, adjudicated actions including for cause terminations that are open to public inspection pursuant to Chapter 4 (§ 12.1-18 et seq.) of Title 12.1 to a database or other clearinghouse service maintained by the NAIC, its affiliates or subsidiaries of the NAIC.

• F. An insurer, the authorized representative of the insurer, or agent that fails to report as required under the provisions of this section or that is found to have reported with actual malice by a court of competent jurisdiction may, after notice and an opportunity to be heard, have its license or certificate of authority suspended or revoked and may be fined in accordance with Chapter 2 (§ 38.2-200 et seq.) of this title.

Duration and Termination• § 38.2-1826. Requirement to report to Commission. • A. Each licensed agent shall report within thirty calendar days to the

Commission, and to every insurer for which he is appointed any change in his residence or name.

• B. Each licensed agent convicted of a felony shall report within thirty calendar days to the Commission the facts and circumstances regarding the criminal conviction.

• C. Each licensed agent shall report to the Commission within thirty calendar days of the final disposition of the matter any administrative action taken against him in another jurisdiction or by another governmental agency in this Commonwealth. Such report shall include a copy of the order, consent to order or other relevant legal documents.

• D. The license authority of any licensed resident agent shall terminate immediately when such agent has moved his residence from this Commonwealth, whether or not the Commission has been notified of such move.

Renewal of License• § 38.2-1865.8. (Effective September 1, 2003) Term of licenses;

renewal. • A. Every license issued pursuant to this article shall be for a term of

up to two years, expiring on the second June 30 following the date of its issuance.

• B. A surety bail bondsman license may be renewed for an ensuing two-year period, upon the filing of an application in the form prescribed by the Commission and payment of the nonrefundable renewal application processing fee prescribed in § 38.2-1865.9. In addition, applicants for renewal of a surety bail bondsman license shall undergo the same requirements of subdivision B 3 of § 38.2-1865.7. The Department of State Police, shall forward to the Commissioner of the Bureau of Insurance of the Commission, or his designee, who must be a governmental entity, the results of the records search from the Central Criminal Records Exchange and the Federal Bureau of Investigation.



Termination

• C. A licensee whose license as a surety bail bondsman is revoked, suspended or otherwise terminated or nonrenewed shall be required to satisfy all pre-licensing requirements set forth in § 38.2-1865.7 before a new surety bail bondsman license may be issued by the Commission.

Renewal Fees• § 38.2-1865.9. (Effective September 1, 2003) Fees for surety bail

bondsman license. • A. The nonrefundable application processing fee and the biennial

nonrefundable renewal processing fee for each surety bondsman license shall be $50, which shall be paid in a manner prescribed by the Commission.

• B. On or before June 1 of each renewal year, the licensee shall make application for license renewal and shall at that time pay a nonrefundable renewal application processing fee determined as provided in subsection A.

• C. All renewals shall take effect on July 1. Any license not renewed by June 30 of the renewal year shall terminate effective July 1 of that year.

• D. All fees shall be collected by the Commission and paid into the state treasury to the credit of the fund for the maintenance of the Bureau of Insurance as provided in subsection B of § 38.2-400.

Termination

• E. The license authority of any business entity licensed as a surety bail bondsman shall terminate immediately if the sole licensed responsible producer designated pursuant to subdivision C 3 of § 38.2-1865.7 for the business entity's compliance with the insurance laws, rules and regulations of this Commonwealth is removed for any reason, and a new responsible producer has not been appointed and the Commission notified within 30 calendar days of such removal and of the newly designated responsible producer.

Address and/or Name Changes

• § 38.2-1865.10. (Effective September 1, 2003) Requirement to report to Commission.

• A. Each licensed surety bail bondsman shall report within 30 calendar days to the Commission any change in his residence or name.

Assumed Name

• B. In addition to the requirements of §§ 59.1-69 and 59.1-70, any individual or business entity licensed as a surety bail bondsman in this Commonwealth and operating under an assumed or fictitious name shall notify the Commission, at the earlier of the time the application for a surety bail bondsman license is filed or within 30 calendar days from the date the assumed or fictitious name is adopted, setting forth the name under which the surety bail bondsman intends to operate in Virginia. The Commission shall also be notified within 30 calendar days from the date of cessation of the use of such assumed or fictitious name.

Requirement to Report Felony Convictions

• C. Each licensed surety bail bondsman convicted of a felony shall report within 30 calendar days to the Commission the facts and circumstances regarding the criminal conviction.

Report of Actions

• D. Each licensed surety bail bondsman shall report to the Commission within 30 calendar days of the final disposition of the matter any administrative action taken against him in another jurisdiction or by another governmental agency in this Commonwealth. Such report shall include a copy of the order, consent to order or other relevant legal documents.

Continuing Education• § 38.2-1866. Continuing education requirements. • A. Every individual resident and nonresident (i) insurance

consultant, (ii) life and annuities insurance agent, (iii) health agent, (iv) property and casualty insurance agent (v) personal lines agent, and (vi) title insurance agent shall, on a biennial basis, furnish evidence as set forth in this article that the continuing education requirements of this article have been satisfied. As used in this article, the term "agent" shall be construed to refer to any of the individual licensees referred to above.

• C. Any agent who holds a personal lines license or a property and casualty license shall complete sixteen hours of relevant continuing education credits.

• E. Any agent who holds licenses from more than one category of licenses provided above shall complete twenty-four hours of relevant continuing education credits with a minimum of eight credit hours in each such category.

Continuing Education

• F. Of the total required credits for each biennium, two credit hours shall be in insurance law and regulations applicable in Virginia.

• G. Agents may receive no more than seventy-five percent of their required credits from courses provided by insurance companies or agencies. The Board, in its sole discretion, shall, at the time of course approval, determine whether any particular course shall be considered to be insurance company or agency sponsored, and shall require all course sponsors to provide this information clearly and conspicuously to all those enrolling in that course.

Disciplinary Actions

• § 38.2-1865.11. (Effective September 1, 2003) Grounds for placing on probation, refusal to issue or renew, revocation, or suspension of license.

• A. The Commission shall, in addition to or in lieu of a penalty imposed under § 38.2-218, revoke or refuse to issue, reissue or renew any surety bail bondsman's license for any one or more of the following causes:

• 1. Providing materially incorrect, misleading, incomplete or untrue information in the license application or any other document filed with the Commission;

• 2. Violating any subpoena of the Commission; • 3. Obtaining or attempting to obtain a license through

misrepresentation or fraud;



• 4. Engaging in the practice of rebating; • 5. Engaging in twisting or any form thereof, where

"twisting" means inducing an insured to terminate an existing policy and purchase a new policy through misrepresentation;

• 6. Improperly withholding, misappropriating or converting any moneys or properties received in the course of doing business;

• 7. Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;

• 8. Having admitted or been found to have committed any insurance unfair trade practice or fraud;


• 9. Having been convicted of a felony; • 10. Using fraudulent, coercive, or dishonest practices, or

demonstrating incompetence, or untrustworthiness in the conduct of business in this Commonwealth or elsewhere, or demonstrating financial irresponsibility in the handling of applicant, policyholder, agency, or insurance company funds;

• 11. Forging another's name to an application for insurance or to any document related to an insurance transaction;

• 12. Improperly using notes or any other reference material to complete an examination for an insurance license; or

• 13. Knowingly accepting insurance business from an individual who is not licensed.


• B. The Commission may, in addition to or in lieu of a penalty imposed under § 38.2-218, place on probation, suspend, revoke or refuse to issue, reissue or renew any individual's surety bail bondsman license for any one or more of the following causes:

• 1. Having an insurance producer, surplus lines broker, or consultant license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;

• 2. Failing to comply with an administrative or court order imposing a child support obligation;

• 3. Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax; or

• 4. Violating any insurance laws, or violating any regulation or order of the Commission or of another state's insurance regulatory authority.


Cease and Desist Order• § 38.2-219. Violations; procedure; cease and desist orders. • A. Whenever the Commission has reason to believe that any person has

committed a violation of this title or of any rule, regulation, or order issued by the Commission under this title, it shall issue and serve an order upon that person by certified or registered mail or in any other manner permitted by law. The order shall include a statement of the charges and a notice of a hearing on the charges to be held at a fixed time and place which shall be at least ten days after the date of service of the notice. The order shall require that person to show cause why an order should not be made by the Commission directing the alleged offender to cease and desist from the violation or to show cause why the Commission should not issue any other appropriate order as the nature of the case and the interests of the policyholders, creditors, shareholders, or the public may require. At the hearing, that person shall have an opportunity to be heard in accordance with the Commission's order. In all matters in connection with the charges or hearing, the Commission shall have the jurisdiction, power and authority granted or conferred upon it by Title 12.1 and, except as otherwise provided in this title, the procedure shall conform to and the right of appeal shall be the same as that provided in Title 12.1.

Cease and Desist Order

• B. If the Commission finds in the hearing that there is about to be or has been a violation of this title, it may issue and serve upon any person committing the violation by certified or registered mail or in any other manner permitted by law (i) an order reciting its findings and directing the person to cease and desist from the violation or (ii) such other appropriate order as the nature of the case and the interests of the policyholders, creditors, shareholders, or the public requires.

• C. Any person who violates any order issued under subsection B of this section may upon conviction be subject to one or both of the following:

• 1. Punishment as provided in § 38.2-218; or • 2. The suspension or revocation of any license issued by

the Commission.

Cease and Desist Order• § 38.2-1865.12. (Effective September 1, 2003) Refusal to issue and

revocation of license; hearing; new application. • A. Any refusal by the Commission to issue a surety bail bondsman's license

to an applicant pursuant to this article shall be subject to the right of the applicant to demand a hearing on the application. If the Commission refuses to issue a new license, it shall give the applicant or licensee at least 10 calendar days' notice in writing of the time and place of the hearing, if a hearing is requested. The notice shall contain a statement of the objections to the issuance of the license as the case may be. Notice of the hearing may be given to the applicant by registered or certified mail, sent to the last known address of record pursuant to subsection A of § 38.2-1865.10, or the last known business address if the address of record is incorrect, or in any other lawful manner the Commission prescribes. The Commission may summon witnesses to testify with respect to the applicant, and the applicant may introduce evidence in his or its behalf. No applicant to whom a license is refused after a hearing shall again apply for a license until the expiration of a period of five years from the date of the Commission's order, or such other period of time as the Commission prescribes in its order.


Cease and Desist Order• B. The Commission shall not revoke or suspend an existing license

until the licensee is given an opportunity to be heard before the Commission. The Commission shall give the applicant or licensee at least 10 calendar days' notice in writing of the time and place of the hearing on a revocation or suspension, if a hearing is requested. The notice shall contain a statement of the reason for its proposed revocation or suspension as the case may be. Notice of the hearing may be given to the licensee by registered or certified mail, sent to the last known address of record pursuant to subsection A of § 38.2-1865.10, or the last known business address if the address of record is incorrect, or in any other lawful manner the Commission prescribes. The Commission may summon witnesses to testify with respect to the licensee, and the licensee may introduce evidence in his or its behalf. No licensee whose license is revoked shall again apply for a license until the expiration of a period of five years from the date of the Commission's order, or such other period of time as the Commission prescribes in its order.

Cease and Desist Order

• C. However, upon receipt of documentation from a court or state or federal agency that a licensee has been convicted of a felony, the Commission, without a hearing or prior notice to the licensee, may immediately suspend such person's license, in which event the Commission shall immediately give notice to such person of the suspension and of the time and place of a hearing on the suspension. Such suspension shall remain in force until the hearing is held. The hearing shall be held within 10 days following the suspension of the license. The notice shall include a copy of the documentation from such court or agency, certified by the Commission as the documentation received from such court or agency.

Cease and Desist Order• D. The license of a business entity may be suspended, revoked or

refused if the Commission finds, after notice and an opportunity to be heard, that a violation by an individual licensee acting at the direction of, on behalf of, or with the permission of the business entity was known to be a violation by one or more of the partners, officers or managers acting on behalf of the business entity, and the violation was neither reported to the Commission nor corrective action taken.

• E. In addition to or in lieu of any applicable denial, suspension or revocation of a license, a person may, after notice and an opportunity to be heard, be subject to a penalty pursuant to § 38.2-218.

• F. The Commission shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this title against any person who is under investigation for or charged with a violation of this title, even if the person's license or registration has been surrendered, terminated, suspended, revoked, or has lapsed by operation of law.

Penalties

• § 38.2-218. Penalties and restitution payments. • A. Any person who knowingly or willfully violates any

provision of this title or any regulation issued pursuant to this title shall be punished for each violation by a penalty of not more than $5,000.

• B. Any person who violates without knowledge or intent any provision of this title or any rule, regulation, or order issued pursuant to this title may be punished for each violation by a penalty of not more than $1,000. For the purpose of this subsection, a series of similar violations resulting from the same act shall be limited to a penalty in the aggregate of not more than $10,000.

Penalties• C. Any violation resulting solely from a malfunction of mechanical or

electronic equipment shall not be subject to a penalty. • D. 1. The Commission may require a person to make restitution in the

amount of the direct actual financial loss: • a. For charging a rate in excess of that provided by statute or by the

rates filed with the Commission by the insurer; • b. For charging a premium that is determined by the Commission to be

unfairly discriminatory, such restitution being limited to a period of one year from the date of determination; and

• c. For failing to pay amounts explicitly required by the terms of the insurance contract where no aspect of the claim is disputed by the insurer.

• 2. The Commission shall have no jurisdiction to adjudicate controversies growing out of this subsection regarding restitution among insurers, insureds, agents, claimants and beneficiaries.

• E. The provisions provided under this section may be imposed in addition to or without imposing any other penalties or actions provided by law.

Penalties

• § 38.2-1823. Penalty for acting for insurer, joint underwriting association, etc., when not licensed.

• Any person submitting business, in violation of § 38.2-1822, while the person is not a holder of a valid agent's license to transact the class of insurance involved shall be penalized a sum equal to the first year commission for the placement of that business and in addition shall be subject to the penalties prescribed in §§ 38.2-218 and 38.2-1831.




State Corporation Commission

• § 38.2-200. General powers of the Commission relative to insurance.

• A. The Commission is charged with the execution of all laws relating to insurance and insurers. All companies, domestic, foreign, and alien, transacting or licensed to transact the business of insurance in this Commonwealth are subject to inspection, supervision and regulation by the Commission.

• B. All licenses granting the authority to transact the business of insurance in this Commonwealth shall be granted and issued by the Commission under its seal. The licenses shall be in addition to the certificates of authority required of foreign corporations under §§ 13.1-757 and 13.1-919.



Records and Retention• § 38.2-515. Power of Commission. • A. The Commission shall have power to examine and

investigate the affairs of each person subject to this chapter to determine whether such person has been or is engaged in any unfair method of competition or in any unfair or deceptive act or practice prohibited by §§ 38.2-502 through 38.2-514.

• B. The Commission is further empowered to gather information from any person subject to this chapter relative to trade practices and whether such practices adequately and fairly serve the public interest.

• C. Any person who refuses or fails to provide information in a timely manner to the Commission as provided in this section shall be subject to the enforcement and penalty provisions set forth in Chapter 2 (§ 38.2-200 et seq.) of this title.




Records and Retentions• § 38.2-1317. Examinations; when authorized or required. • A. Whenever the Commission considers it expedient for the protection

of the interests of the people of this Commonwealth, it may make or direct to be made an examination into the affairs of any person licensed to transact any insurance business in this Commonwealth or any other person subject to the jurisdiction of the Commission pursuant to provisions of this title. The Commission may also make or direct to be made, whenever necessary or advisable an examination into the affairs of:

• 1. Any person having a contract under which he has the exclusive or dominant right to manage or control any licensed insurer,

• 2. Any person holding the shares of capital stock or policyholder proxies of any domestic insurer amounting to control as defined in § 38.2-1322 either as voting trustee or otherwise,

• 3. Any person engaged or assisting in, or proposing or claiming to engage or assist in the promotion or formation of a domestic insurer, or

• 4. Any person seeking a license to transact any insurance business in this Commonwealth.


Records and Retention

• B. The Commission shall examine or cause to be examined every domestic insurer at least once in every five years; however, on or after January 1, 1993, the Commission shall examine every insurer licensed in this Commonwealth at least once in every five years.

Records and Retention• C. The examination of any foreign or alien insurer or any other foreign or alien person

subject to examination shall be made to the extent practicable in cooperation with the insurance departments of other states.

• D. Instead of making its own examination, the Commission may accept a full report of the examination of a foreign or alien person, duly authenticated by the insurance supervisory official of the state of domicile or of entry until January 1, 1994. Thereafter, such reports may only be accepted if:

• 1. The insurance department was at the time of the examination accredited under the National Association of Insurance Commissioners' (NAIC) Financial Regulation Standards and Accreditation Program;

• 2. The examination is performed under the supervision of such an accredited insurance department or with the participation of one or more examiners who are employed by an accredited insurance department and who, after a review of the examination work papers and report, state under oath that the examination was performed in a manner consistent with the standards and procedures required by their insurance department; or

• 3. The Commission determines, in its sole discretion, that the examination was performed in a manner consistent with standards and procedures employed by the Commission in the examination of domestic insurers, and the report of examination is duly authenticated by the insurance supervisory official of the insurer's state of domicile or entry.

Records and Retention• § 38.2-1809. Power of Commission to investigate affairs of persons

engaged in insurance business; penalties for refusal to permit investigation. • A. The Commission shall have power to examine and investigate the

business affairs of any person engaged or alleged to be engaged in the business of insurance in this Commonwealth, including all agents, to determine whether the person has engaged or is engaging in any violation of this title. The Commission shall have the right to examine all records relating to the writing or alleged writing of insurance by any such person in this Commonwealth to determine whether the person is now or has been violating any of the provisions of this title. Any licensee under this title, or any person purporting to be a licensee under this title, or any person whose actions have led any person to believe that he is a licensee under this title, who refuses to permit the Commission or any of its employees or agents, including employees of the Bureau of Insurance, to make an examination or who fails or refuses to comply with the provisions of this section may, after notice and an opportunity to be heard, be subject to any of the penalties relating to licensees under this title, as provided in this title, including the denial, suspension or revocation of his license.

Records and Retention

• B. Except as otherwise provided in this title, every licensee shall retain all of his records relative to insurance transactions for the three previous calendar years except that records of premium quotations which are not accepted by the insured or prospective insured need not be kept. These records shall be made available promptly upon request for examination by the Commission or its employees without notice during normal business hours.

Surety Insurance• § 38.2-121. Surety. • "Surety insurance" means: • 1. Becoming surety or guarantor for any person, in any public or

private position or place of trust, whether the guarantee is in an individual, schedule or blanket form; or

• 2. Becoming surety on or guaranteeing the performance of any lawful obligation, undertaking, agreement, or contract, including reinsurance contracts connected therewith, except policies of insurance; or

• 3. Becoming surety on or guaranteeing the performance of bonds and undertakings required or permitted in all judicial proceedings or otherwise allowed by law, including surety bonds accepted by state and municipal authorities in lieu of deposits as security for the performance of insurance contracts.

Prohibited Conduct

• Failure to act as Fiduciary

• Nondisclosure of fees or charges

• Practice of Law

• Signing bond in Blank

• Entry into an occupied residential structure

• Apprehension or arrest of bailee

• Permitting others to apprehend or arrest

Charges, Refunds and Rebates

Fair Credit Reporting Act• Congressional findings and statement of purpose [15 U.S.C. § 1681]• (a) Accuracy and fairness of credit reporting. The Congress makes the following

findings:– (1) The banking system is dependent upon fair and accurate credit reporting. Inaccurate

credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system.

(2) An elaborate mechanism has been developed for investigating and evaluating the credit worthiness, credit standing, credit capacity, character, and general reputation of consumers.

• – (3) Consumer reporting agencies have assumed a vital role in assembling and evaluating

consumer credit and other information on consumers. •

– (4) There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer's right to privacy.

• (b) Reasonable procedures. It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title.

Fair Credit Reporting ActDefinitions

• The term "person" means any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency, or other entity.

• (c) The term "consumer" means an individual.


• Consumer report.– (1) In general. The term "consumer report" means any written,

oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for

• • (A) credit or insurance to be used primarily for personal, family, or

household purposes; –

• (B) employment purposes; or –

• (C) any other purpose authorized under section 604 [§ 1681b].


– Exclusions. The term "consumer report" does not include •

• (A) any –

– (i) report containing information solely as to transactions or experiences between the consumer and the person making the report;

• – (ii) communication of that information among persons related by common ownership or affiliated by

corporate control; or •

– (iii) communication of other information among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons and the consumer is given the opportunity, before the time that the information is initially communicated, to direct that such information not be communicated among such persons;

• • (B) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a

credit card or similar device; –

• (C) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his or her decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made, and such person makes the disclosures to the consumer required under section 615 [§ 1681m]; or

– • (D) a communication described in subsection (o).


• The term "investigative consumer report" means a consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information. However, such information shall not include specific factual information on a consumer's credit record obtained directly from a creditor of the consumer or from a consumer reporting agency when such information was obtained directly from a creditor of the consumer or from the consumer.


• The term "consumer reporting agency" means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.


• The term "file," when used in connection with information on any consumer, means all of the information on that consumer recorded and retained by a consumer reporting agency regardless of how the information is stored.

• (h) The term "employment purposes" when used in connection with a consumer report means a report used for the purpose of evaluating a consumer for employment, promotion, reassignment or retention as an employee.


• The term "medical information" means information or records obtained, with the consent of the individual to whom it relates, from licensed physicians or medical practitioners, hospitals, clinics, or other medical or medically related facilities.

• (j) Definitions relating to child support obligations. – (1) Overdue support. The term "overdue support" has the

meaning given to such term in section 666(e) of title 42 [Social Security Act, 42 U.S.C. § 666(e)].

• – (2) State or local child support enforcement agency. The term

"State or local child support enforcement agency" means a State or local agency which administers a State or local program for establishing and enforcing child support obligations.


– The term "adverse action" •

• (A) has the same meaning as in section 701(d)(6) of the Equal Credit Opportunity Act; and –

• (B) means –

– (i) a denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with the underwriting of insurance;

• – (ii) a denial of employment or any other decision for employment purposes that adversely affects any current or prospective

employee; •

– (iii) a denial or cancellation of, an increase in any charge for, or any other adverse or unfavorable change in the terms of, any license or benefit described in section 604(a)(3)(D) [§ 1681b]; and

• – (iv) an action taken or determination that is

• » (I) made in connection with an application that was made by, or a transaction that was initiated by, any consumer, or in

connection with a review of an account under section 604(a)(3)(F)(ii)[§ 1681b]; and –

» (II) adverse to the interests of the consumer. –

– (2) Applicable findings, decisions, commentary, and orders. For purposes of any determination of whether an action is an adverse action under paragraph (1)(A), all appropriate final findings, decisions, commentary, and orders issued under section 701(d)(6) of the Equal Credit Opportunity Act by the Board of Governors of the Federal Reserve System or any court shall apply.


• Firm offer of credit or insurance. The term "firm offer of credit or insurance" means any offer of credit or insurance to a consumer that will be honored if the consumer is determined, based on information in a consumer report on the consumer, to meet the specific criteria used to select the consumer for the offer, except that the offer may be further conditioned on one or more of the following:– (1) The consumer being determined, based on information in the

consumer's application for the credit or insurance, to meet specific criteria bearing on credit worthiness or insurability, as applicable, that are established

• • (A) before selection of the consumer for the offer; and

– • (B) for the purpose of determining whether to extend credit or insurance

pursuant to the offer.


– Verification •

• (A) that the consumer continues to meet the specific criteria used to select the consumer for the offer, by using information in a consumer report on the consumer, information in the consumer's application for the credit or insurance, or other information bearing on the credit worthiness or insurability of the consumer; or

– • (B) of the information in the consumer's application for the credit or insurance, to

determine that the consumer meets the specific criteria bearing on credit worthiness or insurability.

– – (3) The consumer furnishing any collateral that is a requirement for the extension

of the credit or insurance that was •

• (A) established before selection of the consumer for the offer of credit or insurance; and

– • (B) disclosed to the consumer in the offer of credit or insurance.


• Credit or insurance transaction that is not initiated by the consumer. The term"credit or insurance transaction that is not initiated by the consumer" does not include the use of a consumer report by a person with which the consumer has an account or insurance policy, for purposes of – (1) reviewing the account or insurance policy; or

• – (2) collecting the account.

• (n) State. The term "State" means any State, the Commonwealth of Puerto Rico, the District of Columbia, and any territory or possession of the United States.


• Excluded communications. A communication is described in this subsection if it is a communication – (1) that, but for subsection (d)(2)(D), would be an investigative

consumer report; •

– (2) that is made to a prospective employer for the purpose of •

• (A) procuring an employee for the employer; or –

• (B) procuring an opportunity for a natural person to work for the employer; – – (3) that is made by a person who regularly performs such procurement;

• – (4) that is not used by any person for any purpose other than a purpose

described in subparagraph (A) or (B) of paragraph (2); and • • continued


– 5) with respect to which •

• (A) the consumer who is the subject of the communication –

– (i) consents orally or in writing to the nature and scope of the communication, before the collection of any information for the purpose of making the communication;

• – (ii) consents orally or in writing to the making of the

communication to a prospective employer, before the making of the communication; and

• – (iii) in the case of consent under clause (i) or (ii) given orally, is

provided written confirmation of that consent by the person making the communication, not later than 3 business days after the receipt of the consent by that person;

• Continued


• (B) the person who makes the communication does not, for the purpose of making the communication, make any inquiry that if made by a prospective employer of the consumer who is the subject of the communication would violate any applicable Federal or State equal employment opportunity law or regulation; and

– • (C) the person who makes the communication

– – (i) discloses in writing to the consumer who is the subject of the communication,

not later than 5 business days after receiving any request from the consumer for such disclosure, the nature and substance of all information in the consumer's file at the time of the request, except that the sources of any information that is acquired solely for use in making the communication and is actually used for no other purpose, need not be disclosed other than under appropriate discovery procedures in any court of competent jurisdiction in which an action is brought; and

• – (ii) notifies the consumer who is the subject of the communication, in writing, of

the consumer's right to request the information described in clause (i).


• Consumer reporting agency that compiles and maintains files on consumers on a nationwide basis. The term "consumer reporting agency that compiles and maintains files on consumers on a nationwide basis" means a consumer reporting agency that regularly engages in the practice of assembling or evaluating, and maintaining, for the purpose of furnishing consumer reports to third parties bearing on a consumer's credit worthiness, credit standing, or credit capacity, each of the following regarding consumers residing nationwide:– (1) Public record information.

• – (2) Credit account information from persons who furnish that

information regularly and in the ordinary course of business.

Fair Credit Reporting Act

• Permissible purposes of consumer reports [15 U.S.C. § 1681b]

• (a) In general. Subject to subsection (c), any consumer reporting agency may furnish a consumer report under the following circumstances and no other:– (1) In response to the order of a court having jurisdiction to issue

such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.

• – (2) In accordance with the written instructions of the consumer to

whom it relates. – (3) To a person which it has reason to believe

• Continued

Fair Credit Reporting Act• (A) intends to use the information in connection with a credit transaction

involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or

– • (B) intends to use the information for employment purposes; or

– • (C) intends to use the information in connection with the underwriting of

insurance involving the consumer; or –

• (D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or

– • (E) intends to use the information, as a potential investor or servicer, or

current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, an existing credit obligation; or


• F) otherwise has a legitimate business need for the information

– – (i) in connection with a business transaction that is

initiated by the consumer; or

• – (ii) to review an account to determine whether the

consumer continues to meet the terms of the account.

• Continued

Fair Credit Reporting Act– (4) In response to a request by the head of a State or local child support enforcement

agency (or a State or local government official authorized by the head of such an agency), if the person making the request certifies to the consumer reporting agency that

• • (A) the consumer report is needed for the purpose of establishing an individual's

capacity to make child support payments or determining the appropriate level of such payments;

– • (B) the paternity of the consumer for the child to which the obligation relates has been

established or acknowledged by the consumer in accordance with State laws under which the obligation arises (if required by those laws);

– • (C) the person has provided at least 10 days' prior notice to the consumer whose

report is requested, by certified or registered mail to the last known address of the consumer, that the report will be requested; and

– • (D) the consumer report will be kept confidential, will be used solely for a purpose

described in subparagraph (A), and will not be used in connection with any other civil, administrative, or criminal proceeding, or for any other purpose.

• 5) To an agency administering a State plan under Section 454 of the Social Security Act (42 U.S.C. § 654) for use to set an initial or modified child support award.

Fair Credit Reporting Act• b) Conditions for furnishing and using consumer reports for

employment purposes. – (1) Certification from user. A consumer reporting agency may furnish a

consumer report for employment purposes only if •

• (A) the person who obtains such report from the agency certifies to the agency that

– – (i) the person has complied with paragraph (2) with respect to the consumer

report, and the person will comply with paragraph (3) with respect to the consumer report if paragraph (3) becomes applicable; and

• – (ii) information from the consumer report will not be used in violation of any

applicable Federal or State equal employment opportunity law or regulation; and • • (B) the consumer reporting agency provides with the report, or has

previously provided, a summary of the consumer's rights under this title, as prescribed by the Federal Trade Commission under section 609(c)(3) [§ 1681g].

Fair Credit Reporting Act• (c) Furnishing reports in connection with credit or insurance

transactions that are not initiated by the consumer. – (1) In general. A consumer reporting agency may furnish a consumer

report relating to any consumer pursuant to subparagraph (A) or (C) of subsection (a)(3) in connection with any credit or insurance transaction that is not initiated by the consumer only if

• • (A) the consumer authorizes the agency to provide such report to such

person; or –

• (B) (i) the transaction consists of a firm offer of credit or insurance; –

– (ii) the consumer reporting agency has complied with subsection (e); and •

– (iii) there is not in effect an election by the consumer, made in accordance with subsection (e), to have the consumer's name and address excluded from lists of names provided by the agency pursuant to this paragraph.

•


• (e) Election of consumer to be excluded from lists. – (1) In general. A consumer may elect to have the

consumer's name and address excluded from any list provided by a consumer reporting agency under subsection (c)(1)(B) in connection with a credit or insurance transaction that is not initiated by the consumer, by notifying the agency in accordance with paragraph (2) that the consumer does not consent to any use of a consumer report relating to the consumer in connection with any credit or insurance transaction that is not initiated by the consumer.

Fair Credit Reporting Act• (f) Certain use or obtaining of information prohibited. A person

shall not use or obtain a consumer report for any purpose unless – (1) the consumer report is obtained for a purpose for which

the consumer report is authorized to be furnished under this section; and

• – (2) the purpose is certified in accordance with section 607

[§ 1681e] by a prospective user of the report through a general or specific certification.

• (g) Furnishing reports containing medical information. A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction, a consumer report that contains medical information about a consumer, unless the consumer consents to the furnishing of the report.

Fair Credit Reporting Act• Information excluded from consumer reports. Except as authorized under

subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

– (1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

– – (2) Civil suits, civil judgments, and records of arrest that from date of entry,

antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

– – (3) Paid tax liens which, from date of payment, antedate the report by more than

seven years. – – (4) Accounts placed for collection or charged to profit and loss which antedate

the report by more than seven years.(1) – – (5) Any other adverse item of information, other than records of convictions of

crimes which antedates the report by more than seven years.1


• Exempted cases. The provisions of subsection (a) of this section are not applicable in the case of any consumer credit report to be used in connection with – (1) a credit transaction involving, or which may reasonably be

expected to involve, a principal amount of $150,000 or more; – – (2) the underwriting of life insurance involving, or which may

reasonably be expected to involve, a face amount of $150,000 or more; or

– – (3) the employment of any individual at an annual salary which

equals, or which may reasonably be expected to equal $75,000, or more.

Fair Credit Reporting Act• Disclosure of fact of preparation. A person may not procure or cause to be

prepared an investigative consumer report on any consumer unless – (1) it is clearly and accurately disclosed to the consumer that an investigative

consumer report including information as to his character, general reputation, personal characteristics and mode of living, whichever are applicable, may be made, and such disclosure

– • (A) is made in a writing mailed, or otherwise delivered, to the consumer, not later than

three days after the date on which the report was first requested, and • • (B) includes a statement informing the consumer of his right to request the additional

disclosures provided for under subsection (b) of this section and the written summary of the rights of the consumer prepared pursuant to section 609(c) [§ 1681g]; and

– – (2) the person certifies or has certified to the consumer reporting agency that

•(A) the person has made the disclosures to the consumer required by paragraph (1); and

• (B) the person will comply with subsection (b).


• Disclosure on request of nature and scope of investigation. Any person who procures or causes to be prepared an investigative consumer report on any consumer shall, upon written request made by the consumer within a reasonable period of time after the receipt by him of the disclosure required by subsection (a)(1) of this section, make a complete and accurate disclosure of the nature and scope of the investigation requested. This disclosure shall be made in a writing mailed, or otherwise delivered, to the consumer not later than five days after the date on which the request for such disclosure was received from the consumer or such report was first requested, whichever is the later


• Certain public record information. Except as otherwise provided in section 613 [§ 1681k], a consumer reporting agency shall not furnish an investigative consumer report that includes information that is a matter of public record and that relates to an arrest, indictment, conviction, civil judicial action, tax lien, or outstanding judgment, unless the agency has verified the accuracy of the information during the 30-day period ending on the date on which the report is furnished.


– Certain adverse information. A consumer reporting agency shall not prepare or furnish an investigative consumer report on a consumer that contains information that is adverse to the interest of the consumer and that is obtained through a personal interview with a neighbor, friend, or associate of the consumer or with another person with whom the consumer is acquainted or who has knowledge of such item of information, unless

– • (A) the agency has followed reasonable procedures to obtain

confirmation of the information, from an additional source that has independent and direct knowledge of the information; or

•(B) the person interviewed is the best possible source of the information.

Fraud and False Statements

• The Violent Crime Control and Law Enforcement Act of 1994, Public Law 103-322, H.R. 3355; Title 18, United States Code, Sections 1033-1034 ("the Act") became effective September 13, 1994. It provides criminal and civil enforcement provisions for insurance fraud committed by persons in the insurance industry.

• The Act also provides penalties for persons who have been convicted of certain prior criminal acts and who willfully engage in the business of insurance affecting interstate commerce, unless such person receives written consent from the appropriate regulatory official.

• Insurers, officers, directors, agents, and any employee of an insurance company engaged in the business of insurance could be subject to the requirements of this Act.

Violent Crime Act

• In essence, on September 13,1994, it became illegal for an individual convicted of a crime involving dishonesty, breach of trust or a violation of the Act to work or continue to work in the business of insurance affecting interstate commerce without receiving written consent from Virginia Bureau of Insurance.

• Until such time as consent is given, a person who has committed such a crime is considered a "prohibited person" in the insurance industry.

Violent Crime Act

• A prohibited person who works or continues to work without a written consent risks federal criminal and civil sanctions.

• The Act contains no grandfather provision for persons already transacting the business of insurance.

• The Act contains no automatic waivers for individuals who may possess a state insurance license or certificate.

• Further, there is no time limitation on how far back the felony conviction that triggers the prohibition may have occurred.

Violent Crime Act

• Insurance companies, as well as persons employing anyone to conduct the business of insurance may be in violation of this statute if they willfully permit participation by a prohibited person, including persons who are already employed or being considered for employment. It is the responsibility of the employer to ensure that any prohibited person who is currently employed or being considered for employment is not permitted to conduct the business of insurance in accordance with 18 U.S.C. §1033(e)(1)(B).

Virginia Courts• Court System: • Credit and collection matters are generally within the jurisdiction of the

Civil Courts. Civil Courts are divided into General District Courts and Circuit Courts.

• Circuit Court: All civil action for money in an amount exceeding $15,000.00, exclusive of interest and any attorney fees, are determined by this court. (VA Code 16.1-77.)

• General District Court: The District Court has exclusive jurisdiction on all civil cases in which the amount in controversy does not exceed $3,000, and concurrent jurisdiction when the amount in controversy is over $3,000 but below $15,000.00. (VA Code 16.1-77.)

• Small Claims Court: The Virginia statutes permits the General District Court to establish Small Claims Courts in designated counties. The Small Claims Court has jurisdiction over money claims in an amount not exceeding $1,000.00, exclusive of interest. (VA Code 16.1-122.1, et seq.)

Appellate Jurisdiction• The Court of Appeals has authority to hear appeals as a matter of right from: • any final judgment, order, or decree of a circuit court involving affirmance or annulment of a

marriage, divorce, custody, spousal or child support, or control or disposition of a child, as well as other domestic relations cases;

• any final decision of the Virginia Workers' Compensation Commission (a state agency responsible for handling workers' compensation claims);

• any final decision of a circuit court on appeal from a decision of an administrative agency (example: the Department of Health); and

• any interlocutory order granting, dissolving, or denying an injunction or adjudicating the principles of a cause in any of the cases listed above.

• The Court of Appeals has authority to consider petitions for appeal from: • final orders of conviction in criminal and traffic matters except where a death penalty is

imposed.

• final decisions of a circuit court on an application for a concealed weapons permit.

• certain preliminary rulings in felony cases when requested by the Commonwealth. • The Court of Appeals has original jurisdiction to issue writs of mandamus, prohibition and

habeas corpus in any case over which the Court would have appellate jurisdiction.

Definitions

• Adjudicate -The legal process of resolving a dispute, the process of judicially deciding a case.

• Affidavit- A voluntary declaration of facts written down and sworn to by the declarant before an officer authorized to administer oaths, such as notary public.

Definitions

• Bond- An instrument designed chiefly to guarantee the integrity and honesty of the principal, his ability, financial responsibility, and his compliance with law or contract; a guarantee of performance. It is an agreement whereby one party, called the surety, obligates itself to a second party, called the oblige, to answer for the default of a third party, called the principal.

• Capital Offense- A crime for which the death penalty may be imposed.

• Conviction- The act or process of judicially finding someone guilty of a crime, proven guilty.

Definitions

• Custody- The care and control of a thing or person for inspection, preservation, or security.

• Default- The omission or failure to perform a legal or contractual duty.

• Defendant- A person sued in a civil proceeding or accused in a criminal proceeding.

Definitions

• Disposition- The act of transferring something to another’s care or possession, the relinquishing of property.

• Exoneration/release- To free from responsibility.• Extradition- The official surrender of an alleged

criminal by one state or nation to another having jurisdiction over the crime charged, the return of a fugitive from justice, regardless of consent by the authorities where the fugitive resides.

Definitions

• Felony- A serious crime usually punishable by imprisonment for more than one year or by death.

• Forfeiture- The loss of a right, privilege, or property because of a crime, breach of obligation, or neglect of duty. Something lost or confiscated.

Definitions

• Fugitive- Someone who flees across state lines to avoid state-felony prosecution or confinement, or to avoid giving testimony in a state felony case.

• Hearing- A judicial session usually open to the public, held for the purpose of deciding issues of fact or of law.

Definitions

• Indictment- The formal written accusation of a crime, made by a grand jury and presented to court for prosecution against the accused person.

Definitions

• Misdemeanor- A crime that is less serious than a felony and is usually punishable by fine, penalty, forfeiture, or confinement for brief period in a place (jail) other than a prison.

Definitions

• Recognizance- A bond or obligation, made in court, by which a person promises to perform some act or observe some condition, such as to appear when called, to pay a debt, or to keep the peace. Most commonly, a recognizance takes the form of a bail bond that guarantees an unjailed criminal defendants return for a court date.

Definitions

• Revoke- A cancellation or reversal of an act or power. Withdrawal of an offer.

• Surety’s Capias- The objective in issuing a capias is also for a person to come before a court to show cause, and is accomplished through arrest. However, a capias can also be used to revoke bail/bond and incarcerate until a later hearing, or to allege a new offense that originated from a previously adjudicated matter (such as contempt of court, failure to appear, or failure to obey a court order). The instrument is used traditionally while a person is on bond and awaiting adjudication (and violates the conditions of bond).

Definitions

• Surrender- A surety’s delivery into custody of a prisoner who had been released on bail.

• Suspend- To temporarily keep a person from performing a function or exercising a right or privilege.

Definitions

• Warrant- A writ directing or authorizing someone to do an act especially one directing a law enforcer to make an arrest, a search, or a seizure.

• Writ- A court’s written order, in the name of a state or other competent legal authority, commanding the addressee to do or refrain from doing specified act.

SURETYSHIP VS. INSURANCE

INSURANCE:

• A TWO PARTY CONTRACT

• PREMIUM CONSIDERATION

• PAYS ON BEHALF OF/INDEMNIFIES INSURED FOR LOSS

SURETY

• A THREE PARTY CONTRACT

• GUARANTEE OF PERFORMANCE

Bonds vs. Insurance

• Bond contract is three party– Principal – Person obtaining bond or accused– Obligee – Courts– Surety - company

• It is an agreement whereby one party, called the surety, obligates itself to a second party, called the obligee, to answer for the default of a third party, called the principal.

• Obligee pays for bond• Obligee. The party in whose favor the bond runs, or one

who is protected against loss by the bond.• Obligor. Commonly termed the principal, or one bound

by an obligation. Strictly speaking, under a surety bond, both principal and surety are obligors, since the surety must answer if the principal defaults.

Types of Bonds

• Secured Bond- Collateral. Anything of value pledged with the surety to secure it against loss through default of the principal who supplies the collateral.

Criminal Defendant Bonds

• Bail Bond. One given by an individual accused or convicted of violation of a law or ordinance in order to secure his release or liberty, guaranteeing that he will appear in court at the time set for trial.

Criminal Defendant Bonds

• Appeal Bond. One filed in court by a defendant, against whom a judgment has been rendered, in order to stay execution of the judgment pending appeal to a higher court, in the hope of reversing the judgment.

Procedures

• Application. A questionnaire giving required information concerning one who requests a bond written in his behalf, describing the nature of the bond requested, plus the applicant's promise to pay the bond premium, and also to indemnify the surety in the event of default.

Court Procedures- Appeal

• § 19.2-124. Appeal from order denying bail or fixing terms of bond or recognizance.

• A. If a judicial officer denies bail to a person, requires excessive bond, or fixes unreasonable terms of a recognizance under this article, the person may appeal therefrom successively to the next higher court or judge thereof, up to and including the Supreme Court of Virginia or any justice thereof where permitted by law.

• B. If a court grants bail to a person or fixes a term of recognizance under this article over the objection of the attorney for the Commonwealth, the attorney for the Commonwealth may appeal therefrom successively to the next higher court or judge thereof, up to and including the Supreme Court of Virginia or any justice thereof.

Conditions of Release

• § 19.2-102. In what cases bail allowed; conditions of bond.

• Unless the offense with which the prisoner is charged is shown to be an offense punishable by death or life imprisonment under the laws of the state in which it was committed, any judge, magistrate or other person authorized by law to admit persons to bail in this Commonwealth may admit the person arrested to bail by bond, with sufficient sureties, and in such sum as he deems proper, conditioned upon his appearance before a judge at a time specified in such bond and upon his surrender for arrest upon the warrant of the Governor of this Commonwealth.

Conditions of Release

• § 19.2-120. Admission to bail. • Prior to conducting any hearing on the issue of bail,

release or detention, the judicial officer shall, to the extent feasible, obtain the person's criminal history.

• A. A person who is held in custody pending trial or hearing for an offense, civil or criminal contempt, or otherwise shall be admitted to bail by a judicial officer, unless there is probable cause to believe that:

• 1. He will not appear for trial or hearing or at such other time and place as may be directed, or

• 2. His liberty will constitute an unreasonable danger to himself or the public.

Conditions of Release• B. The judicial officer shall presume, subject to rebuttal, that no condition or combination

of conditions will reasonably assure the appearance of the person or the safety of the public if the person is currently charged with:

• 1. An act of violence as defined in § 19.2-297.1; • 2. An offense for which the maximum sentence is life imprisonment or death; • 3. A violation of §§ 18.2-248, 18.2-248.01, 18.2-255 or § 18.2-255.2 involving a

Schedule I or II controlled substance if (i) the maximum term of imprisonment is ten years or more and the person was previously convicted of a like offense or (ii) the person was previously convicted as a "drug kingpin" as defined in § 18.2-248;

• 4. A violation of §§ 18.2-308.1, 18.2-308.2, or § 18.2-308.4 and which relates to a firearm and provides for a minimum, mandatory sentence;

• 5. Any felony, if the person has been convicted of two or more offenses described in subdivision 1 or 2, whether under the laws of this Commonwealth or substantially similar laws of the United States;

• 6. Any felony committed while the person is on release pending trial for a prior felony under federal or state law or on release pending imposition or execution of sentence or appeal of sentence or conviction;

• 7. An offense listed in subsection B of § 18.2-67.5:2 and the person had previously been convicted of an offense listed in § 18.2-67.5:2 and the judicial officer finds probable cause to believe that the person who is currently charged with one of these offenses committed the offense charged; or

• 8. A violation of § 18.2-46.5 or § 18.2-46.7.









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Conditions of Release• C. The court shall consider the following factors and such others as

it deems appropriate in determining, for the purpose of rebuttal of the presumption against bail described in subsection B, whether there are conditions of release that will reasonably assure the appearance of the person as required and the safety of the public:

• 1. The nature and circumstances of the offense charged; • 2. The history and characteristics of the person, including his

character, physical and mental condition, family ties, employment, financial resources, length of residence in the community, community ties, past conduct, history relating to drug or alcohol abuse, criminal history, and record concerning appearance at court proceedings; and

• 3. The nature and seriousness of the danger to any person or the community that would be posed by the person's release.

• D. The judicial officer shall inform the person of his right to appeal from the order denying bail or fixing terms of bond or recognizance consistent with § 19.2-124.


Prior to Trial• § 19.2-121. Fixing terms of bail. • If the person is admitted to bail, the terms thereof shall be such as, in the

judgment of any official granting or reconsidering the same, will be reasonably fixed to assure the appearance of the accused and to assure his good behavior pending trial. The judicial officer shall take into account (i) the nature and circumstances of the offense; (ii) whether a firearm is alleged to have been used in the offense; (iii) the weight of the evidence; (iv) the financial resources of the accused or juvenile and his ability to pay bond; (v) the character of the accused or juvenile including his family ties, employment or involvement in education; (vi) his length of residence in the community; (vii) his record of convictions; (viii) his appearance at court proceedings or flight to avoid prosecution or failure to appear at court proceedings; (ix) whether the person is likely to obstruct or attempt to obstruct justice, or threaten, injure, or intimidate, or attempt to threaten, injure, or intimidate a prospective witness, juror, or victim; and (x) any other information available which the court considers relevant to the determination of whether the accused or juvenile is unlikely to appear for court proceedings.

• In any case where the accused has appeared and otherwise met the conditions of bail, no bond therefor shall be used to satisfy fines and costs unless agreed to by the person who posted such bond.

Failure to Appear

• § 19.2-103. Discharge, recommitment or renewal of bail.

• If the accused is not arrested under warrant of the Governor by the expiration of the time specified in the warrant or bond, any judge in this Commonwealth may discharge him or may recommit him for a further period not to exceed sixty days, or such judge may again take bail for his appearance and surrender, as provided in the preceding section, but within a period not to exceed sixty days after the date of such new bond.

Failure to Appear

• § 19.2-108. Fugitives from this Commonwealth; duty of Governor.

• Whenever the Governor shall demand a person charged with crime or with escaping from confinement or breaking the terms of his bail, probation or parole in this Commonwealth, from the executive authority of any other state, or from the chief justice or an associate justice of the Supreme Court of the District of Columbia authorized to receive such demand under the laws of the United States, he shall issue a warrant under the seal of this Commonwealth to some agent commanding him to receive the person so charged if delivered to him and convey him to the proper officer of the county or city in this Commonwealth in which the offense was committed.

Failure to Appear

• § 19.2-110. Application for requisition for return of escaped convict, etc.

• When the return to this Commonwealth is required of a person who has been convicted of a crime in this Commonwealth and has escaped from confinement or broken the terms of his bail, probation or parole, the attorney for the Commonwealth, of the county or city in which the offense was committed, or the warden of the institution or sheriff of the county or city from which the escape was made, shall present to the Governor a written application for a requisition for the return of such person, in which application shall be stated the name of the person, the crime of which he was convicted, the circumstances of his escape from confinement or of the breach of the terms of his bail, probation or parole and the state in which he is believed to be, including the location of the person therein at the time application is made.

Failure to Appear• § 19.2-128. Penalties for failure to appear. • A. Whoever, having been released pursuant to this chapter or §

19.2-319 or on a summons pursuant to § 19.2-73 or § 19.2-74, willfully fails to appear before any court or judicial officer as required, shall, after notice to all interested parties, incur a forfeiture of any security which may have been given or pledged for his release, unless one of the parties can show good cause for excusing the absence, or unless the court, in its sound discretion, shall determine that neither the interests of justice nor the power of the court to conduct orderly proceedings will be served by such forfeiture.

• B. Any person (i) charged with a felony offense or (ii) convicted of a felony offense and execution of sentence is suspended pursuant to § 19.2-319 who willfully fails to appear before any court as required shall be guilty of a Class 6 felony.

• C. Any person (i) charged with a misdemeanor offense or (ii) convicted of a misdemeanor offense and execution of sentence is suspended pursuant to § 19.2-319 who willfully fails to appear before any court as required shall be guilty of a Class 1 misdemeanor.




Revocation Of Bail• § 19.2-123. Release of accused on secured or unsecured bond or

promise to appear; conditions of release. • A. Any person arrested for a felony who has previously been

convicted of a felony, or who is presently on bond for an unrelated arrest in any jurisdiction, or who is on probation or parole, may be released only upon a secure bond. This provision may be waived with the approval of the judicial officer and with the concurrence of the attorney for the Commonwealth or the attorney for the county, city or town. Subject to the foregoing, when a person is arrested for either a felony or a misdemeanor, any judicial officer may impose any one or any combination of the following conditions of release:

• 1. Place the person in the custody and supervision of a designated person, organization or pretrial services agency which, for the purposes of this section, shall not include a court services unit established pursuant to § 16.1-233;

• Continued….

Revocation of Bail• 2. Place restrictions on the travel, association or place of abode of the person

during the period of release and restrict contacts with household members for a period not to exceed seventy-two hours;

• 2a. Require the execution of an unsecured bond; • 3. Require the execution of a secure bond which at the option of the accused

shall be satisfied with sufficient solvent sureties, or the deposit of cash in lieu thereof. Only the actual value of any interest in real estate or personal property owned by the proposed surety shall be considered in determining solvency and solvency shall be found if the value of the proposed surety's equity in the real estate or personal property equals or exceeds the amount of the bond;

• 3a. Require that the person do any or all of the following: (i) maintain employment or, if unemployed, actively seek employment; (ii) maintain or commence an educational program; (iii) avoid all contact with an alleged victim of the crime and with any potential witness who may testify concerning the offense; (iv) comply with a specified curfew; (v) refrain from possessing a firearm, destructive device, or other dangerous weapon; (vi) refrain from excessive use of alcohol, or use of any illegal drug or any controlled substance not prescribed by a health care provider; and (vii) submit to testing for drugs and alcohol until the final disposition of his case; or

• Continued

Revocation of Bail• 4. Impose any other condition deemed reasonably necessary to

assure appearance as required, and to assure his good behavior pending trial, including a condition requiring that the person return to custody after specified hours or be placed on home electronic incarceration pursuant to § 53.1-131.2.

• Upon satisfaction of the terms of recognizance, the accused shall be released forthwith.

• In addition, where the accused is a resident of a state training center for the mentally retarded, the judicial officer may place the person in the custody of the director of the state facility, if the director agrees to accept custody. Such director is hereby authorized to take custody of such person and to maintain him at the training center prior to a trial or hearing under such circumstances as will reasonably assure the appearance of the accused for the trial or hearing.

Revocation of Bail• B. In any jurisdiction served by a pretrial services agency which offers a drug or alcohol screening or testing

program approved for the purposes of this subsection by the chief general district court judge, any such person charged with a crime may be requested by such agency to give voluntarily a urine sample, submit to a drug or alcohol screening, or take a breath test for presence of alcohol. A sample may be analyzed for the presence of phencyclidine (PCP), barbiturates, cocaine, opiates or such other drugs as the agency may deem appropriate prior to any hearing to establish bail. The judicial officer and agency shall inform the accused or juvenile being screened or tested that test results shall be used by a judicial officer only at a bail hearing and only to determine appropriate conditions of release or to reconsider the conditions of bail at a subsequent hearing. All screening or test results, and any pretrial investigation report containing the screening or test results, shall be confidential with access thereto limited to judicial officers, the attorney for the Commonwealth, defense counsel, other pretrial service agencies, any criminal justice agency as defined in § 9.1-101 and, in cases where a juvenile is screened or tested, the parents or legal guardian or custodian of such juvenile. However, in no event shall the judicial officer have access to any screening or test result prior to making a bail release determination or to determining the amount of bond, if any. Following this determination, the judicial officer shall consider the screening or test results and the screening or testing agency's report and accompanying recommendations, if any, in setting appropriate conditions of release. In no event shall a decision regarding a release determination be subject to reversal on the sole basis of such screening or test results. Any accused or juvenile whose urine sample has tested positive for such drugs and who is admitted to bail may, as a condition of release, be ordered to refrain from use of alcohol or illegal drugs and may be required to be tested on a periodic basis until final disposition of his case to ensure his compliance with the order. Sanctions for a violation of any condition of release, which violations shall include subsequent positive drug or alcohol test results or failure to report as ordered for testing, may be imposed in the discretion of the judicial officer and may include imposition of more stringent conditions of release, contempt of court proceedings or revocation of release. Any test given under the provisions of this subsection which yields a positive drug or alcohol test result shall be reconfirmed by a second test if the person tested denies or contests the initial drug or alcohol test positive result. The results of any drug or alcohol test conducted pursuant to this subsection shall not be admissible in any judicial proceeding other than for the imposition of sanctions for a violation of a condition of release.

• D. Nothing in this section shall be construed to prevent an officer taking a juvenile into custody from releasing that juvenile pursuant to § 16.1-247. If any condition of release imposed under the provisions of this section is violated, a judicial officer may issue a capias or order to show cause why the recognizance should not be revoked.

Bond Forfeiture

• § 19.2-104. Forfeiture of bail. • If the prisoner is admitted to bail and fails to

appear and surrender himself according to the conditions of his bond, any judge of a circuit or general district court by proper order, shall declare the bond forfeited and order his immediate arrest without warrant if he be within this Commonwealth. Recovery may be had on such bond in the name of the Commonwealth as in the case of other bonds given by the accused in criminal proceedings within this Commonwealth.

Bond Forfeiture

• § 19.2-142. Where recognizance taken out of court to be sent.

• A person taking a recognizance out of court shall forthwith transmit it to the clerk of the court for appearance before which it is taken; or, if it be not for appearance before a court, to the clerk of the circuit court of the county or city in which it is taken; and it shall remain filed in the clerk's office.

Bond Forfeiture

• § 19.2-144. Forfeiture of recognizance while in military or naval service.

• If in any motion, action, suit or other proceeding made or taken in any court of this Commonwealth on a forfeited bail bond or forfeited recognizance, or to enforce the payment of the bond in any manner or any judgment thereon, or to forfeit any bail bond or recognizance, it appears that the person for whose alleged default such bail bond or recognizance was forfeited or judgment rendered, or such motion is made or proceeding taken, was prevented from complying with the condition of such bail bond or recognizance by reason of his having enlisted or been drafted in the army or navy of the United States, then judgment or decree on such motion, action, suit or other proceeding shall be given for the defendant.

Dispersal of Funds

• § 46.2-114. Disposition of fines and forfeitures. • All fines or forfeitures collected on conviction or

on a forfeiture of bail of any person charged with a violation of any of the provisions of this title punishable as felonies, misdemeanors, or traffic infractions shall be paid into the state treasury to be credited to the Literary Fund unless a different form of payment is required specifically by this title.

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