(a) A person applying for a bail agent license shall make application to the Commissioner on the Uniform Application or on forms prescribed by the Commissioner for license types and lines of authority not available on the Uniform Application and shall declare under penalty of denial, suspension or revocation of the license that the statements made in the application are true, correct and complete to the best of the individual’s knowledge and belief.
(b) In addition to compliance with this section, every person seeking licensure as a surety bail agent shall comply with § 4333A of this title, and every person seeking licensure as a property bail agent shall comply with § 4333B of this title.
(c) Before approving the application, the Commissioner shall find that the individual:
(1) Is at least 18 years of age;
(2) Is a resident of the State of Delaware. For purposes of establishing Delaware residency, it shall be sufficient to show that the applicant maintains an office within the State that complies with all requirements of §§ 4341 and 4346 of this title.
(3) Has not committed any of the following acts:
a. Provided incorrect, misleading, incomplete or materially untrue information in the license application;
b. Violated any insurance laws, or violated any regulation, subpoena or order of the Insurance Commissioner or of another state’s insurance commissioner;
c. Obtained or attempted to obtain a license through misrepresentation or fraud;
d. Improperly withheld, misappropriated or converted any moneys or properties received in the course of doing insurance business;
e. Intentionally misrepresented the terms of an actual or proposed insurance contract or application for insurance;
f. Pled guilty or nolo contendere to, or been found guilty of, a felony or a crime which includes an element of dishonesty or fraud or involves moral turpitude, or a crime punishable by imprisonment of 1 year or more under the law of any state, territory, or country;
g. Admitted or been found to have committed any insurance unfair trade practice or fraud;
h. Used fraudulent, coercive or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this State or elsewhere;
i. Had an insurance producer or bail agent license, or its equivalent, denied, suspended or revoked in any other state, province, district or territory;
j. Forged another’s name to an application for insurance or to any document related to an insurance transaction;
k. Improperly used notes or any other reference material to complete an examination for an insurance license;
l. Knowingly accepted bond business from an individual who is not licensed, whose license has been suspended or revoked, or who has been barred from acting as a bail agent by any court;
m. Failed to comply with an administrative or court order imposing a child support obligation; or
n. Failed to pay state income tax or comply with any administrative or court order directing payment of state income tax.
(4) Has paid the fees set forth in Chapter 7 of this title;
(5) Has successfully passed the examination for the lines of authority for which the person has applied, unless specifically exempted from such examination by this subchapter;
(6) Has not been suspended or prohibited from acting as a bail agent by any court, or had a license suspended or revoked by the District of Columbia or any state or territory of the United States. The Commissioner shall verify the applicant’s licensing status through the producer database maintained by the National Association of Insurance Commissioners, its affiliates or subsidiaries; and
(d) (1) A person applying for, or having been granted, a bail agent license, shall disclose to the Commissioner the identity of each person that will act as a bail funder for such applicant or licensee and each person having or seeking to acquire a 10% or greater financial interest in either of the following:
a. The bail agent’s business.
b. Any 1 or more bail bonds pledged by or on behalf of the applicant or licensee.
(2) A person must be licensed as a bail agent under this section before any such person may act as a bail funder under this subchapter or before any person may acquire or maintain a 10% or greater financial interest in either of the following:
a. A bail agent’s business.
b. Any 1 or more bail bonds.
(3) No licensee or applicant for a license shall accept funds from a bail funder unless such bail funder is licensed as a bail agent or bail agent business entity under this subchapter.
(4) No licensee or applicant for a license shall allow a person to acquire or maintain a 10% or greater financial interest in a bail agent’s business or any 1 or more bail bonds, unless the person seeking to acquire such interest is licensed as a bail agent under this subchapter.
(5) For purposes of this section, “financial interest” means an interest that could result in directly or indirectly receiving a pecuniary gain or sustaining a pecuniary loss as a result of an ownership or interest in a business entity. For the avoidance of doubt, a person has a “financial interest” in a bail agent’s business if either of the following apply:
a. Such person has a legal or equitable ownership interest in such bail agent’s business of more than 10%.
b. Such person is a creditor of such bail agent’s business in an amount equal to 10% or more of the debt of that business.
(6) The provisions in this subchapter requiring the licensure of bail funders as property bail agents shall not apply to banks and financial institutions supervised and regulated under Title 5 or by a banking regulatory agency of the United States.
(e) Except where prohibited by state or federal law, by submitting an application for license, the applicant shall be deemed to have appointed the Commissioner as the agent for service of process on the applicant in any action or proceeding arising in this State out of or in connection with the exercise of the license. Such appointment of the Commissioner as agent for service of process shall be irrevocable during the period within which a cause of action against the applicant may arise out of transactions with respect to subjects of insurance in this State. Process shall be served upon the Commissioner or such other person or persons as the Commissioner shall designate by rule or regulation.
(f) (1) Any person applying for a license under this chapter shall be required to submit fingerprints and other necessary information for the purpose of obtaining the following:
a. A report of the person’s entire criminal history record from the State Bureau of Identification or a statement from the State Bureau of Identification that the State Bureau of Identification Central Repository contains no such information relating to that person.
b. A report of the person’s entire federal criminal history record pursuant to the Federal Bureau of Investigation appropriation of Title II of Public Law 92-544 (28 U.S.C. § 534).
(2) The State Bureau of Identification shall be the intermediary for purposes of this subsection, and the Department shall be the screening point for the receipt of said federal criminal history records. All information obtained pursuant to this subsection section shall be forwarded by the State Bureau of Identification to the Department. All costs associated with obtaining the criminal history reports required by this subsection shall be borne by the applicant, and all criminal history reports shall be dated within 45 days of the application.
(g) All collateral, premiums, return premiums, or other funds received in any manner by a bail agent or bail agent business entity shall be held in a fiduciary capacity and shall be accounted for by such bail agent or bail agent business entity.
(h) A person who has received a nonresident bail agent license under prior law, shall not be permitted to renew the bail agent’s license, unless such person shall comply with all provisions of this subchapter, including without limitation the residency requirement set forth in this section.
(i) The applicant for a bail agent license shall bear all costs associated with the application or any reapplication.
(j) Upon the Department’s determination that the application is complete, the applicant has passed all required examinations and is otherwise qualified for the license applied for, the Department shall thereupon issue the license.
(k) All provisions in this subchapter applicable to bail agents shall apply equally to bail funders except as the Commissioner may provide by rule or regulation.