Wyoming Abstractor Bond: A Comprehensive Guide
March 30, 2022
This guide provides information for insurance agents to help their customers obtain a Wyoming Abstractor Bond
At a Glance:
- Average Cost: Between $100 to $500 per year based on the applicant’s credit history
- Bond Amount: $10,000
- Who Needs it: All Wyoming abstractors that furnish abstracts of real estate in an incorporated city or town
- Purpose: To ensure the public will receive compensation for any damages should the abstractor fail to adequately perform their duties
- Who Regulates Abstractors in Wyoming: The clerk’s office of the county the real estate is located
Wyoming statute 33-2-101 requires all abstractors that furnish abstracts of real estate in an incorporated city or town to file a $10,000 surety bond with the clerk’s office of the county where the real estate is located. The Wyoming legislature enacted the bonding requirement to ensure that abstractors faithfully perform all of their duties. There is no statewide licensing requirement for abstractors in Wyoming, however, abstractors may need to obtain a local business or tax license before conducting business.
What is the Purpose of the Wyoming Abstractor Surety Bond?
Wyoming requires abstractors to purchase a surety bond as prior to selling abstracts of title in an incorporated city or town. The bond ensures that the public will receive compensation for financial harm if the abstractor fails to comply with the regulations set forth in Wyoming statute 33-2-101. Specifically, the bond protects the public in the event the abstractor does not adequately perform their duties. For example, if an abstractor mistakenly certifies that there is no lien against a piece of real estate and the property owner suffers a loss due to this error, then the owner can file a claim against the abstractor’s bond. In short, the bond is a type of insurance that protects the public if the abstractor does not properly do their job.
How Can an Insurance Agent Obtain a Wyoming Abstractor Surety Bond?
BondExchange makes obtaining a Wyoming Abstractor bond easy. Simply log in to your account and use our keyword search to find the “abstractor” 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 at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
Is a Credit Check Required for the Wyoming Abstractor Bond?
Surety companies will run a credit check on the abstractor to determine eligibility and pricing for the Wyoming Abstractor bond. Abstractors with excellent credit and work experience can expect to receive the best rates. Abstractors with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the owner’s credit.
How Much Does the Wyoming Abstractor Bond Cost?
The Wyoming Abstractor bond can cost anywhere between $100 to $500 of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on the $10,000 bond requirement.
$10,000 Abstractor Bond Cost
|Credit Score||Bond Cost (1 year)|
|600 – 624||$250|
|575 – 599||$300|
|500 – 574||$500|
Who is Required to Purchase the Bond?
Wyoming requires all abstractors that furnish abstracts of real estate in an incorporated city or town to purchase a surety bond as a prerequisite to conducting business. An abstractor is defined as a person that researches title records on real property to ensure there are no liens, delinquent taxes, etc. that would inhibit the land being sold or insured.
Do Wyoming Abstractors Need to Obtain A License?
There is no statewide licensing requirement for abstractors operating in Wyoming. However, abstractors may need to obtain a local business or tax license. Advise your customers to check with the municipal authority presiding over the real estate before conducting business.
What Other Requirements Must Wyoming Abstractors Adhere to?
In addition to purchasing a $10,000 surety bond, abstractors must obtain all abstract records of title for every piece of real estate in the county they are conducting business in.
What are the Insurance Requirements for Wyoming Abstractors?
Wyoming does not require abstractors to purchase any form of liability insurance as a prerequisite to conducting business. Abstractors must purchase and maintain a $10,000 surety bond.
How Do Wyoming Abstractors File Their Bond?
Abstractors should deliver their completed bond form, including the power of attorney, to the clerk’s office of the county they are conducting business in. The surety bond requires signatures from both the surety company that issues the bond and from a representative of the abstractor. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- County the abstractor is conducting business in
- Surety company’s name and state of incorporation
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Wyoming Abstractors Do to Avoid Claims Against Their Bonds?
To avoid claims made against their bonds, abstractors in Wyoming must adequately perform their duties and ensure consumers to not suffer financial harm due to any incorrect abstracts of title.
What Other Insurance Products Can Agents Offer Abstractors in Wyoming?
Wyoming does not require abstractors to purchase liability insurance. However, most businesses will seek to obtain this insurance anyway. 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 Wyoming Abstractor Customers?
Wyoming unfortunately does not provide a public database to search for active abstractors in the state. We suggest contacting individual county clerks’ offices to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.