WILLIAM DONALD SCHAEFER, Governor

H.B. 314

House Bill No. 314

AN ACT concerning

Title Insurance Agents - Licensing Requirements - Bonds or Letters of Credit

FOR the purpose of altering certain bond or letter of credit requirements that a title
insurance agent shall satisfy before the Insurance Commissioner issues a certificate
of qualification to the agent; increasing the amount of a certain bond or letter of credit
that a certain title insurance agent shall file with the Commissioner; providing for the
application of this Act; and generally relating to the bond or letter of credit
requirements for a title insurance agent.

BY repealing and reenacting, with amendments,
Article 48A - Insurance Code
Section 168A(d)
Annotated Code of Maryland
(1991 Replacement Volume and 1993 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

168A.

(d) (1) In addition to meeting the requirements for obtaining a certificate of
qualification under § 168(b) of this article, a title insurance agent who has an
appointment from a title insurance insurer shall file with the Commissioner:

(i) [A fidelity bond;

(ii)] A surety bond; or

[(iii)](II) A letter of credit.

(2)     The bond or letter of credit shall be in the amount of $100,000 $200,000
unless the Commissioner approves a lesser amount.

(3)     The Commissioner shall adopt regulations specifying when a bond or
letter of credit less than $100,000 $200,000 is appropriate.

(4)     Notwithstanding paragraph (2) of this subsection, the Commissioner
may waive the requirement for a bond or letter of credit if the Commissioner finds that
the bonds are not generally available or reasonably affordable.

(5)     The Commissioner shall make a specific finding that states the reason
for accepting a bond or letter of credit in an amount less than $100,000 $200,000.

SECTION 2. AND BE IT FURTHER ENACTED, That each title insurance agent
possessing a certificate of qualification before the effective date of this Act shall satisfy the
requirements of this Act at the next renewal of their certificate of qualification.

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