§ 22:1441 — Failure to timely satisfy claim under criminal bond contract

§1441. Failure to timely satisfy claim under criminal bond contract
A. A prosecuting attorney may file with the office of the commissioner of insurance
a rule to show cause if all the following are true:
(1) A defendant failed to appear after January 1, 2017, and a judgment of bond
forfeiture has been rendered against the commercial surety underwriter.
(2) Notice pursuant to Code of Criminal Procedure Article 339 has been mailed.
(3) All time delays for taking a suspensive appeal, as set forth in Code of Civil
Procedure Article 2123, have run and no suspensive appeal has been taken.
(4) The defendant has neither been surrendered, constructively surrendered, nor
appeared within one hundred eighty days of the execution of the certificate that notice of
warrant for arrest was sent.
(5) More than one hundred eighty days have lapsed since the execution of the
certificate that notice of warrant for arrest was sent.
(6) The judgment of bond forfeiture has not been satisfied by payment.
B. The prosecuting attorney shall attach adequate documentation to support his
affidavit and submit it to the commissioner of insurance.
C.(1) Within thirty days of the filing of a rule to show cause by the prosecuting
attorney with the commissioner of insurance, the commissioner of insurance shall provide
written notice to the insurance company or commercial surety of the filing of the rule to show
cause and bail bond forfeiture judgment ordering the insurance company or commercial
surety to pay the judgment of bond forfeiture.
(2) The commissioner shall order the commercial surety underwriter to immediately
pay the judgment of bond forfeiture, if the commissioner finds that all of the following are
true:
(a) A defendant failed to appear after January 1, 2017, and a judgment of bond
forfeiture has been rendered against the commercial surety underwriter.
(b) Notice pursuant to Code of Criminal Procedure Article 339 has been mailed.
(c) All time delays for taking a suspensive appeal, as set forth in Code of Civil
Procedure Article 2123, have run and no suspensive appeal has been taken.
(d) The defendant has neither been surrendered, constructively surrendered, nor
appeared within one hundred eighty days of the execution of the certificate that notice of
warrant for arrest was sent.
(e) More than one hundred eighty days have lapsed since the execution of the
certificate that notice of warrant for arrest was sent.
(f) The judgment of bond forfeiture has not been satisfied by payment.
(3) Within thirty days after the commercial surety or insurance company is notified
by the commissioner of the rule to show cause and bail bond forfeiture, the commercial
surety or insurance company shall provide to the commissioner evidence that the forfeiture
was paid, or that a motion contesting the validity of the bail bond forfeiture was filed in the
court where the judgment of bail bond forfeiture was rendered. The commercial surety or
insurance company may, for good cause shown, petition the commissioner in writing for an
extension of time. The granting or denial of the extension shall be at the sole discretion of
the commissioner.
(4) If, after thirty days, the commercial surety or insurance company has not provided
evidence that the judgment of bail bond forfeiture was paid or that a motion contesting the
validity of the judgment of bail bond forfeiture was filed, the commissioner shall petition the
division of administrative law to hold a hearing, naming the commercial surety or insurance
company as the respondent requiring the commercial surety or insurance company to show
cause why the commissioner's order to pay the bond forfeiture should not be upheld and
confirmed. Upon receipt of the commissioner's petition to hold a hearing, the division of
administrative law shall notify the commercial surety or insurance company at the address
of the home office of that organization of the setting of the time, place, and date for a hearing
to be held in the manner provided in Chapter 12 of this Title, R.S. 22:2191 et seq.
(5) At the hearing, the administrative law judge shall rule whether the following are
true:
(a) A defendant failed to appear after January 1, 2017, and a judgment of bond
forfeiture has been rendered, against the commercial surety underwriter.
(b) Notice pursuant to Code of Criminal Procedure Article 339 has been mailed.
(c) All time delays for taking a suspensive appeal, as set forth in Code of Civil
Procedure Article 2123, have run and no suspensive appeal has been taken.
(d) The defendant has neither been surrendered, constructively surrendered, nor
appeared within one hundred eighty days of the execution of the certificate that notice of
warrant for arrest was sent.
(e) More than one hundred eighty days have lapsed since the execution of the
certificate that notice of warrant for arrest was sent.
(f) The judgment of bond forfeiture has not been satisfied by payment.
D.(1) The burden of proof at the hearing shall be upon the commercial surety by a
preponderance of evidence and shall be limited to documents contained in the official court
record where the judgment was rendered. The surety company may use evidence not
contained in the record to show that it did not receive notice of the signing of the judgment
of bond forfeiture.
(2) If the commercial surety or insurance company does not meet the burden of proof
set forth in Paragraph (1) of this Subsection, then the administrative law judge shall enter an
order upholding and confirming the commissioner's order to the commercial surety or
insurance company to pay the bond forfeiture.
E. A commercial surety shall pay an administrative fine of five hundred dollars to
the Department of Insurance for each hearing to show cause in which the commercial surety
is a named party when the judgment has been paid after the issuance of a rule to show cause
that meets the requirements of Subsection A of this Section.
NOTE: Former R.S. 22:1441 redesignated as R.S. 22:2321 by Acts 2008,
No. 415, §1, eff. Jan. 1, 2009.

Legislative History

Acts 1993, No. 834, §5, eff. June 22, 1993; Acts 1999, No. 1151, §1, eff. July 9, 1999; Redesignated from R.S. 22:658.1 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2010, No. 914, §4; Acts 2016, No. 613, §3, eff. Jan. 1, 2017.