How to Obtain a Title Insurance Agent License in Pennsylvania
If you want to operate as a title insurance agent in Pennsylvania, you have to meet a list of licensing requirements that ensure your compliance with applicable laws and regulations. By fulfilling them, you can obtain a PA title insurance agent license that allows you to legally run your activities in the state.
The licensing procedures for individuals and businesses are similar, but have slightly different criteria. Most notably, among the requirements that applicants have to satisfy is to post a Pennsylvania title agency bond. It is a safety mechanism that protects the state and its citizens.
In the current guide, you can discover the essential details about the licensing, so that you can launch your new endeavor seamlessly.
The PA title insurance agent license requirements
The licensing of title insurance agents in Pennsylvania is handled by the state Insurance Department. It sets the requirements and issues the licenses. The Department also monitors the activities of licensees to ensure the protection of citizens.
You can obtain two types of licenses as a title insurance agent – as a business or as an individual. The requirements that you have to meet vary accordingly.
All title insurance agent applicants have to successfully pass the state exam showcasing their professional knowledge, as well as undergo a fingerprint background check. A surety bond in the amount of $100,000 is also required.
Once you complete the respective application form and obtain all necessary paperwork, you have to submit your documents online or on paper to the Department:
Commonwealth of Pennsylvania Insurance Department
Bureau of Licensing and Enforcement
1209 Strawberry Square Harrisburg, PA 17120
The biennial fees for both individual and business licensees are $55 for residents and $110 for non-residents. You also have to cover a Criminal History Record Report fee of $22.6 for the fingerprinting when you are applying for the first time. You can find further details about the licensing process in the Department’s guide.
In order to obtain a license for your title insurance company, you have to fill in the corporate application form. You need to complete the following information:
- Federal Employer Identification Number
- Business entity name and address
- List of owners, managers, officers, partners and designated licensees
- Background information
- Certification and Attestation
- Obtain a $150,000 blanket fidelity bond for all agency employees (with a deductible of no more than 15% of the bond penalty)
Your licensing starts with completing the application form for individual title insurance agent. It entails providing the following details:
- Personal and demographic information
- Employment history
- Background information
- Certification and attestation
Satisfying the bonding requirement
Applicants for a PA title insurance agent license have to obtain a $100,000 surety bond. The purpose of the bonding is to guarantee your legal compliance as a licensee. It protects the state and your customers against potential unlawful activities you may engage in while conducting your title insurance operations.
In order to get bonded, you have to pay a bond premium, which is a fraction of the required bond amount. The factors that affect it include personal credit score, business financials, and fixed and liquid assets. If your finances are strong, the typical rates are between 0.75% to 5%. Thus, your bond cost can be in the range of $750 to $5,000 for a $100,000 bond.
Need more information about the Pennsylvania title insurance agent license and bonding? You can reach us at 877.514.5146 to get assistance from our bonding specialists.