November 4, 2019
OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler issued a revocation order against David A. Regan and his insurance agency, Regan Bail Bonds, Inc. of Vancouver, Wash. Kreidler also issued an order imposing a $100,000 fine and $7,072 in unpaid premium tax, penalties and interest.
Kreidler’s orders state that Regan Bail Bonds acted as an insurer starting in January 2018 by posting at least 325 bail bonds in Washington courts that named Regan Bail Bonds as the surety. The bonds represent $3.7 million in liabilities, including almost $2 million of open liabilities at the conclusion of Kreidler’s investigation. Regan Bail Bonds collected $294,570 in premiums for the bonds.
If the orders are upheld at hearing, Regan and his company will be barred from selling bail bonds in Washington state.Kreidler ordered Regan and Regan Bail Bonds on July 31 to cease and desist from acting as a surety insurer without a certificate of authority and from allowing unlicensed insurance producers to conduct business on its behalf. Regan Bail Bonds allowed one unlicensed insurance producer to issue at least 37 of the 325 bail bonds in Washington. Additionally, 142 of the 325 bail bonds were posted in Clark County Superior Court and Regan Bail Bonds failed to follow court procedures.
Regan also demanded a hearing on that case, scheduled for Jan. 30, 2020.
A bail bond is a contract between the defendant, the surety and the court to insure the defendant’s appearance at court proceedings. An insurer acts as a surety when it guarantees performance of a bail bond contract. Surety insurance includes bail bond insurance and insurers that sell it must have a certificate of authority from the insurance commissioner.
Kreidler’s investigation started after receiving a complaint about Regan Bail Bonds acting as a surety.
Kreidler’s office oversees Washington’s insurance industry to ensure that companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $28 million in fines, which are deposited in the state's general fund to pay for state services.
The insurance commissioner publishes disciplinary orders against companies, agents and brokers.
For an insurance question or complaint, contact Kreidler’s consumer advocates online or by phone at 800-562-6900.