2.1 Who Must Be Licensed and the Exemptions
Key Takeaways
On or after July 1, 2022, no person may engage in the West Virginia bonding business or perform any bail bondsman function unless licensed by the Commissioner (114CSR103-3.1).
An unpaid individual may pledge real or other property for a bail bond for himself, herself or another, but may make no more than ten such bonds per year (114CSR103-3.1.1).
OIC guidance (October 2022) says purely clerical staff need no license, but staff who issue bonds, quote fees, negotiate collateral or are paid commission likely do.
Every surety on a West Virginia bail bond must be either an insurer represented by a surety bondsman or a professional bondsman (114CSR103-6.1).
A person holding both a professional and a surety bondsman license is treated as holding one license for discipline, but pays separate application and renewal fees (114CSR103-3.9).
Outline Category II, Requirements and Qualifications of License Holder, has 4–6 questions. Item II.A, Purpose/Requirements, cites 114CSR103-3.1. This section answers the first question in any licensing scheme: who needs a license at all?
The licensing requirement
114CSR103-3.1 states:
On or after July 1, 2022, a person may not engage in the bonding business or act in the capacity of a bail bondsman, or perform any of the functions, duties or powers prescribed for bail bondsmen, unless that person is qualified and licensed by the Commissioner as provided in this rule.
W.Va. Code §51-10-8(i) says the same thing from the statute side. After July 1, 2022, no one may engage in the bonding business "either as principal, or as agent, clerk, or representative of an agent" without a Commissioner license.
Three phrases do the work:
- "Engage in the bonding business", meaning becoming surety for compensation on criminal bonds (2.3).
- "Act in the capacity of a bail bondsman."
- "Perform any of the functions, duties or powers" of a bail bondsman.
The third phrase reaches people who never sign a bond in their own name but do the bondsman's work.
Employees: where OIC draws the line
The OIC's Individual Licensing guidance (October 2022) applies these rules to employees of a bail business.
| Employee activity | License needed? |
|---|---|
| Answering the telephone, scheduling appointments | No: clerical only |
| Word processing, filing, record management | No: clerical only |
| Assisting the bondsman in presenting a defendant in court | Yes (definition in 2.1) |
| Issuing bonds on the bondsman's behalf | Yes |
| Quoting premiums or fees | Likely yes |
| Accepting or negotiating security or collateral | Likely yes |
| Paid through a commission arrangement | Likely yes |
The guidance stresses that each situation is judged on its own facts. When in doubt, the employee should seek licensure or ask the OIC. Every individual who issues bail bonds must hold his or her own license; working under the owner's license is not allowed.
Licensed employees also create reporting duties for the owner. The owner must give the Commissioner a list of employed agents, clerks and representatives and update it within 10 working days whenever one starts or leaves (114CSR103-3.2.1.k). If the owner cancels an employee's authority to act, the owner must notify the Commissioner in writing within 10 working days (114CSR103-3.8).
The unpaid-pledge exemption
114CSR103-3.1.1 protects family and friends who post property without being paid:
None of the provisions or terms of this rule shall prohibit any individual or individuals from pledging real or other property as security for a bail bond for himself, herself, or another in judicial proceedings who does not charge or receive, or is not promised, a fee or other thing of value in exchange for his or her services, provided such person shall not be permitted to make in excess of ten bonds per year.
All three conditions must hold:
- the person pledges real or other property;
- no fee or other thing of value is charged, received or promised; and
- the person makes no more than ten bonds per year.
Example. A grandmother pledges her house for her grandson's bond and charges nothing. She needs no license. A neighbour who "helps out" by posting property for strangers and takes a "gas money" payment each time is in the bonding business, because a thing of value changes hands, and needs a license however few bonds he posts.
Who may act as surety at all
114CSR103-6.1 limits commercial sureties to two kinds:
- an insurer, represented by a surety bondsman; or
- a professional bondsman.
The Commissioner is not liable for a bondsman's liabilities beyond the security pledged (114CSR103-6.2). Certain officials, such as police officers, judicial officials, attorneys and jailers, may not become surety on any bail bond except for close family. Section 4.3 covers that ban (114CSR103-5.11).
Two license types and holding both
| Feature | Professional bondsman | Surety bondsman |
|---|---|---|
| Who stands behind the bond | The bondsman's own security pledged with the Commissioner | An insurer, through a qualified power of attorney |
| Producer license needed | No | Yes: property and casualty, or limited lines surety |
| Extra application items | Cash or approved securities deposit, at least $10,000 | National Producer Number, notice of appointment, qualifying power of attorney |
| Bail bond examination | Required for new applicants | Required for new applicants |
Under 114CSR103-3.9, someone may hold both licenses at once. For suspension or revocation, they count as one license: discipline on one reaches both. Separate application and renewal fees must still be paid for each.
How long a license lasts and where it works
- A license authorizes the holder to act until it expires, is suspended or is revoked (114CSR103-3.7).
- OIC general information describes the license as statewide. A bondsman may tell the OIC which counties he or she prefers, and the OIC includes that on the list given to detention facilities. The application has a space for preferred counties.
Exam traps
- "Perform any of the functions" covers employees who issue bonds or present defendants, even if they never own the business.
- Ten bonds per year, unpaid. Any fee or thing of value removes the exemption, and so does an eleventh bond.
- Clerical work alone does not require a license, but quoting fees or negotiating collateral likely does.
- Dual license equals one for discipline, two for fees.
An individual posts property as security on bail bonds for relatives and friends and never charges or receives anything of value. Under 114CSR103-3.1.1, what limit applies to remain exempt from licensing?
No more than three bonds in a lifetime
No more than $10,000 in total bond amount
Bonds only for spouses and children
No more than ten bonds per year
According to OIC Individual Licensing guidance, which employee of a bail business most likely must be individually licensed as a bail bondsman?
A receptionist who answers the office telephones and books client appointments
An employee paid by commission who quotes fees and negotiates collateral
A records clerk who files closed bond folders in the archive
A part-time typist who prepares letters dictated by the owner
A bondsman holds both a professional bondsman license and a surety bondsman license. How does 114CSR103-3.9 treat the two licenses?
As one license for suspension or revocation, with separate fees for each
As two licenses that must each be disciplined in separate hearings
As one license for all purposes, with a single combined renewal fee
As incompatible licenses, so the bondsman must surrender one of the two licenses
Sections you finish are checked off in the contents.