What is a Pennsylvania Title Insurance Agent Bond?
Before becoming a title insurance agent in Pennsylvania, they must initially apply for a certificate of qualification with the Pennsylvania Insurance Department under Section 603 of the act of May 17, 1921 (P.L.789, No.285), known as The Insurance Department Act of 1921.
A Title Insurance Agent Bond guarantees that title insurance agents will act in a professional, ethical, and lawful manner related to applicable insurance laws and the business of title insurance in general.
The bond financially protects consumers from any financial damages incurred as a result of fraudulent or wrongful acts committed by the title insurance agent. This includes providing consumers inflated insurance quotes to get higher payment on their commissions.
According to the 31 Pa. Code § 37.1, a “title agent” can be any person, firm, association, corporation, cooperative or joint-stock company located in the state which is “authorized in writing by a title insurance company to solicit risks and collect premiums, and to issue or countersign policies on its behalf or to solicit risks and collect premiums on its behalf.”
What is the bond amount?
The bond amount is $100,000.
The cost of the bond is a percentage (between 1% and 5%) of the bond amount. The cost will depend on your credit score and personal/business experience as evaluated by a Certified Surety Underwriter.
How do I obtain a Title Insurance Agent Bond?
You can easily get one by simply applying for this surety bond! Here’s a step-by-step guide on how to get this surety bond:
Submit a surety bond application to us! Once we have received your application, we will inform you about the important information or documents that you must submit to move forward to the next step of the bonding process, which is underwriting.
During the underwriting process, our expert underwriter will typically assess these documents to gauge your bonding capacity:
- Your credit score
- Your financial statements
- Your work/business history
It is important to provide us with clear and organized information to prevent any delays. Our expert underwriter will check everything that you have submitted, and once that is finished, we will immediately send the bond to you!
What are the bond conditions?
- The bond must be issued by a Surety authorized to conduct business in the Commonwealth of Pennsylvania.
- The Principal must desire to act as a Title Insurance Agent and has applied to the Commonwealth for a license under L.682, Act 79 of 1995, Section 726.1.
- If the Principal fully and faithfully observes and complies with the terms and provisions that govern the title insurance agent license, then the obligation will be null and void. Otherwise, it will remain in full force and effect.
- The Surety may cancel the bond by providing a 30-day written notice to the Pennsylvania Insurance Department.
- The aggregate liability of the Surety will not exceed the penal sum of the bond.
Note: After receiving a title agent license, you must carry a written contract with a licensed title insurance company and become appointed by that company before acting as a title agent.
Got any questions about the Title Insurance Agent Bond? Contact us today!