Title agency bonds are surety bonds required for licensing title insurance producers and agencies, guaranteeing compliance with state regulations and protecting against financial misconduct. These bonds vary by state and serve as a three-party agreement between the surety company, the principal (agency or agent), and the obligee (state regulatory body).
Why This Is Important, Title Agency Bond
The Maryland Insurance Administration (MIA) issues licenses to individuals and business entities to act as Title Insurance Producers. A surety bond is a three-party agreement between the Surety, Principal, and Obligee. The Surety (Bond Company) guarantees the obligations of the Principal to the Obligee (Beneficiary). There are various other types of surety bonds guaranteeing all sorts of obligations such as performance of contract obligations, payment of taxes, and compliance with licenses, statutes, and ordinances.
A fidelity bond is similar to crime insurance, which provides first party coverage. Its primary coverage is for employee theft. It will pay for loss or damage to cash, securities and other property directly from theft or forgery by an employee. On the crime policy we can also offer fraudulently induced transfer coverage that would not be coverage available on a fidelity bond.
Title Agency Bond, An In Depth Look
NRS 692A.022 “Business of title insurance” and “title insurance business” defined. Title attorneys and title insurance agents may be required to obtain these or related bonds in order to receive their license.
Often, yes. However, it may vary from state to state. Some states require bonds of entire businesses while others require individual agents to obtain bonds. It is advisable to contact the state where you operate to determine all requirements.
Escrow Licensee Bond – Escrow Licensees are considered a fiduciary in the transfer of property or money from one party to another. Surety bonds are required in most States prior to the issuance or the maintenance of a license. Because escrow licensees act as a third party to a financial transaction, the bond is intended to protect against acts of dishonesty, fraud, theft or malfeasance. In addition, the bond serves to ensure that the escrow licensee will comply with all State regulations and licensing requirements.
Georgia Surety Bonds
We write $50,000 Title Service Agency Bonds in Maryland. A copy of the Agency Financial Statement for the most recently completed fiscal year or pro forma statement for the first year if a new business.
A title insurance company must maintain a fidelity bond or a professional liability insurance policy in an amount of at least $250,000 31A-23a-204(2) Proof of this bond or policy must be submitted with the application.
What Companies Need To Know About Title Agency Bond
Surety provides National Title Insurance Companies, title insurance coverage and professional settlement services for homebuyers and sellers, real estate agents and brokers, mortgage lenders, commercial property professionals, homebuilders, developers and attorneys to facilitate real estate purchases, construction, refinances or equity loans. Each agency must be licensed with the Commonwealth of Pennsylvania and within each agency you must have at least one licensed individual.
For authoritative guidance on state-specific licensing requirements, title agencies and agents should consult the California Department of Insurance Title Insurance Bulletin as a reference for regulatory compliance and bonding standards.