The New York State Department of Financial Services ("DFS") has finalized a regulation governing the bail bond industry.

Under the final regulation:

• Bail agents may not charge fees other than the premiums set by statute;
• Agents and insurance companies may only use forms approved by the DFS superintendent;
• Collateral of 10 percent or less of the bond amount will be deemed reasonable;
• Collateral and premium must be returned within a set time period, where appropriate;
• Bail agents must provide consumers with receipts and copies of all contracts and documents involved in the bail transaction;
• Bail agents must explain and report any surrenders of a defendant to the court, DFS, and the purchaser of the bond;
• Insurance companies must supervise their agents more closely;
• Bail agents must post their licenses and display "how to make a complaint" signs;
• Bail agents must provide consumers with a statement of rights;
• Bail agents and insurance companies must increase and improve record keeping and reporting;
• Bail agents must obtain the prompt release of a defendant; and
• Renewal premiums are not permitted.

The final regulation follows guidance the DFS issued last year regarding the unanimous 2017 decision by the New York Court of Appeals in Gevorkyan v. Judelson that confirmed the DFS's position that, under the New York Insurance Law, the premium followed the risk. When a defendant is not released from custody there is no risk to the surety company or the bail agent so they must return the premium, the DFS said.

The DFS said that, in addition to the final regulation, its investigation of the bail bond industry remained ongoing.