Amwest Surety Insurance Company, in Liquidation

CRIMINAL COURTS, BAIL BONDS

Frequently Asked Questions

Question: Have the Amwest/Far West bail bonds been cancelled?

Answer: Yes, all active bail bonds were cancelled on December 9, 2001 at 11:59 p.m. CST as required by Nebraska statutes and as a result of the Liquidation of Amwest/Far West.

Question: Why is Nebraska involved?

Answer: Because both Amwest and Far West are incorporated under the laws of the state of Nebraska.

Question: Who are Amwest Surety Insurance Company and Far West Insurance Company?

Answer: These are insurance companies that backed and underwrote thousands of bail bonds written by bail agents in over 40 states.

Question: Now that the bail bonds are cancelled, does this mean that the bond is exonerated?

Answer: Cancellation means that Amwest/Far West is no longer obligated to the court on the bond for forfeitures taken subsequent to the date of cancellation.

Question: What about bail bonds that were ordered forfeited by a court prior to the December 9, 2001 cancellation?

Answer: These are considered to be valid forfeitures. Contractual bail agents of Amwest/Far West are still obligated pursuant to contract to address the forfeiture. In others words, Amwest/Far West expects the agent to continue to be responsible to the court on the bond. If the forfeiture becomes due and payable to the court, and if the bail agent then refuses to pay the court, we would urge the court to use available legal means to enforce payment from the agent. If this fails, the court may then wish to file a Proof of Claim with Amwest/Far West. This claim must be filed in accordance with the Proof of Claim process. At this time, the Liquidator cannot predict what amount, if any, will ultimately be approved or paid on this or any other type of claim.

Question: What about the Proof of Claim (POC) process?

Answer: The Liquidator has implemented a claim’s process and has adopted a separate Proof of Claim form (Bail POC) for both Amwest and Far West. Claims will be subject to adjudication by the Liquidator. The POC bar date for Far West (last day for filing a timely POC) is September 30, 2002 while the POC bar date for Amwest was June 7, 2002. Amwest will continue to accept any and all claims filed on the prescribed Proof of Claim (POC) forms, however all POC forms received with a postmark after the bar date (June 7, 2002) will be considered late. Some states have initiated ancillary receivership or liquidation proceedings and those bar dates may differ from those established by Amwest or Far West. To the extent a claim is filed in an ancillary proceeding, you must comply with the bar date established by that state in order for a claim to be considered timely filed in the ancillary proceeding.

All requests for bail POC forms and all communications should be directed to the Court Division of Amwest/Far West at P.O. Box 4500 Woodland Hills, CA 91365. The phone number is (800) 423-2245. You may wish to contact your state insurance guaranty association to determine whether bail bond judgments are considered a covered claim by your guaranty association. Please see the “Guaranty Fund Association” information listed elsewhere in this website.

Question: What about bail bonds that were ordered forfeited by a court after the December 9, 2001 cancellation?

Answer: These are considered to be invalid forfeitures as to Amwest/Far West’s obligations on the bond.

Question: If as a result of the cancellation, a judge for the defendant requires a new bail bond, will Amwest/Far West pay the premium? Is the agent who wrote the original bond obligated to write a new bond through another surety?

Answer: First, if premium is paid for a replacement bond, the person who paid the premium may file a proof of claim with the Liquidator for the premium attributable to the replacement of the cancelled bond(s). This claim must be filed in accordance with the Proof of Claim process described elsewhere. At this time, the Liquidator cannot make any representations as to an amount, if any, that will ultimately be approved or paid on this or any other type of claim. Secondly, Amwest/Far West and the Liquidator do not require bail agents to post new bonds.

Question: If a judge orders a new bail bond written, may the premium be paid from defendant collateral, if any, being held by the agent that secures the Amwest/Far West bail bond?

Answer: No, not without prior approval from the agent that holds the collateral. Further, the judge should first have in some way acknowledged the cancellation of the Amwest/Far West bail bond.

Question: What if the bail bond was ordered exonerated by the judge at the completion of the defendant’s required court appearances and prior to the cancellation date of December 9, 2001?

Answer: The cancellation has no effect on bail bonds that were exonerated prior to the cancellation date.