California Underwritten Title Company Bond
Get to know the important details about this surety bond!
What is a California Underwritten Title Company Bond?
The Insurance Commissioner of the State of California—in pursuance of Section 12389 of the California Insurance Code—requires every person applying for a license to engage in escrow business to obtain this bond.
The purpose of this surety bond is to ensure that the license applicant will fulfill the following obligations:
- The license applicant and all its agents and employees will faithfully abide by the provisions of Chapter 1 of Part 6 of Division 2 of the California Insurance Code.
- The license applicant and all its agents and employees will faithfully abide by the rules set forth by the Insurance Commissioner of the State of California.
- Will apply all funds received that pertains to escrow services, and pay to the State of California.
This bond will also serve as a means of financial recourse for the state in case the licensee violates any of the conditions of the license.
How much does a California Underwritten Title Company Bond cost?
The bond premium varies per license applicant. This will depend on the license applicant’s credit score.
Bond premium starts at 1% of the bond amount for those who have excellent credit scores.
The bond amount will depend on the aggregate number of documents recorded and documents filed in the previous calendar year in all counties where the underwritten title company is licensed.
|NUMBER OF DOCUMENTS||AMOUNT OF REQUIRED MINIMUM NET WORTH||BOND AMOUNT|
|Less than 50,000||$ 75,000||$ 50,000|
|50,000 to 100,000||$ 120,000||$ 50,000|
|100,000 to 500,000||$ 200,000||$ 100,000|
|500,000 to 1,000,000||$ 300,000||$ 100,000|
|1,000,000 or more||$ 400,000||$ 100,000|
How can I get a California Underwritten Title Company Bond?
We’ve made it easier for you! Just follow the simple steps below!
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of important information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
How does a California Underwritten Title Company Bond work?
A surety bond is a three-party agreement.
Principal – Underwritten title company license applicant
Obligee – the State of California
Surety – the Surety bond provider
This bond is for the protection of the Obligee in case the Principal violates any of his or her contractual obligations that are required by the California Insurance Code. If the Principal fails to do any of the bonded obligations required by the relevant laws, rules, and regulations, the Obligee can file a claim. The Surety will first check the validity of the claim. Under the bond agreement, the Principal must repay the Surety if the latter has settled the claim.