1.4 Penalties for Violations
Key Takeaways
Violating W.Va. Code Chapter 51, Article 10 is punishable by a fine of not more than $100, up to six months in county jail, or both, where no other penalty applies (§51-10-9).
A convicted West Virginia bondsman may be disqualified from the bonding business for as long as the criminal court judge orders (§51-10-9).
Filing a false bondsman affidavit is false swearing (§51-10-8(g)), a misdemeanor under W.Va. Code §61-5-2.
Under 114CSR103-11.3, each violation of the suspension and revocation grounds may also bring a civil penalty of not more than $100 per occurrence.
Unauthorized transaction of insurance can bring an administrative fine of up to $20,000 per act after notice and hearing (§33-44-7).
Outline item I.A.4, Penalties, cites W.Va. Code §§33-2-9, 33-2-11, 33-44-7, 33-44-9, 51-10-9 and rule sections 114CSR103-16 (and 11.3). Questions usually ask for the maximum amount, the type of sanction, or who imposes it. The key is to sort penalties by source.
1. Criminal penalties for violating Article 10: W.Va. Code §51-10-9
Any person violating any provisions of this article other than in the commission of false swearing shall be punished by a fine of not more than $100, or by imprisonment not exceeding six months in the county jail, or both, where no other penalty is provided by this article.
The section then adds consequences by type of offender:
| Offender | Additional consequence |
|---|---|
| Police officer or other public official | Removed from office on the recommendation of the judge of the criminal court of record |
| Bondsman, or a bondsman's agent, clerk or representative | Disqualified from engaging in the bonding business for as long as the criminal court judge orders |
| Attorney at law | Subject to suspension or disbarment |
Article 10 violations include paying kickbacks to officials (§51-10-3), attorney referral payments (§51-10-4), charging more than the bonding fee or trying to fix a case (§51-10-5), and entering a place of detention to solicit without being called (§51-10-7). Section 51-10-10 makes judges responsible for enforcing the article and for charging every grand jury to investigate violations.
2. False affidavits: W.Va. Code §51-10-8(g)
At renewal, a bondsman files an affidavit that he or she has obeyed Article 10 since the previous license. Under §51-10-8(g), a person who files a false affidavit "is guilty of false swearing." The offense is punished as provided by law. W.Va. Code §61-5-2 classifies false swearing as a misdemeanor. Filing false affidavits is also a stand-alone license ground (114CSR103-11.1.13).
3. Rule penalties: 114CSR103-16 and 114CSR103-11.3
- 114CSR103-16: except as the rule provides otherwise, anyone who violates the rule is penalized under Chapter 51, Article 10. That links rule violations back to §51-10-9.
- 114CSR103-11.3: anyone who violates any provision of 11.1 (the suspension and revocation grounds) may receive a civil penalty of not more than $100 per occurrence. This is in addition to denial, suspension or revocation.
Worked example. An examination finds that a bondsman posted three bonds without first getting any written or oral agreement with the defendant or a cosigner (114CSR103-11.1.16). Each posting is an occurrence. The maximum civil penalty is 3 × $100 = $300. The Commissioner may also suspend or revoke the license after notice and hearing.
4. Insurance Code enforcement: W.Va. Code §§33-2-9 and 33-2-11
- §33-2-9(g): the Commissioner may revoke the license of an agent who refuses to submit to an examination (section 1.2).
- §33-2-11: after notice and hearing, if the Commissioner finds a person is transacting insurance in an illegal, improper or unjust manner, or not paying obligations when due, the Commissioner may order the person to stop the practice and pay obligations. If the person fails or refuses to obey within 20 days after notice, the Commissioner may revoke any license it issued to that person. It may also apply to circuit court for an injunction or a receiver. The section also allows restitution orders against insurers.
5. Unauthorized insurance: W.Va. Code §§33-44-7 and 33-44-9
The Unauthorized Insurers Act (Article 44) penalises insurance written by, or for, an insurer without West Virginia authority. Section 2.7 covers it in detail.
| Section | Who | Penalty |
|---|---|---|
| §33-44-7(a) | Any person engaged in the unauthorized transaction of insurance | After notice and hearing under §33-2-13, an administrative fine not exceeding $20,000 per unauthorized act or transaction |
| §33-44-7(b) | Same | Restitution to reimburse insureds for unpaid claims, after notice and hearing |
| §33-44-9 | An unauthorized insurer | Felony; fine up to $20,000 per act or transaction, or 1 to 5 years in a state correctional facility, or both |
6. Suspensions written into the rule
Some sanctions follow automatically from the rule:
- Security deficiency not cured within 10 working days: license suspended pending a hearing (114CSR103-8.6).
- Bankruptcy not reported within five working days: license immediately suspended pending investigation and hearing; the Commissioner notifies all detention facilities and courts within five working days (114CSR103-12).
- Felony conviction after licensure: the Commissioner shall revoke or not renew (114CSR103-3.12).
Penalty quick-reference
| Source | Maximum or result |
|---|---|
| §51-10-9 | Fine up to $100, jail up to 6 months, or both; disqualification as the judge orders |
| §51-10-8(g) | False swearing (misdemeanor, §61-5-2) |
| 114CSR103-11.3 | Civil penalty up to $100 per occurrence, plus license action |
| §33-2-11 | License revocation if an order is not obeyed within 20 days; injunction or receiver |
| §33-44-7 | Up to $20,000 per unauthorized act |
| §33-44-9 | Felony: up to $20,000 per act and/or 1–5 years |
Exam traps
- $100 appears twice. It is both the §51-10-9 criminal fine cap and the 11.3 civil penalty cap per occurrence. The criminal fine also allows up to six months in jail; the civil penalty does not.
- Disqualification is ordered by the judge. Under §51-10-9 the criminal court judge sets how long a convicted bondsman is barred.
- $20,000 belongs to the Unauthorized Insurers Act, not to ordinary bail-rule violations.
Where no other penalty is provided, what is the maximum criminal penalty for violating W.Va. Code Chapter 51, Article 10 under §51-10-9?
A fine of not more than $1,000, up to one year in the regional jail, or both
A fine of not more than $100, up to six months in county jail, or both
A fine of not more than $5,000 and mandatory license revocation
A fine of not more than $20,000 for each unauthorized act
A bondsman commits four separate violations listed in 114CSR103-11.1. Apart from any denial, suspension or revocation, what is the maximum civil penalty under 114CSR103-11.3?
$400
$100
$1,000
$80,000
Under W.Va. Code §51-10-8(g), what offense does a bondsman commit by filing a false renewal affidavit?
Insurance fraud only
Contempt of court
False swearing
Unauthorized insurance
Sections you finish are checked off in the contents.