"Other casualty" on the national outline covers umbrella and excess liability, professional liability (E&O), D&O, employment practices, cyber, and surety and fidelity bonds. The general concepts are the same in Colorado. What Colorado adds to this topic is a set of rules for one particular kind of surety: bail bonds, written by casualty producers.

The national concepts in brief

• An umbrella adds excess liability limits over the underlying policies and can cover some claims they exclude.
• Professional liability / E&O covers negligent professional services and is usually written claims-made. D&O protects directors and officers for wrongful acts in managing the company. EPLI covers claims such as discrimination, harassment and wrongful termination.
• A surety bond has three parties: the principal who must perform, the obligee who is protected, and the surety that guarantees performance. A fidelity bond covers an employer against employee dishonesty.

Colorado bail bond rules

• License and appointment: a bail producer holds the Casualty line of authority and must be appointed by a bail insurance company. Bail is the only line for which the Division of Insurance tracks producer appointments.
• Pre-appointment education: at least 8 clock hours on bail bonding (court system, ethics and bail law) plus 16 hours of bail recovery training (C.R.S. 10-2-415.5(2)(c)).
• Appointment renewal: each active bail appointment renews on October 1 of the renewal year. An appointment not renewed by then expires (10-2-415.5(3)).
• Premium limit: no more than the greater of $50 or 15% of the bail amount (10-2-707(1)). The premium is fully earned when the defendant is released from custody (10-2-707(3)).
• Records: transaction documents are kept for three years after the bond is discharged and collateral returned (10-2-705(5)).
• Unfair practices (10-3-1104(1)):
  • Failing to post the bond within 24 hours, and then not refunding all money and returning collateral within seven days.
  • Soliciting bail business in or around jails, courts or other places where prisoners are held.
  • Paying jailers or court employees for referrals.

Exam traps

• A bail producer needs casualty authority plus a bail insurer's appointment. A separate bail license is not what the exam is looking for.
• The premium cap is 15% or $50, whichever is greater, and the premium is earned once the defendant is released.
• The training hours are 8 + 16, and appointments renew on October 1.