Ch. 635

1995 LAWS OF MARYLAND

(2)     A surety insurer shall notify the title insurance agent OR TITLE
INSURANCE BROKER and THE Commissioner at least 30 days before canceling a bond or
letter of credit.

(3)      If a surety insurer fails to notify the TITLE INSURANCE agent OR TITLE
INSURANCE BROKER and THE Commissioner as required by paragraph (2) of this
subsection, the bond or letter of credit remains in effect until the surety insurer notifies
the TITLE INSURANCE agent OR TITLE INSURANCE BROKER and THE Commissioner.

(4)     A cancellation under this subsection does not affect any liability that
occurred during the life of the bond or letter of credit and before the date of cancellation.

[(g) Subject to the approval of the Commissioner, a partnership or corporation
that is authorized under a certificate of qualification to act as a title insurance agent may
meet the requirements of this section by providing one bond or letter of credit for all of
its title insurance agents.

(h)] (I) Before the Commissioner renews the certificate of qualification of a title
insurance agent OR TITLE INSURANCE BROKER, the title insurance agent OR TITLE
INSURANCE BROKER shall submit satisfactory evidence of compliance with this section.

[(i)] (J) (1) If a title insurance agent OR TITLE INSURANCE BROKER has been
charged with a violation of this section or this article that could result in suspension or
revocation of the certificate of qualification of the title insurance agent OR TITLE
INSURANCE BROKER, the Commissioner may seek an immediate restraining order from
a circuit court to prohibit the title insurance agent OR TITLE INSURANCE BROKER from
providing title insurance, escrow, closing, or settlement services.

(2) A restraining order issued by a court under this subsection is effective
until:

(i) the court lifts the restraining order; or

(ii) the charges are dismissed or adjudicated.

(K) (1) FOR EACH TITLE INSURANCE AGENT AND AGENCY THAT HAS AN
APPOINTMENT WITH A TITLE INSURER, THE TITLE INSURER SHALL HAVE ON FILE A
STATEMENT OF FINANCIAL CONDITION OF EACH TITLE INSURANCE AGENT AND
AGENCY WITH AN APPOINTMENT WITH THE TITLE INSURER, AS OF THE END OF THE
PREVIOUS CALENDAR YEAR, SETTING FORTH AN INCOME STATEMENT OF BUSINESS
DONE DURING THE PRECEDING YEAR AND A BALANCE SHEET SHOWING THE
CONDITION OF ITS AFFAIRS AS OF DECEMBER 31ST PRECEDING CERTIFIED BY THE
TITLE INSURANCE AGENT OR AGENCY AS BEING A TRUE AND ACCURATE
REPRESENTATION OF THE TITLE INSURANCE AGENT'S OR AGENCY'S FINANCIAL
CONDITION.

(2) (I) THE TITLE INSURER SHALL, AT LEAST ANNUALLY, CONDUCT
AN ON-SITE REVIEW OF THE UNDERWRITING, CLAIMS, AND ESCROW PRACTICES OF
ITS TITLE INSURANCE AGENTS AND AGENCIES, WHICH SHALL INCLUDE A REVIEW
OF THE TITLE INSURANCE AGENT'S OR AGENCY'S POLICY BLANK INVENTORY AND
PROCESSING OPERATIONS.

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