1.2 Examination of Records and Records Retention

The second item under outline Category I is examination of records. The outline cites W.Va. Code §§33-2-4 and 33-2-9 and rule sections 114CSR103-13 and 114CSR103-14. Expect questions on who may examine, how much access the examiner gets, which records must be kept, and for how long.

The examination power in the bail rule: 114CSR103-13

The rule is short, and its wording matters:

Whenever the Commissioner considers it prudent, the Commissioner may visit and examine, or cause to be visited and examined by a competent person appointed for that purpose, any licensed bail bondsman. The Commissioner or examiner shall have free access to all records of the licensed bail bondsman that relate to the licensee's business and to the records kept by any of the licensee's agents.

Break that into testable parts:

• Trigger: whenever the Commissioner "considers it prudent." No complaint, schedule or suspicion is required.
• Who examines: the Commissioner, or a competent person the Commissioner appoints.
• Scope: all records relating to the licensee's business.
• Reach: includes records kept by the licensee's agents, not just the owner's files.
• Access standard: "free access." The bondsman cannot demand a court warrant before producing business records.

The OIC's Fees and Collateral guidance (October 2022) repeats the same point: the OIC may examine "whenever prudent" and has free access to agents' records too.

Backing statutes: W.Va. Code §§33-2-9 and 33-2-4

Section 33-2-9 is the general examination statute for the insurance industry. Its purpose clause covers "all persons otherwise subject to the jurisdiction of the commissioner." Two subsections matter most for bondsmen:

• §33-2-9(g): the Commissioner may examine the books, records, papers, documents, correspondence and methods of doing business of any licensed agent. Examiners get free access to those records wherever they are located. The Commissioner may revoke the license of any agent who refuses to submit to the examination.
• §33-2-9(h): besides a formal examination, the Commissioner may analyze or review any phase of the operations of an agent or other person transacting insurance business in the State.

A surety bondsman is an insurance producer, so these producer-examination powers apply directly. For every bondsman, refusing access also defeats 114CSR103-13, and violating a lawful rule is a suspension and revocation ground under 114CSR103-11.1.2.

Section 33-2-4 (section 1.1) adds the subpoena. If records are not produced voluntarily, the Commissioner can subpoena documents, sworn testimony and written interrogatory answers.

What must be kept: 114CSR103-14

All records related to executing bail bonds, including bail bond reports, receipts, collateral security agreements, and memoranda of agreements shall be kept separate from records of any other business and must be maintained for not less than five years after the final entry has been made.

Two other retention rules overlap:

• W.Va. Code §51-10-5a(c): copies of all collateral receipts must be kept for a minimum of five years.
• 114CSR103-7.2.1: receipts are prenumbered and used in consecutive order. A missing number is an obvious examination finding (see section 5.1).

Counting the five years

The clock runs from the final entry, not from the day the bond was written.

Worked example. A bondsman posts a $15,000 bond on January 10, 2026. The defendant makes all appearances. The court exonerates the bond on September 2, 2027, and the bondsman returns the collateral and records the release that day. The last entry in the file is September 2, 2027, so the file must be kept until at least September 2, 2032. Counting from January 10, 2026 would wrongly allow destruction in January 2031.

What examiners typically look at

The rule does not prescribe an examination checklist. The records it names, together with the rule's substantive duties, show what an examiner can test:

1. Receipts for collateral: prenumbered, consecutive, complete (114CSR103-7.2).
2. Trust account statements for cash and check collateral: deposited within five banking days into a separate, non-interest-bearing West Virginia trust account (114CSR103-7.3).
3. Fee records: at least 10% of each bond, never more than the bond in total, with at least 3% paid at issuance on any payment plan (§51-10-5a; 114CSR103-5.1).
4. Agreements: the written or oral agreement with the defendant or cosigner that must exist before a bond is posted (114CSR103-11.1.16).
5. Professional bondsman reports: the six-item bond report the Commissioner may request and verify with the county clerk (114CSR103-15.1–15.2; section 2.6).

Confidentiality

Information the Commissioner gathers in an investigation under the rule is confidential and privileged. It is not a public record under Chapter 29B, is not subject to subpoena, and is not discoverable in private civil suits (114CSR103-15.10; see also 3.3). The Commissioner may still use it in regulatory or legal action.

Exam traps

• "Prudent," not "probable cause." An examination needs no complaint or suspicion.
• Agents' records are included. A bondsman cannot keep an agent's files out of the examination.
• Five years after the final entry. Not five years after the bond, the receipt or license expiry.
• Separate records. Bail records must not be mixed with records of any other business.