PARRIS N. GLENDENING, Governor

Ch. 635

(2) "TITLE INSURANCE AGENT" OR "TITLE INSURANCE BROKER"
INCLUDES A PERSON WHO PROVIDES ESCROW, CLOSING, OR SETTLEMENT SERVICES
WHICH MAY RESULT IN THE ISSUANCE OF A TITLE INSURANCE CONTRACT.

(2) (3) "TITLE INSURANCE AGENT" OR "TITLE INSURANCE BROKER"
DOES NOT INCLUDE:

(II INDIVIDUALS EMPLOYED AND USED BY TITLE INSURANCE
AGENTS OR TITLE INSURANCE BROKERS FOR THE PERFORMANCE OF CLERICAL,
STENOGRAPHIC, AND SIMILAR OFFICE DUTIES; OR

(II) A FINANCIAL INSTITUTION AS DEFINED IN § 1-101(H) OF THE
FINANCIAL INSTITUTIONS ARTICLE THAT DOES NOT SOLICIT, PROCURE OR
NEGOTIATE TITLE INSURANCE CONTRACTS FOR COMPENSATION.

(b) (1) In addition to any requirements under § 168 of this article, title
insurance agents AND TITLE INSURANCE BROKERS shall comply with this section.

(2) This section does not apply to[:

(i) A] A title insurance insurer that is licensed under this article [; or

(ii) A lawyer who is admitted to practice before the Court of Appeals
of the State of Maryland].

(C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBTITLE, A TITLE
INSURANCE INSURER:

(1) IS SUBJECT TO THE CERTIFICATE OF QUALIFICATION REQUIREMENTS
UNDER THIS SUBTITLE APPLICABLE TO TITLE INSURANCE AGENTS AND TITLE
INSURANCE BROKERS; AND

(2) IS NOT SUBJECT TO THE BONDING REQUIREMENTS OF THIS SUBTITLE
RELATING TO TITLE INSURANCE AGENTS AND TITLE INSURANCE BROKERS.

(c) (D) A title insurance agent OR TITLE INSURANCE BROKER may not convert
or misappropriate funds received or held in escrow or trust while:

(1)     Acting as a title insurance agent OR TITLE INSURANCE BROKER; or

(2)     Providing any escrow, closing, or settlement services.

(D) (E) (1) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, IF AN
APPLICANT FOR A CERTIFICATE OF QUALIFICATION IS A PARTNERSHIP, EACH
PARTNER MUST HOLD A CERTIFICATE OF QUALIFICATION TO ACT AS A TITLE
INSURANCE AGENT OR TITLE INSURANCE BROKER AND, IF APPLICABLE, AN
APPOINTMENT WITH A TITLE INSURER.

(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, IF AN APPLICANT
FOR A CERTIFICATE OF QUALIFICATION IS A CORPORATION, THE MAJORITY OWNER
AN© EACH OFFICER AND DIRECTOR MUST HOLD A CERTIFICATE OF
QUALIFICATION TO ACT AS A TITLE INSURANCE AGENT OR TITLE INSURANCE
BROKER AND, IF APPLICABLE, AN APPOINTMENT WITH A TITLE INSURER.

- 3571 -