DEPARTMENT OF REGULATORY AGENCIES
Division of Insurance
3 CCR 702-1
Administrative Procedures
Proposed Amended Regulation 1-2-11
Standards For Surety Bail Bonding Agent and Professional Cash Bail Agent Prelicensure Education Courses And Programs
Section 1	Authority
Section 2	Scope And Purpose
Section 3	Applicability
Section 4	Definitions
Section 5	Prelicensure Education Requirements
Section 6	Curriculum And Topics
Section 7	Methods Of Satisfying Prelicensure Education Requirement
Section 8	Instructor Qualifications
Section 9	Qualifying Course Or Program
Section 10	Program Or Course Standards
Section 11	Proof Of Compliance
Section 12	Certification of Compliance With P.O.S.T. Curriculum For Bail Recovery Courses
Section 13	Severability
Section 14	Enforcement
Section 15	Further Information And Submittals
Section 16	Effective Date
Section 17	History
Section 1	Authority
This regulation is promulgated under the authority of §10-1-109, C.R.S., and §12-7-102(3), C.R.S. & §12‑7‑102.5(8),  C.R.S.
Section 2	Scope And Purpose
A.	Pursuant to § 12-7-102.5(1)(b), C.R.S., effective January 1, 1999, applicants for licensure as surety bail bonding agents must complete bail recovery courses which comply with the curriculum developed by the Colorado Peace Officers Standards and Training Board (P.O.S.T.).
B.The purpose of this regulation is to specify the requirements, procedures and standards necessary to implement the Bail Bonding prelicensure education requirements mandated by § 12‑7‑102.5(1)(a), C.R.S. and 12-7-102.5(6), C.R.S. including:
1.	The basic requirements and standards for prelicensure education courses and programs;
2.	The procedures and standards which the Commissioner of Insurance will utilize in the approval of prelicensure education courses and programs, including those offered by insurance companies;
3.	The procedure whereby an applicant applying for a surety bail bonding agent license or professional cash bail agent license shall submit evidence that the prelicensure education requirements have been met;
4.	The procedures and requirements for approval of courses or programs providing prelicensure education and all required information or materials to be included in any application for approval, and
5.	General requirements for course content.
CThis regulation also establishes the certification surety bail bonding agent applicants must submit to demonstrate completion of a bail recovery program which complies with the P.O.S.T. curriculum established by P.O.S.T. pursuant to §12-7-102.5(1)(b), C.R.S.
Section 3 	Applicability
The requirements and provisions of this regulation apply to new bail bond applicants and previously licensed bail bond agents attempting to reinstate a previously held license expired for more than one year.
Section 4	Definitions
For purposes of this regulation, and unless the context requires otherwise:
“Course” shall mean a prelicensure education class designed to satisfy the hourly requirements for one of the areas of prelicensure education listed in Section 4 below.
“Program” shall mean a prelicensure education class(es) offered by a single provider which is designed to satisfy the hourly requirements of two or more of the areas of prelicensure education listed in Section 4 below.
“Provider” shall mean a person, company or organization of any type providing prelicensure education courses or programs which have been approved by the Commissioner of Insurance.
Section 5	Section 12-7-102.5(1)(a) & (6) Prelicensure Education Requirements
Prelicensure education shall consist of at least eight clock hours:
•	Two of which shall concern the criminal court system;
•	Two of which shall concern bail bond industry ethics; and
•	Four of which shall concern the laws relating to bail bonds.
Section 6	Section 12-7-102.5(1)(a) Curriculum And Topics
A.	THE CRIMINAL COURT SYSTEM - (2 HOURS),  which shall be covered either by lecture and/or written materials:

bail bond procedures
apprehension
discharging bail
recommitment of defendant
court forfeitures
B.	BAIL BOND INDUSTRY ETHICS - (2 HOURS),  which shall be covered either by lecture and/or written materials:
commingling of collateral with agent's personal property
illegal referrals and payments
fiduciary responsibility
payment and acceptance of commissions, fees and premiums
contractual agreements
record keeping
unfair trade practices
misrepresentation
disposal of collateral
rebating and prohibited inducements
brokering bonds
C.	LAWS RELATING TO BAIL BONDS - (4 HOURS),  which shall be covered either by lecture and/or by written materials:

Bail bonding agent liability	Responsible individually for all actions	
Bonds agents may not write:	Surety bond
Immigration bonds
Civil bonds
Appeal bonds	
Bonds agents may write:	Bail bonds	
Cancellation of agent’s contract with insurance company	Procedure
Liability of agent	
Collateral	Receipts, retain without use, liability
Limit of agent’s interest
Return of collateral upon exoneration
Disposing/selling of collateral
Proper notification of disposal/sale	
Contracts and written agreements	Bail agreement, premium payment plan, collateral, storage, bond revocation
Guarantor agreement	
Definitions:	Producer
Bail bonding agent/surety, cash, and professional cash
Insurance company
Compensated surety
Bail insurance company
Bail
Bond
Recognizance
Principal/defendant
Obligor
Obiligee
Indemnity/cosigner
Collateral
Judgment
Forfeitures
Certified bond
On the board / board system
Power-of-attorney
Recognizance
Colorado Bureau of Investigations (CBI)
N.C.I.C.
Bail recovery agent
Division of Insurance
Commissioner of Insurance
Fiduciary
Peace Officer Standards and Training (P.O.S.T.)
District Attorney	
Employee supervision	Bail Recovery Agents	
Examination procedures		
Fees	Bond filing fees, storage fees	
Fiduciary responsibilities	Separate accounts
Court ordered return of premium	
Forfeitures	Agent/company liability
Division procedure
Proof of satisfaction
Penalties	
Illegal fees:	Consent fees, credit card fees, storage fees, court ordered bond reductions and increases	
Insurance Division	Powers and duties, expectations, policies
Regulations and Bulletin
Notices	
License denial, suspension,
Revocation	Notice of hearing and charges
Duty to answer	
Licensing requirements and eligibility	Age, conviction history
Prior showing of dishonesty or misappropriation of moneys when in a position of trust	
Liens	Personal property, vehicles, real property, UCC compliance
UCCC/premium financing compliance
Timely providing release
No trade names on liens	
Miscellaneous license fees and penalties	Renewal, address changes, trade names, bond amendment	
Penalties	Stipulation in lieu of hearing, fines, suspension, revocation	
Posting of bail	Time limit/refunds
Cash bonds/surety bonds	
Premium, commissions	Rates set by company, responsibility/contractual agreement with company, remittance to company	
Receipts	Provide and retain receipts
Premium and collateral description	
Record keeping	Retention period of collateral reports and other records and reports	
Reporting and taxing requirements	Agent’s responsibility to timely file
Filing, format, specific information
Tax payments	
Trade names	Registration required	
D.	If any of the topics set forth in these sections above will not be covered in the lecture portion of the course or program, the approval request shall so note and affirm that those areas shall be covered in the written course or program materials.
Section 7	Methods Of Satisfying Section 12-7-102.5(1)(a) & (6) Prelicensure Education Requirement
The prelicensure education requirement shall be satisfied in one of the following ways:
A.	Completion of an approved prelicensure education program operated by a qualified foreign or domestic insurance company, which complies with the 8 hours requirement.
B.	Completion of prelicensure education offered by approved providers and meeting the 8 hour requirement.
C.	If entering Colorado on a letter of clearance, satisfaction of a prelicensure education course in the former state of licensure.
D.	Any qualified instructor may receive credit for any approved course taught.
E.	The certificate of prelicensure course completion is valid for one year from the completion of the course or passing of provider’s self study proctored examination.  If the year period expires before the applicant passes the licensing exam or applies for a license, the applicant will not be eligible to sit for bail bond examination until the applicant completes another approved -prelicensure education course.
Section 8	Instructor Qualifications
Instructors teaching   §12-7-105.5(1)(a)  & (6), C.R.S. prelicensure courses must meet one or more of these criteria:
A.	Demonstrated competence in the subject area;
B.	A professional insurance designation, or;
C.	Academic qualifications (either by specific degree or by demonstrated experience in instructing or teaching).
Section 9	Qualifying Course Or Program
A.	Any course or program teaching   §12-7-105.5(1)(a)  & (6), C.R.S. prelicensure courses must be submitted to the Commissioner of Insurance for approval using the Application for Bail Bonding Agent Prelicensure Education Course or Program Approval form set forth in Bulletin 7-99. The request must be accompanied by the following:
1.	Course or program outline showing the topic(s) to be covered and hours to be satisfied;
2.	Copies of all unpublished study materials. Published texts or other study materials require submission of the title, edition date and publisher. The Division may request published text or materials, as necessary;
3.	Instructor qualifications, including information sufficient to meet one or more of the instructor criteria set forth in Section 7;
4.	Method of measuring satisfactory course or program completion, and;
5.	Payment of a non-refundable $20.00 fee established by the Commissioner of Insurance pursuant to    § 10-2-413,   C.R.S.
B.	Once approved, a course or program may be offered for three (3) years without additional notice to the Division of Insurance, so long as the course or program content is not materially changed, except to reflect changes in the insurance and criminal laws.
Section 10	Section 12-7-102.5(1)(a), & (6) Program Or Course Standards
One of the following methods shall be used in measuring satisfactory completion of a course or program:
A.	Correspondence instruction must include a final examination that is monitored and certified to by a disinterested third party, who is not the immediate supervisor nor the employee of the producer. Designation of this third party is the responsibility of the course provider. Such examination shall not be counted towards the required clock hours of instruction, or;
B.	Classroom instruction must include a final examination that is monitored by a qualified instructor from the providing organization. Such examination shall not be counted toward the required clock hours of instruction.
Section 11	Proof Of Compliance With Requirements For Section 12-7-102.5(1)(a) & (6) Prelicensure Education Course Requirements
The provider will give proof of compliance to the applicant on the form set forth in Bulletin 7-99. The Surety Bail Bonding Agent applicant will supply Certificate of Completion form(s) to the Assessment Center at the time of taking the surety bail bonding agent examination, as evidence of successful completion of the course or program. No exam is required for licensure as a Professional Cash Bail Agent. The provider will retain records of those individuals completing the course for a period of three (3) years.
Section 12	Certification Of Compliance With P.O.S.T. Curriculum For Bail Recovery
A.	Bail Bonding Agent applicants are required to complete prelicensure bail recovery training which complies with the P.O.S.T. curriculum established pursuant to   §12-7-102.5(1)(b),  C.R.S.
B.	Bail Bonding Agent applicants shall submit to the Division of Insurance a Certificate of Completion of bail recovery training which complies with the curriculum established by P.O.S.T. pursuant to Section 12-7-102.5(1)(b), C.R.S. Copies of the P.O.S.T. curriculum and copies of the Certificate of Completion are available in Insurance Bulletin 7-99. The Certificate of Completion shall certify that the training complies with the P.O.S.T. bail recovery training curriculum.
Section 13	Severability
If any provision of this Regulation or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of the regulation shall not be affected thereby.
Section 14	SeverabilityEnforcement
A.	The Division of Insurance or its designee may conduct audits of producers, sponsoring organizations or qualified instructors to verify that the approved courses are administered as filed with the Division of insurance and to determine compliance with   §12-7-105.5(1)(a)  & (6) , C.R.S.,   §10-2-203,  C.R.S. and this regulation.
B.	Noncompliance with this regulation or the applicable provisions of Title 10 or Title 12, C.R.S., by institutions/instructors/organizations conducting approved courses may result in termination of course approval.
Section 15	Further Information And Submittals
Any submittals or questions should be directed to:
Compliance/Investigations Section
Colorado Division of Insurance
1560 Broadway, Suite 850
Denver, Colorado 80202
303-894-7499
Section 16	Effective Date
This amended regulation shall become effective March 31, 2007.
Section 17	History
Original Regulation 1-2-11, Effective August 30, 1995.
Emergency Regulation 96-E-1, Effective July 1, 1996.
Amended Regulation 1-2-11, Effective October 1, 1996.
Emergency Regulation 99-E-1, Effective January 1, 1999.
Amended Regulation 1-2-11, Effective March 31, 1999.
Amended Regulation 1-2-11, Effective November 1, 1999.
Amended Regulation 1-2-11, Effective March 31, 2007.