Step 1: Enter into a liable bail agent contract with an unscrupulous Company. Sometimes this is an insurance company itself. More often it’s a managing general agent or large operator with multiple offices. If you weren’t so concerned with getting paper at a low rate, you’d ask about the origins of those multiple offices. But don’t ask that question and don’t ask why they are so willing to give you low cost paper on such favorable terms. They don’t even want much in the way of contract collateral. Which is a good thing, since you don’t have any. Congratulate yourself on getting a lower rate for your paper than all of the long-time established bondsman in your jurisdiction.
Step 2: Write lots of bonds. Delude yourself into thinking that they are good bonds even though they lack the full premium and any sort of tangible collateral. Tell yourself this lie over and over: The indemnitors will pay me the face value of the bond if it goes bad. Believe this lie even in the face of the fact that they don’t even have the 10% premium, much less any realistic ability to raise the full bond amount. If, even with your extraordinary capacity for self-delusion, you can’t quite convince yourself of this lie then tell yourself a different lie: You’ll be able to find him if he skips. Lie to yourself that the defendant is a U.S. citizen. Sort of. Even though he was born in the Dominican Republic.
Step 3: Report your executed bonds infrequently. The life-long bondsman down the street reports his executed bonds weekly. You have enough bond powers in your inventory, however, that you only need to report to the Company once every three or four months. When you do report your executed bonds, cherry pick the report and only include a small fraction of all the executed bonds. Report and pay for just enough bond powers to keep the flow going and to avoid completely depleting your very generous power inventory. Drive a really nice car even if you can’t afford it. Tell yourself that appearances count. Keep yours up even in the face of increasing non-appearances (by defendants in court). Use today’s premium to pay for last month’s losses. Rob Peter to pay Paul. Repeat.
Step 4: When your friends at your Company complete their “routine” audit of your agency, they will act shocked that you have executed virtually all of the bond powers in your inventory. They will ask you for the premium you owe them on the executed bond powers. When you honestly tell them that you cannot pay the entire amount that is due to them all at once, they will remind you of what you were forced to learn back when you first earned your bail license. That portion of the premium belonging to the Company is trust funds, which you are required to accept and forward to them in a fiduciary capacity. You have committed — they will remind you — larceny by embezzlement. Decide to avoid criminal charges, jail time and the loss of your bail license by agreeing to their “terms”. You no longer have a low rate for paper. You now have, instead, a partner. That’s the term they will use, anyhow.
I think indentured servant is more accurate. If you don’t like your new partners or the fact that they take 50% or more of everything coming in your door, remind yourself that you made your own bed. They will tell you these terms will last only until they are made whole. Here is a hint: They will never be made whole and you will never get a square count.
Some of us check references and conduct background checks before we underwrite even a $500 bond. Some of us conduct no due diligence whatsoever when selecting the company we keep. We probably get what we deserve.