June 28, 2017
STATEMENT BY FINANCIAL SERVICES SUPERINTENDENT MARIA T. VULLO ON THE DECISION BY THE NEW YORK STATE COURT OF APPEALS IN GEVORKYAN V. JUDELSON
“The Department of Financial Services (DFS) is gratified by the decision of the New York State Court of Appeals, New York’s highest court, in Gervorkyan v. Judelson, which relied in great part on arguments made by DFS, which licenses and oversees the bail bond industry in New York State. The court ruled on June 27, 2017, that bond surety companies and their agents may not keep premiums if a court refuses to accept the bond following a bail source hearing and the criminal defendant is not released from custody.
Under New York Insurance Law, a premium is not earned if the bond is not approved and the defendant is not released. This ruling clarifies the responsibilities of bail bond surety companies and their agents regarding when premiums are earned, and protects the rights of those who pay premiums for bail bonds if the bond is rejected by state court and the criminal defendant is not released from custody. DFS will continue to guard against unscrupulous practices in the bail bond industry.”