Sullivan wants tighter regs on bail bond industry

State Insurance Commissioner Thomas Sullivan is cracking down on improper business practices by the surety bail bond industry in Connecticut, which includes agents discounting bond premiums in order to gain business.

That allows defendants to get out of jail for a reduced price.

Recent enforcement actions against surety bail bond agents have resulted in two license revocations, two license suspensions, one year-long probation, and fines totaling $7,500, the state insurance department said.

"There is no reason why this industry can't operate within the letter of the law," Sullivan said in a written statement.

Surety bail bond agents are regulated by the insurance department because they are appointed agents of an insurance company. The department licenses 516 surety bail bond agents, 136 bail bond agencies, and 19 surety companies in the state.

Insurers must file premium rates with the department. Charging or receiving a premium lower than those filed rates is illegal and can result in fines, probation, and license revocation.

Insurance department officials say they have seen an increase in complaints regarding improper business practices, primarily related to bond premiums being offered for less than the state mandated rate.

Bond premiums are the amount a consumer pays to have someone released from jail.

In some instances, surety bail bond agents are discounting that price in order to gain business, allowing the defendant to get out of jail for a reduced price, the insurance department said.

"Early release of defendants through undercutting of bail bonds compromises the safety of our citizens," Sullivan said. "I will continue to seek stricter punishments for improper and illegal business practices among surety bail bond agents."

The Insurance Department worked with state lawmakers last session to try to strengthen statutes that govern the surety bail bond industry, but the legislation never made it to a vote.

Sullivan said he plans to continue to push for tighter regulations in 2010.

Reader response:

"I really think you should also control more of the actions of the bounty hunters they hire . They treat innocent people terrible and think that they are above the law, which they are in the state of Washington and in Judge Davin J Zimmerman's court room. He is the one that suggested I contact you. I am following through with an attonery and filing harrassment charges against the same bond co. which you mentioned in your article. If you are interested you can contact me and get more details.'' -- Donna Boyle, Donna's DayCare