How to Get Your Title Insurance License in Maryland
Are you thinking about launching a title insurance producer business in Maryland? Then you will need to undergo a rigorous administrative process before you can start your operations in the state.
You have to obtain a Maryland title insurance license that guarantees you are eligible to conduct such professional activities. The procedure entails that you meet a range of licensing requirements. Among them is posting a state title agency bond that ensures your legal compliance as a title insurance producer.
In the concise guide below, you can get acquainted with the main criteria that you have to satisfy so that you receive the necessary licensing.
The licensing requirements for Maryland title insurance producers
Title insurance producers in Maryland have to get a license from the state Insurance Administration. It is the authority that oversees the activities of insurance professionals in the state.
Corporations, sole proprietors, professional associations, partnerships, limited liability companies, and limited liability partnerships can obtain a license as a business entity.
In addition, all controlling persons and trust money controllers hired by a business entity have to obtain an individual license as a title insurance producer.
Applicants have to go through the required minimum of 20 hours of pre-licensing education and pass successfully the Maryland title exam.
The rest of the requirements include:
- Fill in on paper and submit the Title Insurance Producer – Individual Application Packet – Initial (for individuals) or the Title Insurance Producer Firm Application Packet (for companies)
- For applying companies: Biographical Affidavit for each controlling person and each trust money controller
- Pay a $54 fee
- Provide a $150,000 fidelity bond
- Post a $150,000 surety bond
Once you have completed the application form and prepared all necessary documents, you have to present their paper versions to the Insurance Administration:
The Maryland Insurance Administration
Attn: Producer Licensing
200 Saint Paul Place, Suite 2700
Baltimore, Maryland 21202
It typically processes individual applications within 10 to 15 business days, while company applications take longer – up to 30 business days.
Meeting the bonding criteria
As noted above, one of the major requirements that you have to fulfill to become a licensed title insurance producer is to provide a title insurance bond. The requirement applies both to individuals and businesses. You have to submit it in the official bond form. The purpose of the bond is to guarantee you will follow the law in your operations as a licensed professional. If you fail to do so, a harmed party can file a claim against your bond to seek fair compensation.
The bond amount is set at $150,000. However, in order to get bonded, you have to pay a small percentage of it. It is called the bond premium, and is set on the basis of your financial strength. The factors that matter include your personal credit score, business finances, and any fixed and liquid assets you may have. The stronger they are, the lower your bond cost can be.
Applicants with stable finances typically get rates in the range of 0.75% to 5%. Thus, for a $150,000 surety bond, you may have to pay between $1,125 to $7,500.
In addition, you also have to obtain a $150,000 fidelity bond. If you are applying as a business entity, it should be a blanket fidelity bond that cover appropriate employees and title insurance producer independent contractors. The pricing of this type of bonds depends on the amount of coverage and the number of employees.
Do you have more questions about getting your Maryland title insurance agent license and bond? You can speak to our bonding experts by calling us at 877.514.5146.
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