PARRIS N. GLENDENING, Governor                             Ch. 206

(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; OR

(III) A TITLE INSURANCE INSURER THAT IS LICENSED UNDER THIS
ARTICLE.

[ (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.]

(e) (2) If an applicant for a certificate of qualification is a corporation, 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.

(g) (1) In addition to meeting any of the applicable requirements for obtaining
a certificate of qualification under § 168(e) of this article, a sole proprietor, a corporate,
or partnership applicant for a certificate of qualification as a title insurance agent or a
title insurance broker shall file with the Commissioner:

(i) A blanket fidelity bond covering appropriate employees; and

(ii) 1. A BLANKET surety bond; or

2. A letter of credit.

(m) (1) (I) [ For] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH, NO LATER THAN DECEMBER 31 OF THE YEAR FOLLOWING THE YEAR
COVERED BY THE FINANCIAL STATEMENT, 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.

(II) AN INDIVIDUAL WHO IS AN EMPLOYEE, OFFICER, DIRECTOR,
PARTNER, OR MEMBER OF A LICENSED TITLE INSURANCE AGENCY SHALL BE
CONSIDERED TO HAVE MET THE REQUIREMENTS OF SUBPARAGRAPH (I) OF THIS
PARAGRAPH IF A STATEMENT OF FINANCIAL CONDITION OF THE AGENCY WITH
WHICH THE INDIVIDUAL IS ASSOCIATED IS ON RLE WITH THE TITLE INSURER AS
PROVIDED UNDER THIS PARAGRAPH.

(2) (i) The title insurer shall, at least annually, conduct an on-site review
of the underwriting, claims and escrow practices of [its] EACH title insurance [agents
and agencies, which] AGENT APPOINTED BY THE INSURER AS A PRINCIPAL AGENT AS
DESIGNATED IN THE TITLE INSURANCE AGENCY CONTRACT BETWEEN THE

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