(a) A surety bail bond agent or a managing general agent shall post build-up funds with an insurer or managing general agent pursuant to the surety bail bond agent's contract with the insurer or managing general agent or the managing general agent's contract with the insurer, as applicable. The insurer or managing general agent shall establish an individual build-up trust account for the surety bail bond agent in a federally insured bank or savings and loan association in this state, jointly in the name of the surety bail bond agent and the insurer or managing general agent, or in trust for the surety bail bond agent by the insurer or managing general agent. The insurer or managing general agent shall immediately deposit build-up funds received from the surety bail bond agent in the build-up trust account. Interest earned on any such deposits shall accrue to the surety bail bond agent. The account shall be open to inspection and examination by the Insurance Department at all times. The insurer or managing general agent shall maintain an accounting of all build-up funds and such accounting shall designate the amounts collected on each bail bond executed.
(b) Build-up funds shall be used to compensate the insurer or managing general agent for any losses such insurer or managing general agent incurs in the apprehension of a defendant or to pay forfeitures of bail bonds executed by the surety bail bond agent.
(c) Build-up funds, as established by the surety bail bond agent's contract with the insurer or managing general agent, shall not exceed forty per cent of the premium.
(d) Upon the termination of the surety bail bond agent's contract and discharge of liabilities on the bail bonds for which the build-up funds were posted, the insurer or managing general agent shall pay the build-up funds, minus the expenses permitted to be recovered by the insurer or managing general agent under subsection (b) of this section, to the surety bail bond agent not later than six months after such termination and discharge of liabilities.
(P.A. 11-45, S. 7.)
Structure Connecticut General Statutes
Chapter 700f - Bail Bond Insurance
Section 38a-660a. - Notice to courts and police departments of licensees.
Section 38a-660b. - Premium rates.
Section 38a-660c. - Premium financing arrangement.
Section 38a-660d. - Fiduciary duty. Record-keeping. Penalty.
Section 38a-660e. - Records of bail bonds.
Section 38a-660f. - Build-up funds.
Section 38a-660g. - Collateral security or other indemnity on a bail bond.
Section 38a-660h. - Return of collateral security or other indemnity. Penalty.
Section 38a-660j. - Prohibited acts.
Section 38a-660k. - Reporting requirements. Annual meeting.
Section 38a-660l. - Suspension or revocation of license. Fine. Appeal.