1995 LAWS OF MARYLAND

(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.

(b) A title insurance agent OR TITLE INSURANCE BROKER may not convert or
misappropriate money 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.

(C) (1) 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) IF AN APPLICANT FOR A CERTIFICATE OF QUALIFICATION IS A
CORPORATION, THE MAJORITY OWNER AND 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.

(D) (1) WHEN THE APPLICATION OF A PARTNERSHIP FOR A CERTIFICATE
OF QUALIFICATION AS A TITLE INSURANCE AGENT OR TITLE INSURANCE BROKER IS
SUBMITTED, THE COMMISSIONER SHALL INVESTIGATE THE CHARACTER OF EACH
PARTNER OF THE PARTNERSHIP APPLICANT.

(2) WHEN THE APPLICATION OF A CORPORATION FOR A CERTIFICATE
OF QUALIFICATION AS A TITLE INSURANCE AGENT OR TITLE INSURANCE BROKER IS
SUBMITTED, THE COMMISSIONER SHALL INVESTIGATE THE CHARACTER OF THE
MAJORITY OWNER AND EACH OFFICER AND DIRECTOR OF THE CORPORATE
APPLICANT.

[(c)] (E) (1) [In addition to meeting the other requirements for a certificate of
qualification to act as an agent under this subtitle, a title insurance agent that has an
appointment from a title insurer shall file with the Commissioner:

(i) a fidelity bond;

(ii) a surety bond; or

(iii) a letter of credit.

(2)] IN ADDITION TO MEETING ANY OF THE APPLICABLE
REQUIREMENTS FOR A CERTIFICATE OF QUALIFICATION TO ACT AS AN AGENT OR
BROKER UNDER THIS SUBTITLE, A SOLE PROPRIETOR, A PARTNERSHIP, OR A
CORPORATE APPLICANT FOR A CERTIFICATE OF QUALIFICATION AS A TITLE
INSURANCE AGENT OR TITLE INSURANCE BROKER SHALL FILE WITH THE
COMMISSIONER:

- 3584 -

Ch. 635