When is the premium on the bond earned?

When is the premium on the bond earned?

• A. When the bond is posted
• B. When the defendant is released from custody but still incarcerated
• C. When the defendant on the bond is released from custody and is not incarcerated in any capacity
• D. At the end of the case

Answer: (C)

The premium is earned when the defendant on the bond is released from custody and is not incarcerated in any capacity. The bondsman charges this premium as compensation for securing the defendant’s release and taking on the risk of the bond. Once release occurs and the defendant is free, the service is considered performed, so the premium is earned. If the defendant remains in custody, the release hasn’t happened, so the premium hasn’t yet been earned. The end of the case doesn’t determine the earning of the premium, as it relates to the act of securing release.

The premium is earned when the defendant on the bond is released from custody and is not incarcerated in any capacity. The bondsman charges this premium as compensation for securing the defendant’s release and taking on the risk of the bond. Once release occurs and the defendant is free, the service is considered performed, so the premium is earned. If the defendant remains in custody, the release hasn’t happened, so the premium hasn’t yet been earned. The end of the case doesn’t determine the earning of the premium, as it relates to the act of securing release.