1.5 Definitions in 114CSR103-2

Outline item I.B lists ten definitions, each tied to a subsection of 114CSR103-2. Definition questions are among the easiest points on the exam if you learn the exact wording. They are also easy to miss when an answer choice sounds plausible but adds something the rule does not say.

The ten outline definitions

1. Agent, clerk or representative (2.1)

A person employed by a licensed bail bondsman to assist the bondsman in presenting a defendant in court, or, if a power of attorney has been duly executed, issuing bonds on the bondsman's behalf. An agent, clerk or representative engaged in the bonding business must be licensed by the Commissioner.

2. Bond (2.2)

An appearance bond for a specified monetary amount, executed by the defendant and a licensed bondsman, and issued to a court as security for the defendant's later court appearance after release from custody.

3. Bonding business (2.3)

The business of becoming surety for compensation upon bonds in criminal cases in West Virginia. W.Va. Code §51-10-1 uses the same words. "For compensation" is the key: someone who pledges property without any fee is not in the bonding business (see the ten-bond exemption in section 2.1).

4. Bondsman or bail bondsman (2.4)

Any person engaged in the bonding business who is approved and licensed under the rule as a professional bondsman (2.9) or a surety bondsman (2.11).

5. Cash (2.5)

A personal or business check, a money order, or a cashier's check. The OIC's application instructions apply the same idea: cash security is accepted as a personal check, business check, money order or cashier's check payable to the WVOIC.

6. Commissioner (2.6)

The Insurance Commissioner of West Virginia. W.Va. Code §51-10-1 adds "as defined in §33-1-5."

7. Insurer (2.7)

Any domestic, foreign or alien insurance company, including a surety company, that has been qualified generally to transact surety business in West Virginia. A surety bondsman can only represent an insurer that meets this definition.

8. Person (2.8)

An individual. Partnerships and corporations are not "persons" under the rule. OIC guidance for the July 1, 2022 start required licensure of individual bondsmen only, and a bondsman working for a business entity names that entity at licensing.

9. Surety bondsman (2.11)

A person who either:

• 2.11.1: is licensed as an insurance producer with a property and casualty line of authority and is appointed by an insurer to execute or countersign bail bonds through a qualified power of attorney; or
• 2.11.2: posts approved security by giving the Commissioner a qualified power of attorney issued by an insurer under a producer underwriting agreement, is licensed as an insurance producer with a limited lines surety line of authority, and is appointed by an insurer to execute or countersign bail bonds.

Both routes require compensation for the services ("charges, receives or is promised money or other things of value").

10. Professional bondsman (2.9)

A person approved and licensed by the Commissioner who pledges one of the following with the Commissioner as security for bail bonds, and charges, receives or is promised compensation:

• cash;
• an irrevocable letter of credit;
• a bond issued by an insurance company licensed and in good standing in West Virginia; or
• real estate (no new pledges after July 1, 2024; see section 2.3).

The OIC's Types of Licenses guidance (October 2022) adds that professional bondsmen are sometimes called cash, property or self-insured bondsmen. They have no agreement with an insurer to guarantee their bonds.

One more: securities or approved securities (2.10)

Not on the outline's list but used throughout the rule: cash, an irrevocable letter of credit, a bond issued by a licensed insurer in good standing, a qualified power of attorney issued by an insurer under a producer underwriting agreement, or unencumbered West Virginia real estate. The statutory definition in §51-10-1 matches it and states the July 1, 2024 real-estate cut-off.

Statute versus rule

W.Va. Code §51-10-1 defines approved securities, bonding business, bondsman, Commissioner and insurer. Two differences from the rule are worth noticing:

Definitions side by side

Exam traps

• "Person" means an individual. Do not choose an answer saying a corporation may hold a bail bondsman license.
• "Cash" is defined by instrument type. A personal check, business check, money order and cashier's check all qualify.
• Clerks who present defendants or issue bonds need a license. The definition itself says so.
• The bond runs to a court. It is security for the defendant's appearance, executed by the defendant and the bondsman.