Maryland Title Insurance Producer Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Maryland Title Producer bond (occasionally referred to as Insurance Administrator Title Producer bond).
*This page focuses exclusively on the surety bond required for title insurance producers operating in Maryland. Title insurance producers that are licensed as business entities must also obtain a $150,000 blanket Fidelity bond. Contact BondExchange to obtain a Fidelity bond.
At a Glance:
- Lowest Cost: $563 per year or $56 a month
- Bond Amount: $150,000
- Who Needs It: All title insurance producers operating in Maryland
- Purpose: To protect the public from financial harm if the title insurance producer commits fraud or engages in unfair business practices
- Who Regulates Title Insurance Producers in Maryland: The Maryland Insurance Administration
Background
Maryland Code 10-103 requires all title insurance producers operating in the state to obtain a license from the Insurance Administration. The Maryland Legislature enacted the licensing requirement to ensure that title insurance producers do not engage in unethical business practices. To provide financial security for the enforcement of the licensing law, title insurance producers must purchase and maintain a $150,000 surety bond to be eligible for licensure.
What Is the Purpose of the Maryland Title Insurance Producer Bond?
Maryland requires all title insurance producers to purchase a surety bond as part of the application process to obtain a license. The bond ensures that restitution is available to any damaged party should the title insurance producer fail to abide by the regulations outlined in the Maryland Code Title 10, Subtitle 1. Specifically, the bond protects claimants if the title insurance producer commits fraud or engages in unfair business practices. In short, the bond is a type of insurance that protects the public if the title insurance producer violates the terms of their license.
How Can an Insurance Agent Obtain a Maryland Title Insurance Producer Bond?
BondExchange makes obtaining a Maryland Title Insurance Producer bond easy. Simply log in to your account and use our keyword search to find the “title insurance producer” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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Is a Credit Check Required for the Maryland Title Insurance Producer Bond?
Surety companies will run a credit check on the title insurance producer to determine eligibility and pricing for the Maryland Title Insurance Producer bond. Title insurance producers with excellent credit and work experience can expect to receive the best rates. Title insurance producers with poor credit may be declined by some surety companies or have to pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Maryland Title Insurance Producer Bond Cost?
The Maryland Title Insurance Producer bond can cost between $563 to $9,000 per year or $56 to $900 per month. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below briefly references the approximate bond cost on the $150,000 bond requirement.
$150,000 Maryland Title Insurance Producer Bond Cost
| Credit Score* | Bond Cost (1 Year) | Bond Cost (1 month) |
|---|---|---|
| 720+ | $563 | $56 |
| 680 – 719 | $675 | $68 |
| 660 -679 | $1,050 | $105 |
| 649 – 659 | $1,500 | $150 |
| 629 – 648 | $2,250 | $225 |
| 600 – 628 | $3,750 | $375 |
| 580 – 599 | $5,250 | $525 |
| 550 – 579 | $6,000 | $600 |
| 525 – 549 | $7,500 | $750 |
| 500 – 525 | $9,000 | $900 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
How Does Maryland Define “Title Insurance Producer”?
To paraphrase Maryland Code 10-101, a title insurance producer is a person that solicits, procures, or negotiates title insurance contracts. This includes providing escrow, closing, or settlement services.
Exemptions to this definition include the following:
- Officers, directors, or employees of an insurer who do not receive any commission on policies written or sold
- Individuals who perform administrative services related to mass-marketed property and casualty insurance provided that no commission is paid to the individual for the services
- Persons whose activities in the State are limited to advertising without the intent to solicit insurance in the State through communications in printed publications or other forms of electronic mass media
- A person who is not a resident of the State who sells, solicits, or negotiates a contract of insurance for commercial property and casualty risks to an insured with risks located in more than one state insured under the contract
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Title Insurance Producers Become Licensed in Maryland?
Title insurance producers in Maryland must navigate several steps to obtain a license. Below are the general guidelines, but applicants should refer to the Insurance Administration’s Title Insurance Producer webpage for details on the process.
License Period – In Maryland, individual title producer licenses are issued on a biennial basis to expire on the last day of the producer’s birth month. Business entity licenses expire two years after they are issued.
Step 1 – Fulfill Financial Requirements
Title insurance producers are required to purchase and maintain a $150,000surety bond. In addition, title insurance producers that are applying for a license as a business entity must obtain a $150,000 blanket Fidelity bond covering appropriate employees and title insurance producer independent contractors.
Step 2 – Pass Exam
All resident individuals requesting a title insurance producer license are required to complete pre-licensing education and pass the Maryland title exam. Further details can be found here.
Step 3 – Complete License Application
Either the NAIC Uniform Application Individual Producer or the NAIC Uniform Application for Business Entity must be completed and submitted to the Maryland Insurance Administration. A $54 initial application fee is also mandated.
How Do Title Insurance Producers in Maryland Renew Their Licenses?
According to the Maryland Insurance Administration, individual title producer licenses are issued on a biennial basis to expire on the last day of the producer’s birth month. Business entity licenses expire two years after they are issued.
Applicants for license renewal must submit all of the same document requirements as an applicant for an initial license. The fee to renew the license is $69. This includes the $54 renewal fee and the $15 fraud prevention fee. License renewal applications can be found here.
What Are the Insurance Requirements for Title Insurance Producers in Maryland?
Maryland does not require title insurance producers to purchase any form of liability insurance as a prerequisite to obtaining a license. Title insurance producers must purchase and maintain a $150,000 surety bond, as well as a $150,000 Fidelity bond (only applicable to business entities)
How Do Maryland Title Insurance Producers File Their Bonds?
Title insurance producers should submit their completed bond forms, including the power of attorney when submitting their license applications to the Maryland Insurance Administration (see the mailing address listed below).
Maryland Insurance Administration
200 Saint Paul Place, Suite 2700
Baltimore, MD 21202
The surety bond requires signatures from the surety company, as well as the title insurance producer. The surety company should include the following information on the bond form:
- The legal name of the individual buying the bond
- Surety company’s name
- Date the bond is signed
What Can Maryland Title Insurance Producers Do to Avoid a Claim Against Their Surety Bond?
To avoid claims against their bonds, title insurance producers in Maryland must follow all license regulations in the State, including some of the most important issues below that tend to cause claims:
- Misrepresentation
- Unethical business practices
- Fraud
What Other Insurance Products Can Agents Offer Title Insurance Producers in Maryland?
Most reputable title insurance producers will purchase business liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Title Insurance Producer Customers in Maryland?
Maryland conveniently provides a public database to search for active title insurance producers in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.